Bunyip North Quarry Existing conditions economic analysis

Hanson Construction Materials Pty Ltd 12 September 2019

Deep End Services Deep End Services is an economic research and property consulting firm based in Melbourne. It provides a range of services to local and international retailers, property owners and developers including due diligence and market scoping studies, store benchmarking and network planning, site analysis and sales forecasting, market assessments for a variety of land uses, and highest and best use studies.

Contact Deep End Services Pty Ltd Suite 304 9-11 Claremont Street South Yarra VIC 3141

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Enquiries about this report should be directed to:

Justin Ganly Director justin.ganly@deependservices.com.au

Document Name Hanson report - Bunyip North Quarry existing conditions economic analysis - 12 Sept 19.docx

Assumptions and data sources This report has been prepared using a range of data sources and assumptions as detailed in the body of the report.

Disclaimer This report has been prepared by Deep End Services Pty Ltd solely for use by the party to whom it is addressed. Accordingly, any changes to this report will only be notified to that party. Deep End Services Pty Ltd, its employees and agents accept no responsibility or liability for any loss or damage which may arise from the use or reliance on this report or any information contained therein by any other party and gives no guarantees or warranties as to the accuracy or completeness of the information contained in this report.

This report contains forecasts of future events that are based on numerous sources of information as referenced in the text and supporting material. It is not always possible to verify that this information is accurate or complete. It should be noted that information inputs and the factors influencing the findings in this report may change hence Deep End Services Pty Ltd cannot accept responsibility for reliance upon such findings beyond six months from the date of this report. Beyond that date, a review of the findings contained in this report may be necessary.

This report should be read in its entirety, as reference to part only may be misleading.

Note:

This existing conditions report provides information on the current condition of the environment at this moment in time only, as per the report date.

An impact assessment will be undertaken as part of the EES process and made available for review at the EES public exhibition.

Feedback is welcomed. Please contact the Project Manager.

Email: community.bunyipnorth@hanson.com.au Phone: 03 9274 3700 during business hours.

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Contents Executive summary i 1 Introduction 2 1.1 Project brief 3 1.2 This report 4 2 Proposed quarry 5 2.1 The project 6 2.2 Local context 7 2.3 Regional context 8 3 Extractive industries 9 3.1 Introduction 10 3.2 Critical resource locations 11 3.3 Regional hard rock supply and demand 12 3.4 Local quarry context 13 3.5 Conclusion 15 4 Regional economic context 16 4.1 Study region definition 17 4.2 Population 18 4.3 Demographics 19 4.4 Resident labour force 20 4.5 Working population within region 21 4.6 Key local sectors 22

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Tables + Figures Table 1—Local quarries 14 Table 2—Study region population growth 18 Table 3—Socio-demographic profile, 2016 19 Table 4—Occupational structure of resident

labour force 20 Table 5—Study region jobs by industry sector 21 Table 6—Local tourism statistics, 2016 22 Figure 1—Site map 6 Figure 2—Local context map 7 Figure 3—Regional context map 8 Figure 4—Identified strategic resources 11 Figure 5—Cumulative supply of hard rock

(2015-2050) 12 Figure 6—Residential dwelling approvals,

2016/17-2017/18 and active work authority licenses in proximity to the site 13

Figure 7—Study region definition 17

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Executive summary This report provides an existing conditions analysis for an Environment Effects Statement (“EES”) being prepared for the proposed Bunyip North granite quarry.

The Bunyip North quarry is an estimated 129.5 million tonnes reserve of granite hard rock which will be extracted over a period of 60-70 years. Economic activities undertaken over the life of the project will include stripping of overburden, blasting of rock, haulage to a crushing and screening plant, stockpile storage of processed material and the transport offsite of purchased products. The site will be rehabilitated once the resource is exhausted.

The underlying rationale for the proposed quarry is to secure a long-term source of hard rock for the construction industry for use in public infrastructure works and residential and commercial building projects.

Analysis undertaken by PwC on behalf of the Victoria State Government forecasts that annual demand for hard rock resources will more than double over the period 2015 to 2050, with resource shortfalls evident in Melbourne’s south-east fringe, including Cardinia Shire, by 2025. New resource sites and expansions of existing licences are required to ensure the ongoing supply of cost-effective material.

The requirement for new sources of hard rock is made more urgent given:

• The encroachment of urban development on many existing quarries

• The age of existing sites, with many nearing the end of their resource life and few new quarries brought on line since the 1980s

• The need for accessible resources to be quarried close to urban development sites to reduce transportation costs.

Bunyip North is within a region supported by agricultural activities and township services such as health, education, and retail. The tourism sector also contributes to economic activity but the area is not a significant destination. Some local residents work in businesses within the immediate area but many have to travel to metropolitan Melbourne.

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Introduction

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1.1 Project brief The subject quarry site consists of 159 hectares of land situated generally to the south of Sanders Road, to the north-west of Tonimbuk Road and to the east of Wollondilly Road. The site is 5km north of the Bunyip township and 3km north of the Princes Highway.

The proposed quarry has an estimated resource of 129.5 million tonnes and would be extracted over a period of 60-70 years depending on market demand.

The requirement for an EES was determined by the Planning Minister on 22 November 2015 pursuant to the Environment Effects Act 1978.

Final scoping requirements were issued on 14 September 2017. Matters on which Deep End Services have been commissioned to contribute comprise:

• Project rationale, including a summary of the demand and supply context for hard rock extractive industry resources and the importance of securing long-term resources for the construction industry.

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1.2 This report This report has been structured as follows:

Chapter 2 presents a summary of the proposed quarry operation including a description of the resource, its uses, lifetime and local and regional context. Analysis in this section makes reference to the Extractive Resources in Victoria: Demand and Supply Study 2015-2050 report, which was prepared by PwC in 2016 on behalf of the Victorian Department of Economic Development, Jobs, Transport and Resources (“PwC report”).

Chapter 3 presents analysis of the underlying rationale for the project in the context of the extractive industry’s need to secure cost-effective supply of hard rock resources against regional demand and supply factors

Chapter 4 presents a summary of the regional economic context including population trends, demographic overview, and industry structure

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Proposed quarry

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2.1 The project

The project involves the extraction, processing and transporting of an identified granite resource located on a site of 158.8 ha in Bunyip North.

The site is situated on an intrusive igneous rock type of Devonian aged granite, which is a hard rock used in construction due to its excellent physical properties, and is found in an accessible location in the southern foothills of the Great Dividing Range. Granite and other hard rock types such as basalt (an extrusive igneous rock) are typically crushed to be used as a road base, concrete aggregate, asphalt pavement aggregate or railroad ballast.

The future quarry pit is in the western part of the site with an area of 68.8 ha (refer Figure 1), with the eastern part of the site to be used for processing and stockpiling. The resource is an estimated 129.5 million tonnes based on the proposed pit dimension, with an operating life of 60-70 years depending on market demand.

Activities undertaken over the life of the project will include stripping of overburden, blasting of rock, haulage to a crushing and screening plant, stockpile storage of processed material and the transport offsite of purchased products. The site will be rehabilitated once the resource is exhausted.

Figure 1—Site map

Source: AECOM

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2.2 Local context

The proposed quarry is located approximately 3km north of the Princes Highway and 5km north of Bunyip. The smaller township of Garfield is located about 8km south by road.

Princes Highway separates the rural areas of Bunyip North and Garfield North from the townships of Bunyip and Garfield to the south.

The site is undulating and is situated at the foothills of the Great Dividing Range, with Bunyip State Park located a few kilometres to the north. Mt Cannibal Reserve is a local flora and fauna reserve situated on the top of a granite hilltop on the western side of Wollondilly Road. The reserve has a 3km walking track accessed from Garfield North Road on its western slopes.

Quarry access is proposed via a private sealed haul road to Tonimbuk Road, to be constructed through the eastern part of the landholding and south of where the Tonimbuk Equestrian Centre is situated.

The Bunyip State Park bushfire that impacted more than 15,000ha in March 2019, also entered the proposed quarry site. Although there was significant loss in vegetation across the site, the fire did not alter the rock resource and/or the costs for its extraction.

Figure 2—Local context map

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2.3 Regional context

Bunyip North is approximately 80 km south-east of Melbourne CBD and around 20km from Pakenham.

The site is in close proximity to the south-east growth corridor of Casey and Cardinia which contains the fast-growing suburbs of Pakenham, Officer, Clyde and Cranbourne East.

Bunyip North is also close to the peri-urban communities of Warragul and Drouin, which are experiencing relatively rapid urban development due to the proximity to the metropolitan area and their attractive setting.

The south-east growth corridor, along with Frankston and the Mornington Peninsula, have been identified as areas in which strong demand for construction materials will eventuate as a result of the construction of houses, infrastructure and businesses associated with regional population growth.

Figure 3—Regional context map

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Extractive industries

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3.1 Introduction The extractive industry sector is engaged in the removal of raw extractive materials such as hard rock, limestone, clay and sand and gravel from various quarry sites. As set out within the Earth Resources Regulation, Statistical Report, 2017/18 (Victorian Department of Jobs, Precincts and Regions), there are 491 active quarries across Victoria which produce 58 million tonnes of stone, limestone, gypsum, sand and gravel annually. Sales of products extracted from these quarries totalled $948 million in 2017/18.

Extractive resources are used in the construction of public infrastructure, including roads, railways and bridges as well as commercial and residential buildings. The demand for extractive resources continues to grow in response to an increasing demand for construction materials.

Appropriate resources need to be secured cost-effectively to meet the needs of the construction industry. Proximity to serviced demand is important because of the high per unit cost of transportation.

These key factors are highlighted within both Extractive Resources Strategy, June 2018 (Victorian Department of Economic Development, Jobs, Transport and Resources) and the subsequent Joint Ministerial Statement, Extractive Resources (Victorian Minister of Resources and Minister of Planning).

In urban and regional fringe areas, there are often competing land uses due to encroaching development which has the potential to sterilise extractive resources

and increase the cost and complexity of future construction activity.

To ensure the future supply of extractive resources, a number of industry interest areas have been identified based on detailed analysis of the supply and demand for different resources undertaken in the PwC report Extractive Resources in Victoria: Demand and Supply 2015-2050.

According to the PwC report, the annual demand for extractive resources across Victoria is expected to nearly double over the period 2015 to 2050. Annual demand for hard rock is expected to increase by more than 100% to 63.9 million tonnes by 2050 and supply of these resources is relatively constrained in Victoria. Cardinia has been identified as having strong productive potential in regard to hard rock as well as sand and gravel.

The subject site is located on an intrusive igneous rock formation which is a key source of granite. Other hard rock types such as basalt are from extrusive formations found in this region (Pakenham) and further east (South Gippsland). These hard rocks are used in construction due to their strong physical properties. They are typically crushed to be used as a road base, concrete aggregate, asphalt pavement aggregate, railroad ballast and other purposes.

The proposed quarry under assessment contains large quantities of granite and falls within an identified extractive industry interest area.

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3.2 Critical resource locations

The PwC report identifies 15 municipalities that are of critical importance because of anticipated supply shortfalls and/or production opportunities, with Cardinia ranked number five as a location for hard rock, sand and gravel.

Figure 4 shows the locations of the top five strategic resource locations.

The report highlights the importance of securing resources near urban development to ensure competitive input prices due to the high marginal transportation costs.

Several locations are at risk of exhausting hard rock resources over the next 30 years. Critically, this includes the inner south-east region, which incorporates Cardinia and other neighbouring municipalities, which is predicted to have a cumulative production shortfall of over 78 million tonnes between 2015 and 2050.

Figure 4—Identified strategic resources

Source: Deep End Services; PwC

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3.3 Regional hard rock supply and demand

Figure 5 maps the level of cumulative production volumes by location in Victoria for hard rock across the period 2015-2050. According to this data from the PwC report, the Inner South East region is one of the most important in terms of providing on-going supply of hard rock resources to support urban development in the region.

Although the current hard rock resource demand of 5.6 million tonnes in the Inner South East region was met in 2015, the PwC analysis shows that annual demand for hard rock resources will increase to 6.7 million tonnes in 2025 and 12.4 million tonnes in 2050.

With limited existing production volume, PwC concluded that the region would experience an annual production shortfall of 0.75 million tonnes in 2025, increasing to an annual shortfall of 6.4 million tonnes in 2050.

Figure 5—Cumulative supply of hard rock (2015-2050)

Source: Extractive Resources in Victoria: Demand and Supply 2015-2050, PwC, 2016

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3.4 Local quarry context

The subject site is within an area of intrusive igneous rock formation which has been identified as an extractive industry interest area because of the accessibility of the resource and the proximity to serviced demand.

The suitability of the region for extracting hard rock resource is reflected by the presence of existing quarries in the region (refer Figure 6 at right and Table 1 on the next page).

These quarries are advantageously positioned close to areas where significant urban development is occurring, as highlighted by dwelling approval data shown on the map.

However, some existing quarries, including one operated by Hanson at Lysterfield, are now being encroached on by urban development.

Moreover, as data in Table 1 shows, none of the quarries commenced operation within the past 20 years and some of these quarries have been operating for over 40 years. They are likely to be coming to the end of their operating life.

With a need to not only maintain but increase production levels to meet forecast demand to 2050, new quarry opportunities must be identified and brought on line.

Figure 6—Residential dwelling approvals, 2016/17-2017/18 and active work authority licenses in proximity to the site

Source: Deep End Services; Earth Resources Victoria; ABS

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Table 1—Local quarries

Map ref Owner Address Opening year

Distance from

proposed quarry

(km)

Total area (ha)

Resource type Estimated production

rate

Estimated lifetime

remaining

1 Holcim (Australia) Pty Ltd Brew Road, Tynong 1986 10 43.9 Granite HR 0.5-2.0 Mt/yr <20 years

2 Fulton Hogan Quarries Pty Ltd Tynong North Rd, Tynong North 1986 11 102.9 Granite HR 0.5-2.0 Mt/yr <20 years

3 Hanson Construction Materials Pty Ltd Wellington Rd, Lysterfield 1979 56 83.3 Granite HR; Hornfels 1.4 Mt/yr 10-15 years

4 Holcim (Australia) Pty Ltd Mt Shamrock Road, Pakenham 1996 29 127.8 Basalt Old n.a. n.a.

5 Casacir Pty Ltd Beattie Rd, Jindivick 1971 22 13.9 Basalt Old n.a. n.a.

6 Eileen E Gourley Sheffield Road, Neerim South 1980 36 8.2 Basalt Old n.a. n.a.

7 Boral Resources (Vic) Pty Ltd Summit Road, Lysterfield 1986 56 78.5 Hornfels n.a. n.a.

8 J H Cuthbertson Pty Ltd 195 Old Telegraph Road, Jindivick 1991 17 31.1 Hornfels; Sedimentary HR n.a. n.a.

Source: Deep End Services; Earth Resources Victoria; Hanson

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3.5 Conclusion The need to secure cost-effective supply of extractive resources for the construction sector is critical for the ongoing health of the Victorian economy. In this context, hard rock is particularly important as an ingredient for road base, concrete aggregate, asphalt pavement aggregate, railroad ballast and for other purposes.

The key findings from the analysis presented in this section are:

1. Melbourne’s Inner South East is a key production centre for hard rock, but demand is forecast to increase substantially, with a shortfall emerging prior to 2025.

2. Within this region, Cardinia has been as a critical resource location because of anticipated supply shortfalls and/or production opportunities.

3. The area surrounding the Bunyip North site has been identified as an extractive industry interest area because it lies over an intrusive igneous rock formation and is in close proximity to serviced demand.

4. With urban development encroaching on existing quarries, and some resources becoming exhausted, it is critical that new resources are found and brought to market to secure ongoing supply of hard rock products. This is a position supported by both PwC and the State Government.

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Regional economic context

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4.1 Study region definition

The local study area extends 15km west of the site to the eastern perimeter of Pakenham and 20km east to the western edge of Warragul. The northern boundary of the local study area is formed by the edge of the Bunyip State Park, and Lang Lang River generally marks the boundary 25 km to the south.

Towns within the local study area include Drouin, Bunyip, Garfield and Nar Nar Goon.

The total study region includes the remainder of the municipalities of Cardinia and Baw Baw.

The remainder of Cardinia is dominated by the metropolitan fringe extending from Beaconsfield to Pakenham, which is surrounded by rural outlying areas and the larger townships of Koo Wee Rup and Lang Lang.

The remainder of Baw Baw is largely rural other than Warragul which, along with Drouin, is absorbing relatively rapid urban growth as a peri-urban community.

Figure 7—Study region definition

Source: Deep End Services

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4.2 Population

The study region had a total estimated resident population of 146,497 persons in 2016, of which 25,264 lived within the local study area and a majority of the balance (88,894) lived in the remainder of Cardinia Shire. The township of Bunyip contains approximately 2,400 residents, while Garfield has an estimated population of around 1,400 persons.

The study region experienced rapid population growth of 4.2% pa over the five years from 2011 to 2016, almost double that of Victoria as a whole during the same timeframe (i.e. 2.2% pa).

The study region growth rate can also be expressed as more than 5,400 new residents each year. Most of the growth (4,250 residents pa) occurs in the urban fringe around Pakenham, helping to drive demand for construction inputs in the area.

Population growth is expected to continue at high rates across the study region according to official State government forecasts. This will result in the population reaching 233,662 in 2031. Hence, the population of this region is expected to increase by approximately 86,000 between 2016 and 2031. This is roughly equivalent a city the size of Bendigo, emphasising the infrastructure challenge.

Table 2—Study region population growth

Study region sector 2001 2006 2011 2016 2021 2026 2031

Population

Local study area 17,510 18,582 21,706 25,264 28,538 32,531 37,009

Cardinia remainder 39,339 50,210 67,616 88,894 111,047 133,454 152,396

Baw Baw remainder 26,051 27,183 30,183 32,789 36,620 40,578 44,257

Total 82,900 95,975 119,505 146,947 176,204 206,564 233,662

Population growth (No. per annum)

Local study area - 214 625 712 655 799 896

Cardinia remainder - 2,174 3,481 4,256 4,431 4,482 3,788

Baw Baw remainder - 226 600 521 766 792 736

Total - 2,615 4,706 5,488 5,851 6,072 5,420

Population growth (% per annum)

Local study area - 1.2% 3.2% 3.1% 2.5% 2.7% 2.6%

Cardinia remainder - 5.0% 6.1% 5.6% 4.6% 3.7% 2.7%

Baw Baw remainder - 0.9% 2.1% 1.7% 2.2% 2.1% 1.8%

Total - 3.0% 4.5% 4.2% 3.7% 3.2% 2.5%

Source: ABS Regional Population Growth; Victoria in Future 2016 (DEWLP)

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4.3 Demographics

The distinguishing demographic features of the local study area, as compared to regional Victoria (excluding Geelong which has a more metropolitan-type profile), are as follows:

• Younger age profile with a higher proportion of people aged under 34

• Higher than average household incomes • High proportion of houses under mortgage • A higher than average proportion of

‘traditional’ households comprising couples with children.

The remainder of the Cardinia region is dominated by younger families living in and around Pakenham attracted by affordable housing, and with higher incomes reflecting their employment in the metropolitan economy. Cultural diversity is more evident.

The remainder of the Baw Baw region comprises older residents and higher levels of home ownership.

Table 3—Socio-demographic profile, 2016

Demographic characteristic (2016 Census)

Local study area

Cardinia remainder

Baw Baw remainder

Total study region

Regional VIC (excl. Geelong)

Persons and dwellings

Usual resident population 24,832 85,661 32,393 142,886 1,253,233

Total private dwellings 9,998 31,836 14,228 56,062 607,472

- % unoccupied 8% 7% 12% 8% 17%

Average household size (5)(7) 2.62 2.84 2.49 2.72 2.38

Age group

0-9 14% 16% 12% 15% 12%

10-19 13% 14% 13% 13% 12%

20-34 17% 21% 15% 19% 16%

35-49 18% 21% 18% 20% 18%

50-64 20% 16% 22% 18% 21%

65+ 18% 11% 20% 15% 21%

Average age 39.8 34.9 41.3 37.2 41.8

Annual household income (1)(3)(5)

<$33,800 20% 15% 22% 18% 26%

$33,800 - $78,200 38% 35% 37% 36% 39%

$78,200 - $130,300 25% 30% 24% 28% 22%

$130,300 - $182,400 11% 13% 10% 12% 8%

>$182,400 6% 7% 7% 7% 5%

Average household income $80,938 $91,095 $81,348 $86,944 $73,887

Variation from Regional Vic (ex Geel) average 10% 23% 10% 18% -

Top 4 regions of ancestry (1)(4)(8)

North-West European 80% 73% 82% 76% 80%

Oceanian 48% 43% 47% 44% 46%

Southern and Eastern European 8% 11% 8% 10% 8%

Southern and Central Asian 1% 6% 1% 4% 1%

Occupied private dwelling tenure (1)(4)(5)(6)

Fully owned 36% 24% 42% 31% 40%

Being purchased 42% 51% 38% 47% 35%

Rented 21% 25% 20% 23% 25%

Household composition (4)(5)

Couples with children 34% 41% 30% 37% 27%

Couples without children 30% 25% 32% 28% 30%

One parent family 11% 13% 10% 12% 11%

Lone person 23% 19% 26% 21% 29%

Group 2% 2% 2% 2% 3%

Source: ABS Census 2016. Notes: (1) Excludes not stated; (2) 15 years and over and excludes not stated; (3) Excludes inadequately described and/or partially stated; (4) Excludes other; (5) Occupied private dwellings; (6) Includes visitor only households; (7) Excludes visitor only households

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4.4 Resident labour force

Table 4 provides details of the occupational structure of the resident labour force living within the study region.

The total number of employed residents in the study region was 65,144 in 2016, of which 10,767 live within the local study area.

Key occupations, in terms of absolute numbers, are technicians & trades workers, managers and professionals.

By comparison with regional Victoria, however, the study region has a relatively high proportion of working as technicians & trades workers and clerical & administrative workers. The proportion of managers and professionals in the region is slightly lower than average.

The proposed Bunyip North quarry would, in this context, be providing employment in occupations which are in demand by study area region residents.

Table 4—Occupational structure of resident labour force

Occupation type Local study area Cardinia remainder

Baw Baw remainder

Study region Study region (%) Regional VIC (excl. Geelong)

Managers 1,555 4,638 2,334 8,527 13% 15%

Professionals 1,502 6,010 2,562 10,074 15% 17%

Technicians & trades workers 2,003 7,367 2,330 11,700 18% 15%

Community & personal service workers 1,122 4,359 1,571 7,052 11% 12%

Clerical & administrative workers 1,292 5,774 1,642 8,708 13% 11%

Sales workers 940 4,263 1,151 6,354 10% 10%

Machinery operators & drivers 956 3,329 891 5,176 8% 7%

Labourers 1,397 4,396 1,760 7,553 12% 13%

Total 10,767 40,136 14,241 65,144 100% 100%

Source: ABS Census 2016

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4.5 Working population within region

A total of 38,153 people worked within the study region in 2016, with 5,784 working within the local study area.

Overall, the key sectors in the study region are town services such as retail trade, health care and education, and construction which is associated with local urban development.

The local study area has particularly strong representation of people working in

• Education & training • Agriculture, forestry & fishing • Construction • Health care & social services.

The Cardinia region has a lower representation in agriculture and a higher emphasis on retail trade as well as health care & social assistance, education & training and accommodation & food services. Higher employment in these town services is typical of an area with a more ‘suburban’ base.

Baw Baw has a similar working profile to the local study area with a strong emphasis on agriculture, forestry & fishing as well as town services.

Table 5—Study region jobs by industry sector

Industry Local study area Cardinia remainder

Baw Baw remainder

Study region Study region % Regional VIC (excl. Geelong)

Agriculture, Forestry & Fishing 748 783 1,342 2,873 8% 8%

Mining 29 85 45 159 0% 1%

Manufacturing 416 1,715 855 2,986 8% 7%

Utilities & Waste Services 29 260 75 364 1% 1%

Construction 615 2,386 918 3,919 10% 15%

Wholesale Trade 142 478 326 946 2% 2%

Retail Trade 507 2,943 1,417 4,867 13% 10%

Accomm & Food Services 435 1,749 1,065 3,249 9% 7%

Transport, Postal & Warehousing 198 880 393 1,471 4% 4%

Info Media & Telecom 23 215 152 390 1% 1%

Finance & Insurance Services 66 503 453 1,022 3% 2%

Rental/Hiring & Real Estate Services 83 350 128 561 1% 1%

Professional, Scientific & Tech Services 235 1,072 626 1,933 5% 4%

Administrative & Support Services 197 546 288 1,031 3% 4%

Public Administration & Safety 243 703 440 1,386 4% 6%

Education & Training 789 2,153 1,253 4,195 11% 8%

Health Care & Social Assistance 589 2,337 1,498 4,424 12% 13%

Arts & Recreation Services 155 379 216 750 2% 2%

Other Services 265 880 482 1,627 4% 4%

Total 5,764 20,417 11,972 38,153 100% 100%

Source: ABS Census 2016

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4.6 Key local sectors Town centre services

Town centre services such as retail, education and health services generate a significant share of local employment and are typically concentrated within the commercial strip of rural towns.

In the local study area, the largest concentration of retailing is in Drouin, with smaller groups of shops in townships such as Bunyip, where a local IGA supermarket anchors the town centre.

Early learning centres and primary schools are distributed throughout the local area, with secondary colleges at Drouin and in larger townships in the region.

Local health services are provided within townships, with higher-order services located in larger townships such as Warragul and Pakenham.

Agriculture, forestry and fishing

Agriculture, forestry and fishing is the largest employing industry within the local study area. Overall, it employs 2,873 people within the total study region, 748 of which are within the local study area.

Key sectors include livestock production, including slaughtering and products such as milk, eggs and wool. The southern part of Cardinia Shire includes an important vegetable growing district around Koo Wee Rup.

Forestry is an important industry within Baw Baw and is concentrated in the northern half of the region.

Tourism

According to estimates by Tourism Research Australia for local government areas, the study region attracts 1.2 million day visitors and 1.0 million visitor nights.

Many of these visitors are travelling through the region as part of driving tours or on their way to ski fields and other locations in south east Victoria. Local visitors are attracted by a variety of museums and galleries, nature walks and scenic driving routes. Gumbaya World is a theme park being upgraded to the north-west of Garfield which is one of the more significant local attractions.

Local tourism accommodation consists mainly of bed and breakfast establishments in Drouin, Garfield, Langwarry and Lang Lang. There are also two caravan parks located in the Drouin region.

Key tourism statistics are shown in Table 6 below.

Table 6—Local tourism statistics, 2016

Measure Cardinia Baw Baw Study region

Day visitors ('000) 533 701 1,234

Overnight visitors:

Visitors ('000) 109 161 270

Nights ('000) 562 444 1,006

Total expenditure ($m) 72 73 145

Tourism businesses 728 506 1,234

Source: Tourism Research Australia