Page 1 of 52 Table of Contents Message from the Chair ........................................................................................................................................................ 3 Executive summary ................................................................................................................................................................. 4 Focus forward .......................................................................................................................................................................... 6 Opportunities and challenges ............................................................................................................................................... 9 Challenges for the west coast region ............................................................................................................................... 13 West Coast Economic Development Diversification Strategy .................................................................................. 17 Place ......................................................................................................................................................................................... 39 Infrastructure ......................................................................................................................................................................... 42 People ...................................................................................................................................................................................... 43 Acknowledgements In developing this report Australian Bureau of Statistics and several supporting documents were relied upon. In August 2010 a Strategic Directions - West Coast Impact and Opportunity Study was undertaken and most of those identified issues are still relevant in 2014. In support of that an Issues Paper was produced, providing a summary of the desk research and setting out the factual basis supporting the identification of issues facing the region, and suggested opportunities for future development. Both reports were developed by The Regional Development Company Pty Ltd. The West Coast: Place Based Workforce Planning Report was completed in June 2014 in partnership between the Cradle Coast Authority and University of Tasmania’s Institute of Regional Development. The report sought to better understand the current west coast jobs market and to develop enduring local solutions and pathways for school leavers and the unemployed. A summary of this information is provided as the regional business case to this report and has been included as a resource to inform and empower local stakeholders. Page 2 of 52 Message from the Chair It is with pride that I present the final report of the West Coast Economic Working Group. Since July last year the Working Group has been diligent and methodical in its approach to helping the west coast reinvigorate and diversify its economy in the wake of Copper Mines of Tasmania’s (CMT) announcement that the Mt Lyell mine in Queenstown was moving to care and maintenance. The Interim Report in October 2014 focussed on the projects the group successfully requested the Tasmanian Government would fund. This final report focusses on the long term future of the west coast and the steps that need to be taken to help transition the economy, by enhancing other key industries alongside our mining sector. As the Chair of the Working Group I would like to sincerely thank a number of people. Firstly Sandy Chilcott and Chris Walpole for their time and effort as voluntary community representatives on the Working Group. I would also like to acknowledge Jared DeRoss and Scott Clyde from CMT for their efforts as members of the Working Group along with Mark Fagan from the Australian Workers Union and Councillor Robyn Gerrity, the former Mayor of the West Coast. I would like to also thank Kim Evans, Secretary of the Department of State Growth for his membership of the Group and the staff of State Growth for their tireless work and support of the Working Group and the projects that have been generated. Finally I would like to thank all those members of the community who submitted ideas and proposals to the Working Group for assessment. We were genuinely overwhelmed by the ingenuity and enthusiasm that members of the public demonstrated in participating in this process. At the outset, the Premier, Will Hodgman, made it clear that the Working Group would be in place for six months. Support for the west coast from the Tasmanian Government will however be ongoing. The West Coast Council is in the process of establishing an economic development committee and the Tasmanian Government is keen to work with local government to continue the progress that has been made in the last six months. Mining will always be an important industry for the west coast and the Tasmanian Government will continue to work with CMT on ongoing exploration to reopen the mine. With limited resources the task of creating projects for short term job stimulus and delivering long term economic diversification is not always compatible in timeframes for outcomes. As a group we believe through our endeavours we have achieved this balance in the West Coast Economic Diversification Strategy. We feel we have fulfilled the Premier’s mandate by initially coordinating support services for the community and then identifying and assessing a number of opportunities for economic diversification. Our mission was to be in the community providing critical support during this time of need to businesses, workers, families and the community. This happened by listening to local ideas. From this evidence we created a strategy that saw the implementation of a local social support network, additional on the ground services and financial aid. Tasmanian Government funding of $2.471 million for short and long term projects to create jobs, $125 000 of Australian Government support for tourism and fast-tracked $13.2 million of capital road improvements delivered local and relevant skills training. These equipped individuals to find alternative work and the active pursuit of new private investment including the introduction of a new regional air service and partnering with MMG to build a world class ‘gravity’ mountain bike experience. On a personal note, I am looking forward to continuing to work with the west coast community well into the future to help realise the positive future it deserves. Adam Brooks Chair, West Coast Economic Working Group January 2015 Page 3 of 52 Executive summary The core economy of Tasmania’s west coast region is primarily based on mining and mineral processing, aquaculture, tourism and hospitality. There is a heavy reliance on mining production, which is susceptible to the peaks and troughs of the global commodity market, and tourism which is a highly seasonal employment sector. In recent years local industry has been dramatically affected by the downturn in mineral prices coupled with the employment losses from traditional forestry practices in the region. The impact became quite prevalent with the announcement of Queenstown’s primary employer, Copper Mines of Tasmania (CMT), entering a care and maintenance arrangement in June 2014. With almost half of the west coast workforce employed in mining (39%1), this employment dependency saw the Tasmanian Government react immediately and assume an economic recovery coordination role. The aim of the recovery package was to implement a social network of support and develop an economic diversification strategy which sought to understand the opportunities that could be fast tracked in other core industry employment sectors in the region, those being tourism and hospitality (15%2) and aquaculture, which provides a comparatively small proportion of employment but as a sector is experiencing strong growth and healthy forward projections. The West Coast Economic Working Group (the working group) was established on behalf of the Tasmanian Government to engage directly with the community and local government to develop the recovery package to assist in reversing the negative trends impacting the region. The working group through its Chair, Adam Brooks MP, presented a package to the Tasmanian Government which recommended a range of local investment and job stimulus projects with the intention of creating more favourable economic conditions. These were coupled with projects to support existing industry to access skilled local labour by addressing skills shortages in the local labour market. Many of the initiatives supported by the Tasmanian Government through the strategy were created to either overcome constraints, or maximise on local opportunities. A lot of these projects are interrelated and have the potential to achieve multiple outcomes for the west coast. Through its investigations, the working group concluded that aquaculture, tourism, new mining ventures and their supporting supply chains, are seen to be the most likely future drivers for economic and employment growth; with retail, health and aged care, education, financial and personal services being necessary support sectors. Although the service economy is an important component, it depends on the strength and prosperity of the traditional, core economy for its survival. There is also a heavy reliance on secondary and service-based industries located in the broader north-west region. Like many more remote rural communities, the western region’s isolated communities are disadvantaged by not experiencing the same growth and breadth of opportunities as larger Tasmanian urban centres. The west coast region continues to grapple with industry closures, resultant high unemployment, issues with transport and communication infrastructure and the persistent outward migration of the population, in particular its young people. In light of the region’s challenges, the working group has focussed on the need for investment in new industries to strengthen the economy, underpinned by improved infrastructure, skills and vocational training and access to new markets such as the growing global mountain biking sector. At the same time, continued investment in core mining and mineral processing, aquaculture and tourism sectors will fortify any local economic development strategy for the immediate future. The West Coast Council (the Council) will take carriage of the working group’s efforts in partnership with the Tasmanian Government. This will be in addition to pursuing its own activities to lead and support new Eyles, KJ, Eversole, R and Broun, D, 2014, West Coast: Place Based Workforce Planning Project: Final Report, Institute for Regional Development, University of Tasmania, report commissioned by the Department of Education Employment and Workplace Relations and the Cradle Coast Authority. 2 Ibid 1 Page 4 of 52 and ongoing economic development on the west coast, as will be outlined in the Council’s five year strategic plan to be finalised in 2015. Page 5 of 52 Focus forward The Tasmanian Government through the working group was committed to identifying means to strengthen and diversify the west coast region’s local economy. Extensive consultation occurred to develop targeted measures to address the challenges faced by the region and capitalise on the region’s opportunities and assets. It is recognised that partnering with the West Coast Council in the development of priorities and delivery of actions, will drive the success of the region and those projects supported by the working group. This partnership was successfully proven during the delivery of the west coast Mt Lyell Assistance Program (MAP) launched in February 2014 which was designed to temporarily retain the mining workforce within the region, not only for the reopening of CMT mine but also for the Queenstown community. The Council-led initiative was highly successful and was recognised and celebrated on the national stage at the November 2014 Economic Development Australia conference in Darwin. Responsibility for the delivery and attainment of those employment and project goals lies not only with state and local government but with all those who live within the region. The working group which comprised state and local government officials and voluntary community members dedicated to identifying new opportunities to underpinning the growth of the west coast region and to overcome barriers of constraint to reaching its full potential. The working group worked tirelessly to lobby for financial and resource support, resulting in significant investment being made to help reshape the future of the west coast and its local economy. These outcomes are highlighted below and in further detail in the report in the table termed, West Coast Economic Diversification Strategy. TOTAL INVESTMENT $31 406 760 Tasmanian Government funding Australian Government funding Local Government funding Private investment leveraged $28 056 760 $1 820 000 $780 000 $750 000 (exc Par Avion) TOTAL IMMEDIATE JOBS (excluding contract/service provision jobs) West Coast Economic Diversification Strategy Miners Assistance Program o Council $500 000 o Tasmanian Government $400 000 o CMT half pay for workers for 6 months (excluded from total) Wilderness Railway Investment opened Capital investment for road improvements o Strahan Road o Murchison Highway 106 Funding $ 900 000 $11 000 000 Outcome * 90 displaced workers undertook induction: 56 Barminco, 8 WBF, 2 TPW, 3 contractors 2 jobs construction local service provision $13 200 000 local service provision improved access West Coast Business and Community Support Program $33 750 mentoring Contractor Development Program $26 000 business retention 6 local firms The Light Between Oceans feature film $75 000 15 jobs Hydro Tasmania survey 6 part time jobs New projects West Coast Mountain Bike Trails $1 210 000 local contractor Page 6 of 52 Surrounding Zeehan new and redeveloped trails experience approx. 30 jobs New world-class gravity experiences approx. 8 jobs Strahan Footpath Infrastructure Program – $775 000 job stimulus and infrastructure package in partnership with West Coast Council $500 000 approx. 20 jobs local service provision Horsetail Falls walking track experience $435 000 approx. 5 jobs local contractor Climies 4WD redeveloped track experience West Coast Experience Trust Fund – $500 000 tourism investment and job stimulus package $50 000 $250 000 approx. 3 jobs 5 new business (2015-16) 5 jobs (2015/16) Private investment RACT - West Coast Experience Trust Fund $250 000 Other private investment leveraged by the West Coast Experience Trust Fund (dollar for dollar) $500 000 Par Avion - introduction of a west coast air service 1 new business visitor attraction improved access King River Rafting CMT MAP contribution 1 new business 4 jobs undisclosed 6 month half pay for workers on stand down. Building a Stronger West Coast Frontline Housing refurbishments $300 000 West Coast Training and Skills Initiative $252 000 local service provision Certificate III mining qualifications 68 individuals trained local assessor Tourism Development Program 22 tourism operators Certificate III Forest Fire Fighter training 12 individuals trained Hospitality and adventure tourism training package under consideration West Coast public transport pilot program $100 000 Queenstown Heritage and Arts Festival $50 000 North Lyell Disaster Memorial Park $25 000 2 jobs Geo-tourism experience $25 000 2 jobs local contractors (2) Other West Coast Trade Skills Centre (Australian Government) $1 695 000 Jobs and training Strahan Footpath Infrastructure Program – West Coast Council $275 000 West Coast Employment Plan and Pilot (Australian Government) o tourism investment and job stimulus package o tourism and hospitality response to labour and skills pressures $125 000 approx. 20 jobs local service provision Aquaculture jobs in hub development 30 jobs School-based apprenticeship program 6 students employed Page 7 of 52 Worker support workshops 110 participants West Coast Benevolent Fund 5 recipients Strahan Waterfront Precinct Plan in partnership with TasPorts and West Coast Council ($25 000 project) $10 000 NBN roll out 2015-16 enabling future investment and job opportunities enabling future investment and job opportunities * Where jobs stated they are local and in addition to outside services. The future of the west coast region is, and will remain, a high priority for the government and the wind-up of the working group is by no means an end to the efforts associated with assisting the region. There will be a concerted effort for ongoing economic development planning and activities which will be led by the West Coast Council and the community and supported by the Tasmanian Government. This formal body of work will be developed through the 2016-2020 West Coast strategic planning process in mid-2015. Page 8 of 52 Opportunities and challenges West Coast region’s opportunities West Coast vision The West Coast Council’s current Strategic Plan 2010-2015 states that the Council is: “Planning for sustainable growth, confidence and prosperity.” It further states: “We want to be a community that: is proud of who we are and where we live enjoys a quality of life based on our unique natural heritage will plan effectively for our future works together for the benefit of the whole west coast, and constantly identifies and realises its opportunities.” The Council under the direction of the new General Manager is about to embark on developing the next five year vision and strategic plan equipped to deal with the current economic climate. This will be guided by the work that has been undertaken by the working group and will look at ways in which the community will leverage the projects that have been supported by the Tasmanian and Australian Governments in the region. This platform for economic reform places the region in a position to diversify its local economic base and to reduce the reliance on the mining sector as its primary source of employment. This critical planning for the region will also assist the Council to understand its position to resource future economic development activities in order to play a key leadership role within the community in securing the future of the region. The place The west coast region is described by its people as being a place that remains free, clean, natural, open and wild. There is a retained spirit of pioneering and self-reliance. It is described as safe, supportive, wellserviced, and possessing a clear sense of community identity and inclusion and an emerging cultural arts sector.3 Each town in the region is distinctive in nature and history and located within a variety of landscapes. Each has high accessibility to amenities and features including open and natural spaces, enabling active and inclusive lifestyles and convenient local access to daily needs in employment, education, health, social, cultural activities and recreation for all people regardless of age, background or physical ability. The ability of the region to sustain and support a liveable and sustainable community into the future can be enhanced and protected by ensuring the level of access and investment in community and human service infrastructure and in business and employment activity is adequate in purpose, scale and location to meet both local and regional needs.4 3 4 Cradle Coast Authority, 2011, Living on the Coast - Regional Land Use Planning Framework Ibid Page 9 of 52 Industry pillars There are essentially two main drivers of the economy of the west coast, these being the mining and tourism sectors. While mining accounts for only 1.3% (3 500 people) of all employment for Tasmania5, for the west coast it represents 39% (2 310 people) of the total workforce. The tourism sector provides 7% of jobs in Tasmania, but accounts for nearly 15% of all west coast employment – representing 2.5% of all tourism sector employment in Tasmania. Together, mining and tourism directly provides jobs for 54% of all employed persons in the west coast – or approximately one job in every two. A large proportion of other jobs in the region could be expected to be supported by these two sectors (indirect employment). The strength of these two sectors as economic drivers in the region demonstrates their importance in the future development of the region, and at the same time represents a weakness in terms of the region’s vulnerability to the mining sector and its cyclical nature and influenced by commercial decisions made outside of Tasmania. This vulnerability is a cause for concern. Over the past 10 years, employment in the mining sector has declined in both absolute and relative terms. In contrast, the tourism sector (secondary in employment importance to the region) increased in both relative and absolute terms. The tourism sector has been identified as an opportunity for employment growth in the areas of heritage mining, adventure and ecotourism. Significant investment has been made in projects for the development of a mountain bike trail experience, ecotourism and walking trails, white water rafting and business development for mining and heritage tours. In addition, $250 000 has been committed by the Tasmanian Government in partnership with RACT who have provided a matching $250,000, to provide a $500 000 loan facility to enable new tourism products for the west coast. Liveability, arts and culture Liveability is recognised worldwide as an important influence on the economic growth and development of regions. Issues such as access to services, infrastructure, amenities, transport, workforce availability, job and career opportunities, health and education facilities, housing and the opportunity for cultural and sporting pursuits are important considerations for both potential residents and investors in choosing a location to live or operate a business. Liveable places also attract and retain highly skilled, productive and creative people who drive innovation and economic growth. For the region to have a strong regional economy there needs to be a balance of economic activity that is supported by available and appropriately zoned land, sustainable utilisation of natural resources and peoplefriendly communities. This region has many of those attributes which offer a degree of liveability, and the people residing in this region are well known for their passion and pride in their land and for their commitment to community, industry resilience and strong arts community. In recognition of the importance of the arts and culture industry to the region the Tasmanian Government committed a further $50 000 to expand the Queenstown Arts and Heritage Festival in 2014 to encompass the broader west coast region. 5 Australian Bureau of Statistics, 2011, Census Page 10 of 52 Maximising west coast opportunities through investment in economic development projects The Tasmanian Government has provided support by bringing forward its Building a Stronger West Coast package to be available in the current financial year rather than the planned 2014-17 timeframe. This package included: $300 000 for frontline public service housing upgrades $252 000 for regional west coast training and skills initiatives $100 000 for improved west coast public transport pilot program $50 000 support for the Queenstown Heritage and Arts Festival $25 000 to complete the North Lyell Disaster Memorial Park $25 000 towards geo-tourism opportunities for the west coast. The working group utilised the Tasmanian Government’s commitment of $252 000 for a west coast training initiative to leverage an additional $125 000 funding from the Australian Government for a Tourism Employment Plan and supporting pilot projects. Further to these key commitments driven by the working group, the Tasmanian Government has also committed to projects which offered immediate local job opportunities, improved necessary infrastructure to support the region’s industry and to offer new industry opportunities to reduce the reliance on employment within the mining sector and diversify the local industry base. These projects included: Infrastructure $5.2 million upgrade of Strahan Road for improved access to the new aquaculture hub to support growth in the local industry. $8 million upgrade to Murchison Highway for improved regional access. Investment and employment $75 000 for the DreamWorks production, The Light Between Oceans to extend casting and support crew opportunities to west coast residents. Committed funds to reopening the full West Coast Wilderness Railway to Strahan on 15 December 2014, including a total commitment of over $11million in the forward estimates. Community survey project in partnership with Hydro Tasmania during November – February. $435 000 towards a new Horsetail Falls walking track. $1 210 000 for a new industry opportunity to establish the West Coast Mountain Bike trails centred around Zeehan. $50 000 Climies improve and reopen a 4WD track experience. $500 000 West Coast Experience Trust Fund (jointly funded with RACT). Facilitated an agreement with Hydro Tasmania to enable the start-up of a private operator of white water rafting tours. Investigate fast tracking exploration for new and existing mining operations in the region. $10 000 was committed to complete a Strahan waterfront precinct plan to ensure future development capability of a strategic site for the region. Industry skill development $30 000 from the West Coast Training and Skills Initiatives - Tourism Industry Development Program to assist industry to grow, develop and add new product offerings to the region. Committed $26 000 to a Contracting Industry Development Program to assist those contracting firms impacted by CMT entering care and maintenance. This program will assist firms to pursue joint venture opportunities, improve tendering capabilities, and develop business and marketing strategies to ensure sustainability and growth. Page 11 of 52 Other key projects of interest – private sector The potential development of a proposal of a local whisky concern based in Strahan to link into the already popular food and beverage trail growing throughout the state. The potential opening of the Grandville Tin Mine. The potential Granville wind farm, should energy market prices become competitive for renewable energy. Page 12 of 52 Challenges for the west coast region The State of the Regions 2012-136, commissioned by the Australian Local Government Association, highlighted the following challenges for the region: High under-utilisation of: most competitive enterprises entrepreneurial talent cultural diversity mining employment opportunities. Moderate under-utilisation of: youth resources trade and tertiary skills potential of heavy industry medical infrastructure lack of integration into a regional economy. This indicates that the region is not operating at a level to realise its full potential and that there is opportunity to enhance and improve the region to strengthen the local economy. Further to those key challenges, the working group identified other imposts on the region and supported projects which offered the opportunity to reduce those negative trends and challenges through underpinning the region’s infrastructure, industry and community. Infrastructure The broader north-west region offers adequate medical infrastructure to support the west coast but is underutilised in services due to a lack of attracting the necessary level of medical practitioners to the region. Health infrastructure and services are a key part of a modern liveable place, particularly for an ageing population requiring access to more services more often than other age groups. The North West Hospital in Burnie will continue to be the primary hospital and health centre in the region, complemented by the West Coast District Hospital at Queenstown. The National Broadband Network (NBN) will significantly underpin and contribute to this liveability especially in our more isolated communities by providing ubiquitous high speed internet access across the state. It will open up opportunities for new businesses and new markets, enabling opportunity in regional areas to connect with the world. The ability of the region to provide immediate access to a more specialist level of services in health at the local level will automatically increase attractiveness and assist to compete on liveability. The adoption of technology may be a mechanism to provide an affordable and sustainable means of service provision. An example of this is the aged care coordination project referred to as the 4 Cs (Cradle Coast Connected Care) developed by the Cradle Coast Campus UTAS. The project incorporates the new NBN infrastructure to improve aged care systems for palliative care programs across multiple health providers for a coordinated and secure service to demonstrate how technology adaption can overcome duplication of metropolitan health services in rural areas. The region supports multiple venues and facilitates opportunities for all residents to participate in, and have access to, cultural, artistic, recreational and sporting activities and events. Through the Queenstown Heritage and Arts festival the community aims to build capacity and invest in the region’s creative capital and supporting talent. 6 Australian Local Government Association, 2013, State of the Regions 2012-13 Page 13 of 52 The provision of sport and recreation programs and infrastructure also has benefits for the region in terms of liveability and the economy. Participation in sport and recreation encourages social inclusion and connected communities that are more attractive places to live, work and visit. In 2011 a study was released by the Australian Innovation Research Centre which showed that sport and physical recreation is a significant contributor to the Tasmanian economy. The Value of Sport and Physical Recreation to Tasmania7 demonstrated that relatively modest expenditure in sport and recreation is far outweighed by the revenue, cost savings, and community benefits derived from sport and recreation, with every $1 invested delivering over $4 in benefits to Tasmania. As outlined in the attached regional context, the region has an older demographic, than the state and national average. For industry labour pools this is a critical issue. However, there is an employment and investment opportunity from this in development of regional aged care, improving liveability, especially for smaller towns and rural areas. The commercial investment in aged care is important from the standpoint of service provision to local communities and the economic benefits this can bring in terms of demand for local goods, services, skills and employment and the retention of youth. Industry The region has the challenge of continuing to diversify its economy and to broaden its service industry base to build resilience that will enable the economy, and the population, to weather unpredictable events and future economic shocks. Employment in the region is very dependent on mining and tourism, which between them directly employ 54% of the region’s workforce. Both industries are vulnerable to downturns in the national and global economy. This is seen in the industries that have downsized over the past 12 months, including CMT, impacting on the small and medium enterprise sector, which may have a consequential downturn. The challenge for the region is to diversify by adopting more global and niche industry opportunities, as the region cannot compete on scale. The introduction of the NBN has the potential to enhance the ability to achieve this. The Tasmanian Government has sought confirmation from the Australian Government on a rollout date for the west coast. Industry is restricted by lack of skilled, experienced workers and could benefit from taking advantage of lean process and systems. When seeking specific skilled labour such as engineering, the appropriate employee with already established qualifications and experience in many cases will reside outside the west coast. This presents the demand and opportunity to extend vocational and skills training. Crown Land has been working over recent years with local industry to redevelop the Queenstown industrial site to overcome legacy issues and make the industrial park more appropriate for future purpose. Muller, P, Wadsley, A, Adams, D, Arthur, D & Felmingham, B, 2010, The Value of Sport and Physical Recreation to Tasmania, Australian Innovation Research Centre, University of Tasmania, Australia 7 Page 14 of 52 Community The five dispersed town settlements of the west coast present an ongoing challenge in the balance between, availability and sustainability of services and infrastructure for each of the towns to cater for daily requirements for employment, education, health, retail and social activity with minimal travel requirements. The only alternative to avoid offering replicated services, would be to ensure available public transport with appropriate scheduling and service routes to create greater connectivity between the towns. Current levels of public transport do not effectively cater for the west coast’s transient workforce and the high levels of personal mobility for education, recreation and social activity. The continued reliance on personal motor transport as the principal and preferred mode of transport also has implications for a safe and functional intra-regional road system for the community of the west coast. For this reason the Tasmanian Government has committed $100 000 towards a west coast bus pilot program to identify ways in which the community could be better serviced within the broader region and to improve connectivity between communities. Services rely on a regional or sub-regional population and therefore cannot efficiently or effectively be provided through multiple sites across towns. These services, because of service volume, workforce specialisation, cost or location constraint, or critical dependence on other service sites, can only be delivered sustainably from a single or limited number of sites. This is why such services as transport, waste management, land use and waste and storage, planning, and infrastructure all need to be reviewed at a regional level not at a local government level. The infrastructure currently dispersed through the five towns places a significant cost impost on the Council and its asset management plan. The Council as part of a north west network of local government agencies needs to review options for resource sharing and servicing synergies with other regional councils. Population The population in the region is in decline and also faces the demographic trend of an ageing population. An ageing population will lead to a growing dependency ratio in the region and the need for increased service industries to support different housing options to meet the needs of the elderly. Providing services to aged persons in more remote locations and scattered towns and communities across the region will present ongoing challenges. It is difficult to foresee the trend in population ageing will be reversed, particularly in the short to medium term and this provides an opportunity for job creation in aged care and aged support services. These industries employ mainly casual workers and could also support the increases in female participation levels. The healthcare and social assistance industry sector employed 4.3%8 of the west coast (local government area) workforce in 2011, compared to 10.8 % in the greater north-west region, and 12% for the state. However, an opportunity for the region with an ageing workforce is the ability to harness those entering retirement into mentoring and volunteer roles, which are vital for passing on skills and knowledge to youth in the region, social inclusion, community service provision and overall quality of life for residents. There is also an outward migration of young people to pursue educational and career opportunities that do not exist in the region. Over recent years there has been competition for skilled workers migrating to areas that were experiencing the mining boom. However this eased in late 2012-13 as industry slowed down in the sector, commodity prices lowered and several major projects like Olympic Dam did not commence. This also resulted in local suppliers experiencing a reduction or cancellation of orders. Migration of young people out of the region is an issue and would be slowed by creating employment opportunities, particularly in skilled trades. Improved provision of local training opportunities should 8 Australian Bureau of Statistics, 2011, Census Page 15 of 52 provide support and reduce skilled trade shortages. Labour market entry may also be assisted by opportunities in the retail, accommodation and food services sectors. It is imperative to continue to focus on developing local and industry sectors to grow career options and minimise outward migration. There is also growing competition between regions to attract retirees seeking highly liveable areas with competitively-priced housing and quality facilities and services, which will present challenges to communities keen to attract new migrants and counterbalance the outward migration trend. There is a lack of cultural diversity and migration within communities in the region, which is seen throughout Tasmania. Education The region has low school retention rates, low education participation rates and a reliance on government subsidisation. Literacy levels in the region are relatively low with less than 50% of the workforce possessing adequate literacy and numeracy skills required for individuals to meet the complex demands of everyday life and work.9 Expansion into matriculation and higher education facilities and services and increased workforce training will be required to better integrate the region’s workforce, economy and lifestyle and to address future workforce and skills needs. There is an opportunity for the region’s youth to be better integrated into society through local activities and the local workforce to provide a better appreciation and encouragement for further education. Improved vocational training opportunities and engagement through education and employers would support this. Extension of the Year 11 and 12 curriculum could be introduced to the high school system in the region to offer a full post-secondary qualification. Challenges facing the west coast are a combination of interrelated issues: ageing population and decline need for specialised industry training (not necessarily qualification based) in the region need for employment to attract and retain families perceptions of lifestyle availability of suitable housing supply of infrastructure such as education and health services, as well as land available for industry and employment activities a rise of drive in/drive out employment. Australian Department of Education, Employment and Workplace Relations, 2010, Regional Employment Plan: North West/Northern Tasmania Priority Employment Area 2010 9 Page 16 of 52 West Coast Economic Development Diversification Strategy The working group, after consideration of the opportunities and challenges currently facing the west coast region, has identified the following constraints and initiatives to help assist in the path forward to strengthening the local economy. Opportunities Current initiatives Status (as at January 2015) To enhance participation and provide new opportunities for economic and social activity at a global scale for the west coast region. Digital Ready Program is currently being delivered to assist the region to maximise opportunities in the digital economy in preparation for the infrastructure roll out by NBN Co. Tasmanian Government engaged with the Australian Government to progress NBN works on the west coast. Infrastructure National Broadband Network (NBN) Improved access and mobility in the region Commencement for Rosebery, Queenstown and Zeehan is scheduled between early Dec 2014 and June 2016. A new passenger air service by Par Avion will be Access via air is essential to regional development to introduced twice a week between Strahan and provide easy, fast freight alternatives and a costHobart. effective means for passengers entering and exiting the west coast. The introduction of a new small passenger Tasmanian Government commitment for $100 000 air service by Par Avion twice a week on Tuesdays and for improved west coast public transport pilot Thursdays between Strahan and Hobart is expected to program. commence in February 2015. The Department of State Growth has finalised the procurement plan and strategy for this trial service. The service will be procured through an open tender process as a Request for Proposals. The tender was formally released in January 2015. Subject to the tenders received, it is anticipated that a new trial would commence in May/June 2015. Page 17 of 52 Current initiatives Status (as at January 2015) Investment and employment Jobs stimulus project - footpath works in Strahan West Coast Council supported by the Tasmanian Council to submit a works plan in January 2015. Government through funding $500 000 of $775 000 Commencement date is expected February 2015. The footpath works in Strahan. project will be completed over two months (equivalent to 500 work days) and requires 10 FTEs. The Council currently has 70 affected workers registered, and expects further registrations. These workers will all be provided the opportunity to participate in the project. Adventure tourism Tasmanian Government is committed to developing West Coast Mountain Bike Trails and branding the: EOI for Trail Design - public comment closed 5 West Coast Mountain Bike Trails, centred around January 2015 with 45 submissions received. Zeehan Land tenure/access under review and negotiations Climies 4WD track with Forestry Tasmania. Horsetail Falls walking track. Tender process for trail building companies closed 16 January 2015. Expressions of Interest have been sought from three Tasmanian and one mainland business. Expected crews for each trail to be around 8 affected workers, estimated up to 50 labour positions Local contractor WBF contracted for supervision, coordination and hire of local equipment. WBF were onsite 8 January 2015 for familiarisation of works. Page 18 of 52 Current initiatives Status (as at January 2015) Tasmanian Government is committed to supporting new adventure tourism products to the region through the West Coast Trust Fund, the Enterprise Centre Program and industry development and facilitation through the Department of State Growth. The trail program comprises two separate projects; the first - upgrades and new trail developments connecting townships and offering an adventure tourism experience around Zeehan, has an expected completion date of October 2015. The second designing a new world class trail experience expected completion 2016. Climies 4WD track TasSpan will be contracted to undertake bridge works with the support of volunteers from the NW 4WD club. The 4WD experience, which is recognised as one of the Top 10 4WD tracks in Australia, is expected to reopen by February. Horsetail Falls walking track Sinclair Knight Merz contracted to undertake engineering works. Construction commencement for 8 affected workers on 12 January 2015 and local contractor WBF contracted for supervision and coordination. Project to be completed April 2015 (weather dependant). Tourism Trust Fund is in the development phase by RACT. The fund is expected to be available no later than mid-2015. Hospitality West Coast Tourism Employment Plan and pilot The Tourism Employment Plan will deliver practical projects supported by Australian Government for tools and training to help tourism and hospitality $125 000. businesses respond to labour and skills pressures expected to commence late February 2015. Page 19 of 52 Current initiatives Status (as at January 2015) Mining and heritage tourism The Tasmanian Government supported Enterprise Commenced October 2014 and ongoing. Centre Program, deployed consultants to assist specific small business operators to grow mining heritage tourism through improved product and market development. Tourism development Tasmanian Government committed $250 000 to the West Coast Experience Trust Fund is in the program $500 000 West Coast Experience Trust Fund development phase with RACT and expected to be (jointly funded with RACT) to support local available mid 2015. opportunity to establish new tourism product offerings in the region. Tasmanian Government committed $980 000 Tasmanian Government committed to continuing to funding for the Enterprise Centre Program and provide small business support to the west coast through the Enterprise Centre Program including local Mentoring Services Tasmania. tourism operators. Tasmanian Government committed funding of $25 000 towards a new geo-tourism opportunity for The local Lions Club is managing the geo-tourism trail the west coast. This project in partnership with the project with a geo-consultant to deliver on a new local Lions Club involves the contracting of local tourism product of a geo trail. The project will deliver songwriter, photographer and labour to create new an opportunity for 2 labour positions for affected workers, and contract work for the local sign writer experiences on existing geological sites. and the local photographer. Tasmanian Government committed funding of $30 000 Tourism Development Program to assist Tourism Development Program engaged 22 industry to grow, develop and add new product participating local businesses. All sub programs are offerings to the region. The program comprised five finalised except Digital Ready which is expected to be sub programs: Tourism 101, China Ready, Digital completed March 2015. Ready, Distribution Ready and Product Development. Each comprises a group delivery session and one-on-one coaching. Page 20 of 52 Current initiatives Status (as at January 2015) $11 million investment to complete works for the Works are complete and the Railway reopened on 15 West Coast Wilderness Railway. December 2014. Mining Tasmanian Government is committed to supporting Tasmanian Government through the Department of existing and new mining ventures based in the State Growth is currently considering options for region. support for existing and new mining venture projects. Miners Assistance Training Program was designed for the reskilling of displaced mine workers and to provide further options for reemployment. The training consisted of: Miners Assistance Training Program commenced in October 2014 and expected completion March 2015 graduating in excess of 68 affected CMT workers in formal Certificate III mining qualifications. Certificate III in Resource Processing Certificate III in Underground Metalliferous Mining Certificate III in Surface Extraction Operations. Tasmanian Government supported the mining sector supply chain by funding $26 000 to a Contractors Development Program. Aquaculture hub Contractors Development Program commenced on 15 December 2014 and will be completed by May 2015. Six local west coast businesses participated in the first workshop on 15 December 2014. Australian Government supported the shared Hub site development is complete. aquaculture hub development in Strahan in excess of $7 million to support a total private industry Road works are underway – tender process included greater emphasis on local industry participation plan. investment in the region of $30 million. Next stage of works to commence shortly - tender process included greater emphasis on local industry participation plan. Page 21 of 52 Current initiatives Arts and culture Status (as at January 2015) Tasmanian Government committed funding of Queenstown Heritage and Arts Festival was held 11$50 000 to support the Queenstown Arts and 12 October 2014. Heritage Festival to encompass the broader west coast region. Economic and community growth Local economic development and business support Enterprise Centre Program – Braddon Business Ongoing funding and resource commitment. Centre continuing to service the local west coast region to provide free ongoing business mentoring and support. The Tasmanian Small Business Mentor Service. Ongoing funding and resource commitment. Department of State Growth industry and small Ongoing funding and resource commitment. business development support and delivering current initiates for small business locally in the west coast region. Population attraction Development of a Tasmanian Population Strategy. A Tasmanian Population Strategy is under development by Department of State Growth, expected completion by mid-2015. Community support Tasmanian Government commitment of $25 000 to 2 affected CMT workers were contracted for labour, complete the North Lyell Disaster Memorial Park. and expected completion date is February 2015. Community wellbeing networks Established the West Coast Municipal Recovery This committee was the first pilot recovery committee Committee to support the working group to since the establishment of the new State Emergency provide targeted community and health services for Management Plan released in January 2014. the region. Page 22 of 52 Status (as at January 2015) Current initiatives Established a benevolent gift fund in partnership with The West Coast Municipal Recovery Committee Rural Business Tasmania, which is available to continues to meet and there is ongoing resource affected members of the west coast community. commitment. Tasmanian Government contracted and secured Benevolent gift fund available to provide $500 funding for Rural Business Services to provide individual hardship assistance to the community counselling support to the local community and through Rural Business Tasmania. affected workers. Tasmanian Government committed $36 000 for four months of additional on-the-ground counselling support service to the west coast. This project was completed in November 2014. Education and skills Youth The West Coast established to: Futures Committee was West Coast Futures Committee meets regularly to discuss strategies for the west coast. Identify and lead initiatives aimed at improving the The Deputy Premier and Minister for Education, quality of education and work opportunities for Jeremy Rockliff MP, met with the group on the west young people in west coast communities. coast for an update on 19 November 2014. Establish and maintain positive links with the Education Department and the Minister for Education. Provide advice to the Minister on matters of regional significance and seek assistance to solve community problems. Be the catalyst for encouraging supportive links with community and business leaders to schools in the region. Page 23 of 52 Status (as at January 2015) Current initiatives Inspire community ownership of local problems and assist to facilitate solutions. Encourage and provide support for activities aimed at improving the health and well-being of the community’s people. Initiate activities designed to improve perceptions of life in west coast communities. Mentoring The Tasmanian Small Business Mentor Service links Ongoing funding and resource commitment. small business operators with experienced mentors who provide free, objective mentoring to assist Tasmanian businesses to grow and prosper. Businesses can access the service through any Enterprise Centre. Education and skills participation and attainment Trade Skills levels Queenstown. Centre to be established in Australian Government committed $1.7 million in July 2014 to supporting a Trade Skills Centre at Queenstown. Page 24 of 52 Future initiative options: Infrastructure Local employment options in the NBN rollout to the west coast region. The development of a single Tasmanian Planning Scheme. Investment and employment Identify other mining and heritage tourism opportunities. Attracting private investment into a small local whisky concern to link into the Tasmanian Whisky Trail. Tasmanian Government has appointed a Coordinator-General commencing January 2015 to seek further private investment into Tasmanian industry. Option for Skills Tasmania to assist in local industry workforce development planning. Option to review future local processing opportunities within the salmon and trout industry. Council to continue to proactively support opportunities for all residents to participate in, and have access to, cultural, artistic, recreational and sporting activities and events. The community through the Queenstown Heritage and Arts festival aims to builds capacity and invest in the region’s creative capital and supporting local talent. Establish an early childhood care service in Strahan to enable greater participation in the employment market. Economic and community growth Government to ensure small business support is relevant and accessible to regional and remote communities. Council and Tasmanian Government to continue to proactively support existing community wellbeing networks. Option could be to develop a pilot program in the region with a focus on aged care investment as one means of improving liveability in the region. Branding to change perception of lifestyle on the west coast. For example the Council could assist the community to identify a localised branding strategy to promote the wild west within Tasmania and abroad to showcase its distinctive nature and history, located within a variety of landscapes. Each town offering an accessibility to amenities and features including open and natural spaces, enabling active and inclusive lifestyles and convenient local access to daily needs in employment, education, health, social, cultural activities and recreation for all people regardless of age, background or physical ability. Branding to change perception of climatic conditions. Local research shows that there are on average over the last 10 years 200 clear days per annum on the west coast. A focus on a positive message around climatic conditions may assist in visitor and population attraction. An opportunity for the region with an ageing workforce is the ability to harness those entering retirement into mentoring and volunteer roles, which are vital for passing on skills and knowledge to youth in the region, social inclusion, community service provision and overall quality of life for residents. Strahan Community Centre – to provide community facilities for use by social and community groups and sporting bodies, particularly in the event that community recovery is required after a disaster. This will become an issue with the expected growth resultant from the Macquarie Harbour aquaculture expansions. South Queenstown Connector – to open up tourism and other development opportunities and provide Queenstown with a safer, more direct route to its community and school situated in the south. Strahan Viewing Platform – an addition to the Strahan shared cycleway, the platform with appropriate interpretation will allow visitors and locals an opportunity to enjoy the natural and scenic wonders of Strahan. Page 25 of 52 The planned expansion of Macquarie Harbour-based aquaculture will involve significant private sector investment, growth in employment and demand for associated service industries. Growth from this development will drive similar downstream growth in the logistics/supply chain and processing facilities at Devonport, Parramatta Creek and Hobart. The planned relocation of Tassal and Huon Aquaculture infrastructure from the tourist area in the centre of Strahan to a proposed aquaculture hub at Smith’s Cove, where Petuna is currently based, has been assisted by funding from Regional Development Australia (RDA). This is seen as positive by the proponents as well as the local community. If this development proceeds it will free up parts of the Strahan tourist area for other ventures, and potentially attract supporting businesses to establish at the aquaculture hub precinct. To prepare Strahan for the growth associated with the aquaculture industry consideration needs to be given to some key infrastructure issues. In undertaking future local government planning, there are a number of areas of concern involving various stakeholders and considerable facilitation will be needed to ensure that all of the following issues are taken into account: transport routes and emergency points within and around Strahan establishment of the aquaculture hub at Smith’s Cove establishment of an industrial precinct adjacent to, but independent of, the aquaculture hub housing for employees community facilities for an expanded labour force restoration of the wharf area when vacated. Education and skills There is opportunity in early identification and development of the future leaders on the west coast: civic, social, business, environmental and cultural. To harness local talent there should be a particular focus on young people who for a range of reasons may not have the opportunity to participate in leadership development and training. Increasing awareness and uptake in school-based apprenticeships for better retention in school and work experience and industry engagement. Well-coordinated local industry and career expo. Options to offer local hospitality training are currently under review. Vocational and career training facility and course management to be partnered with private industry focussing on areas such as tourism, retail, catering, hospitality and service industries. Long term vision of considering a Mining School of Excellence (feasibility study to establish viability would be essential) Page 26 of 52 Constraints Current initiatives Status (as at January 2015) Tasmanian Government funded $13.2 million towards road improvements: Road works are underway – tender process included greater emphasis on local industry participation plan. $5.2 million to improve access to the new aquaculture hub precinct Next stage of works to commence shortly - tender process included greater emphasis on local industry participation plan. Infrastructure Road transport infrastructure and access to the west coast $8 million to the Murchison Highway. Commercial water and sewerage infrastructure sufficient to cater for new industry development TasWater to review capital works program for potential employment and investment stimulus. TasWater reviewed its capital works program to fast-track works to the region for employment and investment stimulus –small project works in progress. Loss of a direct international shipping service from Tasmania Tasmanian Government has committed $33 million towards the reintroduction of an international shipping service to Tasmania to support industry. MOU signed between Swire Shipping and the Tasmanian Government in anticipation of the reintroduction of a direct shipping service in 2015. Core infrastructure systems are fixed, long-term and high capital investments designed to a specific capacity and function and with limited flexibility to adjust for change in demand Tasmanian Government has committed $10 000 towards the $20 000 project in partnership with TasPorts and West Coast Council to complete a Strahan Waterfront Precinct Plan to enable infrastructure and support future industry growth. The Strahan Waterfront Precinct Plan has been completed. Redevelopment of the Queenstown Industrial Site. Crown Land is continuing to work closely with industry on the industrial site as they transition from a CMT held lease arrangement to dividing the site into individual leases equipped with separate services provision. Page 27 of 52 Current initiatives Status (as at January 2015) Reduction in rail service provision TasRail is engaging with industry to ensure demand on rail freight routes between mining production and processing catchments and ports services are met where feasible. Ongoing. Under-utilisation of land and mining employment opportunities Mineral Resources Tasmania (MRT) proactively working with the mining sector to ensure that land is not being held unnecessarily on lease agreements which are not being utilised. Ongoing. Quality housing provision Tasmanian Government commitment of $300 000 to frontline public service housing upgrades to improve attraction rates. Commitment was divided equal between Tasmanian Police, Departments of Health and Education and has been fully committed to local service providers and in progress to be completed by June 2015. Tasmanian Government committed funding of $75 000 for the DreamWorks production, The Light Between Oceans to extend casting and support crew opportunities to west coast residents. The DreamWorks production, The Light Between Oceans has completed filming in Strahan. There were 10 locals cast for the production and five local jobs in security services. Tasmanian Government recognised the West Coast Wilderness Railway as a critical visitor attraction to the region and accordingly provided funding of over $11million in the forward estimates for railway. Wilderness Railway reopened 15 December 2014, employing 36 people. Investment and Employment Job Stimulus Package Tasmanian Government committed $500 000 to the West Coast Council to provide critical footpaths in Strahan, utilising local labour, service and inputs. Community survey project in partnership with Hydro Tasmania during November 2014 – February 2015. Tasmanian Government committed $435 000 to the Parks and Wildlife Service to develop Horsetail Falls - a new short and Commencement of the footpath project expected in February 2015, creating local job opportunities for affected workers. Community survey project in progress - six local part time local employment positions. Horsetail Falls track is in progress expected completion April 2015, employing an estimated eight affected local workers and one local contracting firm to supervise the project on site from 8 January 2015. Page 28 of 52 Current initiatives accessible, scenic walking track to provide a new visitor attraction experience for Queenstown, utilising local labour, service and inputs. Tasmanian Government committed $1 210 000 to Parks to create a new industry opportunity (and supporting supply chain) in establishing the west coast mountain bike trails, centred around Zeehan. This opportunity creates a new, unique visitor attraction experience and potential or new business ventures for the region, utilising local labour, service and inputs. Status (as at January 2015) West coast mountain bike trails is in progress expected completion October 2015. An estimated 40 displaced local employment positions and one local contracting firm to supervise the project on site from 12 January 2015. This refurbishment project has been contracted out with majority of works utilising local labour, service and inputs to undertake the works. Tasmanian Government brought forward the commitment of $300 000 to fast-track works to undertake refurbishment of housing for frontline public service in Police, nursing and education in Queenstown. Labour force participation Tasmanian Government committed funding of $252 000 for 2014 2015 under the West Coast Training Initiative for local and relevant training delivery. A further $26 000 has been committed by the Tasmanian Government to a Contractors Skill development program with a focus on diversification and identifying new tender options for local operators. Tasmanian Government committed funding of $33 750 to the West Coast Business and Community Support Program $180 000 funded to RII Skills Centre and Tasmanian Safety and Training Services for ex-CMT employees to complete 3 Certificate III in mining qualifications, delivered on the west coast. Completed: $38,500 to fund Certificate II in Public Safety, Forest Fire fighting delivered on the west coast $30 000 for the Tourism Employment Program – China Ready and Distribution Completed. Digital ready to be completed by March 2015. Under consideration: a proposal for training in digital media, hospitality service, and mountain bike and white-water paddling guiding. Four-month intensive support program to local business post the CMT announcement Page 29 of 52 Current initiatives Status (as at January 2015) Ageing population Population Strategy A Tasmanian Population Strategy is under development by the Department of State Growth, expected completion by mid2015. Outward migration Tasmanian Government has committed funding of $2.471 million to local projects under the recovery package to create local investment and employment options, to upskilling the local labour force to provide further options for employment and to enable new local business ventures. Committed and allocated $2.471 million to six projects. Projects are in progress as above. Transient population Australian Government committed funding of $125 000 to develop a Tourism Development Plan to assist in identifying strategies and pilot projects to reduce the impact of the highly seasonal labour force on the west coast region commencing early 2015. Tourism Development Plan and pilot projects commence February 2015. Tasmanian Government funding of $100 000 to assist commuting between employment, residence and training. Industry, economic and community growth Reliance on the mining sector Ongoing support through MRT and the Tasmanian Government to the mining sector. The mining sector is critical to the west coast but to reduce to reliance on this one sector on the local economy, the working was established to develop a strategy and identify projects and funding to support diversification into industries such as tourism and aquaculture industrys to ensure there is a breadth of opportunity in local employment. This strategy and its recommendations attracted Tasmanian Government support of $2.471 million and Australian government support of $125 000. Page 30 of 52 Lack of investment in tourism opportunities Current initiatives Status (as at January 2015) Tasmanian Government committed $50 000 to improve and reopen Climies 4WD track to create a quality visitor experience. Climies 4WD track is expected to be completed in February 2015. Bridge building company, TasSpan, will be completing works. Focus on creating visitor attraction versus job stimulus. Tasmanian Government committed $250 000 in partnership with RACT to the $500 000 West Coast Experience Trust Fund. West Coast Experience Trust Fund will stimulate new tourism initiatives on the west coast. The fund will comprise an interest free loan facility up to $100 000 over 5 years for 50% of total project cost and be open for submission in April 2015. West Coast Experience Trust Fund is in the program development phase with RACT and expected to be available April 2015. Tasmanian Government facilitated an agreement between Hydro Tasmania to enable the start-up of a private operator of white water rafting tours. New tourism white water rafting operator, King River Rafting, opened in November 2014 employing 4 people. Freight Australian Government has committed to supporting export of goods off the island through Tasmanian Freight Equalisation Scheme and the Tasmanian Government has committed a further $33 million to reintroducing direct international shipping services. MOU signed between Swire Shipping and the Tasmanian Government in anticipation of the reintroduction of a direct shipping service in 2015. Water lease constraints Water leases have been allocated to support the three Tasmanian salmon and trout operators to support growth projections in Macquarie Harbour. Tasmanian Government is closely monitoring the appropriate use of Macquarie Harbour to ensure the industry can grow whilst sustainable practices are adhered to for the longevity and care of the region’s natural assets. Medical and age care services There is a commitment to ongoing facilitation of visitor health services to the region. Ongoing funding and resource commitment. Availability of suitable housing and facilities Tasmanian Government committed $300 000 for frontline public service housing upgrades. In progress. A commitment to housing (quality), appropriate health facilities and services, local education and training facilities and services and supporting industry and the community in developing job and career opportunities. Page 31 of 52 Current initiatives Status (as at January 2015) Commitment was divided equal between Tasmanian Police, and the Department’ of Health & Education and has been fully committed to local service providers. Cultural diversity Development of a Tasmanian Population Strategy. A Tasmanian Population Strategy is under development by the Department of State Growth, expected completion by mid2015. West Coast Futures Committee was established to: A continued focus on literacy and numeracy skills and retention. Education and skills Education attainment and participation levels identify and lead initiatives aimed at improving the quality of education and work opportunities for young people in west coast communities. Establish and maintain positive links with the Education Department and the Minister for Education. Provide advice to the Minister on matters of regional significance and seek assistance to solve community problems. Be the catalyst for encouraging supportive links with community and business leaders to schools in the region. Availability of post-Year 10 education The extension of a local public high School(s) on the West Coast. A Taskforce was established to assist and advise on the extension of regional and rural high schools to Years 11 and 12. Rural and regional high schools and their communities have been invited to express their interest to be part of the first phase of this initiative. As at January 2015 two west coast schools have expressed an interest. Page 32 of 52 Current initiatives Status (as at January 2015) Local available training opportunities Establishment of a Trade Skills Centre in Queenstown. Australian Government has committed $1.7 million to a Trade Skills Centre in Queenstown. Training needs to be relevant and current to industry needs Tasmanian Government through Skills Tasmania is committed to co-funding training initiatives for local and relevant training delivery. Skills Tasmania continues to support the west coast through a variety of mechanisms in addition to the West Coast training initiative; Tasmanian Government committed funding of $252 000 for 2014 -2015 under the West Coast Training Initiative for local and relevant training delivery. Traineeships and Apprenticeships Tasmanian Government supported the mining sector supply chain by funding $26 000 to a Contractors Development Program Equity10 Existing Worker User Choice Funding Literacy programs Skills Fund The Rapid Response Skills Initiative (RRSI). $182 500 of the $252 000 committed to training and delivered in the region to date. Remaining funds is under consideration in a hospitality, mountain bike and guiding training proposal. Tourism Industry Development Program to assist industry to grow, develop and add new product offerings to the region. The program comprises five sub programs: Tourism 101, China Ready, Digital Ready, Distribution Ready and Product Development. Each comprises a group delivery session and one-on-one coaching. 10 A tourism program by LINC has been the only application from the west coast region for equity funding Page 33 of 52 Current initiatives Status (as at January 2015) Miners Assistance Training Program has been designed for the reskilling of displaced mine workers. Forest Fire Fighting Training $38 500. Through Skills Tasmania, workforce planning support is underway across several industries based in the region, and numerous training schemes and opportunities have been supported and are in progress. Contractors Development Program commenced 15 December 2014 and will be completed by May 2015. Attraction and retention of labour Tasmanian Government provides support services to industry to enable them to develop strategies of being an Employer of Choice. Tasmanian and Australian Government provides support to individuals to enter the workforce, including skill development. The Tasmanian Government’s investment in public training organisations and its purchasing arrangements with both public and private training organisations underpins the skill development of people entering the workforce. Page 34 of 52 Future initiative options: Infrastructure To minimise the inherent risk of inefficiencies of infrastructure in the region, and to ensure future viability, it is important to coordinate and sequence plan for the provision of new infrastructure in the region. To create sustainable infrastructure into the future it is important for the Council to work with the Cradle Coast Authority, in conjunction with the local councils in the region, and the Tasmanian Government to engage in resource sharing options to avoid duplication and inefficiencies. The Premier’s Local Government Council was established to design a collaborative framework, committing the two tiers of government to work together in partnership, to improve the delivery of economic development activities in Tasmania through promotion of best practice and enhanced collaboration and communication between state and local governments. The intention is for the Premier to co-sign with the Local Government Association Tasmania on behalf of local government, a three year Partnership Agreement to formalise this framework. The Tasmanian Government through Mineral Resources Tasmania and the Coordinator-General’s Office will actively seek future mining investment opportunities for the region. Multiple support packages are currently under review with new and existing mining ventures. Investment and Employment The Tasmanian Government is committed to working with existing industry in its development and growth activities and through the Department of State Growth is reviewing several proposals for support of new investment to the region with a focus on creating local employment. To reduce the outward migration of young people pursuing educational and career opportunities there is a requirement to provide better local higher education and appropriate skills training in the region. Option to review viability of increasing the availability of public transport with appropriate scheduling and service routes between towns and the broader region. This will be sought through the $100 000 bus pilot program funded by the Tasmanian Government. The Tasmanian Government is committed to explore fast-tracking exploration for new and existing mining operations in the region. Through the Contractors Development Program there is opportunity to assist local contractors to pursue joint venture opportunities, improve tendering capabilities and develop business and marketing strategies to ensure sustainability and growth. There is opportunity to promote and utilise the Department of Education’s school-based apprenticeship program, engaging the youth within industry to gain experience and develop relationships whilst extending learning pathways. Industry, economic and community growth The Tasmanian Government is currently in discussions with industry to develop an Access Strategy for service provision on and off Tasmania to accommodate current and future needs of exporters and to attract people to the state to underpin industry and population growth. There is opportunity with Par Avion Air services being introduced in February 2015 for passenger access to and from Hobart on Tuesdays and Thursdays to the west coast. There are options for the Australian Government to review additional road improvements to increase job and investment stimulus in the region through the Roads to Recovery Program. There is an industry opportunity for the region in aged care employment and investment. There is an opportunity to seek to engage private developers for local investment in aged care and quality housing options. There is current interest in the private investment market for west coast provision of aged care. The remoteness of the location and mining industry fluctuations have resulted in available housing being of poor quality and not suitable for those wishing to move to the west coast. The cyclic nature of the mining industry has led to new residents looking to rent rather than purchase. Page 35 of 52 Housing in general is an issue for the west coast going forward if there is to be a population increase. Lack of land and high property values are contributory factors. If there is a demand resulting from the expansion, the contribution by the Council could be advocacy with Crown Land to demonstrate a need for land being released for housing development. This would need to be determined by demand from private developers for local investment in quality housing options, in particular in Strahan and Zeehan to support aquaculture and tourism development. There is a lack of integration in the west coast region between communities and then into the broader north west region. An option for the Council is to engage with Cradle Coast Authority and other regional councils to pursue regional development opportunities to enhance the west coast and develop support and resource networks. Additionally, the Council needs to continually act as a leader in the region and work with the five townships to integrate, collaborate and combine efforts in economic development. Education and skills There is opportunity for local education institutes seeking to improve offerings into matriculation and higher education facilities and extension of Years 11 and 12 services to offer a full postsecondary qualification. Increased workforce training will be required to better integrate the region’s workforce, economy and lifestyle and to address future workforce and skills needs. Skills Tasmania’s existing training investment and activity should align with industry needs and real employment opportunities. Closely link education, training and work experience to create pathways into employment as will occur for the tourism industry through the Tourism Employment Plan. However the aquaculture and mining industries, as the other two critical employment industries, require updated workforce planning strategies for the region. Options also need to be considered to offer local hospitality training (currently under review). There is a lack of understanding of local industries, the work opportunities available in them, and the level of skills and training required. Youth could be better integrated into society and the local workforce and encouraged into further education. There could be opportunity for an industry and career expo focused on the existing and new industries for the future for the region including mounting biking, guided walking and arts and creative industries. Investing and developing a vocational and career training facility, course management to be partnered with private industry focussing on areas such as tourism, retail, catering, hospitality and services industries. Areas for focus in the Council’s planning for the region: positive perceptions of lifestyles and community. Page 36 of 52 References Australian Bureau of Statistics, 2011, Census, available at http://www.abs.gov.au/websitedbs/censushome.nsf/home/Census?opendocument#fro m-banner=GT Australian Bureau of Statistics, 2011, QuickStats – West Coast (local government area), available at http://www.abs.gov.au/websitedbs/censushome.nsf/home/quickstats?opendocument&n avpos=220 Australian Department of Education, Employment and Workplace Relations, 2010, Regional Employment Plan: North West/Northern Tasmania Priority Employment Area 2010, available at http://www.utas.edu.au/__data/assets/pdf_file/0006/387636/regional-employment-planN-Nw-Tas-2012.pdf Australian Department of Transport and Regional Services, 2003, A regional profile: Cradle Coast Region Tasmania, available at http://www.cradlecoast.com/region.html Australian Local Government Association, 2013, State of the Regions 2012-13, available at http://alga.asn.au/?ID=7369&Menu=44,68,179 Cradle Coast Authority, 2011, Living on the Coast - Regional Land Use Planning Framework, available at http://www.cradlecoast.com/literature/news/DeclaredCradleCoastRegionalLandUseStrat egy-27October2011.pdf Department of Transport and Regional Services, undated, Cradle Coast Region Tasmania, Cradle Coast Authority, available at http://www.cradlecoast.com/region.html Department of Employment, 2014, West and North West Tasmania, presentation by Ivan Neville, Labour Market Research and Analysis Branch, 22 September 2014, Ulverstone. Eyles, KJ, Eversole, R and Broun, D, 2014, West Coast: Place Based Workforce Planning Project: Final Report, Institute for Regional Development, University of Tasmania, report commissioned by the Department of Education Employment and Workplace Relations and the Cradle Coast Authority. Hermann M, 2012, Population Aging and economic development: Anxieties and population responses. Population Aging, 5:23-46. Muller, P, Wadsley, A, Adams, D, Arthur, D & Felmingham, B, 2010, The Value of Sport and Physical Recreation to Tasmania, Australian Innovation Research Centre, University of Tasmania. Northern Tasmania Development, 2011, Northern Tasmania Regional Strategy, Northern Tasmania Development, Launceston. Sinclair Knight Merz, February 2012, Western Tasmania Industry Infrastructure Study, Tasmanian Department of Infrastructure, Energy and Resources Skills Tasmania, undated, West Coast Regional Profile. Part 1: Demographic and Social Profile, Part 2: Industry, Business and Training Profile The Regional Development Company Pty Ltd, August 2010, Strategic Directions: West Coast Impact and Opportunity Study, West Coast Council. The Regional Development Company Pty Ltd, April 2010, Issues Paper - West Coast Municipality : Industrial Land Use Study, West Coast Council. Page 37 of 52 The regional business case: west coast region in context The west coast of Tasmania, fondly nicknamed ‘the wild west’, is characterised by an old-world, outdoor, charismatic lifestyle complemented by spectacular scenery with its wild rivers, rugged mountains and flourishing rainforests. It is home to the renowned Tasmanian Wilderness World Heritage Area. The region covers an area of 9 575 square kilometres and has five distinct townships: Tullah, Rosebery, Zeehan, Strahan and Queenstown, and a total population of 4 67811. Although the region has no single dominant city centre, the major township is Queenstown with a population of approximately 1 97512 or 42% of the region’s population base. The west coast region has been experiencing a steady decline in population, impacting the local workforce and services through the outward migration of families. The unemployment rate for the west coast is currently estimated at 10.4%13. The workforce is regarded as reliable with a solid skills base in aquaculture, resource development and processing. The Tasmanian Government supports the region through a stable political and bio-security environment, and a commitment to sustainability through conservation, resource management and renewable energy. The west coast region possesses numerous attributes and resources that are strategic, sustainable and unique, offering advantages for residents, businesses and investors. It is part of a sub region of Tasmania, referred to as the north-west. The west coast region is rich in minerals, balanced by a significant portion of land located within the Tasmanian Wilderness World Heritage Area. The region has a maritime climate that features temperatures that have low variability and that are moderated by proximity to the sea. The medium term impact from climate change is regarded as relatively benign and the region offers reliable rainfall providing ample water supply for its outdoor recreation and hydro schemes. The region has a rich mining heritage and is home to a strong arts and cultural community and offers extensive recreational fishing opportunities. Services The west coast offers regional health, medical and aged care facilities through the West Coast District Hospital and HealthWest, and is serviced through the major regional hospitals at Latrobe and Burnie and a new cancer clinic under construction in Burnie. Early learning and childcare services are available in the region. Schools located within the region are: St Joseph's Primary School, Queenstown - Kindergarten to Year 6 Mountain Heights Queenstown - Kindergarten to Year 12 St Joseph's Primary School, Rosebery - Kindergarten to Year 6 Rosebery District School - Kindergarten to Year 12 Zeehan Primary School – Kindergarten to Year 6 Strahan Primary School - Kindergarten to Year 6 Australian Bureau of Statistics, 2011, Census Ibid 13 Department of Employment, 2014, West and North West Tasmania, presentation by Ivan Neville, Labour Market Research and Analysis Branch, 22 September 2014, Ulverstone 11 12 Page 38 of 52 Matriculation, TAFE, and University studies are sourced through Burnie on the north west coast and maritime studies at Launceston in the north. The Australian Government has committed $1 695 167 to the West Coast Trades Skills Centre. The centre will be based at the Mountain Heights School in Queenstown. The funding was approved to establish the Trade Skills Centre, including the refurbishment of an existing building to include a commercial kitchen, theory room and an engineering workshop and also the provision of equipment. It will deliver qualifications in Engineering and Hospitality to address skills shortages in the trades of cook and fitter-welder. The region offers a local Bendigo Bank and a range of financial service providers, retail stores, accommodation and food and beverage outlets. Place The west coast region West Coast local government area 14 Tullah Tullah (population 19215) sits on the shores of peaceful Lake Rosebery and beneath Mt Farrell which is often shrouded in mist and was named after Thomas Farrell, the hotel keeper, farmer and part-time prospector who in 1892 discovered the silver-lead ore that the town was established to mine. In the 2011 Census, Tullah’s population comprised 51% males and 49% females. The median/average age was 46, nine years above the Australian average. The median individual income was $408 per week and the median household income was $1 297 per week. Tullah is the smallest of the west coast townships, and suffered a 22% decline in population between 2001 and 2006, and a further 1% decline between 2006 and 2011. It has one-third of its population aged 55 and 14 15 Australian Bureau of Statistics, 2011, QuickStats – West Coast (local government area) Australian Bureau of Statistics, 2011, Census Page 39 of 52 over. As a result of the relatively aged population, Tullah has a small labour force and also low unemployment. The mining sector provides jobs for around one in three working residents of Tullah, but the electricity, gas and water sector is also important (comprising employees of Hydro Tasmania), as is tourism.16 Rosebery Rosebery (population 92217) is a town situated at the northern end of the West Coast Range in the shadow of Mount Black and adjacent to Lake Pieman. Rosebery is a community dominated by a large mine owned by MMG. In the 2011 Census, Rosebery’s population comprised 53.1% males and 46.9% females. The median/average age was 34, three years below the Australian average. The median individual income was $535 per week and the median household income was $1 295 per week. This town experienced a 6% loss of population between 2001 and 2006, which was the lowest decline of all the west coast towns in that period, but this dropped a further 11% between 2006 and 2011. The population of Rosebery differs from the other towns in having a higher proportion of young people and a lower proportion of aged people. Employment in Rosebery is dominated by the mining sector, which provides 40% of employment.18 In contrast with the other towns of the region, tourism currently provides very little employment for residents of Rosebery. The town does, however, have relatively high levels of employment in public sector services such as education. Zeehan Zeehan (population 72819) is a mining town surrounded by forested mountains. It hosts the West Coast Pioneers Memorial Museum which was established in 1965 and houses a display of pioneering memorabilia including mineral samples and it is known as the Silver City. In the first decade of the twentieth century it proudly boasts it was on a par with Launceston and Hobart for size. In the 2011 Census the population comprised 50.4% males and 49.6% females. The median/average age was 36, one year below the Australian average. The median individual income was $397 per week and the median household income was $1 018 per week. Zeehan, like the other west coast population centres, experienced a decline in population of 6% between 2001 and 2006, and a further 14% decline between 2006 and 2011. This township has the highest proportion of children in its population of all the towns, and the lowest contribution of aged.20 Mining is important as a source of employment for Zeehan residents, as are tourism, construction and manufacturing. Whilst these sectors do not provide as high a proportion of total jobs as in the rest of the region, this may change if the proposed Avebury Mine commences operation in 2015. This new proposed mining venture would introduce an estimated 150 - 200 mining jobs into the region. Queenstown Queenstown (population 197521), like Zeehan, has traditionally been a mining town but is at the base of striking red mountains. In the 2011 Census the population comprised 52.5% males and 47.5% females. The The Regional Development Company Pty Ltd, August 2010, Strategic Directions - West Coast Impact and Opportunity Study Australian Bureau of Statistics, 2011, Census 18 The Regional Development Company Pty Ltd, April 2010, Issues Paper - West Coast Municipality : Industrial Land Use Study 19 Australian Bureau of Statistics, 2011, Census 20 The Regional Development Company Pty Ltd, August 2010, op. cit. 21 Australian Bureau of Statistics, 2011, Census 16 17 Page 40 of 52 median/average age of the Queenstown population was 39 years of age, 2 years above the Australian average. The median individual income was $413 per week and the median household income was $821 per week. Between 2001 and 2006 Queenstown lost 226 residents, representing a 10% decline in population, and there was a further 7% decline in population between 2006 and 2011. Prior to the closure of the Mt Lyell mine in January 2014, the mining sector provided one job in four (27%) in Queenstown, with the tourism sector providing 13% of employment. The decision by CMT in July 2014 to place Mt Lyell Mine into enter care and maintenance left a significant void in the job market displacing 320 mine workers. A working group was established seeking to recover some of that lost employment through job stimulus projects as well as attracting new mining ventures to the region. In December 2014, CMT has contracted back 50 additional employees to continue exploration works and to undertake works on the tailings dam. Strahan Strahan (population 66022) is situated on Macquarie Harbour and has a unique pioneering heritage. Strahan is home to wilderness experiences such as the Bonnet Island Experience, the West Coast Wilderness Railway and Gordon River Cruises. Strahan has a port that supports a small fleet for wild fisheries that brave the west coast conditions and Hells Gates, the narrow entrance to Macquarie Harbour. The sheer volume of fresh water that pours into the harbour through the rivers, combined with the narrow exit, results in barometric tides. Macquarie Harbour is home to a strong aquaculture industry of Atlantic salmon and trout. Strahan is also surrounded by soft-wood pine plantations that are managed by Forestry Tasmania. In the 2011 Census, Strahan’s population comprised 50.7% males and 49.3% females. The median/average age was 41, four years above the Australian average. The median individual income was $581 per week and the median household income was $993 per week. Over the period 2001 - 2006 Strahan’s population declined by around 100 persons (13%), however during the 2006 - 2011 period the population increased by 3%, the only population centre on the west coast to do so. Strahan is characterised by several differences from other townships on the west coast. It has the highest proportion of retirees (64 years and over) and also the highest participation rate and the lowest unemployment rate. Compared with other west coast townships, the mining sector only contributes a small proportion of total employment with less than one in 20 jobs (5%), whereas tourism provides more than one third (35%) of all jobs in Strahan. Other sectors which are important for Strahan are aquaculture at 14% of employment which is projected to follow a growth continuum with the industry experiencing significant growth in Australian and global markets, and transport which underpins the aquaculture and other industries, at 10% of employment.23 22 23 Ibid The Regional Development Company Pty Ltd, August 2010, op. cit. Page 41 of 52 Infrastructure The remoteness of some of the communities in the west coast presents infrastructure challenges. There is an established network of core infrastructure capacity in transport, energy, telecommunication, communication and water and waste water systems as well as in health, education and community recreation and support services. The region plays a fundamental role by supporting the state’s economy with its mining interests. Rail and road infrastructure link the west coast region to ports at Burnie and Devonport which handle a large portion of import and export cargo. Access via air is essential to regional development to provide easy, fast freight alternatives and a costeffective means for passengers entering and exiting the state. The all-weather airport services at Burnie and Devonport will be enhanced by the introduction of a new passenger air service by Par Avion twice a week between Strahan and Hobart, expected to commence in February 2015. The west coast has a regional highway for logistics and freight transportation, yet it lacks efficient utilisation of public transport services both north and south of the region. Offering an express trunk bus route from Queenstown to Burnie has the potential to ultimately expand workforce and schooling participation, improve liveability and tourism, and deliver environmental benefits by reducing the reliance on passenger vehicle transportation. Accordingly $100 000 has been committed by the Tasmanian Government to trial a public transport opportunity. Community infrastructure is also key to the liveability and functionality of remote areas such as the west coast. Through the recent Mt Lyell Assistance Program, the Council in partnership with the Tasmanian Government committed $1 million towards improving local community infrastructure in 2014. This improved community infrastructure, provided in many cases necessary beautification of the five towns and supported many local residents in a short term employment stimulus package whilst pending the outcome of the future of the Queenstown based CMT mine. There are also a number of issues to be considered in the development of the Council’s Strategic Plan 2016-2020. 24 The majority of the region’s core infrastructure systems are fixed, long-term and high capital investments designed to a specific capacity and function and with limited flexibility to adjust for change in demand. It is important that investment and maintenance decisions are made with a long-term strategic perspective. There is ongoing need to replace, upgrade, maintain, modify and rationalise existing infrastructure arrangements notwithstanding absence of demand for substantial increases in infrastructure capacity. In order to minimise inherent risk of inefficiencies, it is important to coordinate and sequence plan for provision of new infrastructure in the region. The Cradle Coast Authority, in conjunction with the nine local councils in the region, is currently engaging in resource sharing options for the region to avoid duplication and inefficiencies and to create sustainable infrastructure into the future. The Western Tasmanian Industrial Corridor Study24 outlined regional constraints and priorities required to address the potential for sudden increases and substantial demand for additional freight movement to access ports over road systems that present challenges from a road management perspective. The emergence of new digital communication technologies such as the National Broadband Network presents opportunities to explore, including how this will enhance participation and provide new opportunities for economic and social activity at a global scale. The protection of lands available for future mining exploration activities. Sinclair Knight Merz, February 2012, Western Tasmania Industry Infrastructure Study Page 42 of 52 The need to identify and protect investment in existing and planned major infrastructure corridors and sites against encroachment and threat to operation from other land uses and from natural hazards, including those that might be caused or exacerbated by climate change, for example: primary road and rail freight routes between major production catchments and processing or export nodes sea ports and airports energy and communication transmission corridors water catchment and distribution systems. While existing systems are generally recognised as able to meet immediate local needs, optimising their function and capacity will help to avoid demand for new and expanded infrastructure and associated cost impost. The immediate infrastructure constraints for economic growth in the west coast region are identified as: road transport infrastructure and access to the west coast commercial water and sewerage infrastructure sufficient to cater for any new industry development loss of a direct international shipping service from Tasmania reduction in rail service provision. The immediate actions to address infrastructure constraints in the west coast region are identified as: improvements to road access to the Strahan aquaculture hub precinct and regional highway is under construction through a significant injection of new Tasmanian Government funds as lobbied through the working group TasWater has reviewed its capital works program to fast track any projected works in the region, as lobbied by the working group, and is open to discussions on future needs for industry in the region Tasmanian Government has committed $33 million towards the reintroduction of an international shipping service. People 2.1 Population distribution and trends The total population of the West Coast municipality is estimated at around 4 67825 spread over five townships. While the municipality’s population has been declining in recent years, the latest population forecasts are for a small increase up until 2021, with relatively static levels to 2031. Over the period 1996 2031 the overall trend is for a declining population. Forecast of population for the West Coast municipality 25 Australian Bureau of Statistics, 2011, Census Page 43 of 52 The implication of this population trend is that measures must be taken to at least reverse the decline, and hopefully to increase the regional population. The population is also ageing, with the median age increasing from 30 in 1996 to 34 in 2001, and 37 in 2006. An Issues Paper from 201026 showed trends of declining numbers in all age groups below 55 years, and for increases in all age groups over 55 years. These trends suggest that measures should be taken to make the region more attractive to families which would encourage younger residents to settle in the region. It is also apparent that there will be an increasing need to care for the elderly. This can be an opportunity for development as well as an increased demand for services. With the increasing age of the population comes a declining trend in the available labour force of the region. The unemployment rate has been fairly static on the west coast, suggesting that when jobs are lost those becoming unemployed leave the region or leave the labour force. If the labour force were not declining, unemployment rates by 2009 would have reached nearly 25% (refer Issues Paper supporting the West Coast Impact and Opportunity Study) instead of the 7% actually experienced. The relatively low rate of unemployment in the region should not be misconstrued as it does not indicate high rates of jobs being available, rather an outward migration of the population. The same is true for other remote locations such as King Island. The 2006 Census data showed 50% of the west coast population was not at the same address as five years previous, and the impact in the region for the supply of suitable labour and skills for future employment remains an issue to be addressed in any development strategies going forward. The regional population is therefore highly mobile, and development directions for the future should consider options for retaining a more permanent population that will contribute to community growth initiatives. The immediate population constraints for economic growth in the west coast region are identified as: available working age population (generally defined as 15 - 64 years though older people can also be active in the workforce) outward migration levels transient population base labour force participation rate ability to attract young families. The immediate actions to address population constraints in the region are identified as: 2.2 the Department of State Growth is currently developing a Tasmanian Population Strategy to increase attraction and population levels branding Tasmania as a place to live, work and play. Brand Tasmania and Tourism Tasmania have a strong mandate to focus on branding the potential of Tasmania interstate and globally and $16 million has been dedicated to this effort. Education and skills An educated and skilled workforce is crucial for sustaining and growing the region’s economy. Education participation and completion rates in Tasmania as a whole, and in the north west/west coast region in particular, are below comparable rates in other states. There is a need to lift the profile and significance of education, including higher education and skills training in the region. Whilst the proportion of the population with tertiary qualifications varies across Tasmania’s three regions, the north west/west coast region has the highest proportion of persons with a Certificate, and the highest proportion of persons without tertiary qualifications27. At 71.2%, the proportion of the Tasmanian 26 27 The Regional Development Company Pty Ltd, August 2010, op. cit. Department of Transport and Regional Services, undated, Cradle Coast Region Tasmania Page 44 of 52 population without tertiary qualifications is higher than the national share (66.9%), with the north west/west coast region having a higher share than Tasmania as a whole at 74.0%. The predominant qualification in the region is Certificate level. Four of the five west coast towns provide schooling facilities ranging from kindergarten to Year 10. It is also possible for west coast students to enrol in a limited number of subjects through local high schools, Mountain Heights School and Rosebery District High School, and the Flexible Learning Network for post Year 10 subjects. The closest senior secondary college for west coast students is Hellyer College located in Burnie. Hellyer College offers supervised student accommodation and full board on-campus. Hellyer College offers a wide range of pathways and subject choices for Years 11 and 12, but living away from home at a young age can be a major challenge for students. A recent study by the Institute of Regional Development at the Cradle Coast Campus of the University of Tasmania has found that while west coast students have the intention of continuing their studies post Year 10, it is a difficult goal to achieve. In 2011, 79% or 44 of the 56 Year 10 students enrolled in further education for 2012, however in 2013 more than half of these students had failed to attain any post-Year 10 qualification at all. Thirty-four per cent attained either a Tasmanian Certificate of Education (TCE) or Vocational Education and Training (VET) Certificate and 14%, or 6 students, attained an Australian Tertiary Admissions Rank (ATAR). Encouragingly, 98% of the 2013 Year 10 cohort has enrolled in further education, however it remains to be seen how many complete their chosen course of study.28 The low education participation levels impact negatively on the region’s economy and conversely, education and training investments have the potential to be major drivers of the economy.29 West coast residents aged 15 years and over were much more likely to be employed (than unemployed or not in the labour force) if they had a post-school qualification. All of this points to a significant constraint in employing for higher skilled jobs, including the trades, and makes the region vulnerable to changes in the economic climate as people are less able to adapt and re-skill. The region could benefit from a strong post-secondary education presence in the existing high school facilities at Rosebery and Queenstown under the Tasmanian Government’s higher education policy. The immediate education and skills constraints for economic growth in the west coast region are identified as: education attainment levels education participation levels lack of availability of post-Year 10 education on the west coast, including College, VET and university studies. The immediate actions to address education and skills constraints in the region are identified as: 28 29 $1.7 million committed by the Australian Government to a Trade Skills Centre at Queenstown closely link education, training and work experience to create pathways into employment through the Tourism Employment Plan and aquaculture and mining workforce planning through Skills Tasmania introduction of a more comprehensive local curriculum for Years 11 and 12. Eyles, KJ, Eversole, R and Broun, D, 2014, op. cit. Northern Tasmania Development, 2011, Northern Tasmania Regional Strategy Page 45 of 52 2.3 Skills training in industry Skills training in industry is a major issue for the region. The Tasmanian government invests over $100 million each year in vocational education and training. This investment is guided by Investing in Skills for Growth, Tasmania’s Training and Workforce Development Strategy 2015-2020 and the Statement of Ministerial Priorities for Training and Workforce Development 2014-2015. This ensures that opportunities for Tasmanians to access education and training are increased within a system that meets their needs, and that employers have skills to support workforce development and business growth at all levels. The state’s investment in public training organisations and its purchasing arrangements with both public and private training organisations underpins the development of the future workforce. The remote region and low population levels mean that there are limited training and facilities available locally, based on supply and demand for training. Services are available online and through TasTAFE and other private training providers locally but on an as-needs basis. On investigation there appears to be a disconnect between industry needs and future requirements and what the local employment market can offer from its existing skills base. It also appears that the local community may not fully comprehend what is required by its local industry to meet these skills shortages. From a VET perspective there is little evidence of a lack of opportunity to undertake Vocational Training. 2011 Census Data suggests that the west coast region has (27.4%) of people holding a vocations qualification between Certificate 1 and Advanced Diploma, which is ahead of the State totals of (26.8%). The gap opens up at the higher education end (holding a bachelor degree or above) with the West Coast (6.5%) falling behind the state (14.2%). Skills Tasmania data shows training activity in the West Coast at approx. 1000 accredited training enrolment for 2013 and 650 for 2014 of which 90% of that is delivered by TasTafe. The data collation is not finalised for 2014 so these numbers are expected to increase for that year. This activity covers a range of training from single units mining and construction industry inductions which equate to 50% of enrolments, to qualifications in traditional trades; hairdressing, commercial cookery and mechanical and qualifications in key industries for the region; tourism, mining, forestry, transport and community services. There is also some activity in the foundation/work preparation areas. Page 46 of 52 Skills Tasmania continues to engage with industry to ensure that existing training investment aligns with industry needs and real employment opportunities. The immediate skills training constraints for economic growth in the west coast region are identified as: low education attainment levels lack of availability of training opportunities on the west coast including college, VET and university studies training needs to be more relevant and current to industry needs lack of community understanding of local industries and the work opportunities available in them, and the level of skills and training required.30 The immediate actions to address skills training constraints in the region are identified as: 2.4 $1.7 million committed by the Australian Government to a Trade Skills Centre at Queenstown closely link education, training and work experience to create pathways into employment through the Tourism Employment Plan and aquaculture and mining workforce planning through Skills Tasmania RACT Expo and promotion of career opportunities held during 2014. Skills shortages A demographic and social profile of the west coast was prepared by Skills Tasmania based on the 2006 Census data. The study suggested that skill (and labour) shortages are affecting operations in the mining sector and its supply chain, with training required to replace workers lost to other mining operations and/or to employment outside the region. Reasons for these shortages were identified as poor quality housing contributing to a desire to locate families outside of the region31. This was compounded by a lack of education opportunities post-Year 10, the lack of employment opportunities for partners of professionals, and a lack of social infrastructure (such as child care and public transport). The tourism sector appears to have fairly high workforce turnover rates due to seasonal fluctuations in activity, a lack of training opportunities and a workforce characterised by a younger and more mobile demographic. The deficiency in certain skills is one of the challenges facing further development in the region. These skills include trades operators (incorporating the mining sector) and skills relating to the hospitality sector. Accordingly the working group lobbied for local training to be provided in Certificate III qualifications for Resource Processing, Underground Metalliferous Mining and Surface Extraction Operations, which was successful in signing up 68 affected CMT workers and local residents to participate in acquiring these certifications. It is predicted this may result in a further 20 participants from the original intake for the Certificate III training. The working group also negotiated, with the support of the Tasmanian Government, to attract a further $125 000 from the Australian Government towards a Tourism Employment Plan and supporting pilot projects to understand and implement strategies to address the retention and attraction to the tourism and hospitality sector within the region. To complement this, the Tasmanian Government also committed a further $30 000 to support a practical six month tourism development program for local industry to upskill in being ready for Chinese tourists, product, market, digital and distribution ready. Eyles, KJ, Eversole, R and Broun, D, 2014, op. cit. Skills Tasmania, undated, West Coast Regional Profile. Part 1 : Demographic and Social Profile, Part 2 : Industry, Business and Training Profile 30 31 Page 47 of 52 Staff retention is an issue for all industries in the region and is not just associated with skills shortages. It is also connected to the perception or notion of lifestyle choice, as well as the lack of local children’s education options post-Year 10. The immediate skills shortage constraints for economic growth in the west coast region are identified as: education attainment levels achieved in the west coast region attraction of labour lack of availability of education and training opportunities on the west coast including college, VET and university studies lack of community understanding of local industries, the work opportunities available in them, and the level of skills and training required.32 The Standing Committee on Regional Development (SCORD 2004) identified the following six imperatives for attracting and retaining skilled persons in regional remote areas: housing (quality) infrastructure job and career opportunities health facilities and services education and training facilities and services positive perceptions of lifestyle and community. The immediate actions to address skills shortage constraints in the region are identified as: the Tasmanian Government has committed $300 000 to frontline housing in 2014-15 to improve the quality of housing available for police, nursing and education employees to support the attraction of skilled labour to the west coast $1.7 million committed by the Australian Government to a Trade Skills Centre in Queenstown closely link education, training and work experience to create pathways into employment through the Tourism Employment Plan and aquaculture and mining workforce planning through Skills Tasmania the Department of State Growth is currently developing a Tasmanian Population Strategy to increase attraction and population levels the Tasmanian Government committed $252 000 to the West Coast Training Initiative for 2014-15 to enable local training opportunities to address current skills shortages in the region. 2.5 Labour force The Department of Employment’s June 2014 estimate for the unemployment rate in the West Coast local government area was 10.4%, as compared to 7.7% for Tasmania and 5.9% nationally33. The broader north west region has a high proportion of people on income support (38%)34, contributing to a labour deficit and skilled labour shortages. The west coast and north west region’s participation rate (58.7%) is historically lower than Tasmania’s (60.6%) and the national average (64.6%). A contributing factor is the high level of income support and the older population profile35. As a result of local industry closure in the mining sector the region has recently experienced an increase in unemployment due to an insufficient number of available jobs. Eyles, KJ, Eversole, R and Broun, D, 2014, op. cit. Department of Employment, 2014, op. cit. 34 Ibid. 35 Australian Department of Education, Employment and Workplace Relations, 2010, Regional Employment Plan: North West/Northern Tasmania Priority Employment Area 2010 32 33 Page 48 of 52 The longer term concern is a lack of sufficient labour and a lack of skilled labour. Both concerns can also, paradoxically, drive an increase in unemployment.36 For example, business investment can decline over concerns that there are not enough workers with the right type of skills to make investment worthwhile. This can sometimes be seen primarily as a remuneration issue, however the region needs to promote lifestyle opportunities and health and well-being benefits. The immediate labour force constraints for economic growth in the west coast region are identified as: outward migration of individuals between 15 and 29 years low net migration and population more exiting the labour market than entering labour force participation rates being below the national average fertility rate with lower population numbers. The immediate action to address labour force constraints in the region are identified as: increasing employment and industry growth opportunities Tasmanian government committed $100 000 to improving public transport for mobility between residency, employment and training the Department of State Growth is currently developing a Tasmanian Population Strategy to increase attraction and population levels. 2.6 Local industry The nature of core economic activity in the local region, while diverse, is not exclusive to the region. It continues to face the challenge of competing with resource-based economies in other states of Australia and internationally. Whilst the regional economy is predominantly founded on resource industries, it is complemented by aquaculture and a range of transport, tourism activities and renewable energy. Mining is Tasmania’s second-largest export industry (following manufacturing). It has demonstrated employment growth in recent years, prior to the CMT announcement. It is the largest employing industry on the west coast at 39%. For Tasmania as a whole the industry still only employs 1.3%37 of the total employment market compared to 2% nationally. The mining industry on the west coast had a total workforce of 896 in the 2011 Census, up 56.9% from 571 in 2006. Of this workforce, 41% had no qualification, 40% had a Certificate level qualification, and 11% had a university degree.38 Up to 44% of the mining workforce resides outside the west coast (primarily a drive in/drive out workforce). With the announcement of CMT to enter care and maintenance over 320 workers (90 direct CMT employees and 230 Barminco contract workers) were lost to the industry and a further 100 external contracting positions affected. CMT retained 32 CMT employees for exploration and care and maintenance works and recently contracted Gradco to undertake tailing dam works which has required 50 contractors to undertake works. All endeavours are being made to continue to support and re-open the CMT mine. Aquaculture, whilst always present on the west coast, has more recently become of interest as a strong contributor to the employment market of the region complementing the mining and tourism core regional employment sectors. The industry is experiencing one of the fastest growth rates of all sectors in Tasmania, with projections of becoming a $1 billion per annum industry for Tasmania. Marine farming of salmonids began in Tasmania in the mid-1980s with Petuna Pty Ltd and the salmon and trout marine farming operations are now well established on the west coast. In recent times farming Hermann M, 2012, Population Aging and economic development: Anxieties and population responses. Population Aging 5:23-46 Australian Bureau of Statistics, 2011, Census 38 Eyles, KJ, Eversole, R and Broun, D, 2014, op. cit. 36 37 Page 49 of 52 operations have extended and currently all three Tasmanian salmonid producers are operating out of Macquarie Harbour and investing at a rate which will see the doubling of salmon production by 2030. The aquaculture industry on the west coast in 2011 had a relatively small total workforce of 50 - up from 39 workers in 2006. The majority of those employed in the aquaculture industry worked in offshore caged aquaculture. Between 2006 and 2011, the number of aquaculture workers employed as managers, professionals and technicians increased, while the number of labourers decreased. In 2011 about 30% of the aquaculture workforce was living outside of the West Coast municipality.39 Tourism and hospitality is recognised as an important sector for the region and is the second-largest local employing sector. It employs 304 people in accommodation and food services and 5040 in scenic and sightseeing transport, travel agency and tour arrangement services, and other tourism categories. Tourismrelated employment on the west coast, however, did decline between 2006 and 2011. The working group has highlighted that many of the economic development opportunities will fall into this sector especially in adventure, mining and heritage tourism activities. The industry itself is a highly seasonal industry and visitor numbers fluctuate significantly from year to year. The industry overall is very labour intensive, characterised by high levels of casual staff and skills shortages in a number of areas. This has provided the rationale behind the support for the Tourism Employment Plan and Tourism Development Program. The working group successfully lobbied the Tasmanian Government to support new investment in a West Coast Mountain Bike Trails project. This project was deemed to have the most likely outcome of all the community proposed projects to deliver an outcome of increased regional visitation and provide opportunity to develop and attract private investment in new business, through a supporting supply chain to the industry. The immediate local industry constraints for economic growth in the west coast region are identified as: heavy reliance on the mining sector as an employer which is susceptible to fluctuating mineral prices dictated by global commodity markets business decisions made outside of the region freight (rail and road) access and associated costs limited air access water lease constraints highly seasonal tourism labour force ability to attract and retain skilled labour. The immediate action to address local industry constraints in the region are identified as: 39 40 appointment of a Coordinator-General and TasInvest investment attraction strategy appointment of a Red Tape Reduction Coordinator improving access through investing in improving road infrastructure access to finance for new tourism developments through the $500 000 Tourism Loan Fund ensuring bio-security monitor and access to sustainable water practices the Department of State Growth is currently developing a Tasmanian Population Strategy to increase attraction and population levels introduction of a passenger air service through Par Avion from Strahan to Hobart and return on a twice-weekly basis Ibid Ibid Page 50 of 52 branding and promotion of Tasmanian industries and lifestyle $1.7 million committed by the Australian Government to a Trade Skills Centre in Queenstown. Page 51 of 52 Page 52 of 52