ECONOMIC DEVELOPMENT STRATEGY FOR GLOUCESTER … · 2017-08-09 · Gloucester Shire LGA EDS Report 2 : Draft 1 Aug 2010 Confidential Draft 1: Buchan Consulting August 2010 4 Executive

Gloucester Shire LGA EDS Report 2 : Draft 1 Aug 2010 Confidential

Draft 1: Buchan Consulting August 2010

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ECONOMIC DEVELOPMENT STRATEGY

FOR GLOUCESTER LOCAL GOVERNMENT AREA

Report 2: Opportunities and Requirements Report

August 2010



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Contents

CONTENTS..................................................................................................................................................................................... 1

EXECUTIVE SUMMARY ................................................................................................................................................................ 4

1. INTRODUCTION ........................................................................................................................................................................ 9

2. ECONOMIC CONTEXT ........................................................................................................................................................... 10

2.1 OVERVIEW ............................................................................................................................................................................ 10 2.2 ECONOMIC AND EMPLOYMENT PROFILE ................................................................................................................................... 10

2.2.1 Key Sectors ................................................................................................................................................................ 10 2.2.2 Workforce ................................................................................................................................................................... 10 2.2.3 Businesses in Area ..................................................................................................................................................... 11 2.2.4 Current Jobs ............................................................................................................................................................... 12 2.2.5 Income ........................................................................................................................................................................ 15

2.3 REGIONAL CONTEXT .............................................................................................................................................................. 15

3. STRATEGY DIRECTIONS .................................................................................................................................................. 16

3.1 STRATEGIC DIRECTIONS ........................................................................................................................................................ 16

4. GROWING THE REGION ......................................................................................................................................................... 18

4.1 OVERVIEW (S1) GROWING THE POPULATION ........................................................................................................................... 18 4.2 FUTURE POPULATION ............................................................................................................................................................ 18

4.2.1 Department of Planning Projections ........................................................................................................................... 18 4.2.2 Ratio Consultants Projections .................................................................................................................................... 19 4.2.3 Key Population Issues ................................................................................................................................................ 21

4.3 STRATEGIC DIRECTIONS: S1 A LARGER POPULATION ............................................................................................................... 21

5 AGRIBUSINESS SECTOR ....................................................................................................................................................... 23

5.1 –OVERVIEW (S2.1) - AGRIBUSINESS IN THE REGION ................................................................................................................ 23 5.1.1 Key Sectors ................................................................................................................................................................ 23 5.1.2 Activity in the Sector ................................................................................................................................................... 23 5.1.3 Employment in the Sector .......................................................................................................................................... 24

5.2 BEEF SECTOR ....................................................................................................................................................................... 25 5.2.1 Overview .................................................................................................................................................................... 25 5.2.2 Key Issues in the Sector............................................................................................................................................. 26

5.3 DAIRY SECTOR ..................................................................................................................................................................... 26 5.3.1 Overview .................................................................................................................................................................... 26 5.3.2 Key Issues in the Sector............................................................................................................................................. 27

5.4 TIMBER SECTOR.................................................................................................................................................................... 27 5.4.1 Overview .................................................................................................................................................................... 27 5.4.2 Key Issues in the Sector............................................................................................................................................ 27

5.5 DIVERSIFIED AGRICULTURE .................................................................................................................................................... 28 5.5.1 Overview .................................................................................................................................................................... 28 5.5.2 Key Issues in the Sector............................................................................................................................................ 29

5.6 FUTURE OPPORTUNITIES (S2.1) AGRIBUSINESS ...................................................................................................................... 29 5.6.1 Major Issues ............................................................................................................................................................... 29 5.6.2 Assessment (2.1) Agribusiness ................................................................................................................................. 29 5.6.3 Developing Agribusiness (S2.1) ................................................................................................................................. 29

5.7 AGRIBUSINESS (S2.1) - ACTION 1: VEGETABLE PRODUCTION ................................................................................................... 31 5.7.1 Future Opportunities................................................................................................................................................... 31 5.7.2 Assessment (S2.1: A1)- Vegetables .......................................................................................................................... 33 5.7.3 Developing the Opportunity (S2.1: A1) ...................................................................................................................... 37

5.8 AGRIBUSINESS (S2.1) - ACTION 2: BEEF PRODUCTION ............................................................................................................. 38 5.8.1 Future Opportunities................................................................................................................................................... 38 5.8.2 Assessment (S2.1 A2): Beef ...................................................................................................................................... 40

5.9 AGRIBUSINESS (S2.1) - ACTION 3: DAIRY PRODUCTION ........................................................................................................... 43 5.9.1 Future Opportunities................................................................................................................................................... 43 5.9.2 Assessment (S2.1 A3): Dairy ..................................................................................................................................... 44

5.10 AGRIBUSINESS (S2.1)- ACTION 4: REGIONAL FOOD BRAND .................................................................................................... 53 5.10.1 Future Opportunities................................................................................................................................................. 53 5.10.2 Assessment (S2.1 A3): Food Brand ......................................................................................................................... 54

5.11 AGRIBUSINESS (S2.1)- ACTION 5: SKILLS DEVELOPMENT ....................................................................................................... 55 5.11.1 Future Opportunities................................................................................................................................................. 55



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5.11.2 Assessment (2.1 A4): Agribusiness Skills ................................................................................................................ 56 5.12 OTHER AGRIBUSINESS OPPORTUNITIES (S2.1) ...................................................................................................................... 57

6 TOURISM SECTOR ................................................................................................................................................................... 58

6.1 TOURISM (S2.2): CURRENT SITUATION ................................................................................................................................... 58 6.1.1 Overview .................................................................................................................................................................... 58 6.1.2 Key Assets ................................................................................................................................................................. 58 6.1.3 Tourism Market .......................................................................................................................................................... 59 6.1.4 Events ........................................................................................................................................................................ 61 6.1.5 Accommodation Sector .............................................................................................................................................. 62 6.1.6 Value of Tourism ........................................................................................................................................................ 63 6.1.7 Tourism Businesses ................................................................................................................................................... 63 6.1.8 Employment in Tourism.............................................................................................................................................. 63

6.2 FUTURE OPPORTUNITIES (S2.2): TOURISM.............................................................................................................................. 65 6.2.1 Major Issues ............................................................................................................................................................... 65 6.2.2 Developing Tourism ................................................................................................................................................... 65

6.3 S2.2 TOURISM (S2.2): MARKET 1 – EXPERIENCE/ADVENTURE TOURISM ................................................................................... 67 6.3.1 Future Opportunities................................................................................................................................................... 67 6.3.2 Assessment (S2.2 M1): Adventure Tourism .............................................................................................................. 68

6.4 TOURISM (S2.2): MARKET 2 – NATURE BASED TOURISM .......................................................................................................... 71 6.4.1 Future Opportunities................................................................................................................................................... 71 6.4.2 Assessment (S2.2 M2): Nature Based Tourism ......................................................................................................... 72

6.4 TOURISM (S2.2): MARKET 3 - AGRI-TOURISM .......................................................................................................................... 75 6.4.1 Future Opportunities................................................................................................................................................... 75 6.4.2 Assessment (S2.2 M3): Agri-tourism ......................................................................................................................... 77

6.5 S2.2 TOURISM (S2.2): MARKET 4 – SHORT BREAKS ................................................................................................................ 80 6.5.1 Future Opportunities................................................................................................................................................... 80 6.5.2 Assessment (S2.2 M4): Short Breaks ....................................................................................................................... 80

6.6 S2.2 TOURISM (S2.2): MARKET 5 – WELLNESS MARKET .......................................................................................................... 81 6.6.1 Future Opportunities................................................................................................................................................... 81 6.6.2 Assessment (S2.2 M5): Wellness Tourism Market .................................................................................................... 82

6.7 MARKETING COORDINATION (S2.2) ........................................................................................................................................ 86 6.7.1 Regional Coordination ................................................................................................................................................ 86 6.7.2 Developing Visitor Information Centres ...................................................................................................................... 86

7 HEALTH SECTOR ..................................................................................................................................................................... 87

7.1 HEALTH SECTOR (S2.3)- CURRENT SITUATION ........................................................................................................................ 87 7.1.1 Overview .................................................................................................................................................................... 87 7.1.2 Employment ............................................................................................................................................................... 87 7.1.3Gloucester District Health Service (GDHS) ................................................................................................................. 89

7.2 FUTURE DEMAND FOR HEALTH SERVICES................................................................................................................................ 90 7.3 FUTURE OPPORTUNITIES (S2.3): HEATH AND AGED SERVICES ................................................................................................. 91

7.3.1 Overview –Health and Aged Services ........................................................................................................................ 91 7.3.2 Health Services (S2.3 ) Opportunities ........................................................................................................................ 92 7.3.3 Aged Services (S2.3) - Opportunities ......................................................................................................................... 93 7.3.4 Health Workforce (S2.3) - Opportunities ................................................................................................................... 94

7.4 ASSESSMENT (2.3) : HEALTH AND AGED CARE ........................................................................................................................ 94 7.4 1 Health Services .......................................................................................................................................................... 94 7.4 2 Aged Care Services .................................................................................................................................................. 95 7.4.3 Seniors Housing ......................................................................................................................................................... 96 7.4.4 Nursing Workforce ...................................................................................................................................................... 96

8. RETAIL AND SERVICES SECTORS ....................................................................................................................................... 98

8.1 RETAIL SECTOR (S2.4) - CURRENT SITUATION ........................................................................................................................ 98 8.1.1 Retail Overview .......................................................................................................................................................... 98 8.1.2 Retail Activity in Gloucester ....................................................................................................................................... 98 8.1.3 Retail Spending .......................................................................................................................................................... 99 8.1.4 Employment in Retail ............................................................................................................................................... 101

8.2 DEVELOPMENTS IN RETAIL SECTOR ...................................................................................................................................... 102 8.3 FUTURE OPPORTUNITIES (2.4) - RETAIL ................................................................................................................................ 102

8.3.1 Retail Opportunities .................................................................................................................................................. 102 8.3.2 Assessment (2.4) - Retail ......................................................................................................................................... 103

8.4 SERVICES SECTOR (2.5) - CURRENT SITUATION .................................................................................................................... 104 8.4.1 Overview .................................................................................................................................................................. 104 8.4.2 Service Activities ...................................................................................................................................................... 104 8.4.3 Employment in Services ........................................................................................................................................... 105

8.5 FUTURE OPPORTUNITIES (2.5) – SERVICES ........................................................................................................................... 107



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8.5.1 Opportunities (2.5) - Services .................................................................................................................................. 107 8.5.2 Assessment (2.5) - Services .................................................................................................................................... 108

9 MINING AND ENERGY SECTOR ........................................................................................................................................... 109

9.1 SECTOR (S3) OVERVIEW ..................................................................................................................................................... 109 9.2 MINING IN THE REGION (S3.1) .............................................................................................................................................. 109

9.2.1 Employment in the Mining Sector ............................................................................................................................ 109 9.2.2 Gloucester Coal Operations ..................................................................................................................................... 110

9.3 FUTURE OPPORTUNITIES (3.1) - MINING ................................................................................................................................ 112 9.3.1 Mining Opportunities ................................................................................................................................................ 112 S3.1 Mining Opportunities ................................................................................................................................................. 112 9.3.2 Assessment (3.1) - Mining........................................................................................................................................ 113

9.4 GLOUCESTER COAL SEAM GAS PROJECT (S3.2) ................................................................................................................... 113 9.4.1 The Project ............................................................................................................................................................... 113 9.4.2 Spin Off Developments ............................................................................................................................................ 114 9.4.3 Economic Impacts .................................................................................................................................................... 115

9.5 FUTURE OPPORTUNITIES (3.2) - ENERGY AND GAS ................................................................................................................ 116 9.5.1 Energy and Gas Opportunities ................................................................................................................................. 116 9.5.2 Assessment (3.2) - Energy and Gas ........................................................................................................................ 117

9.6 ROYALTIES FOR REGIONS (S3.3) .......................................................................................................................................... 117

10 ATTRACTING BUSINESS .................................................................................................................................................... 119

10.1 STRATFORD INDUSTRIAL PARK (S4.1) ................................................................................................................................. 119 10.2 FUTURE OPPORTUNITIES (S4.1) - STRATFORD INDUSTRIAL PARK .......................................................................................... 120

10.2.1 Opportunities .......................................................................................................................................................... 120 10.2.2 Assessment (S4.1) - Stratford Industrial Park ........................................................................................................ 121

10.3 FUTURE OPPORTUNITIES (S4.2) - LIGHT INDUSTRIAL BUSINESSES ........................................................................................ 122 10.3.1 Light Industrial Opportunities ................................................................................................................................. 122 10.3.2 Assessment (S4.2) - Light Industrial Businesses ................................................................................................... 122

11 SUPPORTING GROWTH - GLOUCESTER TOWN & INFRASTRUCTURE ........................................................................ 123

11.1 OVERVIEW - REQUIREMENTS FOR GROWTH ......................................................................................................................... 123 11.2 GLOUCESTER TOWN CENTRE (S5) ..................................................................................................................................... 123 11.3 FUTURE OPPORTUNITIES- GLOUCESTER TOWN CENTRE ....................................................................................................... 123

11.3.1 Opportunities (S5.1) – Creating a Vibrant Town Centre ........................................................................................ 123 11.3.2 Assessment (S5.1) – Creating a Vibrant Town Centre .......................................................................................... 124

11.4 INFRASTRUCTURE (S6) ...................................................................................................................................................... 124 11.5 GATEWAY CENTRE (S6.1) ................................................................................................................................................. 124

11.5.1 Opportunities (S6.1) - Gateway Centre .................................................................................................................. 124 11.5.2 Assessment (S6.1) - Gateway Centre ................................................................................................................... 126

11.6 INDUSTRIAL LAND (S6.2) ................................................................................................................................................... 126 11.6.1 Opportunities (S6.2) - Industrial Land .................................................................................................................... 126 11.6.2 Assessment (S6.2) - Industrial Land ...................................................................................................................... 127

12 SUPPORTING GROWTH - MARKETING & ENGAGEMENT ............................................................................................. 128

12.1 OVERVIEW ........................................................................................................................................................................ 128 12.2 MARKETING THE REGION (S7) ............................................................................................................................................ 128 12.3 COLLABORATION AND COMMUNITY ENGAGEMENT (S8) ......................................................................................................... 128 12.4 IMPLEMENTATION (S9) ....................................................................................................................................................... 129

13 THE NEXT STEPS ................................................................................................................................................................. 131

REFERENCES ............................................................................................................................................................................ 132

DISCLAIMER .............................................................................................................................................................................. 135



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Executive Summary

This report is the second report in the development of an economic development strategy for Gloucester Shire. It provides an analysis of the strategic directions for Gloucester Shire and outlines specific opportunities in each key sector. The Region The main industries in the Shire include: agribusiness (beef, dairy); retail and services; coal mining; light manufacturing; and tourism. Gloucester town is the major centre of population and local industry, with retail, commercial, light industrial, government (Council and other agencies), Gloucester Hospital and the main schools. Strategic Directions The key directions for the economic development strategy are focused on renewal of the region and its economy. This involves:

Increasing the regional population – a larger population is needed to counter the impacts of an ageing population of the regional economy. A larger population will drive the demand for retail, local services and light industrial activity servicing the regional market. It will support local businesses and create new business opportunities.

The requirements for a larger population are: attraction of new residents (including families); increasing the number of local jobs (to provide employment opportunities); encouraging more mine workers to live in the local region; improve attractiveness of town centre.

Strengthening and renewing existing industry sectors – this includes developing agribusiness (traditional sectors – dairy and beef and new sectors – horticulture).

Developing a larger and more sustainable tourist sector.

Strengthening retail activity in the town centre and developing the services sector.

Maximising regional returns from mining and energy industries, through employment, providing support services and securing a share of royalties for local economic development projects.

Maintaining health services and developing aged services

Attracting new businesses into the region - this covers the development of the Stratford Industrial Park and other initiatives to attract tourism operators, agribusiness operators and other businesses.

Improving the Gloucester town centre, for both residents and for tourist visitors.

All of these are directed at providing for a long term future for the region, with a sustainable industry base that is built on local strengths. In the absence of growth in population, the current industry structure and local jobs are vulnerable. The focus is on pursuing the identified market opportunities, which have been reviewed and assessed in the detailed opportunities report. The overall objectives are: to renew the region; to generate sustainable growth; and create more local jobs.

Securing the identified opportunities will require: implementation of local sector strategies; regional industry collaboration; active involvement of local businesses and Council; and securing support from relevant New South Wales Government programs (along with support from relevant Australian Government programs

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S3: Maximising Regional Benefits S3.1 Mining: maximise local jobs and services, avoid encroachment of mining near town centre. S3.2 Energy and Gas: AGL Gloucester Coal Seam Gas (CSG)- a strategic project. S3.3 Royalties : develop royalties for regions concept

S2: Developing Key Sectors

S2.1 Agribusiness: diversified agriculture (horticulture), beef, dairy, skills development, regional brand.

S2.2 Tourism: market development: experience/adventure, nature-based, short breaks, agri-tourism, wellness market.

S2.3 Health services: delivery of health services; aged care specialisation, develop nursing workforce, seniors housing

S2.4 Retail: population growth vital for retail growth.

S2.5 Services: growth depends on population and regional business growth.

S1: A Larger Population

- Population a major issue

- Population growth required to avoid regional decline .

- Future growth reliant on more jobs being created/attracted to the region

- Population growth drives demand levels for other sectors

Key Sectors

Growing the Region

Renewing the Region

Sustainable Growth

More Jobs

Gloucester

S4: Attracting Business

S4.1 Stratford Industrial Park: active program of business attraction needed.

S4.2 Light Industrial

S6: Infrastructure

S6.1 Tourism Centre: multi-purpose centre

S6.2 Industrial Land: provision of light industrial sites; and development of Stratford site.

S6.3 Contributions: development contributions managed to encourage economic and tourism growth, role of Section 94 and variations for key strategic projects.

Supporting Growth S5: Improving the Town Centre

S5.1 Creating a Vibrant Town Centre: increase densities around town centre, improve public domain, developing more cafes and restaurants; lengthen opening hours, develop tourist friendly environment.

S7: Marketing the Region

S7.1 Population: active program of population attraction.

S7.2 Business: active program to attract businesses.

S7.3 Food: development of a Gloucester food brand, marketing region as food production zone.

S7.4 Tourism: develop tourism brand, improve marketing of product offer (online and other.

S9: Implementation

S9.1 Economic Development Group: restructure for implementation of strategy.

S9.2 Agribusiness Taskforce: establish taskforce to implement the key projects (e.g. regional brand, diversification, product marketing).

S9.3 Tourism Taskforce: to develop market. Link taskforces to Economic Development Group

S9.4 Information and tracking:

-industry information and indicators

S8: Collaboration and Community Engagement

S8.1 Community Economic Transition (CET) program: engaging business and community groups (Industry and Investment NSW).


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Key Sectors Agribusiness The Gloucester Region has a history in beef and dairy and is diversifying into some emerging areas. Some of the major issues affecting commercial agriculture in the area include both local factors and broader industry wide issues: competing uses for some rural lands in the region associated with the extension of mining leases; recent pressure on land prices arising from purchasing of properties as lifestyle blocks and hobby farms; farm gate prices remaining static (or with minimal growth), while the cost of all farm inputs have increased; and pressures associated with change in the food processing sector, with closures of some processing plants or meatworks and consolidation of this segment into larger and more distant (from Gloucester) plants.

The work of the Gloucester Project has also contributed to wider awareness of the potential for new specialist areas of food and horticulture production. This diversified agriculture is linked to both production of fresh product, specialty processed products and the establishment of agri-tourism in the region. As part of this development, the Gloucester Farmers Market was established in February 2010.

The directions for development of the agribusiness sector and these include: action to support the beef sector in the region; maintaining an efficient dairy sector; developing a Gloucester food brand and creating market channels for new products; developing the horticulture market, including specialist vegetables, through the assessment of land suitability and availability; and conducting commercial level trials; targeting the attraction of vegetable producers, who are being displaced from sites in the Sydney Basin.

A group of Gloucester producers has developed a regional brand “Gloucester Fare”. The group is working on the issue of marketing channels for specialised local products to broader markets, and this includes development of a marketing website. The brand would be linked to the development of agri-tourism in the region (and a food trail) and the use of local produce in restaurants and cafes. The Poachers Way in the Canberra Region provides an example of linkages to agri-tourism, through a food trail and farm experiences.

Tourism A major issue is that the tourism sector and key attractions, accommodation, infrastructure and tourism product are under-developed relative to other areas in the Hunter Region and in other locations. Some of the major issues in the tourism sector are: to increase visitor numbers to the region; to improve the regional tourism product; to improve overall standard in the sector; and to ensure that Gloucester Town Centre captures an increased number of visitors. There are several market segments that we have identified as providing the basis for development of the tourism market in Gloucester. These are: adventure/experience tourism; nature based tourism; wellness and lifestyle; agri-tourism; and short breaks. There are also infrastructure issues: the Gloucester Town Centre needs to be developed as an attractive village experience for visitors; and there is a need to develop the entry point into the town with the proposed multi-use tourism facility which would integrate tourism information, the national parks experience, a café, tourist bus facility, and parking. The building would also be used as a local community centre (for meetings, events, community cinema etc). Health and Age Services The major future issues for the health sector are: maintenance of the hospital in Gloucester, in the light of changes in the structure of health networks. A scaling back of services at the hospital would have a major negative impact on Gloucester due to the importance of health sector jobs for the region; and future support services required for an ageing population, including low care and high care places. Key issues for the future of Gloucester are the maintenance of health services and the development of aged cares services to provide for an ageing population and for a larger


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population. The Gloucester Local Environmental Plan 2010 also allows for greater variety of housing in the region, which includes development of seniors housing. Retail There is potential to secure significant retail growth and a strengthening of the town centre as a retail area. The major drivers of future growth in the sector will include: population growth and the associated increased retail spending; improvements in the town centre and its retail mix; and increased in visitors to the area. Increased competition in the retail sector will reduce prices and is likely to reduce some of the retail leakage from the area. Services Services are important part of the local economy. The demand for services is driven by two factors – the size of the local population and business activity in the region, Population size and growth mainly impacts on retail level services, government services and some professional services). Business activity has an impact on professional, technical and other business services. The major constraints on developing the services sector are: the size of the local population and scale of businesses in the area; competition from service providers in other larger centres; and pressures from the regionalisation of services by banks and other national organisations and the regionalisation of government services. The major opportunities for growth are: strengthening local services through stronger linkages to agribusiness, mining and other sectors in the region; developing new service businesses that have broader regional markets; encouragement of professionals seeking a lifestyle change and who can operate their businesses from Gloucester; encouragement of new businesses; linking/clustering of micro-businesses, including assessing the potential for a business/serviced office for micro-businesses; accessing government business programs and delivering them through the Chamber of Commerce.

Mining Mining activity has been a major component of the local economy and coal and gas will remain important in the region. The key regional response needs to be to maximise the regional benefits from mining activity. Expansion is occurring in existing mine areas, and there are leases held over wider areas. There is a need to preserve the balance and avoid encroachment of mines into areas around the town centre or in view corridors. Encroachment will negatively affect other sectors of the regional economy such as tourism and agri-tourism. Maximising benefits involves more local employees and service suppliers to the mine. There is a need to secure funding for the diversification of the economy for the post coal period. There are several dimensions to this: establishing other activities (eg. in the Stratford Industrial Park); and securing funding for strategic infrastructure to support diversification (under a share of royalties program – like the Royalties for Regions program in Western Australia). Stratford Industrial Park The Industry Park offers the opportunity to attract major industries to the region. This is one of the major development opportunities for the Shire. There is a need to stage the development of the site and have an active program of business attraction. Future demand for light industrial land will be driven by population growth and industrial demand from mining, agribusiness and other industry sectors. A static population or a major decline in agribusiness would negatively impact on the light industrial sector (e.g. engineering and servicing). Gloucester Town Centre Major issues in creating a more vibrant town centre are: improvements in the public domain to make the village more attractive; development of cafes and restaurants; retail competition to improve prices and reduce leakage; extension of retail trading hours during holiday periods and week ends; and increased residential densities around the town centre. The key town infrastructure to assist development are : a the development of a multi-purpose Gateway Centre as an active tourism and community hub; the provision of industrial land for light industrial and support activities adjacent to the town; and consideration of the role of Section 94 contributions in relation to strategic development projects.


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Supporting Growth There are a number of elements to support sustainable growth and a revitalisation of the Gloucester region. These supports underpin the programs and initiatives outlined in this report and include marketing the region (S7) ; collaboration and community engagement (S8), including the Community Economic Transition Program; and arrangements (economic development group and taskforces) for implementation of the strategy. These elements will be scoped in detail in the final strategy report (Report 3).


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1. Introduction

This report is the second report of the Gloucester Shire Economic Development Strategy project. This report is focused on the identification and assessment of opportunities for the region across current industries and emerging sectors.1 It also examines the development requirements associated with the identified opportunities.

This report extends the analysis of Report 1: Local Economy Review, which detailed the structure of the regional economy, recent trends and the directions for each of the major sectors in Gloucester.2 It has been informed by detailed sector research and analysis and community consultations.

The analysis in this report will be used as the basis for the final stage of the study: formulation of the Gloucester Shire LGA Economic Development Strategy and implementation plan. Our thanks go to Tim Weeks of Gloucester Council for his management and guidance on the project and to the members of the steering group. We appreciate the contributions of all those persons, who participated in the individual consultations and the public consultation meetings.

Work on this stage of the project has been undertaken by Michael Connell, Mike Bright and Michael Krypuy of Buchan Consulting. The views expressed in this report are those of Buchan Consulting and do not necessarily reflect the views of Gloucester Shire Council or any of the businesses and stakeholders, who have been interviewed as part of the consultations on this project.

1 Opportunities may be refined in response to comments on this draft report. 2 Gloucester Economic Development Strategy Report 1: Local Economy Review, Buchan Consulting March 2010


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2. Economic Context

2.1 Overview

There are a number of factors that are setting the economic context for Gloucester Shire and these are: population size and structure; and the current industry structure and sector trends. The main industries in the Shire include: agribusiness (beef, dairy); retail and services; coal mining; light manufacturing; and tourism. Gloucester town is the major centre of population and local industry, with retail, commercial, light industrial, government (Council and other agencies), Gloucester Hospital and the main schools. Looking to the future there are a number of key factors that will influence the sustainability of the regional economy and these are: a need to achieve a faster rate of population growth; a need to increase the number of jobs in the region, through strengthening key sectors and through attracting businesses into the region; and a need to revitalise key industries (e.g. agribusiness) in the region as a foundation for future growth. Associated with this is a need to strengthen the town centre and this will contribute to growth in the tourism market and make Gloucester a more attractive place to live. 2.2 Economic and Employment Profile

2.2.1 Key Sectors There are several key sectors in the regional economy, which are important sources of employment and have capacity for future growth. Gloucester is very much a small business economy. Only 4 businesses in the region employed more than 20 persons and these include the mine and several retailers. The number of businesses in the region has been declining in recent years (mainly due to changes in agriculture and in accommodation, cafes and restaurants).

Key Sectors

Sector Key Features

Agriculture The sector remains significant to the region, and this Includes traditional beef and dairy industries and emerging niche and boutique type farm industries. The Gloucester Project is exploring the opportunities for expansion of agribusiness in the region, including specialty vegetables and fruit and the attraction of market garden activities.

Mining - coal and gas Coal mining is significant through mining operations and some support activities. The Gloucester Coal Company operates two open-cut mining operations producing thermal and coking coal for domestic and export markets. AGL is developing coal seam gas.

Tourism The sector is based on natural environment of the region - World Heritage rainforests and the grasslands of the Barrington Tops, the Bucketts Range and the river system. There has been an expansion in the accommodation sector, but overall tourism is underdeveloped compared with other regions. There is considerable scope for development of the sector, and this will require action on infrastructure, product, marketing, professionalism and development of attractions. .

Retail Retail is a major employer in the LGA and is largely servicing the Gloucester local population. The sector is also affected by tourism in the region (overnight as day visitors). There is some leakage to other areas (e.g. Taree) but due to distances, the local retail sector captures a significant large share of retail expenditure. However there is an issue of relative price levels due to limited competition. There is current development occurring in the sector, with the proposed additional supermarket, and new buildings for one of the existing supermarkets and hardware store.

Services Sector Gloucester township is the major service centre for the Shire. It has a range of retail services, professional services and government services activities. The services sector is driven by population size and the number of businesses in the Shire (increasing demand for professional and business services)

Health services Health is a significant employer due to an ageing population and the presence of the hospital operated by Hunter New England Health (HNEH). Relative to other small communities, Gloucester is well serviced by medical services.

Manufacturing and Light Industry

There are a range of engineering businesses supporting the mining and agriculture sector in the region. There are several businesses that are servicing broader markets .

2.2.2 Workforce Gloucester LGA has a lower labour force participation rate (51%) compared with that for New South Wales overall (59%). In addition, Gloucester has a lower share of persons working full


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time (57%) and a higher percentage of persons employed part-time. This reflects several features of the local economy including: the ageing workforce and the number of persons who are retired (impacting on the participation rate); and the mix of jobs, which includes service jobs, many of which are part-time. Local area data shows that the unemployment in the region has been as high as 8.8% in 2006 , was 5.9% in mid 2009 and down to 5.1% in the March quarter 2010.

2.2.3 Businesses in Area Gloucester is very much a small business economy. The following ABS data shows that there were a total of 717 businesses in the Shire in 2007 and most of these are very small businesses. There are a number of features of business structure: half of the businesses were farms and most of these did not have employees (i.e. were operated by the owner); there were around 220 businesses in other sectors that were single person operations; another 105 businesses employed between 1 and 4 employees; 69 businesses employed between 5 and 19 persons; and only 6 businesses employed 20 or more persons (3 retailers – supermarkets and 3 accommodation, cafes and restaurants).

Table 1. Gloucester Shire - Businesses by Industry by Employment Size 2007

Industry Non

employing 1-4 5-19 20-49 50-99 100-199 200+ Total

Agriculture, Forestry & Fishing 315 24 15 0 0 0 0 354

Manufacturing 6 3 0 0 0 0 0 9

Construction 45 18 3 0 0 0 0 66

Wholesale Trade 6 0 3 0 0 0 0 9

Retail Trade 27 21 9 3 0 0 0 60

Accommodation, Cafes & Restaurants 3 3 9 3 0 0 0 18

Transport & Storage 24 6 15 0 0 0 0 45

Communication Services 3 3 0 0 0 0 0 6

Finance & Insurance 12 0 0 0 0 0 0 12

Property & Business Services 75 15 9 0 0 0 0 99

Education 0 0 0 0 0 0 0 0

Health & Community Services 12 9 6 0 0 0 0 27

Cultural & Recreational Services 6 3 0 0 0 0 0 9

Personal & Other Services 3 0 0 0 0 0 0 3

Total 537 105 69 6 0 0 0 717

Source: ABS Business Register 2007.

On a turnover basis, only 75 businesses had a turnover of greater than $500,000 per year and 400 businesses had turnovers below $75,000 per year. In the agribusiness sector, around one third of farming enterprises had turnovers of less than $25,000, which indicates the existence of hobby farms and some marginal properties. All six of the businesses with a turnover between $2 million and $5 million were in retail. The table below shows that there has been a decline in the number of businesses, with most of the decline being accounted for by two sectors – agriculture; and accommodation, cafes and restaurants.


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Table 2. Number of Businesses by Industry- Gloucester Shire 2003-2006

Number of Businesses by Industry - at 30 June 2003 2004 2005 2006 Share 2006

%

Agriculture, forestry and fishing 426 399 390 381 49.8

Mining 0 0 0 0 0.0

Manufacturing 6 12 6 6 0.8

Electricity, gas and water supply 0 0 0 0 0.0

Construction 66 78 66 57 7.5

Wholesale trade 18 12 12 12 1.6

Retail trade 69 66 57 63 8.2

Accommodation, cafes and restaurants 30 27 24 15 2.0

Transport and storage 45 51 54 51 6.7

Communication services 6 6 9 12 1.6

Finance and insurance 12 18 18 15 2.0

Property and business services 99 96 111 114 14.9

Education 0 0 3 3 0.4

Health and community services 27 27 24 24 3.1

Cultural and recreational services 12 9 9 9 1.2

Personal and other services 6 6 9 3 0.4

Total Businesses 822 807 792 765 100.0

Source: ABS National Regional Profile Gloucester LGA 2008 2.2.4 Current Jobs Data for the Gloucester LGA shows that there were a total of 1737 jobs located in the Gloucester LGA and 1878 residents, who were in employment in 2006. The major concentrations of jobs in the area were in: agriculture (19%); retail (11%); manufacturing (9%); and health care and social assistance (11%). Most of the agriculture jobs were the owner/operators of farms.

Table 3. Jobs in Gloucester LGA by Industry 2006

Industry Males Share (%) Females Share (%) Persons Share (%)

Goods Producing

Agriculture, forestry & fishing 226 23.6 111 14.2 337 19.4

Mining 84 8.8 9 1.2 93 5.4

Manufacturing 127 13.3 33 4.2 160 9.2

Electricity, gas, water & waste services 15 1.6 0 0.0 15 0.9

Construction 71 7.4 9 1.2 80 4.6

Total 523 54.6 162 20.8 685 39.4

Goods Related

Transport, postal & warehousing 46 4.8 21 2.7 67 3.9

Wholesale trade 33 3.4 13 1.7 46 2.6

Total 79 8.2 34 4.4 113 6.5

Knowledge & Business Services

Information media & telecommunications

6 0.6 9 1.2 15 0.9

Financial & insurance services 3 0.3 15 1.9 18 1.0

Rental, hiring & real estate services 9 0.9 14 1.8 23 1.3

Professional, scientific & technical services

27 2.8 38 4.9 65 3.7

Administrative & support services 14 1.5 6 0.8 20 1.2

Total 59 6.2 82 10.5 141 8.1

In-Person Services

Retail trade 71 7.4 113 14.5 184 10.6

Accommodation & food services 37 3.9 87 11.2 124 7.1

Public administration & safety 70 7.3 23 3.0 93 5.4

Education & training 37 3.9 91 11.7 128 7.4

Health care & social assistance 34 3.5 154 19.8 188 10.8

Arts & recreation services 8 0.8 3 0.4 11 0.6

Other services 35 3.7 22 2.8 57 3.3

Total 292 30.5 493 63.3 785 45.2

Inadequately described/Not stated 5 0.5 8 1.0 13 0.7

100.0 100.0 100.0

Total All Jobs 958 55.2 779 44.8 1737 100.0

Source: ABS Census 2006(Working Population Data), Cat. No. 2068.0


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Most of the jobs in the LGA are driven by the local market – population related or through linkages to the industries in the area (agriculture or mining). Some of the major employing sectors are driven by population growth (e.g. retail, health, education, government services, business services and light industry). Only agriculture, mining and several of the manufacturers and builders are servicing wider regional and national markets.

Data on the industry of employment of residents who were employed (1878), show that almost 20% of residents were employed in agriculture, 10% in retail and 10% in health. Males tended to be employed agriculture, manufacturing and construction and mining, and females were more concentrated in health, retail and accommodation and food service. A comparison of employed residents (1878) and jobs in the LGA (1737) in 2006, indicate that most people are living and working in the LGA, with at least 141 persons travelling to jobs outside of the LGA. The recent trend (2001-2006) has been for an overall decline in jobs in the LGA: there was a decline of 169 jobs, with 152 of these being jobs held by males; the main declines were in agriculture (-73), retail (-71), construction (-29) and mining (-25). Growth occurred in several sectors accommodation and food services (21); public administration (25); other services (17); and health services (11).

There are a number of factors at work: employment in agriculture continues to decline as farmers retire; technology change is reducing employment requirements in some sectors; there are only a few local manufacturers who are producing products for broader markets, and a number of businesses are reliant on servicing agriculture in the region; younger people often need to leave the area for higher education and employment.

The decline is a major issue of concern. While the area has become a self contained service regional economy, there are now fewer jobs that are available in the LGA. These jobs trends create a major challenge for securing future population growth and renewing the population, through families with children moving in. Future population growth in the region will be reliant on more jobs being created or attracted. In the absence of increased local jobs the capacity to attract new residents (particularly families) will be limited.


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Table 4. Employment Trends 2001-2006 Gloucester LGA

2006 2001 Change 2001-06

Industry 2006 Jobs Males Females Persons Males Females Persons Males Females Persons

Goods Producing

Agriculture, forestry & fishing 226 111 337 267 143 410 -41 -32 -73

Mining 84 9 93 118 0 118 -34 9 -25

Manufacturing 127 33 160 148 28 176 -21 5 -16

Electricity, gas, water & waste services 15 0 15 7 0 7 8 0 8

Construction 71 9 80 98 11 109 -27 -2 -29

Total 523 162 685 638 182 820 -115 -20 -135

Goods Related

Transport, postal & warehousing 46 21 67 60 21 81 -14 0 -14

Wholesale trade 33 13 46 38 26 64 -5 -13 -18

Total 79 34 113 98 47 145 -19 -13 -32

Knowledge & Business Services

Information media & telecommunications 6 9 15 12 6 18 -6 3 -3

Financial & insurance services 3 15 18 11 15 26 -8 0 -8

Rental, hiring & real estate services 9 14 23 7 14 21 2 0 2

Professional, scientific & technical services 27 38 65 28 46 74 -1 -8 -9

Total 45 76 121 58 81 139 -13 -5 -18

In-Person Services

Retail trade 71 113 184 121 134 255 -50 -21 -71

Accommodation & food services 37 87 124 38 65 103 -1 22 21

Public administration & safety 70 23 93 43 25 68 27 -2 25

Education & training 37 91 128 37 87 124 0 4 4

Health care & social assistance 34 154 188 34 143 177 0 11 11

Arts & recreation services 8 3 11 13 3 16 -5 0 -5

Other services (and admin services) 39 28 57 19 21 40 20 7 17

Total 296 499 785 305 478 783 -9 21 2

Inadequately described/Not stated 5 8 13 11 8 19 -6 0 -6

Total 958 779 1737 1110 796 1906 -152 -17 -169

Source: ABS Census 2006 and 2001 (Working Population Data), Cat. No. 2068.0

Future population growth in the region will be reliant on more jobs being created/attracted. In the absence of increases in local employment opportunities, the capacity to attract new residents (particularly families) will be limited. While the proposed new supermarket will generate some new jobs (mainly part-time), the region needs to also secure more jobs, including higher skill jobs. The new jobs are likely to come from several sectors: jobs in the mining and the AGL gas plant; jobs from an expanded tourism sector; and future growth in specialised agriculture (as proposed by the Gloucester Project). In combination these sectors may add a total of up to 200 jobs over a period of 5 years. To achieve additional jobs will require successful attraction of businesses that are servicing broader markets. The Stratford Industrial Park becomes important for this future jobs growth.

The jobs are important to be able to increase the population in the region and to renew the population by

attracting families to the region. The rate population growth projected by Ratio Consultants will not be achieved

without a major increase in local employment.


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2.2.5 Income The data shows that Gloucester has significantly lower income levels compared with New South Wales overall. In terms of household income there was a much lower share of households in the LGA earning more than $1400 per week (14%) compared with New South Wales (31%). At the lower income level, 20% of households had an income of less than $350 per week, compared with only 15% of New South Wale households. This income pattern reflects a number of factors and these include: an older age structure and the share of persons who are retired and on pensions; the extent of agribusiness in the area and lower incomes in this sector; the limited range of higher level services being delivered in the area (with many of the local jobs being lower income service jobs). Data on business income shows that it has generally been stable over the period. Combining total taxable income from wage and salary earners for 2004 $62 million and total business taxable income of around $9 million (this business income would be on an estimated business revenue in the LGA of around $90 million). This implies that total regional income (business and employees) for the LGA in 2004 was $71 million. Based on an assumption of income growth of 12% over the period 2004-2009, this would imply total regional income in 2009/10 of around $80 million.

2.3 Regional Context

The broader region surrounding Gloucester, which comprises six LGAs has a total population of 111,314 and a total of 32,291 jobs, and 10,119 businesses. Gloucester is one of the smallest in terms of population and accounts for only 4.5% of the regional population, 5.3% of jobs and 7.6% of businesses. The two largest LGAs in the adjacent region are Greater Taree (46,979 population and 15,980 jobs) and Great Lakes (33,982 population and 10,616 jobs).

Population – 13609 Employed Residents – 6197 Jobs in LGA – 4695 Total Businesses in LGA – 1539 Employing Businesses in LGA - 633







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3. Strategy Directions

3.1 Strategic Directions

This section provides an overview of the strategic directions for Gloucester Shire and outlines the sector elements of the economic development strategy. The key directions for the economic development strategy are focused on renewal of the region and its economy. This involves:

Increasing the regional population: a larger population is needed to counter the impacts of an ageing population on the regional economy. A larger population will drive the demand for retail, local services and light industrial activity servicing the regional market. It will support local businesses and create new business opportunities.

The requirements for a larger population are: attraction of new residents (including families); increasing the number of local jobs (to provide employment opportunities); encouraging more mining and energy workers to live in the local region; and improvements in the attractiveness of town centre.

Strengthening and renewing existing industry sectors – this includes developing agribusiness and building a more sustainable tourist sector.

Maximising regional returns from mining activity and energy industries.

Maintaining services, including health services in the region

Attracting businesses into the region - this covers the development of the Stratford Industrial Park and other initiatives to attract tourism operators and agribusiness operators.

Improving the Gloucester town centre, for both residents and for tourist visitors to Gloucester.

All of these elements are directed at providing a long term future for the Shire, with a sustainable industry base that is built on local strengths. In the absence of growth in population, the current industry structure and local jobs are vulnerable. The focus is on pursuing the identified market opportunities, which have been reviewed and assessed in this report.

The overall objectives are: to renew the region; to generate sustainable growth; and create more local jobs.

Securing the identified opportunities will require: implementation of local sector strategies; regional industry collaboration; active involvement of local businesses and Council; and securing support from relevant New South Wales Government programs (along with support from relevant Australian Government programs). Each of the components of the strategy and sector opportunities is examined in detail in the following sections of this report.

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S3: Maximising Regional Benefits S3.1 Mining: maximise local jobs and services, avoid encroachment of mining near town centre. S3.2 Energy and Gas: AGL Gloucester Coal Seam Gas (CSG)- a strategic project. S3.3 Royalties : develop royalties for regions concept

S2: Developing Key Sectors

S2.1 Agribusiness: diversified agriculture (horticulture), beef, dairy, skills development, regional brand.

S2.2 Tourism: market development: experience/adventure, nature-based, short breaks, agri-tourism, wellness market.

S2.3 Health services: delivery of health services; aged care specialisation, develop nursing workforce, seniors housing

S2.4 Retail: population growth vital for retail growth.

S2.5 Services: growth depend on population and regional business growth.

S1: A Larger Population

- Population a major issue

- Population growth required to avoid regional decline .

- Future growth reliant on more jobs being created/attracted to the region

- Population growth drives demand levels for other sectors

Key Sectors

Growing the Region

Renewing the Region

Sustainable Growth

More Jobs

Gloucester

S4: Attracting Business

S4.1 Stratford Industrial Park: active program of business attraction needed.

S4.2 Light Industrial

S6: Infrastructure

S6.1 Tourism Centre: multi-purpose centre.,.

S6.2 Industrial Land: provision of light industrial sites; and development of Stratford site.

S6.3 Contributions: development contributions managed to encourage economic and tourism growth, role of Section 94 and variations for key strategic projects.

Supporting Growth S5: Improving the Town Centre

S5.1 Creating a Vibrant Town Centre: increase densities around town centre, improve public domain, developing more cafes and restaurants; lengthen opening hours, develop tourist friendly environment.

S7: Marketing the Region

S7.1 Population: active program of population attraction.

S7.2 Business: active program to attract businesses.

S7.3 Food: development of a Gloucester food brand, marketing region as food production zone.

S7.4 Tourism: develop tourism brand, improve marketing of product offer (online and other.

S9: Implementation

S9.1 Economic Development Group: restructure for implementation of strategy.

S9.2 Agribusiness Taskforce: establish taskforce to implement the key projects (eg. regional brand, diversification, product marketing).

S9.3 Tourism Taskforce: to develop market. Link taskforces to Economic Development Group

S9.4 Information and tracking:

-industry information and indicators

S8: Collaboration and Community Engagement

S8.1 Community Economic Transition (CET) program: engaging business and community groups (Industry and Investment NSW).

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4. Growing the Region

4.1 Overview (S1) Growing the Population

Population is a major issue for the future of the Gloucester region. Trend analysis shows that the population is ageing as long term residents age in place and other mature aged persons are attracted to the area for lifestyle changes or for retirement.

ABS Census data indicated that the Gloucester LGA had a population of 4800 in 2006. In 2006 18% of the population were aged under 14 years; 34% were aged between 25 and 54 years; and 22% were aged over 65 years (1068 persons).

More recent estimates have the population at around 5050-5100. This reflects in-migration into the area as people are moving into the area as part of lifestyle changes (including acquiring farming properties). Trend data for the period 2003 to 2008 shows: a decline in children under 15 and adults aged 30-44 years; and an increase in the 55 year + age group.

These overall trends are reflective of the development of the area as a lifestyle destination, with persons moving into the area for a change in occupation or following retirement. A similar pattern of ageing of the population was also evident in the other areas in the broader Upper Hunter Region surrounding Gloucester Shire. Gloucester offers a rural lifestyle in an attractive area, which is still accessible to a major urban centre (Newcastle).

The future pattern of population growth is important for the Shire. Population growth drives demand for local retail, healthcare and other services and will maintain a vibrant town centre. A number of population projections have been produced for Gloucester and these are reviewed below.

4.2 Future Population

4.2.1 Department of Planning Projections The New South Wales Department of Planning’s (DoP) projections for Gloucester are for a largely stable population over the period to 2026, with the population increasing from 4930 to 5110 over the period. This largely reflects an ageing population and the limited attraction of new residents, including families to the region.

Table 1. Population Projections 2001 – 2026 (NSW Department of Planning) 2001 2006 2011 2016 2021 2026

Population 4930 4960 4990 5030 5080 5110

Average Annual Growth (%) n/a 0.12 0.12 0.16 0.20 0.12

Source: NSW Department of Planning – NSW Statistical Local Area Population Projections – 2001-2031 – 2005 Release

The DoP projections indicate that the median age will increase from 42 in 2001 to 55 in 2031, and in 2031 35% of the population will be aged 65 years and over compared with 19% in 2001. Table 2. Age Structure 2001 and 2031 - (NSW Department of Planning)

2001 2031

0-14 15-29 30-49 50-64 65+ Total 0-14 15-29 30-49 50-64 65+ Total

Gloucester

Population 1010 650 1300 1010 960 4930 670 450 1080 1150 1780 5130

Percent of Population in Age Group 20.5 13.3 26.4 20.5 19.4 - 13.1 8.8 21 22.4 34.8

Median Age 42 55


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The Department’s projections for the surrounding region for the period to 2026 show that most of the growth will occur in the LGAs with the larger populations, particular Great Lakes (an increase of over 16,000 from 32,000 in 2001 to 48,000 in 2026)) and Greater Taree (an increase of around 5000). The population in the smaller population LGAs is broadly stable or declining (e.g. Walcha, Upper Hunter).

Table 3. Projected Population 2011-2026 Gloucester and Adjacent LGAs (NSW Department of Planning) 2001 2006 2011 2016 2021 2026

Gloucester

Population 4930 4960 4990 5030 5080 5110


Greater Taree

Population 44740 46640 47510 48260 48990 49650


Dungog

Population 8410 8620 8850 9080 9330 9570


Upper Hunter

Population 13540 13400 13250 13100 12970 12830

Average Annual Growth (%) n/a -0.21 -0.22 -0.23 -0.20 -0.22

Great Lakes

Population 32200 35430 38680 41930 45170 48320


Walcha

Population 3310 3210 3090 2970 2880 2790

Average Annual Growth (%) n/a -0.61 -0.76 -0.79 -0.61 -0.63


There are several issues in relation to these DoP projections: the projections are undertaken every four years following updates with the latest ABS Census data; they utilise a population model that takes into account demographic characteristics; and the Department cautions that they do not take into account local factors from year to year, which may influence population numbers. The DoP projections have population largely flat-lining at just over 5100 in 2026. In current circumstances this is underestimating Gloucester’s population and growth trends. Buchan’s estimates of the population in 2010 indicate that it is around 5050-5100, and has passed the estimate for 2016 and is already at the level projected for 2026.

4.2.2 Ratio Consultants Projections There is an alternative set of population projections that have been utilised in Gloucester’s recently released Local Environment Plan. These are from a 2006 study for Gloucester Council by Ratio Consultants, which has projected much stronger growth in the regional population.3 The study used a model to project population based on two major variables: trends in dwelling approvals and trends in average household size.

Table 4. New Dwelling Estimates- Gloucester Shire Period Additional Dwellings per Year

No

1991/96 – 1995/96 29

1996/97 – 2000/01 30

2001/02 – 2005/06 32

2006/07 – 2010/11 35

Increase over the period Up in each 5 year period

2026/27 – 2030/31 55

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 P6

3 Development and Employment Land and Commercial / Retail Strategy : Business Study, Ratio Consultants 2006 P6

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Based on this analysis, Ration predicted significant growth in the average number of dwellings constructed in the region. The growth in dwellings was as follows. The total dwelling stock for the Shire is projected to rise from approximately 2270 dwelling units in 2001 to 2810 units by 2016, to 3560 units by 2031. Households are projected to increase in the Shire, from approximately 1,880 in 2001 to 2,440 by 2016, and 3,310 by 2031. Household sizes are projected to continue to fall for a number of social and demographic reasons (e.g. ageing of the population, and further projected increases in the divorce rate). In 2001, average household size in the Shire was 2.576 persons; with projections of 2.324 persons by 2016, and 2.139 persons by 2031. Based on the analysis, and assumptions, Ratio Consultants projected the population to increase from 4840 persons in 2001 to 5680 persons in 2016 and to 7080 persons by 2031 In summary, whereas the DoP projections have the population as stable, the Ratio projections show significant population growth. In the 2001-2011 decade, the Shire’s population is projected to increase by 470 persons, or by approximately 10% over the entire decade. In the period 2011- 2021, the Shire’s population is projected to increase by a further 770 persons, or by approximately 15% over the entire decade. In the period 2021-2031, the Shire’s population is projected to increase by 1,000 persons, or by approximately 16% over this ten-year period.

The projections are based on current and emerging patterns of residential land take-up and the town’s residential development patterns. The population is anticipated to significantly increase over the next twenty years and beyond. A pattern for a significant number of persons is acquiring a property as a holiday house, with the later intention to move into the area after retirement.

Table 5. Projected Total Dwelling Stock, Households and Resident Population (2001-2003) -Ratio Consultants Year ended 30 June

Total Dwelling Stock

Occupied Dwellings Yield Rate (Persons/Occupied

Dwelling)

Estimated Resident

Population (ERP)

% Total Dwelling Stock No. Households No. Persons

2001 2273 82.7 1879 2576 4840

2006 2432 83 2019 2486 5020

2011 2607 85 2216 2396 5310

2016 2807 87 2442 2324 5680

2021 3032 89 2698 2252 6080

2026 3282 91 2987 2196 6560

2031 3557 93 3308 2139 7080

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 Table E.2

Table 6. Comparison of Population Projections (2001-2031) Reference Estimated Resident Population (No. Persons)

2001 2006 2011 2016 2021 2026 2031

DIPNR* 4930 4980 4980 4990 5010 5040 5050

Ratio Consultants (October 2005) 4840 5020 5310 5680 6080 6560 7080

* Department of Infrastructure, Planning and Natural Resources (New South Wales Statistical Local Area Population Projections 2001-2031, Transport and Population Data Centre, 2004) Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 Table E.3

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4.2.3 Key Population Issues

Population is important to the scale of the region. Population size and its composition impacts on the pattern of demand for services (public and private) and their provision. Consumption patterns and service requirements are influenced by income and life-stage. For example a declining population of school-aged young persons impacts on local school enrolments and the scope of curriculum delivery. An older population has increasing levels of demand for health services and aged services.

A static population will lead to decline of region. The combination of an ageing population and a no growth scenario, will put pressure on existing businesses in the region and lead to a decline in local jobs.

A larger population will: drive increased demand levels for local business (retail and services); provide a boost to light industrial businesses; renew an ageing population; and contribute to a strengthening of the Gloucester Town Centre.

While we think that future population outlook is in line with the projections made by Ratio Consultants, this growth will not be achieved without some action. In particular, future population growth in the region will be reliant on more jobs being created and being attracted to Gloucester. In the absence of increases in local employment opportunities, the capacity to attract new residents (particularly families) will be limited.

While the proposed new supermarket will generate some net new jobs (mainly part-time), the region needs to secure more jobs, including higher skill jobs. The new jobs are likely to come from several sectors: jobs in mining and the AGL gas plant and associated support activity; jobs from an expanded tourism sector; and potential future growth in specialised agriculture (as proposed by the Gloucester Project and others).

In combination these sectors may add up to 150 additional jobs over a period of 5-10 years. To achieve additional jobs beyond these sectors, Gloucester will need to attract businesses that are capable of servicing broader markets from a Gloucester base. Initiatives like the Stratford Industrial Park become important part of this attraction strategy.

4.3 Strategic Directions: S1 A Larger Population

A key strategic direction for Gloucester is to grow and renew its population. Trend analysis shows that the population is ageing, as long term residents age in place and other mature aged persons are attracted to the area for lifestyle changes. The opportunities for younger people in the region are limited and many need to leave the area for higher education and for employment.

A larger population and growth in families in the area is needed to counter these factors and to avoid decline of the region. A larger population will drive the demand for retail, local services and light industrial activity and growth will support local businesses and create new business opportunities.

Fundamental to future population growth in the region is the creation of local jobs and attraction of more jobs in Gloucester. In the absence of increases in local employment opportunities, the capacity to attract new residents (particularly families) will be limited.

The key requirements for a larger population for Gloucester are: increasing the number of local jobs (to provide employment opportunities); attraction of new residents (including families); encouraging more mine workers to live in the local region; and improving attractiveness of town centre.

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Strategy S1: A Larger Population Opportunities Description Impacts Strengths Constraints Development

Requirements

Growing the Region S1: A Larger Population

Strategy S1 A Larger Population Encouraging population growth. - requires increased jobs and active program of population attraction

- Need to increase population size to sustain future of the region.

- Gloucester LEP shows population growth (7080 in 2031).

- DIPNR projections show static population (5050 in 2031).

Static population: - will lead to decline of region, with an ageing population.

- no growth will put pressure on current businesses. Larger population will: - drive increase demand for local business.

- provide a boost to light industrial businesses.

- renew an ageing population.

- strengthen the town centre.

- Lifestyle region.

- Currently attracting retirees to rural properties.

- Accessibility to larger centres (Newcastle, Taree).

- Affordable property prices.

- Village atmosphere in town.

- Local retail and services.

- Ageing population structure.

- Current narrow employment base.

- Change in traditional agribusiness (decline in numbers).

-Limited job opportunities for younger persons.

Population - Active program of population attraction. Employment

- Attract businesses into the region – to provide a broader range of employment opportunities.

- Develop key industry sectors.

Planning and Development

- Improve the town centre and in town residential densities.

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5 Agribusiness Sector

5.1 –Overview (S2.1) - Agribusiness in the Region

Despite industry change and consolidation, agribusiness still remains the largest sector of employment in the Gloucester LGA.

5.1.1 Key Sectors Agribusiness is significant in the LGA, with current agriculture being predominately beef cattle, dairy and non-cereal broad acre crops. Gloucester has a history of food production and the region has stable pattern rainfall, with average rainfall of 985mm per annum.4

Sector Key Features

Agribusiness The sector remains significant to the region, and this includes beef and dairy industries and emerging niche and boutique type farm activities. The Gloucester Project is exploring the opportunities for expansion of sustainable agribusiness in the region, including specialty vegetables and fruit and the attraction of market garden activities.

The 2006 ABS data showed that over half of persons employed in agribusiness were beef cattle farmers and 20% were dairy farmers. The overall numbers employed in the sector have continued to decline as persons have left the sector and consolidation into larger economic holdings has occurred. Horticulture, including vegetable growing in the region is currently limited, however there are efforts by The Gloucester Project and others to shape a future in specialised agribusiness. There has also been diversification into some niches production areas, the development of agri-tourism (with farm trail tours, and farm gate sales) and the development of a Gloucester Farmers’ Market, as an outlet for specialty local products. Other market development initiatives for local produce are also currently being explored in the region. There is a focus on diversification and developing some new specialist areas of food production.

5.1.2 Activity in the Sector

Gloucester Shire Council indicated that there were 700 agricultural holdings in the LGA in 2009 and estimated that these contribute approximately $35 million in production to the local economy each year.5 The traditional beef and dairy industries remain as the largest segments. The following data is from the ABS National Regional Profile for Gloucester Shire in 2006.

Table 7. Agricultural Activity – Gloucester Shire 2006

Agricultural Commodities 2006

<Year ended June 30>

Total area

Area of holding ha 152,346

Cereals for grain ha 3.4

Vegetables for human consumption ha 2.9

Orchard trees (including nuts) ha 40.6

All fruit (excluding grapes) ha 40.6

Non-cereal broad acre crops ha 151.6

Total number

Sheep and lambs no. 198

Milk cattle (excluding house cows) no. 7,316

Meat cattle no. 62,522

Source: ABS 1379.0.55.001 National Regional Profile, Gloucester (A 2006

4 Gloucester Shire Council: About Gloucester. http://www.gloucester.nsw.gov.au/about/3219.html, accessed 29 Jun 2010. 5 2009 Gloucester Economic Profile, Gloucester Shire Council, P2.

http://www.gloucester.nsw.gov.au/about/3219.html

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5.1.3 Employment in the Sector The current specialisation is reflected in the number of jobs and the occupations of persons employed in agriculture in the Shire. Agriculture still accounts for almost 20% of jobs (337 persons) in the region. The figures below are ABS Census data from 2006 and the employment situation will have experienced changes since this data was published. However, this is the latest data available is useful for examining the structure of the local economy and the relative importance of a sector.

Table 8. Employment in Agriculture - Gloucester Shire 2006

Males Females Persons

Residents Employed (1)

Gloucester Residents Employed in Agriculture 243 124 367

Total All Employed Residents 1,060 818 1,878

Jobs in the Shire (2)

Jobs in Agriculture in Gloucester Shire 226 111 337

Total All Jobs in Shire 958 779 1737

Source: (1) ABS Census 2006 Resident Population Data (2) ABS Census 2006 Working Population Data

Table 9. Jobs by Sector - Gloucester Shire 2006

Sector Males Females Persons

Agriculture, forestry and fishing

Agriculture 216 111 327

Forestry and logging 10 0 10

Total Agriculture 226 111 337

Total – All Jobs in Region 958 779 1,737

Source: ABS Census 2006 Working Population Data

An analysis of the occupation of employed residents shows the importance of different segments. Almost 60% of persons employed in the sector are in the beef cattle sector (297) farmers and 20% were in the dairy sector (66). While there may be some differences in current employment numbers, the ABS Census data provides a guide to the relative importance of different agribusiness activities.

Table 10. Employed Residents by Occupation Agribusiness – Gloucester Shire 2006

Occupations Males Females Persons

Share

Persons %

Beef

121312 Beef Cattle Farmer 109 72 181 54.0

841511 Beef Cattle Farm Worker 16 0 16 4.8

Dairy

121313 Dairy Cattle Farmer 42 14 56 16.7

841512 Dairy Cattle Farm Worker 7 3 10 3.0

Other Livestock

121315 Goat Farmer 3 3 6 1.8

121317 Mixed Livestock Farmer 5 0 5 1.5

841514 Poultry Farm Worker 3 3 6 1.8

Crops

121411 Mixed Crop and Livestock Farmer 10 0 10 3.0

362411 Nurseryperson 3 3 6 1.8

121221 Vegetable Grower 4 0 4 1.2

Timber

234113 Forester (Aus) 4 0 4 1.2

841312 Logging Assistant 3 0 3 0.9

841313 Tree Faller 6 3 9 2.7

Other

121111 Aquaculture Farmer 3 3 6 1.8

Services

611112 Stock and Station Agent 10 0 10 3.0

21111 Agricultural and Horticultural Mobile Plant Operator 3 0 3 0.9

Total 231 104 335 100.0

Source: ABS Census 2006 Resident Population Data

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The study also notes that the workforce in agriculture, particularly in the beef cattle sector, is older than in other industries with 47% being over 55 years of age, compared to 23% of the total workforce in Gloucester.6 There has been a continuing decline in the number of agriculture businesses in the Shire over the period to 2006 as older farmers retire and some consolidation has taken place. It should be noted that this data may understate the current number of businesses as there has been an increase in land sales and people operating hobby farms in recent years.

Table 11. Number of Businesses – Gloucester Shire 2003-2006 Number of Businesses by Industry - at 30 June 2003 2004 2005 2006

Agriculture, forestry and fishing 426 399 390 381

Total businesses 822 807 792 765

Agriculture, forestry and fishing proportion of total businesses (%) 52% 49% 49% 50%

Source ABS 1379.0.55.001 National Regional Profile, Gloucester (A), 2002 to 2006 ABS Business Register 2007 data shows a total of 354 businesses classified under agriculture, forestry and fishing in Gloucester Shire indicating further decline in the total number of agriculture businesses in the sector. Businesses classified under agriculture, forestry and fishing represented 49% of all businesses in the Shire in 2007.

The majority of agricultural businesses in Gloucester are non-employing (89% - these are owner operated). According to this data, there were 15 businesses that employ 5 or more people and 24 businesses that employed between 1 and 4 people.

Table 12. Gloucester Shire - Agriculture Businesses by Employment Size 2007

Industry Non

employing 1-4 5-19 20-49 50-99 100-199 200+ Total

Agriculture, Forestry & Fishing 315 24 15 0 0 0 0 354

Total 537 105 69 6 0 0 0 717

Source: ABS Business Register 2007

5.2 Beef Sector

5.2.1 Overview

The Gloucester Shire has a reputation as for its beef cattle farming. A large proportion of agricultural land in the region is dedicated to beef cattle and around 60% of persons employed in agriculture in Gloucester are in beef cattle (196 persons)..7 Gloucester’s Local Environment Study 2006 notes that the number of beef cattle producers in the region declined but an increase was observed in cattle numbers, sales and slaughterings in the study period (1997-2006).8 These observations reflect consolidation within the sector.

The ABS National Regional Profile indicates that there were 62,522 head of meat cattle in the region in 2006.9 The Gloucester Economic Profile indicates that annual sales of beef cattle are approximately 40,000 head, which is valued at around $20million.10 This equates to roughly to an average of $500 per head of cattle.

Consultations with the sector in Gloucester indicate that the majority of producers in the region have around 200 head of cattle, with a few larger producers with 600-700 head. The majority of beef cattle in the region were Hereford, Angus and crossbreeds. Gloucester beef has been traditionally been grass fed beef.

Gloucester Shire Council owns Gloucester’s beef cattle sale yards (Gloucester Livestock Exchange Centre) and approximately 27,000 head of beef cattle are sold through this channel each year.11 These sales comprise: fat cattle for slaughter; and store cattle for fattening or breeding. Not all beef is sold through the Gloucester Livestock Exchange Centre.

Cattle sold for export slaughter are primarily processed at Dinmore in Brisbane, Inverell and Wingham and the major export markets comprise Japan, Europe and North America.12 Lighter

6 Gloucester Shire Council, Local Environmental Study 2006, Hunter Development Brokerage Pty Ltd, March 2006, P73 7 ABS Census Resident Population Data 2006 8 Gloucester Shire Council, Local Environmental Study 2006, Hunter Development Brokerage Pty Ltd, March 2006, P73 9 ABS 1379.0.55.001 National Regional Profile, Gloucester (A), 2002 to 2006 10 2009 Gloucester Economic Profile, Gloucester Shire Council, P2. 11 2009 Gloucester Economic Profile, Gloucester Shire Council, P2. 12 2009 Gloucester Economic Profile, Gloucester Shire Council, P2.

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trade cattle for domestic consumption are processed in abattoirs in the Hunter Region at Scone and Singleton. Processed beef from Gloucester reaches markets from the North Shore of Sydney, Central Coast and into Newcastle butcher shops.

5.2.2 Key Issues in the Sector

There are a number of major issues affecting this sector and these include: increased production costs covering all input costs and transport costs; static prices for beef (decline in real prices); costs of land in the region and impacts on potential for consolidation into large holdings; land being locked up by hobby farmers and through mining acquisitions; potential for more intensive farming to increase yields; the minimum rural subdivision size of 100 hectares; and a planning framework protecting native vegetation in the region.

Land with river flats (low-lying alluvial land along a river) was viewed as important assets for beef cattle producers. Other issues included the operations of the Gloucester Sale Yards and producers accessing the Wingham abattoir, where future closure of the Wingham abattoir was viewed as detrimental to the sector.

A regional brand for beef cattle has been established. Barrington Beef is a brand of Gloucester Gourmet Foods Co-operative Limited, which consists of a co-operative of 26 regional producers. Gloucester Gourmet Foods Co-operative Limited was registered in 1997 and the Barrington Beef brand was launched soon after. The positioning for the Barrington Beef is as follows: Barrington Beef raise cattle on 65,000 acres of pristine, naturally productive pastures; and Barrington Beef is hormone, antibiotic and chemical free. Barrington Beef was viewed as successful regional branding initiative and producers continue to work with the brand.

5.3 Dairy Sector

5.3.1 Overview

The dairy sector is still important to the region, despite earlier deregulation and the closure of the Gloucester manufacturing plant.

Data from the ABS indicate that in 2006 there were 7,316 head of milk cattle in Gloucester Shire13 and around 20% of agricultural jobs (66 persons) in the LGA are in the dairy sector.14 Council estimates that the industry accounts for $13 million in income annually and there are a total of 28 dairy farms in the region producing approximately 28 million litres of milk annually.15 Consultation with the sector indicates that dairy farmers in the region run between 200 and 700 head of dairy cattle, with a minimum number of 130 head.

Local product is processed at plants at Hexham (National Foods) and Lismore (Norco). These processing operations produce milk, or other dairy products for state and national markets.

The deregulation of the dairy industry in 2000 resulted in significant restructuring of the sector. This led to consolidation of the industry in Gloucester with larger herds per operator and an increased level of capital investment required to achieve scale economies. Information from the Department of Primary Industries in Gloucester’s Local Environment Study 2006 indicated that the number of dairy farms in Gloucester fell from 60 in 2001 to 36 in July 2004, with the total number of dairy cattle decreasing marginally. 16 Council documents indicate there were 28 dairy farms in 2009.17

13 Source: ABS 1379.0.55.001 National Regional Profile, Gloucester (A), 2002 to 2006 14 Source: ABS Census Resident Population Data 15 2009 Gloucester Economic Profile, Gloucester Shire Council, P2. 16 Gloucester Shire Council, Local Environmental Study 2006, Hunter Development Brokerage Pty Ltd, March 2006, P65 17 2009 Gloucester Economic Profile, Gloucester Shire Council, P2.

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During consultation with the sector, concerns were expressed that milk prices in 2010 were again forcing people out of the industry. Consultations also indicated that there were two main buyers of milk in the region: Norco and National Foods.

One issue of concern expressed by the sector was that a large amount of land was being locked up by mining and lifestyle blocks, which prevented the dairy sector from further increasing the in scale of operations. Leasing of land for production was viewed as a method to counter this however there were difficulties in accessing land due to reluctance of some landowners to lease land, and the costs for dairy producers to improve the leased land (which they do not recover in capital return). .Another issue was roads and transport, with limitations on larger vehicles acting as a constraint for the sector.

5.4 Timber Sector

5.4.1 Overview

Reforms to the timber industry have resulted significant change to Gloucester’s timber industry over the past 15 years. Gloucester’s Local Environmental Study 2006 indicates that prior to forestry reforms by the New South Wales Government from 1995, the hardwood timber industry was a major source of employment in Gloucester.18 The majority of the timber resource in the Gloucester region became unavailable for commercial logging following the reforms and this has resulted in a large reduction in the numbers employed in the sector. ABS Census 2006 data shows that only 22 Gloucester residents were employed in the timber industry.

A Gloucester Council report indicate that the timber industry in Gloucester employs 50-60 people (many are resident outside the Shire) with annual production of 16,500 super feet of timber, valued at approximately $10M. 19 The bulk of the production is sawlogs for milling purposes. There are a number of regional based mills that process local timber or make products for the domestic market (e.g.. fencing and building timbers) or for export (e.g.. specialist flooring products). The timber industry in the broader Hunter Region is estimated to employ over 400 people and the Gloucester LGA provides approximately 15% of the region’s timber production. 20


A key development for the timber industry in New South Wales was Boral Timber’s negotiations with the New South Wales Government to secure long-term supply of hardwood resource in 2003..21

In more recent periods there has been uncertainty regarding employment in the sector. In September 2006, Boral Timber suspended manufacturing at its Gloucester Plant.22 The plant continues to operate only as a treatment and storage facility. The cessation of manufacturing resulted in the workforce being significantly reduced. The company’s 2009 Annual Report stated that the Gloucester parquetry plant had been closed and production suspended at several New South Wales operations (including the Walcha timber mill)..23 The company indicate that in New South Wales in FY 2009, the company’s plants were operating between around 50% and 80% of capacity and rolling plant shutdowns impacted on most other operations. A June 2009 presentation by Boral Timber indicated that the Gloucester Mill would move from a ‘mothballed’ status to a ‘slow down’ status in June 2009.24

Another recent development was in May 2009, when Forests NSW and Forest Enterprises Australia (FEA) entered into a commercial arrangement to establish and maintain 4,500 hectares of hardwood plantation in the north and north east areas of New South Wales over three years.25 The areas of Gloucester, Wauchope, Walcha, Lismore and Grafton benefit from

18 Gloucester Shire Council, Local Environmental Study 2006, Hunter Development Brokerage Pty Ltd, March 2006, P86. 19 Consultant Brief Gloucester Economic Development Strategy 2009, P7. 20 2009 Gloucester Economic Profile, Gloucester Shire Council, P3. 21 Resource security allows Boral to invest in hardwood timber industry in NSW, 02 March 2003, http://www.boral.com.au/Docs/Announcements/Press_Releases/Press_Releases_13012004_151712.asp. 22 Boral Timber announces suspension of manufacturing at Gloucester plant, 18 September 2006, http://www.boral.com.au/Docs/Announcements/Press_Releases/Press_Releases_18092006_130841.asp 23 2009 Boral Annual Report, http://www.boral.com.au/AnnualReview/2009/AnnualReport/challenges-and-response.asp 24 Boral Timber, Sydney Site Tour 26 June 2009, http://www.boral.com/Images/common/pdfs/June2009_Timber_Site_Pres_Syd.pdf. 25 Media Release: NSW Government to establish private plantations, Monday, 4 May, 2009

http://www.boral.com.au/Docs/Announcements/Press_Releases/Press_Releases_13012004_151712.asp

http://www.boral.com.au/Docs/Announcements/Press_Releases/Press_Releases_18092006_130841.asp

http://www.boral.com.au/AnnualReview/2009/AnnualReport/challenges-and-response.asp

http://www.boral.com/Images/common/pdfs/June2009_Timber_Site_Pres_Syd.pdf

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the new agreement with hardwood plantations in these districts planted and maintained by Forests NSW. Hardwood is used in timber flooring and this is a consumer driven market. Slowdowns in the housing market and in renovations have direct impacts on the demand for hardwood products.

5.5 Diversified Agriculture

5.5.1 Overview

There has been some growth in boutique agribusinesses in Gloucester, which includes segments such as goats, alpacas, vegetables, grapes, wine, garlic, preserves and herbs. Efforts are currently underway on production and marketing issues to further develop this specialist food production.

The work of the Gloucester Project has also contributed to wider awareness of the potential for new specialist areas of food and horticulture production. During consultations it was expressed that many diversified agriculture businesses were not yet of a sufficient scale to be sustainable on a fully commercial basis. Efforts are going in to grouping these producers, developing market channels (which are fundamental to future success); trialling some production; and planning issues.

This diversified agriculture is linked to both production of fresh product, specialty processed products and the establishment of agri-tourism in the region. As part of this development, the Gloucester Farmers Market was established in February 2010.

A group of producers is currently working on the marketing channel issue and this includes the development of a local brand ‘Gloucester Fare’ and the development of a marketing website.

Initiative Description

Gloucester Project

The Gloucester Project is a local initiative of persons who are concerned about the impacts of climate change, food production, and the economic future of the local area .26 The Gloucester Project is engaged in local food production and has set up The Tucker Garden Patch to encourage local landholders to grow small crops. The patch in Gloucester, acts as a demonstration garden so landholders can determine what they can successfully grow on their land. This initiative helps landholders in traditional agriculture (e.g.. beef and dairy) to assess options for diversification. The Gloucester Project runs the Community Stall at the Gloucester Farmers' Market, which allows small local growers to sell their produce at the market.

Gloucester Farmers Market

The Gloucester Farmers Market was launched in February 2010 by the Gloucester Shire Council’s Economic Development Unit. It is held on the second Saturday of each month The Gloucester Farmers' Market was created as a place for local growers and producers to market and sell their produce. The first market in February attracted over 20 local producers. The produce seasonally available at the Gloucester Farmers Market are: vegetables; fruit; bread; baked goods; cheese; herbs; honey; preserves; eggs; meat; wine; poultry; olives; fish; goats products; plants and seedlings; flowers; refreshments; and small meat animals. The Gloucester Farmers Market website also provides a listing of growers, which provides an additional channel for producers to market their produce.27

Regional Food Brand

A group of producers has developed a regional brand Gloucester Fare’. They are working on the issue of marketing channels for specialised local products, and this includes development of a marketing website.

http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0004/280804/NSW-Government-to-establish-private-plantations.pdf. 26 The Gloucester Project, http://www.thegloucesterproject.org.au/, accessed 29 Jun 2010. 27 Growers | Gloucester Farmers Market, http://prod-dnn.australis.net.au/OurGrowers/tabid/1838/Default.aspx, accessed 29 June 2010.

http://www.dpi.nsw.gov.au/__data/assets/pdf_file/0004/280804/NSW-Government-to-establish-private-plantations.pdf

http://www.thegloucesterproject.org.au/

http://prod-dnn.australis.net.au/OurGrowers/tabid/1838/Default.aspx

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Key issues for the development of diversified agriculture in Gloucester area are: undertaking commercial scale production trials; identifying suitable land area; developing markets and market channels; and scaling up of growing activity.

5.6 Future Opportunities (S2.1) Agribusiness

5.6.1 Major Issues The Gloucester Region has a history in beef and dairy and is diversifying into some emerging areas. Some of the major issues affecting commercial agriculture in the area include both local factors and broader industry wide issues:

Competing uses for some rural lands in the region associated with the extension of mining leases.

Recent pressure on land prices arising from purchasing of properties as lifestyle blocks and hobby farms.

Farm gate prices remaining static (or with minimal growth), while the cost of all farm inputs have increased.

Pressures associated with change in the food processing sector, with closures of some processing plants or meatworks and consolidation of this segment into larger and more distant (from Gloucester) plants.

Land issues have limited the ability to consolidate into larger holdings, particularly for some beef and dairy producers, who wish to expand their local operations. With the squeeze on margins, some farmers have looked at more intensive farming options to increase yields and income from their existing farms.

5.6.2 Assessment (2.1) Agribusiness The region has a number of assets and potential constraints. The major assets include: being a recognised agribusiness area; quality of land; stable rainfall; substantial existing operations; a reputation as a “clean/green area”; and the proximity to major centres, including Newcastle and expanding coastal areas and the Sydney metropolitan area. The agribusiness sector has undergone some change: there has been a continuing decline in number of operators and some consolidation of holdings; the Gloucester Project is researching future opportunities for the region; and some existing producers are pursuing new opportunities, through more intensive farming or mixed farming and through regional branding. As well as the land use issues identified above, there are a number of other issues and these include: the declining number of persons employed in the sector; workforce issues, including the ability to recruit and maintain a rural workforce; and skills development for new farmers. In terms of future development, there are a number of issues that will continue to affect both traditional agriculture and emerging areas of agricultural production. These issues include: a continued price/cost squeeze on beef and dairy producers; changes in the food processing sector, including the location of processing plants; competition from other more established growing areas for new products in vegetables and horticulture; and new producers being outside the existing supermarket supply chains and other supply chains for new specialised products.

5.6.3 Developing Agribusiness (S2.1)

The following table summarises the directions for development of the agribusiness sector and these include:

Action to support the beef sector in the region.

Maintaining an efficient dairy sector.

Developing a Gloucester food brand and creating market channels for new products.

Developing the horticulture market, including specialist vegetables, through the assessment of land suitability and availability; and conducting commercial level trials.

Targeting the attraction of vegetable producers, who are being displaced from sites in the Sydney Basin.

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S2.1 Agribusiness Opportunities Opportunities Description Impacts Strengths Constraints Development Requirements

Key Sectors S2 Developing Key Sectors:

S2.1 Agribusiness Strengthen existing sectors and develop new areas.

The region has a history in beef and dairy and is diversifying into some emerging areas. Future Agribusiness Development Existing Sectors - Develop beef production. - Encourage strengthening of the dairy sector. Assess potential for consolidation and constraints of land availability. Emerging Agribusiness

- Develop Gloucester food brand.

- Develop speciality products (fresh product and processed products).

- Develop horticulture market- specialist vegetables.

-Target attraction of vegetable producers being displaced from the Sydney Basin area.

Agribusiness will remain important to region:

- Sector needs to be strengthened for the future.

- The food sector offers major potential for growth, including beef and new specialist products (for the fresh market and processed product)..

Assets

- A recognised agribusiness area

- Quality of land.

- Stable rainfall.

- Existing operations.

- Tradition of low use of chemicals.

- Reputation as a “clean/green area. - Proximity to major centres, including Newcastle and expanding coastal areas. Industry Change

- Decline in number of operators and some consolidation of holdings.

- Gloucester Project is researching future opportunities for the region.

- Some existing producers are pursuing new opportunities, through more intensive farming or mixed farming.

Current Situation: -Competing land uses in the region, including mining and lifestyle blocks. Recent pressures on land prices .-Incidence of small land holdings.

- Growing number of hobby farms, which are not commercial operations.

- Declining number of persons employed in the sector.

- Workforce issues.- ability to recruit and maintain a rural workforce.

Future Development

- Competition from other established growing areas for new products in vegetables and horticulture.

- Producers are outside of existing supermarket supply chains and other supply chains for emerging products.

- Price/cost squeeze on beef and dairy producers.

-Rationalisation of plant locations by food processing sector.

Key Requirements - Develop the Gloucester food brand.

- Test feasibility of new crops through land assessment and a commercial pilot project for planting of new crops.

- Explore options for continued growth of beef and dairy, including the issue of land availability.

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5.7 Agribusiness (S2.1) - Action 1: Vegetable Production

5.7.1 Future Opportunities There is potential to develop specialty vegetable production in the region. This has been one of the focuses of the Gloucester Project. There are two components to this: local through encouraging local producers to diversify into new crops; and an attraction strategy that targets existing Sydney Basin producers who are being displaced by urban expansion. A major requirement to pursue these opportunities includes a technical assessment of the potential in the region: an assessment of land suitability and potential sites for development; conduct of a commercial scale pilot growing project; an examination of the potential for the use of treated water from the AGL gas project..These assessments and trials have not been undertaken. It also includes the development of market channels for these specialty products. There is a group of producers that is currently working on this aspect. This includes taking small scale producers from farmers’ market participation, into the supply of broader markets. This activity covers work on channels to market, branding and coordinated development and production.

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S2.1 Agribusiness - Action 1: Vegetable Production Opportunities Description Impacts Strengths Constraints Development Requirements

S2 Developing Key Sectors:

S2.1 Agribusiness Action 1: Vegetable Production

New Crop Development - Develop specialty vegetable production in the region. - Local: encourage local diversification by existing producers.

- Attraction: seek to attract vegetable growers displaced from Sydney Basin, due to urban expansion.

- The Sydney Basin produces a range of products including: leafy green vegetables, capsicums, chilli, celery, mushrooms and herbs such as basil and coriander; poultry meat and eggs; nursery plants and seedlings; cut flowers; and cultivated turf.

Revitalisation of agribusiness sector - Develop vegetable growing as ongoing activity, which generates income and employment in the region .

- Potential to attract new growers to Gloucester will increase resident population.

Assets - Quality of land.

- Available land in the region.

- Stable rainfall.



- Potential to use treated water from AGL Coal Seam Gas Project.

- Existence of the Gloucester Project and Farmers Market.

- Group of producers that are interested in developing new products

Current Situation - Limited current growing activity in the region. - Land types and feasibility has not been fully tested. - No commercial scale trials have been conducted.

- Limited current contact with Sydney Basin growers.

- Competition from other established growing areas for new products in vegetables and horticulture.

- Outside of existing supermarket supply chains and other supply chains for emerging products.

Development of specialist growing in the region - Develop a sector plan. - Develop a commercial scale pilot growing project. - Assess locations and soil types. to identify sites for commercial development. - Assess potential use of treated water from the AGL seam gas project. - Target the attraction of Sydney Basin vegetable growers. Marketing - Develop regional brand and reputation for specialist production. - Target specialist supply chains, including supermarkets and specialist food distributors. - Develop market channels (e.g.. online project). - Use of local produce in restaurants and cafes, to showcase products and the regional brand. Implementation: - Project should be driven by the proposed Gloucester Agribusiness Taskforce (along with other key projects: including regional brand, diversification, product marketing etc.)

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5.7.2 Assessment (S2.1: A1)- Vegetables

National Vegetable Production A report by ABARE for Horticulture Australia Ltd in 2009 provides an overview of vegetable growing in Australia. The gross value of production of the vegetable industry is estimated to have been $3,315 million during 2007-08 contributing around 7% to Australia’s gross value of agricultural production.28 During 2006-07 there were an estimated 4,222 commercial vegetable farms operating in Australia, with an estimated value of agricultural output (EVAO) of at least $40,000 a farm. The average area sown to vegetables was 33 ,however, half of Australian vegetable growers produced vegetables on areas of less than 12 hectares. For New South Wales , the rate of return for vegetable farms was approximately 6.5 % in 2006-07, up from approximately 2.5 % in 2005-06 Growth opportunities, identified were: the production of high quality vegetables; selling product direct to retail; and the production of specialist niche products.29 Gloucester is currently producing niche products such as garlic, herbs and other vegetables, though this is currently small scale production.30.

In terms of financial sustainability of farms, the most common impediment to the future viability of vegetable farms that growers identified was increased farm input costs.31 The majority of vegetable growers also indicated other impediments including, marketing costs, low vegetable prices, access to and cost of labour and availability of irrigation water. Reflecting the continued location of some vegetable growing in urban fringe areas, urban expansion was seen as an impediment for 36% of growers in New South Wales, 38% in Victoria and 42% in Western Australia

Table 13. Impediments to Future Business Viability of Vegetable Farms 2006/07

Source: Australian vegetable growing farms: an economic survey, 2006-07, ABARE Report to Horticulture Australia Ltd, Canberra, January 2009 P35.

28 Crooks, S, January 2009, Australian vegetable growing farms: an economic survey, 2006-07, ABARE Report to Horticulture Australia Ltd, Canberra, Piii. 29 Australian vegetable growing farms: an economic survey, 2006-07, ABARE Report to Horticulture Australia Ltd, Canberra, January 2009 P34. 30 Growers finding whiff of success with garlic bulbs. The Herald (Newcastle). http://www.theherald.com.au/news/local/news/general/growers-finding-whiff-of-success-with-garlic-bulbs/1793166.aspx?order=1, accessed 14 July 2010. 31, Australian vegetable growing farms: an economic survey, 2006-07, ABARE Report to Horticulture Australia Ltd, Canberra, January 2009 P2.

http://www.theherald.com.au/news/local/news/general/growers-finding-whiff-of-success-with-garlic-bulbs/1793166.aspx?order=1


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Competition from other vegetable producing regions needs to be considered. Over 50% of Australia’s vegetable production is from farms in Victoria (30%) and Queensland (25%).

Table 14. Proportion of Vegetables Produced from each State 2006/07

Source: Australian vegetable growing farms: an economic survey, 2006-07,ABARE Report to Horticulture Australia Ltd, Canberra, January 2009 P7.

Vegetable Production in the Sydney Basin

The Sydney Basin currently produces a range of horticultural products: leafy green vegetables, capsicums, chilli, celery, mushrooms and herbs such as basil and coriander. The region also produces: nursery plants and seedlings; cut flowers; and cultivated turf.

Horticulture is being displaced from the Sydney region, due to the pressure of urban expansion, rezoning and the price of land. The cost of land in the Sydney Basin is prohibitive to long term sustainable agriculture, and it is likely that agricultural producers in the regions of Blacktown, Liverpool and Camden will sell their land for residential development. Projected population growth and continued urban development is expected to result in the loss of productive agricultural land for housing development. The regions affected are in the north west and south west of Sydney.

In December 2008, the Department of Primary Industries NSW, Penrith City Council and the Department of Planning NSW, hosted a major forum on the issue: Sydney’s Agriculture – Planning for the Future Forum.32 The report outlined the 2005 Metropolitan Strategy for Sydney, which identified housing targets for the north west and south west subregions of Sydney of 140,000 and 155,000 dwellings respectively. Importantly, this new housing will be developed in local government areas that currently have high quality productive agricultural land. The designated North West Growth Centre is predominately in the Blacktown Region (North), with a small overlap into The Hills and Hawkesbury Regions. The designated South West Growth Centre mainly covers Liverpool and Camden, with a small overlap into north of Campbelltown.

DPI NSW indicated that land use change from rural to urban use in these subregions must be carefully planned to ensure the ongoing viability of agriculture in the Sydney Basin. Many of the vegetable growers are migrants to Australia.

The report also commented on the affects of retail level competition on the sector, with large supermarket chains having market power in buying, which impacts on prices and margins for smaller growers and their potential for investment in land and technology.33

Gloucester is exploring opportunities for the diversification of agriculture and development of specialty horticulture. Diversification in agriculture is viewed as a strategy to combat decline in traditional agriculture and is a strategy identified by NSW Department of Primary Industries to improve the profitability and sustainability of beef enterprises in the Hunter.34 The work of the Gloucester Project has also contributed to increased awareness of diversified agriculture in the region.

32 Sydney's Agriculture - Planning for the Future Forum Outcomes Report, 27 February 2009, Abigail Jeffs, Elton Consulting. 33 Sydney's Agriculture - Planning for the Future Forum Outcomes Report, 27 February 2009, Abigail Jeffs, Elton Consulting, P4.

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Targeting these displaced producers for relocation to Gloucester can help to further develop the agricultural sector in the region. Garlic Garlic is being examined as a potential crop in Gloucester. Currently the majority of garlic consumed in Australia is imported garlic from countries such as China, Africa, Taiwan, New Zealand and the USA.35 In recent times there has been a greater appreciation of using fresh garlic and use of special varieties by the public, which provides a basis for niche production locally. The majority of garlic is produced in China. In all 12 million tonnes of garlic was produced in China in 2008, which was almost 20 times the amount of the next largest producer India

Table 15. Top 10 garlic producing nations 2008

Country Production 2008 (tonnes)

China 12,575,036

India 645,000

Korea, Republic of 375,463

Egypt 258,608

Russian Federation 220,000

United States of America 194,270

Myanmar 147,000

Bangladesh 144,817

Spain 142,500

Argentina 140,000

Source: Food And Agricultural Organization of United Nations: Economic and Social Department: The Statistical Division 2008

Data for 2006 indicated that approximately 300 to 500 tonnes of garlic was produced each year in Australia, with consumption of garlic at around 3,500 tonnes.36 This implies that around 85% of garlic consumed in Australia is imported. There was a decline in production of garlic in Australia as a result of international competition from 1996 onwards. Imported garlic undergoes treatments. For example Chinese garlic is usually bleached and kept in cold storage (garlic can store for up to 6 months). All imported garlic must be fumigated with methyl bromide and it usually treated with a growth retardant to extend storage life. 37 There are numerous varieties of garlic, and DPI NSW indicates the Printanor variety, of French origin, is the most popular variety in Australia and New Zealand. 38 In 2006, 95% of all New Zealand garlic and the majority of Australia garlic was of this variety.39 The niche markets for garlic include organic garlic and value added products.40 The Australian supply period for garlic is from September to February and the harvest season for New South Wales is early to mid November. Australian garlic growers face competition from imports of variable quality, which can be found all year round (mainly from China and increasingly from Spain and the United States).41 . Garlic yields vary considerably and depend mainly on the planting rate and the length of time the crop spends in the vegetative stage, with most crops yielding six to eight tonnes per hectare.42

35 Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P1 36 Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P1 37 Wake up and smell home-grown garlic | The Australian, http://www.theaustralian.com.au/news/nation/wake-up-and-smell-homegrown-garlic/story-e6frg6pf-1111118673992 38 Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P2 39 Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P2 40. Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P4 41 Home Grown Garlic – Landline – ABC, http://www.abc.net.au/landline/content/2010/s2925801.htm. 42 Primefact 259, Growing garlic in NSW. NSW DPI. Mark Hickey, November 2006, P4

http://www.abc.net.au/landline/content/2010/s2925801.htm

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DPI NSW indicates that there has been a resurgence of interest in Australian garlic from 2004 onwards for the fresh and processing market, which appears to be a result of greater awareness of food quality. This has improved the market prospects for locally grown garlic and provides a basis for niche garlic production. There is a large producer in Australia - Australian Garlic Producers (AGP - established in 1998). In 2008 the company grew garlic on 250 hectares in Tasmania, producing 1000-1500 tonnes, which tripled Australia's garlic production in that year.43. AGP overcome seed stock shortages by importing virus-free varieties from France. 44 The company has also established contract growing arrangements, and the 2009 season's main crop was grown at Happy Valley in north-eastern Victoria. AGP sells it’s product to Woolworths. AGP have indicated that they would like to grow between 3000 to 5000 tonnes, which they believe is 30-50% of the Australian market. 45 This suggests that consumption may have increased from 3,500 tonnes in 2006 to between 6000 to 10,000 tonnes in 2009. Another producer is Garlic Farm Sales, which grows garlic on the fringe of Melbourne.46 This company specialises in producing organic garlic . Specialty Vegetables Australia’s ethnic diversity and broadening food tastes has led to demand for specialty vegetables. DPI NSW has been involved in improving market access to Asian vegetables in Australia. The department has worked with major retailers and wholesalers (Coles, Woolworths, Harris Farm Markets), Sydney Markets and the Australian vegetable industry to develop a standardised national system for Asian vegetable names, which was launched in November 2005.47

DPI NSW estimated that the Australian Asian vegetable industry more than doubled in production value and grower numbers between 1995 and 2005, and more than half of the industry is located in New South Wales. Most of the product is grown by about 2000 market gardeners of Asian origin, on small farms of about 5-20 acres in Western Sydney and the industry is worth an estimated $36 million annually.48 With changing food tastes it is likely that this production has continued to increase.

43 Wake up and smell home-grown garlic | The Australian, http://www.theaustralian.com.au/news/nation/wake-up-and-smell-homegrown-garlic/story-e6frg6pf-1111118673992. 44 Home Grown Garlic – Landline – ABC, http://www.abc.net.au/landline/content/2010/s2925801.htm. 45 Wake up and smell home-grown garlic | The Australian, http://www.theaustralian.com.au/news/nation/wake-up-and-smell-homegrown-garlic/story-e6frg6pf-1111118673992. 46 Wake up and smell home-grown garlic | The Australian, http://www.theaustralian.com.au/news/nation/wake-up-and-smell-homegrown-garlic/story-e6frg6pf-1111118673992. 47 www.vegetableswa.com.au/documents/pdf/media%20release%2021-10.pdf 48 New national naming system for Asian veggies to clear up consumer confusion, NSW DPI, http://www.dpi.nsw.gov.au/research/old/asian-vegetables.

http://www.theaustralian.com.au/news/nation/wake-up-and-smell-homegrown-garlic/story-e6frg6pf-1111118673992


http://www.abc.net.au/landline/content/2010/s2925801.htm





http://www.vegetableswa.com.au/documents/pdf/media%20release%2021-10.pdf

http://www.dpi.nsw.gov.au/research/old/asian-vegetables

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5.7.3 Developing the Opportunity (S2.1: A1)

The following section outlines the current activities in the region, identifies advantages and constraints.

Current Activities

Initiative Description

Gloucester Project

The Gloucester Project is a local initiative of persons who are concerned about the impacts of climate change, food production, and the economic future of the local area .49 The Gloucester Project is engaged in local food production and have set up The Tucker Garden Patch to encourage local landholders to grow small crops. The patch in Gloucester, and acts as a demonstration garden so landholders can determine what they can successfully grow on their land. This initiative helps landholders in traditional agriculture (e.g.. beef and dairy) to assess options for diversification. The Gloucester Project runs the Community Stall at the Gloucester Farmers' Market, which allows small local growers to sell their produce at the market.

Gloucester Farmers Market

The Gloucester Farmers Market was launched in February 2010 by the Gloucester Shire Council’s Economic Development Unit. It is held on the second Saturday of each month The Gloucester Farmers' Market was created as a place for local growers and producers to market and sell their produce. The first market in February attracted over 20 local producers. The produce seasonally available at the Gloucester Farmers Market are: vegetables; fruit; bread; baked goods; cheese; herbs; honey; preserves; eggs; meat; wine; poultry; olives; fish; goats products; plants and seedlings; flowers; refreshments; and small meat animals. The Gloucester Farmers Market website also provides a listing of growers, which provides an additional channel for producers to market their produce.50

Regional Food Brand

A group of producers has developed a regional brand Gloucester Fare’. They are working on the issue of marketing channels for specialised local products, and this includes development of a marketing website.

Assessment - New Production Assessment

Advantages

Climate and land Gloucester’s stable rainfall is an important strength in attracting producers to the region. Gloucester’s agriculture has a tradition of low use of chemicals that can be leveraged attracting vegetable producers to the region. Sufficient land is available for vegetable growing in Gloucester due to the decline in traditional beef and dairy and Council has some agricultural land for sale.

Competition

Competition from existing growing areas

Competition from farms in Victoria and Queensland needs to be considered. Victoria and Queensland are the dominant vegetable producers in the country, at 30 % and 25% shares respectively. Victoria produces a large proportion of Australia’s broccoli, beans and tomatoes and Queensland produces a large proportion of cabbage, lettuce, and pumpkins . NSW produces a significant proportion of Australia’s pumpkins (45%). A key competitor is the Hawkesbury region due to the awareness of the region as a food producing region and its proximity to the vegetable producers currently in Blacktown, Liverpool and Camden. There were 13 different vegetable producers signed up to the Hawkesbury Harvest as of July 2010.51

Constraints

Distance and market channels

Distance of Gloucester from major metropolitan areas. Reduced range of horticulture support services compared to other areas. Outside of existing supermarket supply chains.

49 The Gloucester Project, http://www.thegloucesterproject.org.au/, accessed 29 Jun 2010. 50 Growers | Gloucester Farmers Market, http://prod-dnn.australis.net.au/OurGrowers/tabid/1838/Default.aspx, accessed 29 June 2010. 51 Hawkesbury Harvest – Regional Produce Directory – Vegetables. http://www.hawkesburyharvest.com.au/market_directory.asp?produce=36.

http://www.thegloucesterproject.org.au/

http://prod-dnn.australis.net.au/OurGrowers/tabid/1838/Default.aspx

http://www.hawkesburyharvest.com.au/market_directory.asp?produce=36

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The following outlines the steps in developing vegetable growing in the region.

Developing the Opportunity Opportunity Requirements

Develop Vegetable growing

Product Develop specialist growing in the region Develop a commercial pilot growing project Assess locations and soil types Potential use of treated water from mine. Target attraction of Sydney Basin Vegetable growers, which can help to develop the agricultural sector.

Marketing Marketing Develop regional brand and reputation. Target specialist supply chains, including supermarkets and specialist food. Gloucester has started a direct to consumer channel through the Gloucester Farmers Market and this will be built upon through online ordering and selling of produce. A web-based system for local producers to sell direct to consumers is currently being developed, which will further develop the sector by creating an additional channel for producers to sell their produce. This aligns with ABARE research on vegetable growers across Australia, with growers expressing selling direct to retail is a growth opportunity

Development Establish a Gloucester Agribusiness Taskforce to implement the key projects: including regional brand, diversification, product marketing and attraction of agricultural producers to Gloucester.

Impacts Relocation of farmers to Gloucester will result in job creation in diversified agriculture, especially for produce that reaches sufficient scale. Initial growth jobs will result from non employing businesses (e.g. vegetable growers) that are relocated to the region. Permanent job impacts will depend on scale with growth in farm workers expected if operations reach sufficient scale. This highlights the importance of the proposed regional agricultural body. Flow on effects would include increased demand farming support services, light manufacturing for farming and jobs creation in logistics and cold chain storage and transport. Local retail and services will also receive positive flow on effects as a result of improved agricultural performance. Access to broader markets in Newcastle and Sydney will need development of the food transport and logistics options. Catering to demand signals in broader markets will allow increased scale to be achieved and provide a basis for a retail, marketing and distribution facility, and cold store to be established in Gloucester.

5.8 Agribusiness (S2.1) - Action 2: Beef Production

5.8.1 Future Opportunities Current Situation Gloucester has a history as a beef producing region and the beef sector remains a significant employer in the region. The sector also supports a number of farm support businesses in the region. The major issues for the future are maintaining the sector and improving its long term sustainability. The major assets for the region are land quality, rainfall and the existing operations and a reputation as a clean green area; and its proximity to Newcastle and metropolitan markets. There has been a regional branding initiative with the Barrington Beef brand.

The current situation of the industry includes: squeezes on margins with input cost rising but beef prices not increasing to the same extent.

There is also competing land uses in the region: with mining and lifestyle blocks. There are also a range of hobby farmers, who are operating beef properties in the region. The land issue impacts on the capacity to increase the size of operations, due to both availability of land and the price increases that have occurred. Like other regional areas there are issues in recruiting farm labour.

New Opportunities

Future opportunities are based on: increasing the scale of the sector, accessing additional land; developing new market segments through regional branding and identity, product and channels to market.

The impacts will a sustainable beef sector that continues as a major industry and source of employment in the region. Major development requirements are a detailed audit of the sector, to assess the options for diversification and growth for the sector (e.g. diversification, increase scale, new markets). This audit would also address land issues. The beef sector needs to be represented on the proposed Agribusiness Taskforce.

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Opportunities Description Impacts Strengths Constraints Development

Requirements

Key Sectors


S2.1.1 Beef Cattle Sector Strengthen the beef sector in the region

Strengthening the Sector - Gloucester has a history as a beef producing region and the beef sector is a significant employer. -There is a need to strengthen the sector in the region. New Opportunities - Diversification of activities and exploring new directions are important for development of the sector - Assessing new opportunities, while continuing sustainable practices is important to develop the sector. These opportunities include: expansion in herd sizes; development of a regional brand; consolidation of land holdings; exploration of organic beef options; development of more intensive farming; and assessment of channels to market (e.g.. direct to retail)).

- The beef cattle sector will remain important to region.

- Strengthened sector will ensure long term sustainability.

- A major impact will be sector and keeping younger farmers in the sector.

Assets - Quality of land.

- Stable rainfall.



- Reputation as a “clean/green area”. - Proximity to major centres, including Newcastle and expanding coastal areas. - A regional brand for beef cattle has been established: Barrington Beef.(positioning based on: free range grass fed animals, raised on naturally productive pastures, hormone antibiotic and chemical free)

-Sector knowledge and expertise.

- Diversity in beef production – provides for a range of opportunities for producers in the region.

Current Situation - Competing land uses in the region: mining and lifestyle blocks. - Input cost pressure while prices are not increasing

- Some land locked up in hobby farms, which limits scale of operations. - Decline in number of producers due to retirement and consolidation in the sector.

- Workforce issues ability to recruit and maintain a rural workforce.

Future Development

- Developing scale limited by competing land uses.

- Price/cost pressures on beef producers are squeezing margins, returns and capacity to invest.

- Continued rationalisation of abattoirs is a threat.

Key Requirements - Explore options for continued growth of beef sector, including the issue of land availability. - Audit of sector to assess development options for operators (e.g. diversification, increase scale, new markets). - Further develop diversification options (agri-tourism, mixed farming). - Explore new markets and access requirements (direct to retail, higher value and organics). - Beef sector representation required on the proposed Agribusiness Taskforce. - Leveraging Barrington Beef branding and the development of the Gloucester Food brand.

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S2.1 Agribusiness Action 2: Beef - Organic Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.1 Agribusiness Action 2: Beef – Organic Assess potential for organic beef.

- Gloucester’s tradition in beef cattle, free range grass fed animals, raised on naturally productive pastures, and low use of chemicals, provides a basis for pursing organic beef as a long term strategy.

- Moving towards organic beef allows differentiation from high volume production beef cattle and may lead to higher margins.

- NSW DPI acknowledges that organic beef in the Hunter Region is gaining interest.

Sustaining New Markets - Movement to organic beef will retain jobs in agriculture.

- Potential to move to a higher margin, specialised product.

- Indirect regional impacts include increase demand for farming support services and light manufacturing.

Current Strengths - Existing production in the region.

- Development of Barrington Beef Brand.

- The Barrington Beef brand of Gloucester Gourmet Foods Co-operative Limited has strong elements of organic farming.

Current Constraints - Many producers are small scale and include hobby farmers.

-Some may plan to exit the industry.

- Certification process may be costly and some producers may not have sufficient scale or suitable land.

Feasibility Assessment - Identify Gloucester beef farmers who want to move to organic beef production.

- Need to assess the feasibility and determine whether land holdings can obtain organic certification.

5.8.2 Assessment (S2.1 A2): Beef

Market Growth

The long term outlook for the beef sector is positive, with growth in world consumption and growth in the markets supplied by Australia. Growth in both world population and incomes is expected to drive higher meat consumption, including beef.52

A 2008 report by Rabobank on the Australian beef sector suggested that despite a number of short-term challenges - including higher input costs, continued dry weather conditions in many areas and increased competition in some key export markets - the longer-term outlook was positive for the Australian beef industry. 53 Australia is a major meat exporter to a large number of markets including Japan and Korea. A new market for Australia has been Russia, which emerged as Australia’s fourth largest beef market in 2008. Australia competes with US beef in these markets.

Industry Structure The Australian red-meat and livestock industry comprises producers, lot feeders, processors, retailers and exporters, who supply red meat and livestock to domestic and international markets. The sector has production of $15.8 billion. Around 120,000 properties carry beef cattle (28 million head), sheep (83 million head) or goats. Beef and cattle exports totalled $5 billion (sheep $1.6 billion). Combined, these represent around 23% of total Australian farm exports. Over 70% of red meat production is exported to 110 countries worldwide.54

52 Much of the world’s population growth is predicted to take place in Asia, which provides a rapidly growing consumer base located within close proximity to Australia. The Food and Agriculture Organisation (FAO) forecast that increased incomes and population growth will support a 55 million tonne (20%) in global meat consumption from 2005 to 2015, with the consumption of beef forecast to grow by around 12 million tonnes (18%). 53 Rabobank, September 23 2008, Longer-term outlook positive for Australian beef: industry report. 54 Australia’s Red-Meat and Livestock Industry Meat Industry Strategic Plan 2010-2015, Red Meat Advisory Council, August 2009,


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Source: Australia’s Red-Meat and Livestock Industry Meat Industry Strategic Plan 2010-2015, Red Meat Advisory Council, August 2009 P41

Hunter Valley Beef Beef production in the Hunter Valley has a number of different production systems due to its diverse topography and variations in both rainfall and soil type.55 Beef production systems in the Hunter are varied and range from large-scale breeding operations for the production of store cattle, through to smaller properties focused on finished cattle production, based on irrigated alluvial river and creek flats. The main beef cattle enterprises in the Hunter Region are Weaner production system, Vealer production system, yearling production system, and European Union production system. Two other options for the Hunter region are; Japanese Ox production systems (export market) and organic beef production systems. The rationalisation of abattoirs has increased the distances that stock has to travel and associated transport costs. The current abattoirs for the Hunter are: Woy Woy, Kurri and Scone abattoirs which cater for the local markets of Newcastle and Sydney. Export licensed plants at Tamworth (Cargil); Ipswich, Queensland (AMH); Singleton (Throsby); Wingham (Nippon); and Scone (Primo Australia) continue to source a significant share of their livestock requirements from the Hunter Region. 56 Breeding and growing steers specifically for the feedlot demand is still at early stages in the area, but growing demand and the returns from this activity, mean that it is a future growth area in cattle production.

The diversity in beef production suggests that there will be a range of opportunities for the beef cattle producers in the region.

A 2006 report on beef stocking rates and farm size in the Hunter Region ( DPI NSW) indicated the following advantages for the region’s beef industry: suitability of the climate, pasture types and landscape; available service suppliers (e.g.. produce merchants, contractors); proximity to infrastructure (abattoirs, saleyards, transport etc.) and a range of markets; potential for higher returns from group marketing activities; increasing adoption of industry standards, such as Meat Standards Australia (MSA) grading (tool for producers to identify and differentiate their products); good international and domestic market prospects; and the opportunity for professional beef producers to increase productivity and become more competitive.57

Beef cattle is an established and dominant agricultural industry in the Hunter Region (and Mid North Coast). Most of the beef cattle holdings in the Hunter (and Mid North Coast) tend to be of smaller as a

55 Recent beef production and management system trends in NSW, Lloyd Davies, NSW Department of Primary Industries, Released/reviewed: 23 Jan 2006, http://www.dpi.nsw.gov.au/agriculture/farm-business/budgets/livestock/beef/info/production-trends, accessed 24 June 2010 56 Generally these cattle are heavier than 240 kg carcase weight. The exceptions are Tamworth, which kills the lighter-weight export cattle for Cargil and supermarket cattle for Woolworths, and Primo Australia at Scone, which kills mainly domestic-weight cattle, with small numbers of stock for the smallgoods sector. 57 Beef stocking rates and farm size—Hunter Region, NSW Department of Primary Industries, June 2006. In the report the Hunter Region includes the local government areas of Upper Hunter, Muswellbrook, Singleton, Cessnock, Maitland, Lake Macquarie, Newcastle, Port Stephens, Dungog, Great Lakes and Gloucester.

http://www.dpi.nsw.gov.au/agriculture/farm-business/budgets/livestock/beef/info/production-trends


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result of rural subdivision, the high cost of land and the popularity of cattle for owners of small, rural lifestyle lots. This aligns with the current situation in Gloucester.

These small-scale beef enterprises (with less than 40 head of cattle) are affected by: the higher unit cost of buying relatively small quantities of inputs (e.g. fertiliser, drenches, farm equipment); higher costs per head for (e.g. pasture improvement, cattle management); and limited capacity to negotiate prices, or to access more profitable cattle markets. They face increasing overheads and are often reliant on off-farm income. Marginal Weaner and Vealer breeding enterprises have seen a steady decline in real returns over the last 10 years. On smallholdings, buying store cattle to fatten and re-sell may be more profitable. Breeding enterprises are prevalent on small holdings in the Hunter Region. Most beef product is traded in the commodity market. However, there is the potential for specialised niche marketing of feeder steers and meat products. Animals produced for slaughter in Australia can be sold by producers to several types of buyer: directly to the abattoir; to live exporters; or to feedlots or to breeder or for store purposes. Recent analysis for the sector shows that while there has been an increase in income, this has been squeezed by rising input costs.58 Pressures continue particularly on small producers.

DPI NSW has identified a number of requirements for improved profitability and sustainability of cattle enterprises. This included: increased productivity from better management of pastures and herds; increased returns by producing cattle for higher value markets, or by direct sale to retailers; increased operating efficiency and reduced unit costs through economies of scale (larger herds); increasing the number of holdings; leasing farm land and equipment; realising returns on land through sale to larger operators. Other options included diversifying income sources (e.g. farm forestry, managing other properties, contract farm work, eco tourism, value added farm enterprises and income from work not related to farming). 59

Some of these recommendations may be more appropriate for Gloucester’s beef cattle producers than others. Tailored

solutions will be required depending on the producer, holding size, capacity and strategic focus.

Organic Beef

Consultations with the beef cattle sector in Gloucester indicate that there are many small scale producers in the region, the majority of producers with 200 head of cattle and a few larger producers with 600-700 head. Consultations indicated that although organic farming is encouraged in the region and there has been a low use of chemicals in farming historically, there are no certified organic farms in Gloucester. One of the intentions of the Gloucester Farmers Market is to encourage organic production and a minimum use of chemicals in farming.60

In 2005 DPI NSW estimated that the domestic market retail value of the Australian organic farming industry was $250 million a year, with produce worth $50–$70 million being exported.61 The department suggested that New South Wales’s organic farming industry has strong potential to fill domestic and export markets.

DPI research on organic sales channels indicate: 52% of organic producers sell their products to processors/wholesalers; 19% sell directly to retailers;10% sell through a cooperative or organic products association; 9% sell directly to consumers;4% process or value-add to their own products; and 6% utilise some other form of distribution.

Gloucester’s tradition in beef cattle, free range grass fed animals, raised on naturally productive pastures, and low use of chemicals, provides a basis for pursing organic beef as a long term strategy.

58 Source: Australian beef - Financial performance of beef cattle producing farms, 2007–08 to 2009–10, ABARE , June 2010 P10 59 Beef stocking rates and farm size—Hunter Region, NSW Department of Primary Industries, June 2006. 60 Gloucester Farmers Market Brochure, P2 61 Organic Farming: huge potential for producers | NSW Department of Primary Industries. http://www.dpi.nsw.gov.au/agriculture/farm/organic/farming/organic-farming-potential-for-farmers, accessed 29 June 2010.

http://www.dpi.nsw.gov.au/agriculture/farm/organic/farming/organic-farming-potential-for-farmers


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Moving towards organic beef allows differentiation from high volume production beef cattle and may lead to higher margins.

During consultations with producers from the agricultural sector is was felt that organic certification would be a costly and time consuming process, which would not be suitable for the majority of growers in the region currently, as many do not have sufficient scale

5.9 Agribusiness (S2.1) - Action 3: Dairy Production

5.9.1 Future Opportunities Current Situation

Gloucester has a history in dairy and the sector remains important in terms of jobs, revenue and for future opportunities. Deregulation has resulted in decline in number of operators and consolidation of holdings. There are some limitations on further consolidation due to constraints on land availability (due to mining leases and lifestyle blocks/hobby farms. There is a squeeze on margins due to the combination of milk prices and rising input costs.

New Opportunities Major opportunities relate to: strengthening the sector and allowing for increased consolidation and large scale dairy holdings; and examining diversification options for smaller producers. This requires an assessment of land availability and options for diversification. The dairy sector needs to be an active part of the proposed economic development taskforce.


Requirements

Key Sectors


S2.1.2 Dairy Sector - Encourage strengthening of the dairy sector

Overview - Gloucester has a history in dairy and the sector remains important in terms of jobs, revenue and for future opportunities.

- Deregulation has resulted in decline in number of operators and consolidation of holdings. - Assess potential for consolidation and current constraints of land availability.

- Retaining jobs through diversification of activities (e.g. Agri-tourism, mixed farming).

- Creating new jobs by exploring new directions.

Assets

- Quality of land.

- Stable rainfall.



- Reputation as a “clean/green area”. - Proximity to major centres, including Newcastle and expanding coastal areas.

- Dairy sector knowledge and expertise .

Current Situation -Competing land uses in the region, including mining and lifestyle blocks. - Recent pressures on land prices due to incidence of small land holdings.

- Growing number of hobby farms.

- Declining number of persons employed in the sector.

- Processing sector consolidation reducing bargaining power of producers.

- Input cost pressures.

Future Development

- Price/cost squeeze on dairy producers.

- Rationalisation of plant locations by processing sector.

Key Requirements - Explore options for continued growth of dairy examining the issue of land availability. - Further develop diversification options (Agri-tourism, mixed farming). - Explore new markets and access requirements. - Dairy sector representation in proposed Agribusiness Taskforce.

- Dairy representation for development of the Gloucester food brand.


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Another opportunity suggested was breeding animals for export. Countries such as Vietnam and China were viewed as having a large demand for live animals for local milk production, to improve self sufficiency in milk production and to improve herd health. This area was considered a niche market currently with a shipment of 50 head as seed stock undertaken by a producer in the region recently. The price achieved was approximately $1,000 per head. Exporting dairy cattle genetics to these international markets was also seen as an opportunity

5.9.2 Assessment (S2.1 A3): Dairy Overview of the Sector The following Dairy Australia diagram summarises the major factors impacting on the dairy industry. Factors Impacting on the Australian Dairy Industry

Source: Dairy 2010 Situation and Outlook, Dairy Australia, May 2010 P6.

Industry Structure Australia’s dairy industry had a farm gate value of $4.0 billion in 2008/09 and ranks third behind the beef and wheat industries. Dairy ranks fourth in agricultural exports (with exports of $2.9 billion).It is estimated that approximately 40,000 people are directly employed on dairy farms and manufacturing plants.


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Table 16. Australian Dairy Sector 2008/09

Source: Australian Dairy Industry in Focus 2009, Dairy Australia

All states have a dairy sector supplying drinking milk or milk for manufacturing. The New South Wales sector supplies 65% of its milk to the drinking milk market, while the Victorian sector supplies 92% of its output to the manufacturing market. Milk Production

Source: Australian Dairy Industry in Focus 2009, Dairy Australia P20


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Source: Dairy 2010 Situation and Outlook, Dairy Australia, May 2010, P49.

The industry is deregulated and farmers are subject to fluctuating prices and demand. In a deregulated market farm gate prices vary between manufacturers. They also vary depending on whether it is supply to the fresh market or the manufacturing market. The number of dairy farms has halved over the past two decades, to 7,920 in 2009. This is also reflected in herd sizes which have increased from average herd size of 85 cows in 1980 to over 200 in 2008/09. A 2008 survey showed that 8% of farms had herd sizes above 500 cows and these accounted for 25% of total Australian production.62 Improvements in genetics, pasture management and supplementary feeding regimes have seen yield per cow double from 2,850 litres a year to around 5,750 litres over the last 30 years. The combination of increase yields per cow and large herd sizes has seen, the average annual milk production per farm has increased from 247,000 litres to 1,185,000 litres over this period.63

62 Dairy 2010 Situation and Outlook, Dairy Australia, May 2010 P11 63 Dairy 2010 Situation and Outlook, Dairy Australia, May 2010 P11


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Table 17. Trends in the Dairy Sector

Source: Australian Dairy Industry in Focus 2009, Dairy Australia , P9.

In 2008/09 there were 860 registered dairy farms down from 2220 in 1988/90.

Table 18. Number of Registered Dairy Farms



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Market Segments The industry in NSW , Queensland and Western Australia are more focused on the drinking milk ,market. Victoria, Tasmania and South Australia accounting for 80% of the national output. The domestic dairy market accounts for around 55% of consumption of Australia’s milk production with exports accounting for around 45% in 2009/10. The national split is 24% in drinking milk and 76% in manufactured products (e.g.. cheese, dairy spreads and yogurt).64

Major impacts at retail level are private label brands, which now represent 52% of total supermarket milk volumes, up from around 25% in 1999/2000. In other segments it is 30% in cheese, 28% in dairy spreads, and 6% in the yogurt. Private brand products are considerably cheaper than branded products.

The major manufactured products are: drinking milk – fresh and UHT long-life; skim milk powder (SMP)/buttermilk powder (BMP)/butter; butter/casein; cheese; whole milk powder (WMP); other consumer products, such as yogurts, custards and dairy desserts; and specialised ingredients, such as whey proteins, nutraceuticals, etc. Around 60% of manufactured product (in milk equivalent terms) is exported , with 40% sold on the Australian market. With drinking milk, 97% is consumed in the domestic market.

Utilisation of Australian Milk 2008/09

Source: Australian Dairy Industry in Focus 2009, Dairy Australia, P21.

Processing Sector

Processors retain a preference for local produced milk to maximise shelf-life for fresh products, and minimise logistics and handling costs. Dairy NSW and Dairy Australia’s snapshot of the Southern, Central and Coastal NSW dairy industry (which includes Gloucester) indicates that the value of milk is determined the following market factors: whether the final market destination is domestic or export; farm gate and marketplace competition within the region; and the sustainable cost of year-round fresh milk production.65 Consultation with the Gloucester dairy sector indicated that there were two main buyers of milk in the region: Norco and National Foods.

On the processing side there has been ownership changes and increased competition. A Senate Economics References Committee inquiry into competition and pricing in the Australian dairy industry noted that the manufacturing sector of the Australian dairy industry has become more concentrated since deregulation of the dairy sector in the late 1980s and in 2000.66

In 1999, the five largest milk manufacturers in Australia were Murray Goulburn, Bonlac, Dairy Farmers Group (all three entities were cooperatives), National Foods Ltd and Pauls/Parmalat. Consolidation has occurred and in 2010 Bonlac is owned by Fonterra, and the Dairy Farmers Group has been

64 Imports account for 22% of domestic cheese consumption and 15% of domestic butter consumption in 2008/09 65 Fact Sheet: A snapshot of the Southern, Central and Coastal NSW dairy industry. Dairy NSW and Dairy Australia. July 2010, P1. 66 Senate inquiry into competition and pricing in the Australian dairy industry: milking it for all it's worth. Senate Economics References Committee. May 2010. http://www.aph.gov.au/Senate/committee/economics_ctte/dairy_industry_09/report/c02.htm, accessed 16 July 2010.

http://www.aph.gov.au/Senate/committee/economics_ctte/dairy_industry_09/report/c02.htm


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acquired by National Foods.67 Fonterra together with Murray Goulburn (a cooperative) are the now the largest market players in the manufacturing milk market.

Source: Senate inquiry into competition and pricing in the Australian dairy industry: milking it for all it's worth. Senate Economics References Committee. May 2010. http://www.aph.gov.au/Senate/committee/economics_ctte/dairy_industry_09/report/c02.htm, accessed 16 July 2010.

The 2010 Senate Inquiry quotes a 1999 Senate Inquiry into deregulation of the dairy industry, which raised the concern that market power would 'shift to processors and large retailers who would then be able to dictate terms to the industry and marketplace.'68 The 2010 Inquiry concludes that this has been realised to the detriment of the industry as a whole and the consumer. This aligns with the concerns raised by producers during consultation with the dairy industry in Gloucester. 69

In addition to the increased concentration there has been rationalisation of plants and consolidation of manufacturing capacity. This included mothballing of plants and plant closures. This has involved Murray Goulburn in Victoria and National Foods (e.g.. future closure of Hexham.) Co-operatives no longer dominate the industry and now account for around 40% of Australia’s milk production ( Murray Goulburn = 35% of national milk output) with smaller regional co-operatives like Challenge Dairies, Norco and Hastings Valley making up the other 5%).

A major issue that has been identified is in relation to private labels and the potential for the supermarket chains to seek alternative supply arrangements (in addition to the two dominant processors) through regional private label packing contracts. Faced with two dominant processors, retailers may seek to reduce their sourcing risk and improve flexibility by seeking alternative supply arrangements – including regional private label packing contracts. Changes of this nature would have implications for processor facilities and milk sourcing, and could create some uncertainty for milk producers regarding their market access.

67 Senate inquiry into competition and pricing in the Australian dairy industry: milking it for all it's worth. Senate Economics References Committee. May 2010. http://www.aph.gov.au/Senate/committee/economics_ctte/dairy_industry_09/report/c02.htm, accessed 16 July 2010. 68 Deregulation of the Australian Dairy Industry, October 1999, P 170. 69 Senate inquiry into competition and pricing in the Australian dairy industry: milking it for all it's worth. Senate Economics References Committee. May 2010. http://www.aph.gov.au/Senate/committee/economics_ctte/dairy_industry_09/report/c02.htm, accessed 16 July 2010.





50

Victoria dominates cheese production (P41) representing 245,000 tonnes of national production of 342,000 tonnes.

Table 19. Australian Production of Dairy Products


Current Market Situation

The dairy sector has had a fall in farm gate prices because of the impact of the global downturn on prices. Farms have experienced losses and low rates of return. Overall farms are securing low rates of return and losses. The average farm is expected incur a loss of $44,000 in the 2009-10 financial year and achieve a rate of return (excluding capital appreciation) of 0.4%).70

The pressures on milk prices have seen a number of dairy producers in the region put their properties up for sale.

Examining financial performance and outlook by region, the average farm in Southern and Central New South Wales which includes Gloucester) was expected to have $33,300 farm business profit and a rate of return of 2.1% for 2009-10.71 Other areas such as North Victoria and the Riverina are expected to incur large losses in 2009-10 (-$109,000) due to lower milk prices and continued low allocations of irrigation water.

Volatile international market associated with the economic downturn has had a major impact prices at the farm gate level. Falling commodity prices during 2008 and early-2009 translated into lower farm gate prices with a step-down in milk price taking effect from February 2009 for the 75% of dairy farmers supplying exporting companies (this last occurred in 1973). This mainly applied to Victorian, South Australian and Tasmanian farmers who are supplying the dairy manufacturing sector. 72 The step down prices was $3.50 per kg milk solids compares with $5.50 in 2008/9

Milk prices were identified in the 2009/10 farm survey as the major market challenge, followed by climate issues and the cost and availability of irrigation water . Pricing varies according to location and market being supplied.

70 Australian Dairy – Financial performance of Australian dairy farms, 2007-08 to 2009-10, 10.1 ABARE report for Dairy Australia, June 2010 P4. 71 Australian Dairy – Financial performance of Australian dairy farms, 2007-08 to 2009-10, 10.1 ABARE report for Dairy Australia, June 2010 P5. 72 Australian Dairy Industry In Focus 2009, Dairy Australia P9


51

Factory Paid Prices (cents/litre) – 20 years

Source: Australian Dairy Industry in Focus 2009, Dairy Australia P15.

Wholesale and retail competition in the domestic retail market also has impacts. A recent dairy industry report identified a 2010/11, a “two speed” milk intake situation for 2010/11 with southern exporting manufacturers looking to increase intake to meet fast growing export demand, while domestic milk processors in fresh milk regions are focussed on matching slowly growing demand with secure year round regional supplies.73 The report indicated that growth in world markets will lead to higher farm gate milk prices for southern region farmers in 2010/11. In the case of northern farmers, lower prices are expected in response to an oversupply of milk relative to local fresh milk market demand levels.74

73 Australian Dairy Industry in Focus 2009, Dairy Australia P7 74 Australian Dairy Industry in Focus 2009, Dairy Australia P7


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Farmgate Outlook 2010/11

Source: Northern Dairy Industry Regional Industry Outlook Update: June 2010, Queensland Dairyfarmers’ Organisation P7.

Regional Industry The southern and central NSW region has a significant and diverse industry servicing regional fresh milk and product markets. Milk processors have a preference for reliable local supply to maximise shelf-life for and minimising transport costs.

The dairy industry in the southern and central NSW region, employs around 1050 persons in 580 farms. Regional milk production was an estimated 590-600 million litres of milk in 2008/09 (around 6% of national milk output). The dairy industry directly employs 1,475 in the processing sector. The estimated value of farm milk production in the region in 2007/08 was $285 million.75 The average size of a holding in the region is 316 cows on an average 140 ha. Due to only a small percentage of the industry supplying export manufacturers, only 16% of southern and central NSW had price step downs. However prices are still seen as the major industry challenge.76 There are a number of factor affecting the industry and these include: water availability; rising land prices which impact on expansion; lifestyle and hobby farms encroaching on dairy regions. Other factors include low growth in the drinking milk market; competition between dairy manufacturers for supply; retail level competition from house brands are affecting manufacturing margins and this is being reflected in contract prices and supply volumes. These market pressures and price volatility impact on younger farmers who have less equity in their farms.77 The growth in the size of farms means that the share of single person/partner operated farms has declined to around 30% in 2009 and 2010 (from 43% in 2007). Employees are mainly farm hands or assistant farm hands but also include farm supervisors and production managers.78 Recruitment is often a challenge in regional areas.

75 Dairy in Southern & Central NSW, Regional Profile from Dairy 2009: Situation and Outlook, Dairy NSW P2 76 Dairy in Southern & Central NSW, Regional Profile from Dairy 2009: Situation and Outlook, Dairy NSW P1 77 Dairy in Southern & Central NSW, Regional Profile from Dairy 2009: Situation and Outlook, Dairy NSW P3 78 Dairy 2010 Situation and Outlook, Dairy Australia, May 2010, P59.


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5.10 Agribusiness (S2.1)- Action 4: Regional Food Brand


The majority of agriculture businesses in Gloucester are non employing (89%), which indicates a dominance of single person/family farms in the region. Smaller operators face proportionally higher costs for marketing and distribution of their produce compared to larger operators. Consultation with the agri-business sector in Gloucester indicated that marketing and distribution costs were significant issues for small producers in the region. The costs of regulation compliance can also be prohibitive for these producers .

A Regional Brand

As part of developing diversified agribusiness in the region, there is as need to develop a regional brand. The brand would build recognition of Gloucester as a food producing region. The brand development can be modelled on other regional networks/clusters or brands. For example Hawkesbury Harvest - organises farm gate trails and is involved in industry development and regional branding; the King Island brand has been extended across a range of produce. Hawkesbury Harvest’s activities include: publication of Hawkesbury Harvest Farm Gate Trail map; operation of the Hawkesbury Harvest web site; operation of a regional produce directory through a website; provision of local producers with an alternative channel to market their produce; promotional activities to access wider markets; organisation of the Hawkesbury Harvest Farmers Markets (markets at Castle Hill, Rouse Hill Town Centre, Penrith and Richmond) and Gourmet Food Markets; and provision of information for print media, radio and television opportunities.79 A group of Gloucester producers has developed a regional brand “Gloucester Fare”. The group is working on the issue of marketing channels for specialised local products to broader markets, and this includes development of a marketing website.

The regional brand is seen as an umbrella brand for products produced in the Gloucester Region, with individual producers still having their own brand identity. The brand would encompass traditional and diversified agriculture in Gloucester and further develop agri-tourism in the region. The development of a single brand for Gloucester’s produce spreads the cost of marketing and distribution across a range of participating producers. The brand would be linked to the development of agri-tourism in the region (and a food trail) and the use of local produce in restaurants and cafes. The Poachers Way in the Canberra Region provides an example of linkages to agri-tourism, through a food trail and farm experiences. There are a number of requirements to develop this in brand and these include: securing collaboration among producers in the region; development of the brand identity; and preparation of a business plan and marketing strategy. The branding project could be driven by the proposed Gloucester Agribusiness Taskforce. The current group of producers working on the concept could become an industry cluster with a focus on brand development , market development , production trials and production.

79 Hawkesbury Harvest Business Plan May 2004 Section 1 Hawkesbury Harvest History and Evolution, P7-8.


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S2.1 Agribusiness Action 3: Gloucester Food Brand

Opportunities Description Impacts Strengths Constraints Development Requirements


S2.1 Agribusiness Action 3 Gloucester Food Brand - Develop a regional food brand

- Develop recognition of Gloucester as an emerging food region through establishment of a regional brand. - Brand can be built around clean/green image of the region.

- Should be modelled on other successful networks, brands and clusters (e.g.. Hawkesbury Harvest - organises farm gate trails and is involved in industry development and regional branding; King Island; and Poacher’s Way).

It would also involve the establishment of a food cluster of participating producers.

- Brand would build identity for regional producers and products, for product sales and for agri-tourism.

- Has the potential to renew agribusiness and to encourage diversification.

- Indirect impacts of more effective marketing of Gloucester’s produce are job creation in diversified agriculture, , and job retention in traditional agriculture.

- Flow on effects would include increased demand farming support services.

- Existing experience with development of a brand – Barrington Beef.

- Informal group is already working on a brand (Gloucester Fare) and marketing channels for small producers.

- Concept is in its early development stages. - Producer knowledge of the activity is currently limited.

Development - Need for consultations with broader range of regional producers.

- Need for a professional brand to be developed.

- Form a food industry cluster as a vehicle to link producers

- Develop a brand prospectus, business plan and marketing plan.

- Identify opportunities for strategic support from government programs.

- The project should be driven at a strategic level by the proposed Gloucester Agribusiness Taskforce.

5.10.2 Assessment (S2.1 A3): Food Brand The development of a regional brand provides a vehicle to develop new agriculture in the region. It has the scope to cover traditional and diversified agriculture in Gloucester and to assist the development of agri-tourism in the region. Producer participation becomes important and there is potential to develop a food cluster in the region, involving the participating producers. An informal group has already commenced, creating a Gloucester Fare brand. Success will require participation in the brand and its extension across a range of regional products. This will involve consultation with producers. There is scope to evolve the current informal “Gloucester Fare” group into a regional industry cluster.


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5.11 Agribusiness (S2.1)- Action 5: Skills Development


Like many regions, Gloucester faces industry skill issues. A major issue for the region is developing skills in agribusiness. This can encompass skills transfer to improve hobby farm operations and the training for young people and others wanting to take up opportunities in the farm sector.

Due to the growth of rural lifestyle lots, there has been demand for education on how to properly manage animals and cattle from hobby farmers. Although beef cattle production is not the primary focus of many hobby farmers, knowledge and training are required to properly manage animals and their properties. Consultations with the agri-business sector indicated that demand for education from owners of lifestyle lots currently exists and that lifestyle owners have sufficient income to pay for educational programs and courses.

With the consolidation of farming into larger operations, there is a demand for skilled farm employees. The requirement is for skills development for existing employees (and farmers) and for young people seeking employment in the sector.

The Gloucester Skills Ecosystem, provides a vehicle for these skills programs. The Gloucester Skills Ecosystem is an organised body of individuals representing business, government and training stakeholders, with the goal of developing a stronger and better skilled workforce in Gloucester.80

80 Skills Ecosystem Information, Enhancing Skills Newsletter No. 1, March 2010, Gloucester Business Chamber.


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S2.1 Agribusiness Action 4: Skills Development for Agribusiness

Opportunities Description Impacts Strengths Constraints

Development Requirements


S2.1 Agribusiness Action 5: Skills Development for farmers Develop skills programs for hobby farmers

- Due to the growth of rural lifestyle lots and hobby farmers, there has been demand for education on how to properly manage holdings.

- Transferring skills and techniques to hobby farmers is an opportunity for traditional producers in the region.

- Will improve skills of hobby farmers in land management and farming practices.

- Improve productivity of these farms.

- Generate alternative income stream for local farmers.

- Gloucester farmers have high level of skills and experience in beef cattle and dairy cattle.

- There is an emerging market for training.

- No current organisation to coordinate training.

Development - Develop seminars and workshops.

- Marketing of programs to regional hobby farmers.

- Utilising the Skills Ecosystem Program (joint state/ federal program) to facilitate the training.

S2.1 Agribusiness Action 6: Agribusiness skills development - Develop skills programs for farm workers and for young people.

- Identification of skills needs and provision of skills programs.

- Will improve farm productivity. -Will provide a pathway for young people into agribusiness

- Experienced farm operators in region - Demand for labour.

- Distance from training providers. - Limited current training programs

Development - Assess industry training needs. - Develop a program schedule. - Facilitate in region delivery - Project should be managed by Gloucester Skills Ecosystem

5.11.2 Assessment (2.1 A4): Agribusiness Skills

There is an identified demand for skills programs in the agribusiness sector. The programs for hobby farmers could involve existing experienced farmers in workshops and on site training programs.

Workforce skills development should be through Gloucester Skills Ecosystem, which can initially assess industry needs and facilitate the delivery of the programs.

The Gloucester Skills Ecosystem has assessed the demand for skills programs in other sectors (including: retail, hospitality, metal fabrication) and has facilitated the delivery of programs.

The role of the organisation is to: assess skill needs; identify training providers; identify funding sources for programs; increase industry and employee recognition of skills; and provide pathways for young people.

Gloucester Skills Ecosystem is involved in the following activities: Try-a-Trade; Careers Expo; and Industry Clusters (Tourism Network, Agricultural Network, Manufacturing Network, and Retail Network). The program is managed by the Gloucester Chamber of Commerce and involves a range of stakeholders.81 The project is funded until October 2011.

81 Local industry , Gloucester High School , Department of Education and Training ( State Training Services) , Gloucester Shire Council , Career Connect , TAFE NSW , Gloucester Community Training and employment Providers (Wesley Uniting Employment, Job find, TIDE, NOVA)


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5.12 Other Agribusiness Opportunities (S2.1)

A number of opportunities were identified during consultations with the agribusiness sector and these are summarised below. Each of these would need to be subject to a feasibility study.

Opportunity Description

Community Facilities

Community commercial kitchen

The development of the food sector, will create the demand for a commercial kitchen or small scale manufacturing facility that can be shared by a range of local producers.

Small animal processing This facility was raised in consultations, with the example of a small animal initiative and processing in Bega being identified (Bega Valley Gourmet Meats Cooperative). The co-operative was formed in the Bega Valley to farm, process and market meat rabbits and free-range poultry. The processing works were established (with government funding) due to the need for local farmers to have their product processed locally.82

Retail Centre Development of a retail and distribution facility, including a cold store to promote Gloucester produce.

Sector Development Wine Gloucester has to wine grape production and there are around 10 vineyards located in Gloucester Shire and the

adjacent Shires. There is potential to extend growing and to develop cellar door sales as part of a food and wine trail.

Cattle production for feedlots An area of potential growth for beef producers was producing cattle for the feedlot sector. Feedlots are a type of animal feeding operation used in factory farming to finish (fatten) beef cattle prior slaughter. It was expressed in consultation with the Gloucester beef cattle sector that this market was highly deregulated and that conditions needed to be attractive for producers to enter the market.

Horse Sector Consultation with the stock horse sector indicated that the sector is currently in its infancy in Gloucester. One producer considered stock horses as a hobby business as their business was not commercially viable at present. One breeder in Gloucester was producing 10 to 15 horses per year, and this was considered to be one of the larger breeders in the region. To develop the sector better equine facilities were required in the region. An opportunity suggested by the sector was a multipurpose, all weather facility for livestock in the region with permanent stable facilities for storage and care of horses. Events for various livestock could be conducted at the facility including livestock selling, clinics and other events. It was estimated that funding in the order of $3.5 million would build a suitable facility.

Export of animals An opportunity for growth suggested by Gloucester’s dairy sector was breeding animals for export. Countries such as Vietnam and China were viewed as having a large demand for live animals for local milk production to improve self sufficiency in milk production and to improve health.

82 Bega: About Us, http://www.thebegavalley.org.au/14621.html, accessed 14 July 2010.

http://www.thebegavalley.org.au/14621.html


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6 Tourism Sector

6.1 Tourism (S2.2): Current Situation

6.1.1 Overview

Tourism is important to Gloucester Shire. The major assets for tourism are the natural environment and rural lifestyle. This includes: a World Heritage Area (Barrington Tops is included in the World Heritage Listed Central Eastern Rainforest Reserves); wilderness areas; National Parks; and a farming/rural environment. A major issue is that the tourism sector and key attractions, accommodation, infrastructure and tourism product are under-developed relative to other areas in the Hunter Region and in other locations.

Sector Key Features

Tourism The sector is based on natural environment of the region - World Heritage rainforests and the grasslands of the Barrington Tops, the Bucketts Range and the river system. There has been an expansion in the accommodation sector, but overall tourism is underdeveloped compared with other regions. There is considerable scope for development of the sector, and this will require action on infrastructure, product, marketing, skills and the development of local attractions. .

6.1.2 Key Assets

Tourism is important to the Gloucester Shire. The key assets are based on the natural environment and a rural lifestyle. The assets include: a World Heritage Area (Barrington Tops is included in the World Heritage Listed Central Eastern Rainforest Reserves); wilderness areas and National Parks; an attractive farming/rural environment; and accessibility to the major population centres of Newcastle, the Central Coast and Sydney.

One of the fastest growing activities contributing to the Gloucester economy has been tourism which, in the four years leading up to 2007 was

estimated to inject into the district in excess of $20M per annum. The World Heritage rainforests and the grasslands of the Barrington Tops, the

monolithic Bucketts Range and the river systems around Gloucester provide a unique tourism opportunity only a few hours north of the major

population centres of Sydney, the Central Coast and Newcastle. Gloucester is considered to have the most reliable river system outside the Sydney

basin, making it a perfect destination for canoeing and kayaking. This, along with the increasing popularity of Thunderbolts Way and Bucketts Way as a

Tourist Drives, places Gloucester in an enviable position to capitalise on the wonderful balance of passive and active recreation to create a combined

tourism and lifestyle experience.

Source: Gloucester Economic Profile, Gloucester Shire Council 2008

Current tourism activities are based on: rural experiences such as farm stays and visits; and adventure tourism activities, including walking and camping in National Parks, State Forests, and Barrington Tops. There are several local operators providing services to the adventure/experience tourism market and these include: canoe and kayak hire, overnight trail rides, National Parks night walks, and self-drive 4WD trails.83 “Farm Trails” have been developing in the area and include organised site visits to various farms/businesses.84 A number of other businesses in the region receive a boost from tourism and these include cafes, restaurants, hotels, supermarkets and other retailers in the town centre.

83 Gloucester Local Environmental Study 2006 Hunter Development Brokerage, March 2006 P95 84 Participants identified in the 2006 report included: Barrington Perch, Barrington Beef, Gloucester Gold, Hillview Herb Farm, Capparis Goat Cheese.


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6.1.3 Tourism Market

Tourism data for Gloucester Shire from Tourism Research Australia for 2007 showed that in the three years to 2007, there was an average of 103,000 visitors per year to Gloucester, with an average stay of 3.1 nights and an average spend of $86 per night. The total spend for domestic tourism in the region was estimated at $28m per year, which is above the $20m quoted in the Gloucester Environmental Study 2006. This suggests that there has been some growth in tourism numbers in the region. The following table shows estimated number of room nights in each category of accommodation.

Table 20. Summary of International and Domestic Travel to Gloucester LGA 2007

Gloucester International Domestic overnight

Accommodation Motel/resort

25%

Friends/Relatives

23%

Caravan/ Camping

34%

Other 18%

Visitors ('000) np 103 25.8 23.7 35.0 18.5

Visitor nights ('000) np 321 80.3 73.8 109.1 57.8

Spend ($ million) np 28

Average stay (nights) np 3.1

Average spend per trip ($) np 270

Average spend per night ($) np 86

State average

Average stay (nights) 19.0 3.4

Average spend per trip ($) 1,849 429

Average spend per night ($) 99 125

National average

Average stay (nights) 28.6 3.9

Average spend per trip ($) 2,758 498

Average spend per night ($) 97 125

Note: Based on 4 year average to June 2007; np – not produced. (limited numbers) Source: Tourism Research Australia, March 2008

The Tourism Research Australia data shows the characteristics of overnight visitors and highlights 92% of visitors were intrastate visitors and with 50% from the Sydney region. In all 70% were coming for holiday or leisure visits (and 23% were visiting friends and relatives). In terms of activities 28% were undertaking Bushwalking/rainforest walks, 60% were on a short break (1-2 night stay) and 80% had Gloucester as their sole destination. Families and friends (54%) and adult couples were the major visitor groups.


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Table 21. Profile of Domestic Overnight Travel to Gloucester LGA 2007

Gloucester LGA Overnight visitors

State

average National average

Gloucester LGA Visitor nights

State

average National average

Characteristics ('000) % % % ('000) % % %

Origin

Interstate np np 32 33 np np 40 48

Intrastate 95 92 68 67 276 86 60 52

Top markets

Sydney 51 50 35 18 149 46 31 17

Other New South Wales 44 43 33 15 127 40 30 15

Purpose

Holiday/leisure 71 69 42 43 236 73 46 47

Visiting friends/relatives 24 23 37 35 56 17 36 33

Other np np 24 24 np np 19 21

Accommodation

Hotel, resort, motel or motor inn 25 25 35 35 55 17 25 26

Friends or relatives property 23 23 43 43 92 29 43 40

Caravan park, caravan, camping 36 35 12 12 115 36 15 14

Other 19 18 15 17 59 18 18 20

Transport

Private car 98 96 78 74 - - - -

Other np np 23 28 - - - -

Top activities

Eat out/restaurants 34 33 50 51 - - - -

Visiting friends/relatives 33 32 45 45 - - - -

Bushwalking/rainforest walks 28 28 9 9 - - - -

Just walk or drive around 25 24 27 28 - - - -

Duration of visit

1-2 nights 60 59 57 54 - - - -

3-4 nights 26 26 23 23 - - - -

5 nights or more 16 16 20 23 - - - -

Stopovers

Destination was only stopover 81 79 85 89 - - - -

Trip included multiple stopovers 22 21 15 11 - - - -

Age

15-44 years 51 50 54 55 156 48 48 49

45-64 years 36 35 34 34 120 37 34 34

65 years and over 15 15 12 11 45 14 18 18

Lifecycle group

Young midlife singles and couples 29 29 33 34 92 29 29 30

Parents with children 37 36 35 35 137 43 32 32

Older working 12 11 14 15 21 7 13 14

Older non-working 24 23 27 16 65 20 25 25

Travel party

Travelling alone np np 25 26 np np 23 23

Adult couple 34 33 28 28 108 34 30 31

Family and/or friends/relatives 56 54 41 40 169 53 42 40

Other np np 6 7 np np 5 6

TOTAL 103 100 100 100 321 100 100 100

N.B. Four year average to June 2007; np – not produced. Source: Tourism Research Australia, March 2008

Other market data from the Gloucester Environmental Study 2006 (and sourced to the Gloucester Visitor Information Centre) presents a similar visitor pattern. It showed that visitors to Gloucester were mainly from Sydney (59%), the Hunter Region (including Newcastle -30%) and the Central Coast (7%). The major categories of visitors were: families (37%); couples (22%) and Dual Income, No Kids (DINKS) (15%).


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Table 22. Visitor Market Information- Gloucester Shire 2006

No Share

(%)

Origin of Visitors

Sydney 627 59

Central Coast 74 7

Hunter 322 30

Mid North Coast 18 1

Interstate 5 1

Overseas 23 2

Total 1069.3 100

Type of visitor

DINKS 167 15

Family 421 37

Couple 242 22

Corporate 65 6

Retirees 77 7

Singles 89 8

Parent/Social/Work-related groups 56 5

Total 1062 100

Heard About

Website/Internet 590 46

Barrington Tops Visitor Guide 92 7

Word of Mouth 163 13

Newspaper 154 12

Re-booking 69 5

Visitor Information Centre 192 15

Signage 24 2

Total 1285 100

Source: Gloucester Local Environmental Study 2006, Hunter Development Brokerage, March 2006 P95

6.1.4 Events Gloucester conducts a number of events to attract visitors. Event Description

Shakespeare on Avon Festival May Attracts around 1200 - 1500 visitors as schools are involved as well. There are markets and a Fair on the Saturday of the event.

Gloucester Iron Man Tri Challenge September Attracts around 1000 people when the support crew is incorporated into visitor numbers. (Approximately 280 - 300 competitors are included in that number). Not too much opportunity to grow this event much more due to constraints in regard to capacity of the river to deal with more competitors. We currently have a cap of 500.

Gloucester Seniors Tennis Tournament October Approximately 300 competitors, along with their family and friends.

Poley's Country Music Camp October Easter Camp attracted over 1000 people, normally around 700 - 850

Gloucester Spring Festival September - November Spring Festival is still in its infancy. This takes place over a three month period and overarches approximately 25 other smaller events. The aim is that this multi facetted festival grows from "grass roots up". Includes the October Long Weekend and also incorporates the Art Trail which runs for three weeks. Includes music events The Tri Challenge and Tennis Tournament run during the Spring Festival. Estimated to attract 3000-5000 people

Gloucester Farmers Market Second Saturday of each month.

The Gloucester Farmers market is held between 8:30am and 12:00 noon on the


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6.1.5 Accommodation Sector

A 2006 study indicated that there had been an increase in accommodation from 26 properties in 1997 to 65 properties in 2005. Accommodation in the region covers bed and breakfast, farm stays, country retreats, and motels/hotels, resort style accommodation and caravan and camping facilities. The analysis indicated that: tourist accommodation had a maximum capacity of 1600 in resorts, motels, bed and breakfasts and caravan parks; and there were a total of 945 camping sites in park areas - with total capacity of 3570 persons. This indicates that there is total accommodation in the area for around 5200 persons at peak periods.

Table 23. Accommodation in Gloucester Shire 2005 Type of Accommodation No of Properties Total

Number of rooms/sites

Bed and Breakfasts 9

Farm Stay 1

Self contained accommodation 34

Units/Apartments 2

Hotels 1

Resort 5

Camps 2

Motels 4

Camping/Caravans/Cabins Areas 8

Park Sites 945

Total 65

Source: Gloucester Local Environmental Study 2006 Hunter Development Brokerage, March 2006 Table 6H

Table 24. Estimates of Accommodation Capacity – Gloucester Shire Type of Accommodation No of

Properties Average Rooms

Total Number of

rooms Capacity per room Total Capacity

Bed and Breakfasts 9 3 27 2 54

Farm Stay 1

Self contained accommodation 34 3 102 4 408

Units/Apartments 2 2 4 4 16

Hotels 1 15 15 2 30

Resort 5 20 100 2 200

Camps 2 20 40 2 80

Motels 4 20 80 2 160

Camping/Caravans/Cabins Areas 8 20 160 4 640

Capacity Rooms 528 1588

Camping in Park Areas 945 3.8 3591

Total 65 1473 5179

Source: Gloucester Local Environmental Study 2006 Hunter Development Brokerage, March 2006 Table 6H and Buchan Consulting Estimates

A major issue for ongoing tourism planning is that there is no available data on occupancy rates of accommodation in the area. In addition, the mining sector largely sustains the week day motel market with visiting contractors and other specialists. The following estimates the number of room nights for each type of accommodation, using the TRA data. It shows that’s of the 321,000 visitor nights, 80,000 were in motels/resorts; 74,000 were at friends and relatives homes; 109,000 were in caravan parks/camping areas; and 58,000 were in other types of accommodation.

Table 25. Visitors and Visitor Nights by Type of Accommodation

Gloucester International Domestic overnight

Accommodation

Motel/resort 25% no

Friends/Relatives 23% no

Caravan/Camping 34% no

Other 18% no

Visitors ('000) np 103,000 25,800 23,700 35,000 18,500

Visitor nights ('000) np 321,000 80,300 73,800 109,100 57,800

Source: Gloucester Local Environmental Study 2006 Hunter Development Brokerage, March 2006 Table 6H and Buchan Consulting Estimates


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6.1.6 Value of Tourism There are various estimates of the value of the tourism sector in the region. The Gloucester Environmental Study 2006 quoted a $20 million figure for the value of tourism.85 This value has been used in discussions of the sector and in submissions and other reports.86

Tourism data for Gloucester Shire from Tourism Research Australia for 2007 showed that in the three years to 2007, there was an average of 103,000 visitors per year to Gloucester, with an average stay of 3.1 nights and an average spend of $86 per night. The total spending for domestic visitors to the region was estimated at $28million per year.

A major obstacle to calculating the regional value of tourism is that there is no current visitor data. To estimate the value of tourism to Gloucester, a range of data is required including: current visitor numbers and the split between overnight visitors and day visitors. The impact on the accommodation sector also depends on the mix of visitors and the numbers staying with friends and family. It is also influenced by average duration of stay.

6.1.7 Tourism Businesses The TRA data indicates that there were a total of 138 tourism businesses in Gloucester Shire and most of these were small businesses. In all 46% were run by proprietors (with no employees) and 26% employed between 1 and 4 persons. Around half of these would be accommodation providers.

Table 26. Summary of Tourism Businesses in Gloucester as at 2007

Tourism businesses Gloucester

No Share

% State

average % National

average %

Non-employing businesses 63 46 50 50

Micro businesses (1-4 employees) 36 26 29 27

Small businesses (5-19 employees) 33 24 15 16

Medium to large businesses (20 or more employees) 6 4 6 7

Total Businesses 138 100 100 100

Source: Tourism Research Australia, March 2008

6.1.8 Employment in Tourism The Tourism and Transport Forum (TTF) data estimates that there were 118 (FTE) persons employed in tourism in Gloucester LGA (5.5% of the workforce) in 2004/05.87 This was a decline in employment from 138 in 1997/98 (6.7% of the workforce). Other data indicates that there are between 100 and 120 persons whose employment is generated by tourism activity in the Gloucester region. This data may underestimate the numbers employed in tourism for several reasons. Census data is collected in June, which is an off-peak season for Gloucester. In addition where persons are operating a bed and breakfast and have other sources of income, they may not nominate the accommodation sector as their main job. The following is based on estimates prepared by Buchan Consulting. It shows that an estimated 153 persons are in tourism related jobs in Gloucester Shire, and this represents almost 9% of jobs located in the Shire.

85 Gloucester Local Environmental Study 2006 Hunter Development Brokerage, March 2006 P 96 86 This data is largely extrapolated from visitor data from 1996/97. The following table is from Gloucester Local Environmental Study 2006 and provides visits and spending data (average daily spend of $68.40 in 1996/97). 87 NSW Tourism Employment Atlas 2005, TTF Australia, 2006


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Table 27. Estimated Tourism Jobs in Gloucester Shire 2006

Sectors

Total Employ Males

Females Persons

Estimated Tourism

Share ATTF

%

Estimated Employmen

t In Tourism

no

Adjusted Tourism

Share Buchan

Consulting %

Adjusted estimates Employ

Agriculture 226 111 337 2.8 9.4 5.0 16.9

Manufacturing 127 33 160 2.8 4.58 2.8 4.5

Retail 71 113 184 7.7 14.2 12.0 22.1

Accommodation 8 23 31 78.6 24.4 90.0 27.9

Food and beverage services 29 64 93 28.2 26.2 40.0 37.2

Transport 45 22 67 9.8 6.6 9.8 6.6

Education and Training 38 90 128 4.6 5.9 5.0 6.4

Arts and Recreation 8 3 11 11.3 1.2 80 8.8

Personal Services 35 22 57 11.3 6.4 0.4 22.8

Total Jobs in these Sectors 587 481 1068 98.8 153.1

Tourism Jobs as a share of total jobs in these sectors 14.3

Tourism Share of total jobs in the region 1736 8.8

Source: ABS Census 2006, Working Population Data and Buchan Consulting Estimates

The following ABS data on tourism related services shows that there were 124 jobs in accommodation and food services and 11 in arts and recreation.

Table 28. Jobs in the Region - Tourist Related Sectors Gloucester Shire 2006

2006 Industry Employment Males Females Persons

Accommodation and food services

Accommodation and food services, nfd 0 0 0

Accommodation 8 23 31

Food and beverage services 29 64 93

Total 37 87 124

Recreation services and Arts

Heritage activities 5 0 5

Sports and recreation activities 3 3 6

Total 8 3 11

Total Sectors 45 90 135

Source: ABS Working Population Data

The ABS has analysed information for hospitality and tourism related occupations for each LGA.88 Based on this analysis, there were a total of 114 jobs identified in the area that were tourism and hospitality related. While this data underestimates the numbers, its shows the occupational mix of persons employed in the sector.

Table 29. Tourist Related Occupations Gloucester Shire 2006

Resident Population Data 2006 Males Females Persons Share

%

431111 Bar Attendant 15 6 21 18.4

431112 Barista 0 4 4 3.5

141111 Cafe or Restaurant Manager 0 7 7 6.1

141211 Caravan Park and Camping Ground Manager 4 0 4 3.5

731111 Chauffeur 3 0 3 2.6

351311 Chef 3 3 6 5.3

351411 Cook 0 12 12 10.5

141311 Hotel or Motel Manager 3 3 6 5.3

542113 Hotel or Motel Receptionist 0 4 4 3.5

851311 Kitchen hand 3 13 16 14.0

141411 Licensed Club Manager 4 0 4 3.5

451412 Tour Guide 0 3 3 2.6

451611 Tourist Information Officer 0 4 4 3.5

149413 Transport Company Manager 3 0 3 2.6

431511 Waiter 0 17 17 14.9

Total 38 76 114 100.0

Source: ABS Resident Population Data: Tourism and Hospitality Occupations Cat no 2068.0

88 ABS Resident Population Data: Tourism and Hospitality Occupations Cat no 2068.0


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6.2 Future Opportunities (S2.2): Tourism

6.2.1 Major Issues Some of the major issues in the tourism sector are: to increase visitor numbers to the region; to improve the regional tourism product; to improve overall standard in the sector; and to ensure that Gloucester Town Centre captures an increased number of visitors.

6.2.2 Developing Tourism Development of the sector will require building on the current base and developing new experiences for the short break market. This requires a combination of developing the offer to visitors and pursuing several market segments. There are several market segments that we have identified as providing the basis for development of the tourism market in Gloucester. These are: adventure/experience tourism; nature based tourism; wellness and lifestyle; agri-tourism; and short breaks. Each of these segments and their market potential is examined in this section of the report. In undertaking this assessment there are a few key issues: the tourism market is competitive and visitors are looking for value and a quality experience (reflected in activities, accommodation and food).

There is a need to move to professional tourism in Gloucester with: the development of a strong regional brand and improved marketing (online and in the market); improvements in the product offer and the activities available; and improvements in the food and restaurant culture and service culture.

There are also infrastructure issues: the Gloucester Town Centre needs to be developed as an attractive village experience for visitors; and there is a need to develop the entry point into the town with the proposed multi-use tourism facility which would integrate tourism information, the national parks experience, a café, tourist bus facility, and parking. The building would also be used as a local community centre (for meetings, events, community cinema etc).

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Requirements

S2 Developing Key Sectors: Tourism

S2.2 Tourism Sector -Development of market segments. -Improvements in the visitor experience.

Potential to develop tourism in the area in multiple market segments: Building on current base - Experience/Adventure tourism - Nature based tourism - Agri-tourism - Short breaks New Segment - Wellness Market

-There is potential to boost visitor numbers and increase yield through market development. -Targeted development of tourism market has potential to increase the number of jobs in the region. -There are flow on benefits for retail and professional services sectors.

- Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors come from. - Attractive and scenic region Part of Upper Hunter Region -Natural features, including Tops and rivers. - Strong branding and promotion of Barrington Tops. - Some existing activity in these target market segments.

-Limited accommodation options (3 star plus). - Many operators are part-time. -No clear branding of Gloucester. -Need to develop attractions to appeal to visitors. -Area lacks quality restaurants and cafes. -Town centre is village like, but not geared to servicing visitors. -Limited adventure tourist operations in the region. -Limited available data on tourism sector in Gloucester.

Sector Development - Need to move to professional tourism sector.

- Need to develop the Gloucester products and the experience.

- Improve accommodation options.

- Develop restaurants and cafes.

- Develop events (festivals, music, food, sports).

- Establish data collection. Marketing - Develop a new brand for Gloucester and apply it in uses.

- Online – completed the website and content.

- Consistent brand and messages to be used across the sector. Infrastructure - Develop multi-purpose tourism centre.

- Revitalise the town centre – village atmosphere and visitor friendly.

- Remove obstacles to development of new businesses /facilities (e.g.. consideration of Sect 94 contributions for key Gloucester tourism projects).

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6.3 S2.2 Tourism (S2.2): Market 1 – Experience/Adventure Tourism

6.3.1 Future Opportunities

This is an expanding market. People are moving to short breaks and want to have more active break and experience. The market is wide and covers young singles and families, and a spectrum of age groups. This market also includes school programs and camps and corporate retreats and programs. Overall the market wants a quality experience in a scenic environment. The region has a strong foundation in this market segment because of the natural environment and the Tops areas. Growing this market will lead to an increase in the number of operators and options in terms of activities and accommodation.

Tourism (S2.2): Market 1 – Experience/Adventure Tourism Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.2 Tourism: Market 1 – Experience/Adventure Tourism - Develop the market and expand visitor numbers - Improve the experience

A Growing Market This is an expanding market:

- Move to short breaks with people wanting to have more active break and experience.

- Market is wide and covers young singles and families, and a spectrum of age groups.

- Market also includes school programs and camps and corporate retreats and programs.

- Market wants a quality experience in a scenic environment.

- There is potential to develop this market further because of natural features of the region (river, Tops etc).

- Potential to increase number of visitors, operators and jobs in the region.

-Natural environment and features.

-Strong branding of Barrington Tops.

-Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors come from.

-Existing operator and product offer.

- Limited number of operators.

- Not capturing the higher yield visitor (want a combination of experience and good accommodation and food).

- Competition with a range of other locations (e.g.. alpine resorts).

- Area is not fully recognised as a primary adventure tourism location.

Product - Activities currently offered include white water kayaking, canoeing, downhill mountain biking, can be promoted and expanded.

- Requires accommodation options and guided activities.

- Improve accommodation packages.

- Develop affordable packages.

- Develop an adventure tourism and nature based tourism plan.

- Develop the product offer.

- Coordination with NPWS.

- Licensing of operators. Marketing - Develop regional tourism brand

- Improve marketing of product offer, both online and other.

- Improve coordination between service providers

- Drive development through the proposed tourism industry taskforce.


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6.3.2 Assessment (S2.2 M1): Adventure Tourism

Defining the Market

Adventure Tourism is one of the fastest growing areas of tourism internationally. A combination of factors including: the increased interest in healthy lifestyles, wanting to experience nature and the increased visibility of extreme sports has increased the level of interest in active recreation activity, as part of short breaks. There is also a corporate component to this market segment, with conference organisers building in activities as part of team-building exercises. Adventure tourism covers a wide range of diverse activities and covers commercially operated activities that involve a combination of adventure and excitement pursuits in an outdoor environment. The definition often takes into account more some of the more passive activities of eco-tourism and nature based tourism. The definition covers a range of coastal and mountain activities including: fishing; bush walking; escorted tours; rock climbing; mountain biking; cycle touring; white-water rafting; horse riding; kayaking; canyoning; scuba diving/snorkelling; and surfing. These activities attract a broad demographic and some have been identified as top activities for fit baby boomers89. Adventure Tourism Activities

Water Based Other High Country Flying

Surfing Windsurfing Kite surfing Diving Canoeing Kayaking White-water rafting

Cycle tourism Fishing

Mountain biking Hiking Horse riding Rock climbing

Flying Hang Gliding Paragliding Ballooning Parachuting

There are a number of factors driving the current growth in adventure tourism: an increasing interest in healthy lifestyles and personal fitness; people wanting to experience activities, which are not possible in an urban area; and couples and families seeking an active break , which has experiences attached. The market is wide and includes: cash rich/time poor professionals wanting active short breaks; and families wanting their children to experience activities that are physically challenging. Sports and lifestyle television programs have exposed consumers to extreme sports; and resorts and holidays that feature adventure activities.

There is a growing group of people who have the interest, income and basic fitness levels to pursue outdoor recreation, but who do not have the time, skills, equipment or experience to do this on a regular basis. In addition, there is an older demographic (who have prior experience and skills), but now do not have the time to organise their own activities, and will pay for organised services as part of a break. These segments (along with families), provide the growing market for commercial adventure tourism.90 While commercial organised adventure recreation accounts for a substantial part of the market, individual self-organised activities is still the larger segment of the market. Demographics Most of the market research (in Australia and elsewhere) shows a similar demographic for adventure tourists - with an age range of 25-55 years old, as well as active over 55s. Persons tend to be well educated and be in professional or managerial occupations. It has been found that the combination of quality of the place and the activity/experience is important for these visitors.

The broader market is defined into two categories: soft adventure activities that require modest levels of fitness and have limited risk associated with it (this is the largest market); and hard adventure- where there is a need some degree of physical conditioning and technical skill and some risks (e.g.. white-water kayaking or mountain/rock climbing).

89 Top Ten Adventure Activities for Baby Boomers: 2005 Travel and Adventure Report: A Snapshot of Boomers’ Travel and Adventure Experiences. Data Collected by Knowledge Networks. Copyright AARP, 2005 90 Research Note Adventure Tourism and the Clothing, Fashion and Entertainment Industries Ralf Buckley International Centre for Ecotourism Research, Griffith University, Southport, Australia Journal of Ecotourism Vol. 2, No. 2, 2003 P128-129


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Activity based holidays or adventure holidays are often seen as part of a short break. This is particularly the case with the disappearance of the long annual holiday and its replacement with short breaks. Travellers want to build experience and value into the break, rather than take a passive holiday.

Domestic Experience Seekers

Tourism Australia has undertaken research to define the Domestic Experience Seekers.91 Research by Roy Morgan Research, indicates that this segment travels both interstate and overseas. They represent 18% of persons with a preference for both interstate and overseas travel, but are high yield tourists and contribute about 70% of the expenditure by this group.92 The group is estimated as comprising around 1 million Australians and they average of four holidays/breaks each year (with more than half of trips being taken overseas). Experience Seekers want active holidays and are prepared to spend. They comprise a spectrum of life stages including young couples, affluent families and older affluent couples.

In terms of media, Domestic Experience Seekers are heavy internet, magazine, newspaper and cinema users.

Domestic Experience Seekers Characteristics

Young Couples Affluent Families Affluent Older Couples

Profile Ranging from the intrepid to the less adventurous. They want to see the world before family, career and financial imperatives take priority.

Busy professional families. From younger parents with infants to established families with working parents and teens. Providing their kids with opportunities is their priority.

A life stage with the freedom to indulge their dreams. Making up for lost time, catching up with non-dependent children, and a reward for a lifetime’s work and achievements.

Holiday Motivations (why you go)

A hard earned break from the rigours of work, and to share multitudes of experiences with their partner during precious leave time. To broaden their horizons.

Work remains a high priority but children’s needs form life’s agenda and holidays break the shackles of their routine. Their kids’ happiness is the key to a good break.

The kids are gone and there is more time and money. Now possible to enjoy new found freedom and see the world. For some, can also fill the void created by the loss of life’s purpose (kids).

Holiday Gratifications (what you get out of it)

An opportunity to express personal freedoms and re-assert control in life. Seek challenges and stimulation to test, shape and define personality.

For some a chance to re-engage with the family and provide educational experiences. For others individual indulgence and reward is the primary focus.

Personal enrichment and development, a well deserved indulgent reward.

Source: Research Report – Domestic Experience Seekers , Tourism Australia (undated) P3

91 Research Report – Domestic Experience Seekers Tourism Australia (undated) 92 This group tends to spend more while on holidays - on average more than $3000 per person per trip. Research Report – Domestic Experience Seekers Tourism Australia (undated) P3


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Gloucester and Barrington Tops Adventure Tourism

Opportunities exist for canoeing and kayaking in river systems surrounding Gloucester. The Gloucester river system consists of a number of rivers flowing down from the Barrington Tops National Park. The Gloucester River and Barrington River are the two main rivers in the region and these are destinations for both canoeing and kayaking. The Barrington Outdoor Adventure Centre organises adventure tourism activities in Gloucester, which comprises white water kayaking, canoeing and downhill mountain biking adventures for family holidays, corporate and social groups, and adventure weekends.93

The “Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management” examines adventure tourism in the planning area.94 The report notes that adventure activities, in particular canyoning, are known to occur in some parts of the planning area, but are not yet widespread. Other adventure activities identified in the Draft Plan were orienteering/rogaining, paragliding/sailing, abseiling and rock climbing.

Canyoning is travelling in canyons using a variety of techniques such as walking, scrambling, climbing, jumping, abseiling, and/or swimming. It is popular due to the steep and rugged rivers within the Barrington Tops area. It is noted that the Barrington Tops canyon along the Williams River is popular for canyoning, however, it is also extremely dangerous resulting in a number of rescue operations. Previous climbing systems on the Williams River have been removed due to safety concerns and signs have been erected warning of the inherent risks associated with canyoning along the Williams Falls. The issues highlighted for adventure tourism in the draft plan related to environmental issues; safety issues related to canyoning; risks associated with extreme weathers; and the cost and risk associated with rescues.

The National Parks and Wildlife Service suggest guidelines for adventure tourism in their draft plan. The plan places restriction on activities including orienteering/ rogaining, paragliding/sailing, abseiling and rock climbing and requires consent for other activities. 95:

Some Issues

Issues

Advantages

Gloucester’s natural environment, Barrington Tops, wilderness areas, national parks, river systems and stable rainfall, are advantages for adventure tourism. White water kayaking, canoeing, downhill mountain biking adventures and canyoning are already occurring in the region.

Competition

Need to better coordinate the offering as Gloucester is competing with areas with strong product.

A key competitor in adventure tourism is Thredbo, NSW. Activities offered at Thredbo include: climbing and abseiling; horse riding; mountain biking (beginners, intermediate and advanced terrain parks); Nordic walking; hiking; white water rafting; and canoeing. Thredbo’s competitive advantage lies in its range of indoor facilities, sports science services and entertainment options. Thredbo’s Leisure Centre is the focal point of its summer activities. Thredbo provide a single point of contact for enquiries and bookings, including accommodation and training facilities. They offer package deals for sports training camps which include accommodation, meals and use of the facilities. Blue Mountains National Park is also a competitor for the Sydney and NSW markets. The park offers adventure tourism activities including climbing, caving and canyoning.

Constraints

The National Parks and Wildlife Service (NPWS) is pushing for licensing of all commercial operators undertaking activities in the Barrington Tops planning area. NPWS are proposing limits on some activities

93 Gloucester Visitor Information. http://www.gloucester.org.au/listing_detail.asp?iDirectoryID=142, accessed 94 National Parks and Wildlife Service, Part of the Department of Environment and Climate Change (NSW). October 2007. Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management, P77-78. 95 National Parks and Wildlife Service, Part of the Department of Environment and Climate Change (NSW). October 2007. Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management, P78.

http://www.gloucester.org.au/listing_detail.asp?iDirectoryID=142


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6.4 Tourism (S2.2): Market 2 – Nature Based Tourism


This market makes up a significant part of current visitors to the region and comprises: visitors to the tops – day walks and campers. Most of this market is self-organised but there is a growing market that wants an organised experience. It has strong linkages with experience/adventure market. It is growing market, but due to self-organisation, it is often not a high regional yield segment.

There is a clear opportunity for further development of nature tourism aligned to the nature based assets in the Gloucester LGA. Assets such as Gloucester Tops and entry to the Barrington Tops, walking trails, wilderness areas, rivers and national parks, should be used to capture persons from the “comfort in nature” market segment. In addition, development of agri-tourism sector will attract the “comfort in nature” segment, as people from this segment seek food and wine and cultural heritage experiences in addition to the nature based activities. Actions involve: product development - accommodation options and guided activities and links with adventure tourism options; and marketing – brand identity, improved marketing and coordination between providers (packaging the experience).

S2.2 Tourism: Market 2 – Nature Based Tourism Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.2 Tourism: Market 2: Nature based tourism - Expand the market. - Increase yields.

A Significant Market This market makes up a significant part of current visitors to the region:

- Visitors to the tops – day walks and campers.

- Most of market is self-organised but there is a growing market that wants an organised experience.

- Market covers a range of groups and age categories.

- Has linkages with experience/adventure market.

- Self organised visitors often have limited impacts as they purchase supplies elsewhere. - Package visitors generally have a higher yield.

- Natural environment and features.

- Strong branding of Barrington Tops.

- Camping areas and facilities.

- Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors come from.

- Existing operator and product offer.

- Limited number of operators.

- Not capturing the package traveller.

- Area not recognised as a destination for interstate and international visitors.

Product - Requires accommodation options and guided activities.

- Link with adventure tourism options.

- Develop an adventure tourism and nature based tourism plan. Marketing - Develop tourism brand linked to broader Hunter regional brand.

- Improve marketing of product offer – online and other.

- Improve coordination between service providers.

- Marketing of the region to target markets.

- Drive development through the proposed tourism industry taskforce.


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6.4.2 Assessment (S2.2 M2): Nature Based Tourism

Defining the Market

Nature based tourism is a growing sector and programs developed at local and state level have aimed to capture the growth in this segment. The New South Wales Taskforce on Tourism and National Parks report on sustainable nature tourism for NSW (November 2008) highlights a number of issues for Gloucester and nature based tourism in the region.96

Sustainable nature tourism opportunities in key regions offering outstanding experiences can be a significant point of differentiation between destinations. Well managed, protected reserves are best positioned for nature based tourism experiences. The report identified a potentially wider market of park visitors if appropriate facilities are available to them.

Research in Victoria has also highlighted this market. “Comfort in nature” tourism participants are a key market for nature based tourism. These participants will undertake activities for shorter durations; many lack the skills to undertake the activities without a guide; they require appropriate accommodation and facilities; and make up a large proportion (85%) of the market for nature tourism. They seek out a broader range of tourism experiences, including food and wine and cultural heritage. Comfort in nature participants are a higher yielding market (Tourism Victoria 2008).97

Currently there is no clear responsibility for the delivery of sustainable nature tourism experiences in New South Wales and the current approach lacks integration and coordination among government agencies and the industry. There is also a lack of strategic positioning as a destination that provides iconic nature tourism experiences. Other states such as Victoria and Western Australia are regarded as more advanced in this market.

In general, regional New South Wales sources a smaller proportion of its visitors from overseas compared to Sydney (12% of visitor nights from overseas visitors compared to 69% for Sydney). Gloucester Shire gets very few interstate and international visitors.

96 Taskforce on Tourism and National Parks, State of NSW and the Department of Environment and Climate Change NSW, Taskforce on Tourism and National Parks in NSW Report 2008. 97 Tourism Victoria, State Government of Victoria (2008). Victoria’s Nature-based Tourism Strategy 2008–2012, P29.


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Market Characteristics

The Hunter Regional Tourism Plan 2005-2008 has utilised results of the Australian Government sponsored “See Australia Segmentation” Study (2000) to develop recommendations for tourism in the region. 98 The study was conducted by Colmar Brunton and it identified five segments of tourists, defined by type of holiday wanted and their likely spend (see table below).

Table 30. Customer Segments for Tourism

Mindset Spend per day Description Accommodation Transport Desired Services and Activities

Luxury Travellers (Pampadours)

$172

Up-market; indulgent; female skew; professional skew; use o/s travel as frame of reference, travel in adult couples

5-star, separate from kids, suites, B&B

Air, limo, own car

Pools, retail, fine dining, views, wine choice, spas, salons, 24 hr services, personal guides, casinos, golf, yachts, cruisers, good coffee, patisseries

Family Travellers (Compatriots)

$111

Middle market; female skew; family-focused; role driven; activities focused; budget conscious; aspire to resorts

3-star Self-contained cabins, cottages, , villas, apartments, motels

Own car, public transport

Water sports, kids clubs, theme parks, takeaway/ fast food, beer gardens, cinemas, picnic grounds, BBQs, group tours, outdoor activities, walking trails, RSLs

Touring Travellers (Wanderers)

$132

Older skew; adult couples; empty nesters; frequent tourists; off-peak market; keen observers

3-4 star, self-contained, B&B

Own car, mobile homes, coach, fly/drive

Information centres, maps & guide books, local markets, short walking trails with lookouts, souvenirs, libraries

Adventure Travellers (True travellers)

$126

Experimental; adventurous; trail-blazing; want an in-depth experience; active

Camp sites, motels, B&B

Own car, 4WD, mobile home

Maps and information, trail food, backpacks, guide books, local history and food, bush tucker, general stores

Peer group travellers (Groupies)

$123

Younger male skew; peak period travel; strong repeat visitation; shared activities and reunions

Shared apartments, camp sites, hostels

Car, train, coach, economy air

Pubs and clubs, night clubs, beaches, fast food, laundromats, big fridges, eskies, cafes

Source: Building Australia’s premier tourism region: A vision for tourism development in the Hunter Region 2005 – 2008, Calais Consultants and Globe Consulting P3.

Targeting of adventure, touring, peer and family group travellers would align with the nature based assets in Gloucester Shire, such as the Barrington Tops, the National Parks, rivers and the farming/rural environment. The Hunter plan suggests a range of nature based tourism activities tailored to the consumer segments identified.

Table 31. Developing tourism product to match consumer desires Consumer Segment Tourism Product

Luxury Travellers (Pampadours) Seclusion, romance, views, pampering, walks, accessible wilderness, World Heritage areas, countryside

Family Travellers (Compatriots) Easy walking trails, World Heritage areas, fossicking, seeing wildlife

Touring Travellers (Wanderers) Natural and cultural heritage, driving routes, walking trails, lookouts, waterfalls, fishing, picnicking, bird watching, events

Adventure Travellers (True travellers)

Treks, 4WD, going bush, physical/mental challenge

Peer group travellers (Groupies) Group activities - kayaking, bushwalking


98 Building Australia’s premier tourism region: A vision for tourism development in the Hunter Region 2005 – 2008, Calais Consultants and Globe Consulting P4.


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Barrington Tops

The World National Heritage listed Barrington Tops is a major tourist destination and a key tourism asset for the Gloucester region. Barrington Tops National Park is located approximately 100km north of Newcastle and provides camping, bushwalking, picnicking, swimming and nature study for visitors. Car-based camping is provided at Gloucester River Camping Area, Little Murray and Polblue and walk-in camping is located at Big Hole, Wombat Creek, Junction Pools and Black Swamp.99 Day use picnic areas are found at Gloucester Tops, Williams River, Polblue, Honeysuckle and Devils Hole. A range of walks of varying distances and degrees of difficulty commence from these areas.

Reflecting these assets, the Tourism Research Australia data for Gloucester indicate that there is a significant proportion of visitors (28%), who undertake bushwalking/rainforest walks when visiting the region. These are likely to be visitors accessing the Barrington Tops.

The “Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management (Oct 2007)” report suggests that visitors to Barrington Tops may exceed 100,000 people each year.100 Entry is via Gloucester or via Dungog Shire, and the report notes that the busiest periods are school holidays, long-weekends and the Easter period.

The report indicates that there are nine commercial operators licensed with the National Parks and Wildlife Service (NPWS) in the Barrington Tops planning area as at October 2007.101 Vehicle based tours (including coach tours), incorporating bushwalking and mountain biking, and eco-tours were the focus of commercial tourism in the area. The report notes that there were also a number of commercial tour operators who are not licensed. The demand for commercial tour licences is expected to increase due to the growth in the tourism industries in local communities surrounding the area, and the proximity of the area to the tourism markets of both Newcastle and Sydney.

Issues highlighted for commercial tourism in the report were: a need for all commercial operators undertaking activities in the planning area to be licensed; determining whether current visitor numbers to the planning area are sustainable; defining sustainable visitor numbers for the future to avoid overuse and misuse. The report indicates that there is community support for the promotion of commercial operations, with a preference for ecologically based tourism; and that formal accreditation of operators is suggested to ensure activities are not detrimental, and to ensure that educational messages are accurate and consistent.

99 Archer, D., and Griffin, T., (2004), Sustainable Tourism CRC, Visitor Use and Satisfaction in Barrington Tops National Park, P1 100 National Parks and Wildlife Service, Part of the Department of Environment and Climate Change (NSW). October 2007. Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management, P58. 101 National Parks and Wildlife Service, Part of the Department of Environment and Climate Change (NSW). October 2007. Barrington Tops National Park, Mount Royal National Park and Barrington Tops State Conservation Area - Draft Plan of Management, P78-79.


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Issues

The strengths of Gloucester’s tourism sector include a natural environment, Barrington Tops, wilderness areas, national parks, river systems and stable rainfall. These strengths provide a strong basis to continue to develop the nature-based and experience tourism in the region. At the same time the area is competing with other areas that may have more developed product offers or that are more accessible. Assessment

Advantages

Gloucester Shire has the World Heritage Listed Barrington Tops, national parks, rivers and the farming/rural environment, which provide a strong basis for development of nature based tourism in the region.

Competition

Need to better coordinate the offering as Gloucester is competing with areas with strong product. A number of nature-based tourist destinations can be accessed the by NSW and Sydney market and include the following:

Royal National Park - only 32 km from Sydney. Provides walking tracks of all grades. Blue Mountains National Park - Over 140 km of walking tracks of all grades, the Greater Blue Mountains Drive the winner of the 2008 Australian Tourism Award for New Tourism Development. Offers adventure tourism activities, including climbing and caving. Marramarra National Park – offers canoeing, camping, bushwalking, picnicking or bird watching, mainly the preserve of experienced bushwalkers. Dharug National Park – waterways, walking tracks, historic Old Great North Road. Yengo National Park - steep gorges and rocky ridges, rich in Aboriginal cultural heritage, historic Old Great North Road. Watagans National Park - moss-covered boulders, rainforests, offers bushwalk, touring by car, camping, Gap Creek Falls, Aboriginal engraving, art sites and shelters, Congewai and Quorrobolong creeks.

Constraints

Tourism experience is currently underdeveloped. Lack of online presence, lack of professional content and lack of branding. Lack of an orientation centre and multi-use facility to integrate tourism information and national parks experience. Limited accommodation offer.

Developing the Opportunity Developing the opportunity requires action of the product offer, marketing and improving the town centre experience for visitors. Opportunity Requirements

Increase nature based and experience tourists

-Broaden the market to capture higher yield visitors

Product Requires accommodation options and guided activities Improve accommodation packages Link with adventure tourism options

Improve marketing Marketing Develop tourism brand Improve marketing of product offer – online and other Improve available guides Improve coordination between service providers Form adventure tourism group Develop a strategic plan for the sector

Improve the visitor experience Town Centre Develop the town centre village Improve food and wine experience

6.4 Tourism (S2.2): Market 3 - Agri-tourism


Agri-tourism is tourism that is related to agricultural activities and can include food and wine trails, farm stays, farmers' markets, outback adventures, working holidays on farms, conservation volunteering and processing plant tours.

In the case of Gloucester, the development of this market segment is linked to the development of the regional food brand. There is some agri-tourism activity currently in the region and this can be further developed. Models for the development of this segment include Poachers Way (Canberra Region) and the Hawkesbury Harvest (Hawkesbury Region), which have developed food trails and regional trails.


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S2.2 Tourism: Market 3: Agri-tourism Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.2 Tourism: Market 3: Agri-tourism - Developing agri-tourism. - Develop linkages to regional food production

A Linked Market - Agri-tourism is tourism that is related to agricultural activities and can include food and wine trails, farm stays and farmers' markets, outback adventures, working holidays on farms, conservation volunteering and processing plant tours. - Agri-tourism – market is linked to agribusiness in the region and experiencing local produce. In successful areas it is linked to a regional food and wine experience.

- Potential to link to emerging agribusiness sector. - Will provide positive benefits to agribusiness sector and the development of regional food brands.

- Agribusiness base of the region. - Emerging new activities. -Several operators are combining products and visits, with farm trail tours, farm gate sales. - Establishment of the Gloucester Farmers Market - Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors to Gloucester come from.

-Limited major current attractions in the area. -Competition with other locations in the Hunter Valley and other regional areas. -Development of this sector is in its earlier stages. - Gloucester does not have a well recognised reputation as a food centre. - Lack of local restaurants showcasing local produce.

Product - Need to have a series of attractions to offer a food trail/experience.

- Need to develop the regional food brand.

- Regional food and wine experiences needed.

- Restaurant and cafes need to be improved.

- Continue the Farmers Market.

- Encourage restaurants to feature regional product.

- Develop a food event.

Marketing - Market the region’s food products and the tour opportunities.

- Improve marketing of product offer – online and other.

Implementation - Establish an Agribusiness Taskforce to pursue: sector development, Gloucester brand, agri-tourism, and Farmers Market.

- Model the group on the Hawkesbury Harvest Group and other regional food cluster projects (e.g. Poachers Way).

- Utilise the CET Program.


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6.4.2 Assessment (S2.2 M3): Agri-tourism

Agri-tourism Market

Agri-tourism is tourism that is related to agricultural activities and can include food and wine trails, farm stays, farmers' markets, outback adventures, working holidays on farms, conservation volunteering and processing plant tours.

There is currently no data on the value of agri-tourism in Australia. However, a comprehensive review on agri-tourism by the Department of Agriculture, Fisheries and Forestry (DAFF) is due to be released in the second half of 2010.102 An initial study of the drivers of agricultural tourism and how the industry could expand was initiated in March 2009. The Bureau of Rural Sciences has expanded the study to investigate particular businesses and regions. This covers: the Tamar Valley in Tasmania; the Harvest Highway in Western Australia; Orange and the Northern Rivers in NSW; Gippsland in Victoria; and the Tropical North region in Queensland. The project is covering: a national overview of the trends in agri-tourism, including locations and characteristics of agri-tourism and the impact on agriculture; components of a successful agri-tourism enterprise; whether agri-tourism has contributed to more resilient local communities; and how Government policies can help the industries grow.103

Some initial information was released in July 2009.104 This report showed that: agri-tourism is still in its infancy but it has potential to expand; establishing a food tourism business could be risky and requires strong regional support; farmers needed to be encouraged to become involved in food tourism; and that food tourism can generate 20% of farmers’ income.105

An international study of agri-tourism in Italy (funded by Skills Victoria) found that there were three main components to the success of the sector: a broad and innovative product range; sophisticated marketing systems; and government support.106 In countries such as France and Italy, integrating agriculture and tourism has resulted in a stronger regional identity (e.g. Tuscany and Bordeaux). The growth in agri-tourism aligns with the increasing public interest in how food is produced. Agri-tourism provides farmers in difficult economic and climate conditions avenues for diversification of income.

Some Examples

There are two examples that can be models for the development of agri-tourism in the region, these are the Hawkesbury Harvest Group and the Poacher’s Way.

The activities of the Hawkesbury Harvest Group show some directions for agri-tourism. In 2009, Sydney's Agriculture - Planning for the Future Forum Outcomes Report recognised the Hawkesbury Harvest for being successful in establishing a strong regional brand to underpin farmers markets and farm trail agri-tourism initiatives.

Hawkesbury Harvest is an organisation operating in the Hawkesbury Region west of Sydney that organises farm gate trails and is involved in industry development and regional branding. It was established in May 2000, and its activities include: publication of Hawkesbury Harvest Farm Gate Trail map; operation of the Hawkesbury Harvest web site; operation of a regional produce directory through the website, providing local producers an alternative channel to market their produce; undertaking promotional activities to access wider markets; showcasing regional produce at trade shows and events; organising other Hawkesbury Harvest Farmers Markets (markets at Castle Hill, Rouse Hill Town Centre, Penrith and Richmond) and Gourmet Food Markets; and promotion in the media.107

102 Stronger push to attract tourists to the farm-gate - The Hon. Tony Burke MP Minister for Agriculture, Fisheries and Forestry, http://www.maff.gov.au/media/media_releases/2009/august/stronger_push_to_attract_tourists_to_the_farm-gate. 103 Rudd Government launches agricultural tourism project - The Hon. Tony Burke MP Minister for Agriculture, Fisheries and Forestry, http://www.maff.gov.au/media/media_releases/2009/march/rudd_government_launches_agricultural_tourism_project. 104 Agri-tourism the new cash crop, Brisbane Times, July 5 2009, http://www.brisbanetimes.com.au/queensland/agritourism-the-new-cash-crop-20090705-d8p6.html. 105 Stronger push to attract tourists to the farm-gate - The Hon. Tony Burke MP Minister for Agriculture, Fisheries and Forestry, http://www.maff.gov.au/media/media_releases/2009/august/stronger_push_to_attract_tourists_to_the_farm-gate. 106 Agri-tourism in Italy. Pauline Porcaro. ISS Institute/Italy (Veneto) Fellowship, Fellowship funded by Skills Victoria, Department of Innovation, Industry and Regional Development, Victorian Government, October 2009. 107 Hawkesbury Harvest Business Plan May 2004 Section 1 Hawkesbury Harvest History and Evolution, p7-8.

http://www.maff.gov.au/media/media_releases/2009/august/stronger_push_to_attract_tourists_to_the_farm-gate

http://www.maff.gov.au/media/media_releases/2009/march/rudd_government_launches_agricultural_tourism_project

http://www.maff.gov.au/media/media_releases/2009/august/stronger_push_to_attract_tourists_to_the_farm-gate


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The activities of the Hawkesbury Harvest are instructive for development of diversified agriculture and agri-tourism in Gloucester. The development of agri-tourism is very much linked to the development of a regional food brand and developing the food culture in the region. Poacher’s Way is a collective formed in 2005, which links galleries, craft shops, cafés, restaurants, B&Bs, and wineries in a regional experience and food trail. It covers a wide region around Canberra (2.5 hours from Sydney) and the towns include Murrumbateman, Yass, Bowning, Gundaroo, Collector, Bungendore, Hall and Canberra. A brand has been created Poacher's Way, "Live Life Well". It links these businesses under the brand as part of a regional visitor experience and food trail.108 The trail brings together accommodation, restaurants, wineries and galleries as well as a couple of "experiences" (a spa and a horse riding trail). Brochures and a website have been developed under the brand. The website features suggested itineraries (2 day and 3 day visits) and has an interactive map which highlights attractions and accommodation in each location. The collective has received Australian Government funding under the Australian Tourism Development Program. Not all businesses that apply to join are accepted. Gloucester Potential

The agri-business sector in Gloucester has seen some diversification into agri-tourism with activity in farm trail tours, farm gate sales and the establishment of the Gloucester Farmers Market. Gloucester’s heritage as a food producing region, its environmental advantages, and movement to diversified agriculture provide a basis for developing a stronger agri-tourism sector.

Consultation with agri-businesses in Gloucester indicated that opportunities existed to develop the sector further.109 There has been some development of farm trails in Gloucester, which have included organised site visits to farms/businesses such as Barrington Beef, Hillview Herb Farm, Gloucester Gold Chickens, Barrington Perch, and Capparis Goat Cheese.110 During consultations it was noted that further partnerships were being explored for development agri-tourism in the region.

The major impacts on the region will be: to provide another income stream for agriculture producers; to provide additional attractions for visitors to the region; to contribute the development of diversified agriculture and a food industry in the region; and to contribute to the development of regional tourism.

108 http://www.thepoachersway.com.au/ 109 For example, a goat’s cheese operator in Gloucester received 11-12 tours of their property per year, with approximately 80 people per tour and an approximate spend of approximately $50 per person. 110 Capparis closed its cheese making operation in November 2009.


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Assessment

Advantages

Activity can be built on the current base. Due to Gloucester’s agricultural heritage and agricultural assets, there is a clear opportunity for agri-tourism for economic development of the region. Gloucester’s stable rainfall, low use of additives in farming, free range farming and recent movements into diversified agriculture provide a basis for developing a strong agri-tourism sector. The work of the Gloucester Project and the Gloucester Farmers Market can be leveraged to develop agri-based tourism in the region. The Gloucester Farmers Market has the potential to become a major tourist attraction and should be used as a focal point to develop agri-tourism in the region. Agri-tourism activity currently exists in the region with farm trails organised to Barrington Beef, Hillview Herb Farm, Gloucester Gold Chickens, Barrington Perch, Capparis Goat Cheese.

Competition

Need to better coordinate the offering as Gloucester is competing with areas with strong regional product.

There are also other areas in the Hunter Valley that offer wine and food experiences. In New South Wales other areas include the Hawkesbury, Orange and Northern Rivers in NSW Lessons can be learned from other regions that have integrated agri-tourism and these include: Tamar Valley in Tasmania; Harvest Highway in Western Australia; Kangaroo Island in South Australia; Darling Downs in Queensland and Gippsland in Victoria.111

Constraints

Development of this sector is in its earlier stages. Gloucester does not have a well recognised reputation as a food centre. A key issue for agri-tourism is the development of a single regional brand for Gloucester’s produce. As discussed in the agricultural section, the development of a single brand for all of Gloucester’s produce will result in more effective marketing of Gloucester as a quality food region. The lack of local restaurants showcasing local produce is a constraint for the development of the sector.

Developing the Opportunity The following details the actions required. The development of agri-tourism in linked to the development of the food sector in the region.

Opportunity Requirements

Develop Agri- tourism

Product development - linked to development of agribusiness in the region.

Product -Creation a regional brand for Gloucester’s produce is a requirement for further development of agri-tourism in the region. -Develop a food trail and tours. -Continue the Farmers Market. -Encourage restaurants to feature regional product. -Develop a food event. -Encourage the development of new restaurants. -Improve food and wine experience.

Improve marketing Marketing -Market the region’s food products and the tour opportunities -Improve marketing of product offer – online and other -Conduct an audit of farm trails in Gloucester and develop a farm gate trail map and online resources (Poachers Way provides a good example).

Business Development Agribusiness Taskforce -Establish an agribusiness taskforce to pursue: sector development, Gloucester brand, agri-tourism. -Model the group on the Hawkesbury Harvest /Poachers Way Group and other regional food cluster projects. -Secure government funding for pilot projects.

111 Rudd Government launches agricultural tourism project - The Hon. Tony Burke MP Minister for Agriculture, Fisheries and Forestry, http://www.maff.gov.au/media/media_releases/2009/march/rudd_government_launches_agricultural_tourism_project.

http://www.maff.gov.au/media/media_releases/2009/march/rudd_government_launches_agricultural_tourism_project


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6.5 S2.2 Tourism (S2.2): Market 4 – Short Breaks


The traditional holiday is disappearing and people are increasingly taking a series of short breaks. The short break market is wide and covers young singles and older persons (e.g. families with older children, retirees). It also includes families taking short breaks.

S2.2 Tourism: Market 4 – Short Breaks Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.2 Tourism: Market 4: Short Break Develop Gloucester as a short break visit destination.

Short Breaks Market - Growing market – people take a series of short breaks – annual holiday has almost disappeared.

- Market is wide and covers young singles and older persons (e.g.. families with older children, retirees)

- Covers a broad spectrum of age groups.

- Market will spend but is looking for value in their experience.

A growing market: - Growing market segment at a state and national level. - This market segment may also take up other products during their stay (e.g. adventure activity, agri-tourism experience) or for a return visit.

- Location and natural environment - Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors come from.

Product offer is not developed -Lack of things to do. - Area does not have major attractions. - Town centre closes down – weekends and evenings. - Lack of quality restaurants and other food experiences.

Product - Develop the product offer.

- Improve accommodation options.

- Improve restaurants/cafes.

- Offer a regional food experience.

- Improve the town centre as a location for visitors (village atmosphere and services mix)

6.5.2 Assessment (S2.2 M4): Short Breaks The region has a number of advantages, which include: the rural location and natural environment; and access to larger population centres (Newcastle, Central Coast, and Sydney), where existing visitors come from. At the same time Gloucester has a number of constraints which include: the product offer not being fully developed; there is a lack of things to do; the town centre closes down on weekends and evenings; and there is a lack of quality restaurants and other food experiences. The major requirements are: development of the regional product offer in terms of accommodation options; restaurants and cafes; and improvement in the town centre as a location for visitors (village atmosphere and services mix). The short break market is also attracted to adventure tourism and nature based tourism. A major issue is for Gloucester town centre to capture more of the spending of these two market segments.


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6.6 S2.2 Tourism (S2.2): Market 5 – Wellness Market

6.6.1 Future Opportunities The wellness market segment is growing nationally due to interest in health and well being. There has been some growth in regional destination spas and health retreats. The health retreats combine wellness, exercise and nutrition. Gloucester could develop a niche in this segment linked to eco-tourism and active experiences, combined with spa experiences. The major strengths are the location and natural environment; access to larger population centres (Newcastle, Central Coast, Sydney) and the presence of several existing high quality resorts.

S2.2 Tourism: Market 5 – Wellness Market Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.2 Tourism: Market 5 - Wellness Market -This is a specialist segment. - Develop an offering linked to eco-tourism and active experiences. - This is a second tier, long-term opportunity.

Wellness market - Segment is growing nationally due to interest in health and well being. - Growth in regional destination spas and health retreats. - Health retreats combine wellness, exercise and nutrition. - Gloucester could develop a niche linked to eco-tourism and active experiences.

- Growing market for destination spas. - Market is a high yield market.

- Location and natural environment. - Access to larger population centres (Newcastle, Central Coast, Sydney) – where existing visitors come from. - Several existing high quality resorts.

- Market looks for high quality experience. - Need to compete with other locations that offer higher quality facilities. - Market looks for high quality food experience (nutritious and good regional wines and produce). - Spa resorts are increasing in numbers. New resorts are setting higher standards in the quality and range of services that they offer. - Competition in NSW is from other areas including Blue Mountains, other Hunter Valley locations, and coastal regions.

Product - Potential to develop a combined experience – wellness and adventure/experience programs

- Develop wellness programs and health retreat programs.

- Will be a niche product for the region.

- Needs to be in premium accommodation.

- Facilitate development with an existing tourism operator Marketing - Needs to be linked to broader development of quality regional tourism product.

- Attractiveness will be affected by broader positioning of the region.


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6.6.2 Assessment (S2.2 M5): Wellness Tourism Market

This segment will be a niche market for Gloucester and would be associated with one or two resorts. Defining the Market Tourism market research and the broader recreation and health related research points to people becoming more health conscious, with increasing interested in healthy lifestyles, exercise and related activities. This is extending to holidays and short breaks. A 2004 study on the health resort sector in Australia indicated that health tourism is likely to experience continued growth.112 Another study indicated the wellness market is being driven by a number of factors including: an ageing population (of baby boomers) that is placing a major emphasis on health and wellbeing; a focus on maintaining health and healthy lifestyles - through diet, exercise and skin protection; a growth in real incomes and a willingness to spend on wellness related products; an increase in the use of complementary medicines (vitamins and herbal remedies) and treatments (including therapeutic massage); and an increase in demand for cosmetic surgery and treatments.113 There are three types of activities that are identified in the research as part of the wellness market and these are: beauty spas, which include natural mineral or thermal pools and spas that have been added to hotels and resorts; lifestyle resorts, which offer comprehensive lifestyle programs (activities and classes), including such things as fitness, nutrition, counselling, weight management and stress management; and spiritual retreats, which are based on some specific teachings or philosophy and/or focus on the study of a specific activity such as yoga, T’ai Chi or Reiki or particular meditation. techniques.114

Wellness Tourism

Source: Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P11

112 Bennett, Michelle and King, Brian and Milner, Laura (2004) The Health Resort Sector in Australia: A Positioning Study. Journal of Vacation Marketing, 10 (2 P122-137. http://eprints.vu.edu.au/545/ 113 Office of Training and Tertiary Education Department of Education and Training - Victoria, Victorian Wholesale, Retail and Personal Services Industry, Industry Report- June 2006, P5 114 Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P9-10

http://eprints.vu.edu.au/545/


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Industry Structure

The key trends in the sector in Australia have been: development of destination and day spas located in major resorts and hotels in tourist areas; development of smaller resort spas in lifestyle tourism areas; development of day spas in the major 4 star and 5 star hotels in capital cities; opening of day spas in tourist areas in proximity to hotel and tourist apartment accommodation; and emergence of day spas in the suburbs 115; The development in tourist areas is across Australia in areas including Daylesford, Noosa, Byron Bay, Port Stephens, Lorne, Broome and the Gold Coast.116

Table 32. Destination Spa Categories

Category Description Service and Facilities

Destination Spa

Destination Spa Spas that provide Spa style treatments with accommodation or Spas within accommodation environments

Made up of the following subcategories: Resort Spa Hotel Spa Spa Retreat Health Spa Retreat

Sub Categories

Resort Spa Spa business operating within a resort location, offering Spa style Beauty and Body Treatments with some Water Therapy and Spa style service. May or may not offer Wellness Programs and Spa cuisine/healthy food option

Spa services that include Body and Water therapy Guest accommodation available

Hotel Spa Day Spa business operating within a resort location offering full Day Spa Therapies and services including water therapy and relaxation areas. May or may not offer wellness programs and Spa cuisine/healthy food option

Day Spa facilities Spa services that include Beauty, Body and Water therapy Hotel accommodation available

Spa Retreat Accommodation based facility offering Spa and Body Treatments, with some water based therapy. Offering Spa Cuisine / Healthy food option

Spa services that include Body and Water therapy Spa Cuisine available Guest accommodation available

Health Spa Spa business operating within a retreat location, offering a full range of Spa services and Wellness Programs that address the clients health and lifestyle needs, providing on site guest accommodation

3-7 day + packages that are programmed and include, diet, fitness etc Packages to be supplemented by Spa/body treatments Spa Cuisine available Guest accommodation available

Source: Australian Spa Association, www.aspaassociation.com.au

The following illustrates the range of facilities and activities available at health retreats. Table 33. Health and Fitness Programs- Health Retreats

Health and Fitness Programs

Golden Door Health Retreats The Golden Door, Elysia, Hunter Valley, NSW; and The Golden Door Health Retreat Queensland, Willow Vale, Gold Coast. http://www.goldendoor.com.au

Leader in the spa and health retreat industry offering relaxation, rejuvenation, health and lifestyle programs The Golden Door, Elysias Hunter Valley has the following facilities:

25 metre heated indoor lap pool

Outdoor exercise pool

His and hers saunas and spa pools

Floodlit tennis courts

Indoor activity centre featuring basketball court

3 indoor activity studios

Fully equipped gymnasium

Wellness Centre

Theatrette

Lounge

Library Indoor basketball court

Cycle room

115 The development in tourist areas is across Australia in areas including Noosa, Byron Bay, Port Stephens, Lorne, Daylesford, Broome, and the Gold Coast. 116 Qantas, The Australian Way, June 2007, P48

http://www.aspaassociation.com.au/

http://www.goldendoor.com.au/


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Wellness Market Size Some recent estimates of the size of the Australian domestic tourism market for wellness vary from around 230,000 to 500,000. These estimates are based on persons visiting a health spa or sanctuary/well-being centre’ and come from National Visitor Survey (NVS) and from the Roy Morgan research on the holiday market. Table 34. Wellness Market Size - Australia

Study Market Size Characteristics

National Visitor Survey (NVS), Tourism Research Australia. (2009b). Unpublished report.

0.3% of all domestic tourists (229,000) visited a ‘health spa or sanctuary/well-being centre’ between 2006 and 2008

According to the NVS38, the majority of Australian domestic wellness tourists are females (68%) aged between 24 and 45 years (45%) who tend to come from more affluent households. More than half (53%) report an annual household income of $78,000 or more per annum with 18% reporting a household income of $150,000 or more per annum.

Holiday Tracking Survey (HTS) Roy Morgan Research. (2009). Health and Wellness Tourism. Unpublished report

1.3% of all domestic tourists (497,000) engaged in a ‘health resort/spa holiday’ in 2008. This number represents an increase of 1% since 2001 indicating that wellness tourism is a growing niche market in Australia.

Data from the HTS also identifies that domestic wellness tourists tend to have a higher socio-economic status than the overall domestic tourist population and are more likely to be younger than non-wellness tourists. Another interesting finding of this report is that wellness tourists appear to take shorter but more frequent holidays during a year than non-wellness tourists.

Source: Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P14

The CRC for Sustainable Tourism study has estimated a higher number of visitors. It estimated a total of 2.2 million clients for wellness businesses in Australian, of which an estimated 1.3 million were tourism clients. Of these 1.3 million tourist clients, 635,000 were visitors to day spas; 456,000 were visitors to spa resort/hotels (411,500 to regional resorts/hotels); and 22,800 were visitors to lifestyle resort/retreats. Spiritual retreats had almost 120,000 tourism clients.

The CRC for Sustainable Tourism reviewed the sector in Australia in 2008 and analysed customers through a survey. The study identified 554 spas in Australia in 2008, with around 70% (382) being day spas and the balance (172) being destination spas. The distribution was: New South Wales (29%), Victoria (24%), Queensland (22%), Western Australia (12%), South Australia (7%) and Tasmania (4%). Queensland had the highest share of spa hotels/resorts, and New South Wales contains the majority of spiritual retreats and lifestyle resorts.117

The Australia study shows that over 60% of wellness tourists are domestic tourists (either on a day trip, intrastate visitors or interstate visitors). A significant share of local residents (37%) also visit wellness service providers and metropolitan day spas receiving most of this day trip market.118

In the case of Spa Resorts/Hotels in regional areas: 38% were intra-state overnight visitors and 20% were overnight interstate visitors. For Lifestyle Resorts/Retreats 43% were intrastate overnight visitors and 32% were overnight interstate visitors.

The survey shows that regional wellness facilities (resorts) attract 42% of visitors from intrastate (mainly metropolitan areas) and 20% from interstate. Local residents, within 25 kms accounted for 20% of the market.

117 Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P10 118 Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P12


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Several of the studies have identified the characteristics of visitors to wellness facilities.119 Visitors to lifestyle resorts were likely to be baby boomers aged over 45 years (63%). Beauty spa visitors were mainly aged 25-44 (65%), and around 75% had visited a spa on an overseas holiday. Visitors to spiritual retreats were likely to be baby boomers over 45 (67% with 38% over 55 years).120 Visitors to wellness centres tended to have higher household incomes and higher levels of education. Around half of the visitors to spiritual retreats or lifestyle resorts, were travelling alone. Tourism Victoria’s Spa and Wellness Tourism Action Plan 2005-2010 also analysed characteristics of domestic spa visitors. Table 35. Characteristics of Spa Visitors

Market Characteristics - Domestic Spa Visitors

Gender 60% female

Age 34 years and under (53%). 35-49 years age group (31%)

Roy Morgan Values Segments Socially Aware (19%), Look at Me (13%) and Young Optimism (13%).

Income and expenditure

Domestic spa tourists have an average household income of $69,000. In comparison, the average household income for all domestic tourists is $64,000, while the total Australian population has an annual average household income of $61,000. On average, domestic spa visitors spent $143 per person per night on their last trip, $35 more than total domestic visitors who spent an average of $108 per person per night.

Transport 87% by car (70% of Victorian resort visitors are from Melbourne.)

Key product segments

Rest and relaxation, sightseeing and outdoor activities are amongst the largest segments for spa visitors to Victoria in terms of volume of visitors. Domestic spa visitors to Victoria showed a particularly high propensity for the ‘luxurious/comfortable holiday’ segment.

Activities Sporting activities such as horse riding, tennis and bike riding as well as art galleries and dining out also featured highly when compared to overall visitors, demonstrating potential for cross-marketing between these segments and the spa and wellness segment. (P21)

Source: Victoria's Spa and Wellness Tourism Action Plan 2005-2010 Tourism Victoria 2005 P15-23

Major Locations

In Australia, the National Visitor Survey (NVS) identified the 20 most visited regions for domestic tourists undertaking health and wellness activities. The major locations were Spa Country’ in Victoria (Daylesford/Hepburn Springs)- with mainly intrastate visitors ; Gold Coast (mainly interstate) and locations in New South Wales (Mid North Coast; Hunter Valley) and Queensland (Brisbane and Sunshine Coast). Interstate visits to Victoria and New South Wales tended to be for 4-7 nights on average. 121 Table 36. Top 20 Australian Regions for Health and Wellness (Visitors 3 year average 2006-08)

State Rank Region Intrastate Interstate Total

VIC 1 ‘Spa Country’* 36,000 4000 40,000

QLD 2 Gold Coast 3000 16,000 19,000

NSW 3 Mid North Coast 11,000 2000 13,000

NSW 4 Hunter Valley 10,000 2000 12,000

QLD 5 Brisbane 3000 9000 12000

QLD 6 Sunshine Coast 7000 5000 12000

VIC 7 Mornington Peninsula 9000 3000 12000

NSW 8 Sydney 7000 4000 11,000

NSW 9 New England North West 8000 3000 11,000

QLD 10 Tropical North QLD 4000 6000 10000

VIC 11 Ballarat 8000 1000 9000

QLD 12 Whitsundays 3000 5000 8000

VIC 13 Melbourne 3000 5000 8000

VIC 14 Central Murray 6000 2000 8000

WA 15 Australia’s South West** 6000 1000 7000

NSW 16 Northern Rivers*** 4000 3000 7000

NSW 17 Central NSW 2000 5000 7000

NSW 18 Outback NSW 6000 0 6000

QLD 19 Darling Downs 2000 4000 6000

NSW 20 Blue Mountains 5000 1000 6000

119 Voigt, C. (2009). Understanding Wellness Tourism: An Analysis of Benefits Sought Health-Promoting Behaviours and Positive Psychological Well-Being. Unpublished doctoral dissertation, University of South Australia. Quoted in Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P15. 120 Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P14-15 121 Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P20


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Note: Three-year average 2006-2008. The total visitors is a ‘net’ estimate and is less than the sum of the column totals as travellers may stop over in the ir own state and another state and be counted therefore as both an intrastate and an interstate visitor. *Daylesford/Hepburn Springs, **includes Margaret River,***includes Byron Bay. Source: Health Tourism in Australia: Supply, Demand and Opportunities, CRC for Sustainable Tourism 2010 P21

6.7 Marketing Coordination (S2.2)

6.7.1 Regional Coordination

The Hunter Regional Tourism Plan, Building Australia’s premier tourism region: A vision for tourism development in the Hunter Region 2005-2008 highlights a number of issues relating to Gloucester and the Barrington Tops. The approach is to focus on the needs of the consumer and recommends that Barrington Tops, Gloucester and Dungog, be considered together as a single product zone (Barrington Tops).122 The regional positioning is based on the main nature-based asset in the region, the Barrington Tops. The rationale is to pool resources to increase visitor numbers to areas within the zone.


While there are benefits from the coordination of regional marketing to provide visitors with a broader experience, Gloucester needs to build its recognition through improvements in the visitor product offer and in targeted marketing.

6.7.2 Developing Visitor Information Centres

The Hunter Tourism Plan recommended that Visitor Information Centres (VICs) become strategically located shopfronts for the tourism industry and destinations, and realigned to sell tourism products and local produce.

These recommendations align with the findings of the “Visitor Information Centre and National Parks and Wildlife Service Feasibility Study” for Gloucester Shire Council. This study examined the feasibility of a multi-purpose Visitor Information Centre (VIC) for Gloucester, which included a combined VIC/National Parks and Wildlife Service facility, a café, community space and bus parking. This is discussed later in this report.

122 Building Australia’s premier tourism region: A vision for tourism development in the Hunter Region 2005 – 2008, Calais Consultants and Globe Consulting P4.


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7 Health Sector

7.1 Health Sector (S2.3) - Current Situation

7.1.1 Overview

Health is an important sector for Gloucester. The sector accounted for 188 jobs or around 11% of jobs in Gloucester in 2006. The major areas of employment were in the hospital (98 persons) and medical and other health care services (55).

The major future issues for the health sector are: maintenance of the hospital in Gloucester, in the light of changes in the structure of health networks. A scaling back of services at the hospital would have a major negative impact on Gloucester due to the importance of health sector jobs for the region; and future support services required for an ageing population, including low care and high care places.

Key Sectors

Sector Key Features

Health services Health is a significant employer due to an ageing population and the presence of the hospital operated by Hunter New England Health (HNEH). Relative to other small communities, Gloucester is well serviced by medical services.

Source: Gloucester Economic Profile 2009, Gloucester Shire Council

7.1.2 Employment

Health and social assistance accounted for 188 jobs or around 11% of Gloucester’s jobs in 2006. The major areas of employment were the in the hospital (98 persons) and medical and other health care services (55). On an occupational basis the major categories were professionals (71) and community and personal service workers (62). Discussions with the hospital indicate that employment has increased by around 25 positions since 2006.

Table 37. Health Sector Jobs and Employed Residents Gloucester Shire 2006



Gloucester Residents Employed in Health ad Social Assistance 35 162 197



Jobs in Health ad Social Assistance in Gloucester Shire 34 154 188



Table 38. Health Sector Employment in Gloucester Shire - 2006 Employment Gloucester LGA Males Females Persons

Health care and social assistance

Health care and social assistance, nfd 0 0 0

Hospitals 17 81 98

Medical and other health care services 17 38 55

Residential care services 0 10 10

Social assistance services 0 24 24

Total Health care and social assistance 34 153 187

Source: ABS Census 2006 Working Population Data


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Table 39. Health Sector Jobs in Gloucester Shire by Occupation Group - 2006

Man

ager

s

Pro

fess

iona

ls

Tec

hnic

ians

&

trad

es w

orke

rs

Com

mun

ity &

pers

onal

ser

vice

w

orke

rs

Cle

rical

&

adm

inis

trat

ive

wor

kers

Sal

es w

orke

rs

Mac

hine

ry

oper

ator

s &

driv

ers

Labo

urer

s

Inad

equa

tely

de

scrib

ed/N

ot

stat

ed

Tot

al

Health care & social assistance 7 71 9 62 17 3 3 13 3 188

Total All Jobs 435 214 243 150 182 138 159 197 18 1,736

Source: ABS Census Working Population Data

The following shows the occupations of residents employed in the health sector. As well as providing services to the region, health is one of the major areas of employment for professionals, who live in the Shire.

Table 40. Residents Employed in Health Sector Gloucester Shire by Occupation 2006 Occupations Males Females Persons

411111 Ambulance Officer 3 0 3

423211 Dental Assistant 0 4 4

272112 Drug and Alcohol Counsellor 0 3 3

411411 Enrolled Nurse 0 8 8

452111 Fitness Instructor 0 5 5

253111 General Medical Practitioner 0 4 4

134299 Health and Welfare Services Managers nec 0 3 3

512211 Health Practice Manager 0 3 3

423311 Hospital Orderly 7 0 7

411611 Massage Therapist 0 4 4

251211 Medical Diagnostic Radiographer 5 0 5

542114 Medical Receptionist 0 7 7

423312 Nursing Support Worker 0 12 12

399913 Optical Dispenser (Aus) / Dispensing Optician (NZ) 0 4 4

423313 Personal Care Assistant 0 4 4

621411 Pharmacy Sales Assistant 0 5 5

252511 Physiotherapist 4 0 4

253411 Psychiatrist 4 0 4

254412 Registered Nurse (Aged Care) 0 15 15

254415 Registered Nurse (Critical Care and Emergency) 0 3 3

254421 Registered Nurse (Medical Practice) 0 4 4

254418 Registered Nurse (Medical) 0 3 3

254423 Registered Nurse (Perioperative) 0 5 5

254499 Registered Nurses nec 0 8 8

Total Nurses 0 38 38

Total Health Occupations 23 104 127

Source: ABS Census 2006 Resident Population Data


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7.1.3Gloucester District Health Service (GDHS)

Gloucester Hospital is currently operated by the Hunter New England Area Health Service (HNEAHS) and is classified as Gloucester District Health Service (GDHS) by HNEAHS. Gloucester District Health Service forms part of HNEAHS Lower Mid North Coast Cluster, which serves the LGAs of Greater Taree, Great Lakes and Gloucester.123 The cluster combines a coastal population, and some the smaller rural communities to the west. Gloucester District Health Service is the second largest service in the cluster (after Taree).

Source: Services and Facilities – HNEAHS Internet. http://www.hnehealth.nsw.gov.au/services_and_facilities, accessed 7 July 2010.

Existing Facilities

The Gloucester hospital consists of an 80 bed campus consisting of the following.124 Facilities Services

Roma Ward 20 bed acute ward

24 hour emergency department Medical Care Surgical Care Palliative Care Limited Obstetrics Limited Paediatrics, x-ray and Physiotherapy Minor General Surgery and Ophthalmic (eye) surgery

Narraweema Ward: 15 Bed aged care transitional ward

Commonwealth funded aged care facility Servicing clients that require high level care in meeting all daily living activities and social needs 24-hour nursing coverage

Hillcrest Nursing Home: 25 bed nursing home

Commonwealth funded aged care facility Servicing clients that require high level care in meeting all daily living activities and social needs 24-hour nursing coverage

Kimbarra Lodge: 20 bed hostel

Servicing permanent low level care residents Self contained units in a homelike environment.

The annual report indicates that the hospital had 6,629 total bed days and the Gloucester District Health Service has an annual budget of approximately $5.5million.

There were six general practitioners (GPs) that operated in Gloucester, with two of the GPs listed as registrars at the hospital. In terms of visiting specialists, two specialists for ophthalmology (eye surgery) visited once a week on Tuesdays and one general surgeon visited on Wednesdays for low risk procedures. A low level of obstetrics at occurs at GDHS, with one doctor delivering approximately 18 babies per year. All other services are accessed externally, such as: other surgery; critical care;

123 Hunter New England Area Health Service, Annual Report 2007/2008, P8. 124 Gloucester District Health Service - HNEAHS Internet. http://www.hnehealth.nsw.gov.au/services_and_facilities/gloucester_district_health_service, accessed 7 July 2010.

http://www.hnehealth.nsw.gov.au/services_and_facilities

http://www.hnehealth.nsw.gov.au/services_and_facilities/gloucester_district_health_service


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other obstetrics; paediatrics; emergency services; oncology; palliative care; rehabilitation; high dependency nursing; mental health; orthopaedics; orthopaedic rehabilitation; rheumatology; urology; dermatology; diabetes; immunology; and podiatry.

There was a total of 130 staff at the hospital in July 2010 (60% nursing staff and 40% support staff). There were 36 Registered Nurses, 30 Enrolled Nurses, and there were 22 personal care assistants. the latter group have completed a Certificate IV in Aged Care and have been assessed under GDHS competencies.

An important issue for GDHS is that NSW Health is in the process of selling the right to operate the 35 aged care beds at the hospital to a non-government operator. The tender was released in July 2009 and NSW Health is in the process of assessing applications as of July 2010. The tender placed particular emphasis on: aged care places staying in the local area; ensuring continued provision of quality care to residents, particularly high care, into the future; and supporting staff throughout and beyond the transfer process. Once a private operator takes over the operation of the aged care facilities requirements for nursing and support service staff for Gloucester’s aged care beds will continue.

Gloucester District Health Service predicts increased demand for aged care and acute services in Gloucester in the long term. This aligns with the age structure of the population and the movement of mature persons to the region. Consultations indicated that more intensive nursing is likely to be required at GDHS in the future. This will result in increased demand for nursing staff and could lead to additional 30 jobs. Gloucester District Health Service would like to position itself as health precinct in the long term. This will depend on further building of capabilities in acute care and aged care.

Health Policy Changes

In April 2010, COAG agreed, with the exception of Western Australia, to sign the National Health and Hospitals Network Agreement. Under the National Health and Hospitals Network Agreement the Commonwealth will become the majority funder of the Australian public hospital system .

A key structural change is that COAG has agreed to the introduction of activity based funding from 1 July 2012 which moves to a system where hospitals are paid on basis of the services they provide, as opposed to block funding. Small regional and rural public hospitals will be paid block funding against a COAG-agreed funding model and Gloucester District Health Service will fall under this umbrella. The COAG-agreed model will need to be monitored closely for the functions, services and community service obligations that will form part of the agreement.

It is not clear whether expansion of activity based funding to small regional and rural public hospitals is a possibility in the future. A contingency for this is to begin activity based monitoring of services. This will also generate data on trends on the conditions treated at a hospital and provide instruction for development of services.

The other key point for Gloucester is that under the reforms full funding and policy responsibility for aged care will be transferred to the Commonwealth. The timeline suggested by the Government for this to occur is July-September 2012.125

Under the Australian Government’s National Health and Hospitals Network reforms, Hunter New England Health will be dissolved and a new, smaller local network will be established. The deadline to establish a new network is December 2010. Discussions have begun for five hospitals in the region surrounding Gloucester to form a network, these hospitals are: Gloucester, Taree, Wingham,; Forster, and Bulahdelah.

7.2 Future Demand for Health Services

The prevalence of chronic diseases is strongly related to increasing age and the age trends in Gloucester indicate that there will be an increased incidence of chronic disease in the coming years. There are a number of important chronic diseases targeted by Australian Government’s National Chronic Disease Strategy: asthma; cancer, diabetes, heart, stroke and vascular disease; and osteoarthritis, rheumatoid arthritis and osteoporosis.126

125 Australian Government. 2010. A National Health and Hospitals Network for Australia’s Future – Delivering the Reforms, P14. 126 Australian Health Ministers Conference. 2005. National Chronic Disease Strategy.


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Australian Institute of Health and Welfare data illustrates the link between chronic disease and age. Their analysis of the 2004-05 National Health Survey data showed that over 7 million people have at least one chronic condition. The proportion of people having at least one chronic condition increase with age (with a high share of older persons having more than one chronic condition).127

Table 41. Proportion (%) of chronic conditions reported, by age, 2004-05

Number of chronic conditions

Age group 0-14 %

Age group 15-24

%

Age group 25-44

%

Age group 45-64

%

Age group 65 plus

%

None 86.9 80.8 74.0 47.0 18.4

One 12.3 17.0 21.0 32.0 32.0

Two 0.8 1.9 3.8 14.1 26.7

Three - 0.3 1.1 5.1 15.3

Four - - 0.2 1.4 5.0

Five or more - - - 0.5 2.6

Source: AIHW analysis of the 2004-05 National Health Survey.

The analysis by AIHW indicates that 53.0% of persons in the 45-64 age group will have at least one chronic disease and 81.6% of persons 65 and above age group will have at least one chronic disease.

7.3 Future Opportunities (S2.3): Heath and Aged Services

7.3.1 Overview –Health and Aged Services Key issues for the future of Gloucester are the maintenance of health services and the development of aged cares services to provide for an ageing population and for a larger population.

S2.3 Health Services and Aged Care Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.3 Health Services and Aged Care - Maintain and expand health services - Continue to develop aged services

- Important to maintain existing health services.

- With ageing population health services and aged care services will become more important.

Health is one of the major sectors of professional employment in the region.

-Existing health services – covering GPs, hospital and aged care beds. -Hospital and health service has a positive future.

-Small area health services have been vulnerable to regional rationalisations in the past.

- Need to maintain current health services. - -Develop regional specialisations e.g.. day surgery - Develop ageing specialisation.

127 Chronic Diseases (AIHW). http://www.aihw.gov.au/cdarf/index.cfm. Accessed 8 July 2010.

http://www.aihw.gov.au/cdarf/index.cfm


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7.3.2 Health Services (S2.3 ) Opportunities

The key issue for Gloucester is the maintenance of health services, with the restructuring of health networks under the new health funding arrangements.

S2.3 Health Services Opportunities Description Impacts Strengths Constraints Development

Requirements


S2.3 Health Services - Need to maintain local health services. - Potential to expand day surgery at the hospital.

- Gloucester Hospital is currently operated by the Hunter New England Area Health Service (HNEAHS) - GDHS serves the Gloucester and adjacent LGAs. - There are six general practitioners (GPs) that operated in Gloucester. In future there is a need to maintain these health services for a larger population (which is also ageing).

- Health sector jobs are important for the LGA (188 jobs or around 11% of jobs in 2006) The major areas of employment were in the hospital (98 persons) and medical and other health care services (55). - GDHS had 130 employees in July 2010 ( 60% nursing staff and 40% support staff).

- Hospital and other health services (GPs). - Existence of age care places. - Visiting specialists: ophthalmology and day surgery. - Under Commonwealth Government’s National Health and Hospitals a new, smaller local network will be established. (covering Gloucester; Taree; Wingham; Forster; and Bulahdelah).

- Vulnerability of small hospitals - Limits on surgery facilities.

Future Development Health Services - Demand for health services will increase because of ageing population, with the expectation that number of nursing positions will increase.

- Expansion of day surgery is seen as major future opportunity.

- Major issue is the training and retention of skilled nursing staff in the region, because of mobility and competition from other hospitals.


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7.3.3 Aged Services (S2.3) - Opportunities

The provision of aged services and their further development are important for the future of Gloucester.

At the same time there is a need to develop accommodation options for older persons, including seniors living accommodation.


Requirements


Aged Services - Need to expand age care services for an ageing population. - Requirements cover health services, seniors housing and aged care.

- Gloucester has the opportunity to offer a spectrum of services for older persons. - This includes: health services; housing for seniors close to the town centre; in home support services; and aged care places. (low care and high care).

- Availability of accommodation and services will enable older persons to remain in the region. - Development of an aged care specialisation will increase jobs in health and aged care.

- Existing aged care beds. - Age care specialisation. - Good health services. -Aged care services currently at Gloucester District Health Service (GDHS) hospital are: 15 bed aged care transitional ward ; 25 bed nursing home; and 20 bed hostel.

- Tendering out of age care places. - Concerns that aged care places may not be maintained in Gloucester.

Future Development Aged Services - 35 beds are being tendered out to a private provider. - Will be important that beds remain in Gloucester. - Aged care – need for an operator to develop facility.

-Assess demand and business case for home assist services. - Need to acquire additional aged care places.

-Develop a business case for nursing home development using land available from Council. -Attracting investment with business cases for nursing home facility

- Staffing –training and retention of skilled nursing staff.

Seniors Accommodation - Development of seniors housing adjacent to town centre. - Expansion of aged services accommodation.

-Gloucester has the potential to offer town living for seniors. -There is the potential to expand aged care facilities

- Availability of accommodation will allow people to age in place. - Allow residents to move off farms into town.

- Compact town centre - Available land - LEP allows for the development of seniors housing and aged care

- No developers of seniors housing. - Existing places are being tendered out.

Seniors Housing - Need for developers to construct housing. - Develop a business case for seniors housing.


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7.3.4 Health Workforce (S2.3) - Opportunities

There will be an increased demand for acute health services and aged care in Gloucester due to the ageing of the population, and the projected increase in the LGA’s population. There is a need to secure a well trained workforce for the future.


Requirements


Health Workforce - Develop of local workforce. - Provide nursing and aged care training

-Skilled workforce is required to provide services. - Requires training of a local workforce.

- Skilled workforce essential to developing the specialisation in aged services.

- Existing workforce - Training available through Newcastle University and TAFE

- Current workforce is specialised in acute and aged care services.

- Workforce turnover - Loss of nurses to other regional hospitals .

Workforce - Development of training plan for up skilling workforce. - Delivery of training via

TAFE NSW - North Coast Institute Taree and Newcastle.

- Secure support funding from NSW Government.

- Attract younger people into nursing.

-Identifying and encouraging local residents to consider nursing as a profession. --Encourage retraining of displaced employees from other sectors.

7.4 Assessment (2.3) : Health and Aged Care

7.4 1 Health Services

The combination of a growing population and ageing will create an increased demand for health services. Quality health services are also important for attracting residents. A key requirement will be the maintenance of existing beds and facilities.

The new network and the role of regional hospitals will be important.

Expansion of day surgery at Gloucester District Health Service was put forward as an opportunity for development. Expansion in day surgery would generate an increase demand for general surgery staff and nursing staff. Day surgery procedures are often minor procedures and have a lower cost per procedure when compared to surgery requiring overnight or multiple night stays. Common day surgery procedures include endoscopy and colonoscopy.128 The hospital has the facilities to undertake this role, within a new health network.

128 Colonoscopy is an element of the Governments National Bowel Cancer Screening Program. Screening – Colonoscopy. http://www.health.gov.au/internet/screening/publishing.nsf/Content/colonoscopy.

http://www.health.gov.au/internet/screening/publishing.nsf/Content/colonoscopy


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There are a number of major health services that are accessible from Gloucester and these include: The Manning Hospital Taree; Calvary Mater Newcastle; and the Royal Newcastle Centre.

Hospital Details

Manning Hospital Taree The Manning Hospital Taree is a rural referral hospital and provides a broad range of specialist services to residents of Greater Taree, Great Lakes and Gloucester local council area. The hospital has specialist wards/units for the following: surgery; day surgery; general medicine; critical care; obstetrics; paediatrics; emergency services; oncology; palliative care; rehabilitation; high dependency nursing; and mental health. The health service operates 166 beds, including 20 Mental Health beds, and treats approximately 12,000 inpatients and 20,000 Emergency Department patients each year.129

Calvary Mater Newcastle Hospital During 2008-2009 the redeveloped Calvary Mater Newcastle Hospital was opened, which was a $200m public private partnership between the NSW Government and the Novacare consortium, as the final phase in the Newcastle Strategy.130 The Calvary Mater Newcastle provides services to the Hunter New England region and Country NSW and is positioned as the Hunter region's major centre for oncology and haematology.131 It is a 187 bed facility that specialises in the diagnosis and treatment of, breast cancer, melanoma and blood diseases and is home to the Newcastle Melanoma Unit and the Hunter BreastScreen.

Royal Newcastle Centre Another key centre is the Royal Newcastle Centre, a $112 million state-of-the-art health facility that opened in April 2006.132 It has 84 inpatient beds in three wards and 60 interventional suite beds providing treatment for patients in the following specialities: orthopaedics; orthopaedic rehabilitation; rheumatology; urology; ophthalmology; dermatology; diabetes; immunology; and podiatry

7.4 2 Aged Care Services

Future Demand

Population trends indicate an increased demand for aged care beds. - NSW Health is in the process of tendering the operation of the 35 aged care beds at the hospital to a non-government operator. NSW Health is in the process of assessing applications as of July 2010. GDHS believe that these beds will remain in Gloucester.

Expansion in aged care services is an opportunity for development and aligns with the aging of the population and in-migration of mature persons to the region.

Demographic data indicates a growing market for aged care in the region, which provides a basis for commercial sustainability of aged care development in the region. In terms of aged care, persons enter age care when they have conditions which make it difficult to remain at home. For example, a person aged 70 has a 36% chance of needing high-level aged care during his/her life and this increases with age. In 2005, the average age of aged care residents was 83.5 years, and around 60% of high-level care residents enter from hospital and 36% direct from the community.133.

Gloucester can play a regional role for aged care due to accessibility to a town centre. Consultations indicated that surrounding regions were also developing aged care facilities. An analysis of available facilities in the surrounding region shows that a range of care facilities exist in Taree/Wingham and Forster, and in the coastal regions of Port Macquarie and Coffs Harbour. Moreover, extensive aged care services exist in Newcastle.

129 Manning Hospital – HNEAHS Internet. http://www.hnehealth.nsw.gov.au/services_and_facilities/manning_hospital, accessed 8 July 2010. 130 NSW Health Annual Report 2008-09, P308-309 131 Calvary Mater Newcastle – HNEAHS Internet. http://www.hnehealth.nsw.gov.au/services_and_facilities/newcastle_mater_misericordiae_hospital, accessed 7 July 2010. 132 Royal Newcastle Centre – HNEAHS Internet. http://www.hnehealth.nsw.gov.au/services_and_facilities/royal_newcastle_centre, accessed 7 July 2010. 133 Aged Care – Useful Facts and Figures. http://www.agedcareconnect.com.au/did_you_know.php.

http://www.hnehealth.nsw.gov.au/services_and_facilities/manning_hospital

http://www.hnehealth.nsw.gov.au/services_and_facilities/newcastle_mater_misericordiae_hospital

http://www.hnehealth.nsw.gov.au/services_and_facilities/royal_newcastle_centre

http://www.agedcareconnect.com.au/did_you_know.php


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Business Case

Further analysis will be required to examine the business case for additional aged care facilities in the region. Council have indicated that it has parcel of land available in close proximity to both the Hospital and town centre, which could be used for such a development.

Importantly, a private operator of aged care facilities will have ongoing requirements for nursing and support service staff, which would be sourced locally.

7.4.3 Seniors Housing

The Gloucester Local Environmental Plan 2010 also allows for greater variety of housing in the region, which includes development of seniors housing. The LEP includes new zones for multi-unit dwellings and will allow the aged to live within walking distance of services and facilities. Areas around the town centre have been zoned medium density residential (R3) and mixed used (B4), both of which allow the development of seniors housing with consent from Council.134

Source: Gloucester Local Environmental Plan 2010. http://www.legislation.nsw.gov.au/maintop/view/inforce/epi+241+2010+cd+0+N.

7.4.4 Nursing Workforce

There will also be an increased demand for nursing staff with higher skill levels due to the expected increased intensive nursing care required.

Students access nursing programs at TAFE NSW - North Coast Institute Taree and Newcastle. Consultation with the hospital indicating that TAFE NSW contacts GDHS to ask for staff nominations for training or up skilling, with the NSW Government providing a proportion of funding for training. Internal education is also carried out by Hunter New England Health and GDHS through e-learning using intranet modules (2-3 hour modules).

Qualified nurses are mobile due to the strong demand for nursing staff across Australia and internationally. Hospitals in the surrounding area are competitors for Gloucester’s nursing staff as are hospitals in Newcastle and Sydney. There is risk of loss of nurses to larger cities once full qualification

134 NSW Legislation - Gloucester Local Environmental Plan 2010. http://www.legislation.nsw.gov.au/maintop/view/inforce/epi+241+2010+cd+0+N.

http://www.legislation.nsw.gov.au/maintop/view/inforce/epi+241+2010+cd+0+N

http://www.legislation.nsw.gov.au/maintop/view/inforce/epi+241+2010+cd+0+N


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is attained. A key issue in developing the nursing workforce is to develop nursing staff from the local community so that qualified staff are retained in the region.

The aging population and movement of retirees to Gloucester indicates increasing demand for healthcare and aged care. To cater for this, the number of nursing staff will need to be expanded and up skilling of existing staff will be required.

There are opportunities to encourage local residents to consider nursing as a profession, as well retraining of displaced employees from other sectors.

The nursing workforce will need to be up skilled and a pathway plan should be put into place for enrolled nurses to complete the Bachelor of Nursing and a plan for attracting registered nurses to the region may be required. For aged care employees needed to be trained (nurses and personal care assistants). Skill shortages could limit the development of health and aged care services.


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8. Retail and Services Sectors

8.1 Retail Sector (S2.4) - Current Situation

8.1.1 Retail Overview Gloucester is the retail centre for the LGA. Retail is one of the largest employers, and accounted for 184 jobs or 11% of jobs in the Shire. The major segments were food retailing (80 jobs) and other store-based retailing (73). The town centre has a balanced mix of retail activities and a range of commercial, professional and community services. A 2006 study by Ratio Consultants indicated that the retail catchment extends across the Gloucester LGA to the adjacent LGAs of Taree and Great Lakes, and covers a radius of around 60km-70km.135 Around 85% of the town centre’s trade is from this catchment. In 2005 the consultants identified 83 establishments and around 21,000 m2 gross leasable area (GLA) in the town centre.136 Future growth in the retail sector will be driven by population size and its composition, and the

development of the visitor market. The 2006 study projected significant growth in spending based on population growth (an increase in the LGA’s population from 4980 to 6080 by 2021). Retail spending (in 2005 prices) was estimated to increase to $66.9 million in 2021 (up from $46.2 million in 2004/05).

Sector Key Features

Retail Retail is a major employer in the LGA and is largely servicing the Gloucester’s local population.

The sector is also affected by tourism in the region.

There is some leakage to other areas (e.g. Taree) but due to distances, the local retail captures a large share of retail expenditure.

There is current expansion in the sector, with the proposed additional supermarket, and new buildings for one of the existing supermarkets and hardware store.


8.1.2 Retail Activity in Gloucester Businesses and Markets The commercial and retail strategy for Gloucester indicated that the retail catchment extends across the LGA to Taree LGA and Great Lakes LGA on the Coast, and covers a radius of around 60km-70km.137 Around 85% of the town centre’s trade is from this catchment. In 2005 the consultants identified 83 establishments and around 21,000 m2 gross leasable area (GLA) in the town centre.138 The town centre has a balanced mix of retail activities and these include: two current supermarkets (Food Works and IGA) and a third is planned; cafes and hotels; and a mix of non food retail, including clothing and footwear stores, household goods, newsagents, pharmacy and home wares stores. There are four stores retailing furniture, furnishings and whitegoods. There are a range of retail level services including: banks, dry cleaners, travel agent, real estate agents, hairdressers and other services. Other activities include motor vehicle retailing and servicing. A range of commercial, professional and community services are located in the town centre.

135 Development and Employment Land and Commercial / Retail Strategy : Business s Study, Ratio Consultants 2006 136 Development and Employment Land and Commercial / Retail Strategy : Business Study, Ratio Consultants 2006 P8 137 Development and Employment Land and Commercial / Retail Strategy : Business s Study, Ratio Consultants 2006 138 Development and Employment Land and Commercial / Retail Strategy : Business Study, Ratio Consultants 2006 P8


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Table 42. Gloucester Town Centre – Retail Activities and Floor Space 2006

Retail Businesses No s

Floor Space

Food

Supermarkets 2 2,350 m2 GLA;

Cafes, takeaway, bars etc 12 2,560 m2 GLA

Other retail food /liquor 3 600 m2 GLA

Total Food 17 5,510 m2 GLA

Non Food

Retail non-food (clothing and footwear stores , household goods, newsagents, pharmaceutical products , home wares )

22 3,820 m2 GLA

Bulky goods retailers, or stores retailing furniture, furnishings and whitegoods 4 3,220 m2 GLA

Retail Services

Other retail services, including banks, dry cleaners, travel agents, real estate agents, hairdressers and other services

11 2,150 m2 GLA

Motor vehicle retailing and servicing 4 1,870 m2 GLA

Services

Commercial, professional and community services. 25 5,200 m2 GLA;

Total 83 20,800 m2 GLA

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006

8.1.3 Retail Spending Retail Expenditure Estimates Resident retail spending was estimated at $47.8 million. The retail survey showed that the Gloucester town centre captures a significant share of consumer spending. This was: 78% of food, groceries and liquor expenditures; 70% of bulky goods expenditures; and 75% of spending on other household goods (including footwear, clothing, newsagents goods, pharmaceutical goods, photographic equipment, jewellery, and home wares).139 The town centre captures 21% of its retail sales from beyond Gloucester Shire (from visitors and residents from adjacent areas). Some 15% of customers were from beyond the immediate region. Gloucester is a centre for tourists travelling along Bucketts Way and Thunderbolts Way from Newcastle and Sydney, and from southeast Queensland. The survey indicated that escape spending represented around $11.53 million and inbound spending (from people from outside the LGA) accounted for $9.9 million in spending. In the case of leakage, most is to Taree for bulky goods and household products. There is also a tendency to conduct a major supermarket shop when people go Taree for other shopping, business or medical visits. Looked at another way, of resident retail spending of $47.8 million, residents spent a total of $36.3 million in Gloucester. The leakage of $11.5 million was largely offset by inbound expenditure of $9.9 million by persons from outside the LGA (adjacent LGA residents and visitors). In aggregate terms the town centre is in a reasonably strong position and achieves a balanced level of expenditure across all of its retail and service categories. Resident frequency of visits is high (with 84% visiting several times each week or weekly).

Table 43. Retail Expenditure Estimates 2005 Gloucester

Gloucester Shire 2004/05 ($ million)

Escape Expenditure $11.53 0

Inbound Expenditure $9.90 0

Town Centre Retail Sales $46.20 0

Resident Spending $47.800

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006

A concern was expressed during consultations was that the concentration of ownership of retail in Gloucester has impacted the community: in terms of range, quality, service and pricing; and resulted

139 Development and Employment Land and Commercial / Retail Strategy : Business Study, Ratio Consultants 2006 P8-9


100

in leakage of spending to other regional centres (e.g. Taree). Views expressed during consultations were that this retail concentration is likely to have increased the levels of retail leakage from those identified in 2005/06 by Ratio Consultants. Increased competition in retail is likely to produce lower prices for customers and this will benefit the wider community in Gloucester.

Future Retail Spending Future retail spending will be driven by population growth and the age structure. The Ratio Consultants study projected significant growth in spending based on population growth (an increase in the LGA’s population from 4980 to 6080 by 2021). Retail spending (in 2005 prices) is estimated to increase to $66.9 million in 2021 (up from $46.2 million in 2004/05).

Table 44. Gloucester LGA Estimated Retail Sales 2005 and 2021 (at 2005 constant prices)

Major Commodity Group

Gloucester SLA: Resident Household Retail Goods Expenditures $ million at constant June 2005 prices

2004/05* Estimated

2020/21** Projected

Food, Groceries and Liquor 28.31 37.23

Bulky Goods 8.53 14.05

Other Household Goods 10.98 15.59

Total Retail Goods 47.82 66.87

* Estimated Resident Population (ERP) for Gloucester SLA AT December 2004 was approximately 4970 persons ** Estimated Resident Population (ERP) for Gloucester SLA AT December 2020 is projected to be 6040 persons Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 Table F3

The table below shows the 2020/21 estimates. Of resident retail spending of $66.97 million, $53.2 million would be spent in the Gloucester Town Centre and $13.7 million would be escape expenditure to other locations. The inbound expenditure from outside the region was estimated at $ 15.5 million. Table 45. Gloucester LGA Projected Retail Sales 2020/21 (at 2005 constant prices)


Market Share of Resident Household Expenditures %Bound to Town Centres

% Retail Sales Drawn from Beyond SLA

Estimated Resident Household Expenditures $ million at June 2005 prices

Resident Household Expenditures Bound to Town Centre $ million at June 2005 prices

Estimated contribution to retail sales from beyond SLA $ million at June 2005 prices

Total Estimated Town Centre Retail Sales $ million at June 2005 prices

Projected Escape Expenditures from Gloucester to Other Centres, Towns and Cities $ million at June 2005 prices

Food, Groceries and Liquor 85.0 27.0 37.23 31.65 11.70 43.35 5.58

Bulky Goods 70.0 15.0 14.05 9.84 1.74 11.57 4.22

Other Household Goods 75.0 15.0 15.59 11.69 2.07 13.76 3.90

Total Retail Goods - - 66.87 53.17 15.51 68.68 13.70

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 Table F6

The following table shows estimates of per capita retail spending in constant 2005 prices.

Table 46. Gloucester LGA Per Capita Retail Spending (2004)


Per Capita Retail Expenditure ($)

At 2003/2004 Prices

At June 2004 Prices

June 2005 Constant Prices

June 2005 June 2011 June 2016 June 2021 June 2031

Food, Groceries and Liquor 5421 5502 5696 5867 6013 6164 6318

Bulky Goods 1609 1633 1716 1922 2114 2325 2558

Other Household Goods 2092 2123 2208 2341 2458 2581 2710

Total Retail Goods 9122 9258 9620 10129 10585 11070 11585

Source: Development and Employment Land and Commercial / Retail Strategy: Business Study, Ratio Consultants 2006 Table F2

This growth in spending would create additional space requirements of 5980 m2 GLA for all retail, commercial and services floor space (3990 m2 shopfront and 1990 m2 for additional commercial, professional, community and trade services).


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8.1.4 Employment in Retail Retail is a major sector of employment in Gloucester. It accounted for 184 jobs or 11% of jobs in the Shire. The major segments were food retailing (80 jobs) and other store-based retailing (73).

Table 47. Retail Sector Jobs and Employed Residents Gloucester Shire 2006



Gloucester Residents Employed in Retail 76 109 185



Jobs in Retail in Gloucester Shire 71 113 184



Table 48. Retail Jobs in Gloucester Shire – 2006

Males Females Total

Retail trade

Retail trade, nfd 6 4 10

Motor vehicle and motor vehicle parts retailing 8 6 14

Fuel retailing 4 3 7

Food retailing 29 51 80

Other store-based retailing 24 49 73

Retail trade total 71 113 184

Source: ABS Working Population Data

The following table shows the occupations of residents of the LGA who are employed in the retail sector. The major occupations were Sales Assistants (General) – 83 and Retail Managers - 41.140

Table 49. Retail Jobs Held by Gloucester Shire Residents- Occupations - 2006

Occupations Males Females Persons

Share of Retail

Employment %

Retail Managers 17 24 41 21.4

Retail Supervisors 0 3 3 1.6

Sales Assistants (General) 23 60 83 43.2

Other Sales Assistants and Salespersons 3 0 3 1.6

Checkout Operators and Office Cashiers 0 9 9 4.7

Sales Assistants and Salespersons, nfd 0 3 3 1.6

Shelf Fillers 3 6 9 4.7

Pharmacists 0 4 4 2.1

Pharmacy Sales Assistants 0 6 6 3.1

Motor Vehicle Parts and Accessories Fitters 3 0 3 1.6

Motor Vehicle and Vehicle Parts Salespersons 7 0 7 3.6

Service Station Attendants 3 6 9 4.7

Sales Representatives 5 0 5 2.6

Sales Representatives and Agents, nfd 3 0 3 1.6

Street Vendors and Related Salespersons 4 0 4 2.1

Total Retail 71 121 192 100.0

Source: ABS Resident Population data

140 The manager category includes proprietors.


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8.2 Developments in Retail Sector

Two new supermarket developments have been proposed for Gloucester.

The approved development is the Garners supermarket application. The development will be located on the site of the current Garners IGA, Home Hardware and Turner Holden complex and feature a 1600 m2 supermarket (Supa IGA) and liquor outlet, along with commercial and residential premises and associated car parking. It will have three levels, with a supermarket on the ground floor, commercial premises on the first floor and residential units on the second floor.

A Five D application is planned at 109-115 Church Street, along and behind Church Street with access off Church Street and for heavy vehicles via Hume Lane off Hume Street on land zoned business 3(a) and scenic protection 7(d). It will feature a 2200 m2 Woolworths Supermarket, a Woolworths Liquor outlet, additional retail space, car parking, and proposed future commercial development that could include a petrol station. As of late July 2010 one supermarket development has been approved and one other is deferred pending legal advice on a rezoning request.141

8.3 Future Opportunities (2.4) - Retail

8.3.1 Retail Opportunities The current retail sector captures a significant share of the retail spending of Shire residents. Of estimated resident retail spending of $47.8 million (in 2006), residents spent a total of $36.3 million in Gloucester. The leakage of $11.5 million was largely offset by inbound expenditure of $9.9 million by persons from outside the LGA (adjacent LGA residents and visitors). There is potential for significant growth if the leakage can be reduced. Strengthening of retail is dependent on: continued population growth, increases in the tourism market, and reducing leakage.

141 Mixed Fortunes – Local News – News –General – Gloucester Advocate, http://www.gloucesteradvocate.com.au/news/local/news/general/mixed-fortunes/1896617.aspx.

http://www.gloucesteradvocate.com.au/news/local/news/general/mixed-fortunes/1896617.aspx

http://www.gloucesteradvocate.com.au/news/local/news/general/mixed-fortunes/1896617.aspx


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S2.4 Retail Opportunities Opportunities Description Impacts Strengths Constraints Development

Requirements

S2 Developing Key Sectors: Services

S2.4 Retail - Increase market size - Strengthen the town centre and business mix. - Reduce retail leakage.

Market Growth -Strengthening of retail is dependent on: population growth and increase in the tourism market. Reduce Leakage - price competition can reduce leakage to Taree and Foster.

Impacts of increased activity will maintain existing retail jobs and has potential to increase retail jobs.

- Current levels of local spending. - Projected population growth

- Higher retail prices compared with larger retail centres. - Tourism sector not fully developed. - Hours of opening for tourism market. - Retail mix for tourism sector.

Population Growth - Encourage growth in population. - Active programs of resident attraction. Town Centre - Improve town centre. - Extend opening hours. - Develop retail offering for tourist visitors. - Improve cafes and dining. - Increase residential densities adjacent to town centre. - Make the town centre more visitor friendly. Business Improvement -Utilise government programs to strengthen local retail businesses. - Develop employee skills

8.3.2 Assessment (2.4) - Retail There is potential to secure significant retail growth and a strengthening of the town centre as a retail area. The major drivers of future growth in the sector will include: population growth and the associated increased retail spending; improvements in the town centre and its retail mix; and increased in visitors to the area. In the final report, estimates will be prepared on the impacts of population growth and tourism growth on expenditure and jobs. The current retail leakage is due to a number of factors: relative prices compared with the larger centres of Taree and Foster; specialist products which may only be available in the larger centres; and resident visits to Taree to access services (e.g. medical services, professional services) being combined with shopping. The inbound expenditure largely offsets this leakage and this expenditure is by tourist visitors to the Shire and by persons from adjacent Shires. Increased competition in the retail sector will reduce prices and is likely to reduce some of the retail leakage from the area.


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8.4 Services Sector (2.5) - Current Situation

8.4.1 Overview The Gloucester town centre is the retail, commercial, professional and community services centre for the Shire. A total of 25 service businesses were identified in the Ratio Consultants study, with a total floor area of approximately 5,200 m2 GLA. Services are important part of the local economy, and services jobs (230) represent around 13% of jobs in the Shire. The two major groups were public administration (94) – mainly local government, and professional and technical services (65). The demand for services is driven by two factors – the size of the local population and business activity in the region, Population size and growth mainly impacts on retail level services, government services and some professional services). Business activity has an impact on professional, technical and other business services. This section covers a range of services including business, financial services and government services.

Sector Key Features

Services Sector Gloucester township is the major service centre for the Shire. It has a range of retail services, professional services and government services activities. The sector is driven by population size and the number of businesses in the Shire (increasing demand for professional services and other business services).


8.4.2 Service Activities Services are an important part of the Gloucester town centre and cover commercial, professional and community services. A total of 25 service businesses in these categories were identified in the 2006

study. These businesses accounted for a total floor area of approximately 5,200 m2 GLA.142 In addition, the Gloucester town centre provided a number of retail services (including several banks, dry cleaners, travel agent, real estate agents, hairdressers and other services). A total of 11 businesses occupied floor space of approximately 2,150 m2 GLA. It should be that the following data is for businesses that are registered in Gloucester, which means it does not include branches of national businesses (e.g. banks). The non employing businesses include sole practitioners and persons who may be working from home.

Table 50. Gloucester Shire – Services Businesses by Industry by Employment Size 2007

Industry Non

employing 1-4 5-19 20-49 50-99 Total

Communication Services 3 3 0 0 0 6

Finance & Insurance 12 0 0 0 0 12

Property & Business Services 75 15 9 0 0 99

Total 90 18 9 0 0 117

Source: ABS Business Register 2007

142 Development and Employment Land and Commercial / Retail Strategy : Business Study, Ratio Consultants 2006 P10


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8.4.3 Employment in Services Services jobs (230) represent around 13% of local jobs. The major categories were public administration and safety (94) (mainly local government services and other government agencies), and professional, scientific and technical services (65).

Table 51. Service Sector Jobs and Employed Residents Gloucester Shire 2006



Gloucester Residents Employed in Services 76 109 185



Jobs in Services in Gloucester Shire 127 103 230



Table 52. Jobs in Services - Gloucester Shire -2006

Services Sector Males Females Persons Share (%) of all Jobs

Information media and telecommunications 6 9 15 0.9

Financial and insurance services 3 15 18 1.0

Rental, hiring and real estate services 9 14 23 1.3

Professional, scientific and technical services 27 38 65 3.7

Administrative and support services 11 4 15 0.9

Public administration and safety 71 23 94 5.4

Total Services Jobs 127 103 230 13.2

Total All Jobs 958 779 1,737 100

Source: ABS Census 2006 Working Population data

The following shows a more detail breakdown of jobs by sector. It shows that the major business services categories included professional services (legal, accounting, engineering); real estate and property services, Public administration (84) and safety (10) accounted for 94 jobs.

Table 53. Jobs in Services by Segment - Gloucester Shire - 2006


Information media and telecommunications

Publishing (except internet and music publishing) 3 9 12

Telecommunications services 3 0 3

Information media and telecommunications total 6 9 15

Financial and insurance services

Finance 3 15 18

Insurance and superannuation funds 0 0 0

Auxiliary finance and insurance services 0 0 0

Financial and insurance services total 3 15 18

Rental, hiring and real estate services

Property operators and real estate services 9 14 23

Rental, hiring and real estate services total 9 14 23

Professional, scientific and technical services

Professional, scientific and technical services (except computer system design and related services) 22 33 55

Computer system design and related services 5 5 10

Professional, scientific and technical services total 27 38 65

Administrative and support services

Administrative services 3 3 6

Building cleaning, pest control and other support services 11 4 15

Administrative and support services total 14 7 21

Public administration and safety

Public administration 61 23 84

Public order, safety and regulatory services 10 0 10

Public administration and safety total 71 23 94

Total Services Jobs 130 106 236

Source: ABS Census 2006 Working Population data


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The following table provides a detailed occupational breakdown of employed residents of the Shire, who work in the services sector. This is a based on the occupations that are nominated by persons in their response to the ABS Census 2006 question on their main job. There are a number of factors in relation to this data. Some of these persons may be working in jobs outside of the Shire (e.g. in Taree or Newcastle) and some persons who have moved into the region for lifestyle reasons may be undertaking part-time consulting work in the Shire or further afield.

Table 54. Employed Persons in Service Occupations–Gloucester Shire 2006 Males Females Persons

Accounting and Legal

Accountants 5 3 8

Accounting Clerks 3 4 7

Solicitors 3 0 3

Bookkeepers 3 24 27

Finance Managers 3 3 6

Accounting and Legal Total 17 34 51

Finance

Bank Workers 3 12 15

Finance Total 3 12 15

Property Services

Real Estate Sales Agents 5 4 9

Auctioneers, and Stock and Station Agents 8 0 8

Property Services Total 13 4 17

Building and Construction

Architects and Landscape Architects 3 0 3

Architectural, Building and Surveying Technicians 3 0 3

Cartographers and Surveyors 3 0 3

Civil Engineering Draftspersons and Technicians 3 0 3

Civil Engineering Professionals 4 0 4

Electronic Engineering Draftspersons and Technicians 3 0 3

Other Building and Engineering Technicians 3 0 3

Building and Construction Total 22 0 22

ICT Services

ICT Managers 3 0 3

ICT Professionals, nfd 4 0 4

Software and Applications Programmers 3 0 3

ICT Services Total 10 0 10

Agribusiness Services

Agricultural Technicians 3 0 3

Agricultural Services Total 3 0 3

Other Professionals

Industrial, Mechanical and Production Engineers 3 0 3

Aircraft Maintenance Engineers 3 0 3

Occupational and Environmental Health Professionals 3 0 3

Environmental Scientists 0 5 5

Marine Transport Professionals 3 0 3

Tourism and Travel Advisers 0 4 4

Advertising and Marketing Professionals 3 0 3

Photographers 3 0 3

Management and Organisation Analysts 3 0 3

Contract, Program and Project Administrators 3 3 6

Other Professionals Total 24 12 36

Administrative

Receptionists 0 19 19

Secretaries 3 35 38

Office Managers 0 14 14

Administrative Total 3 68 71

Inadequately described/Not stated

Inadequately described 9 3 12

Not stated 8 7 15

Inadequately described/Not stated Total 17 10 27

Total Services Occupations 105 140 245

Source: ABS Census 2006 Resident Population data 2006


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8.5 Future Opportunities (2.5) – Services

8.5.1 Opportunities (2.5) - Services The major opportunities for growth are: strengthening local services through stronger linkages to agribusiness, mining and other sectors in the region; developing new service businesses that have broader regional markets; encouragement of professionals seeking a lifestyle change and who can operate their businesses from Gloucester; encouragement of new businesses; linking/clustering of micro-businesses, including assessing the potential for a business/serviced office for micro-businesses; accessing government business programs and delivering them through the Chamber of Commerce. S2.4 Services Opportunities Opportunities Description Impacts Strengths Constraints Development

Requirements

S2 Developing Key Sectors: Services

S2.4 Services Strengthen services sector. Build stronger linkages to mining and agribusiness. Encourage service business to locate in Gloucester.

Strengthen services -Demand for services are dependent on population growth and business growth in the region. Business Linkages -Business services tend to be localised dependent on strength of agribusiness and other businesses. - Areas to strengthen are : services to mining sector; and services to agribusiness - Development of horticulture will increase demand for technical advice services. New Service Businesses -In an online world service providers can be anywhere. - Encourage services businesses and Gloucester as a lifestyle location (e.g.. advisory and consulting businesses) - Examine opportunity for clustering service businesses. - Assess potential for a business centre/serviced offices for micro-businesses

- A stronger service sector will provide additional professional jobs.

- Current business services sector (professional and technical services) - Existing services for agribusiness. - Population is growing. - Mining and energy businesses are expanding.

- Competition from service providers in other larger centres. - Regionalisation of services by banks and other national organisations. -Pressure for regionalisation of government services

Business Linkages - Encourage business use of local service providers (e.g.. mining sector, other businesses) - Attract more businesses to the area. New Business Development - Encourage a clustering of small service businesses - Provide business support services to micro-businesses, through the Chamber of Commerce. - Assess potential for a business centre/service offices for micro-businesses.


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8.5.2 Assessment (2.5) - Services The future for services industries will be driven by the size of the population (retail level services and government services) and growth in business activity (professional, technical and business services) in the region. It will also be influenced by the extent to which Gloucester can become a hub for persons (seeking a lifestyle change), and who deliver services to a wider markets.

Future growth in the retail sector will be driven by population size and composition and development of the tourist market. The future for services industries will be driven by the size of the population (retail level services and government services) and growth in business activity (professional, technical and business services) in the region. This highlights the importance of growing and renewing the population, which will only occur through the attraction/creation of new jobs in the region.

The major constraints on developing the services sector are: the size of the local population and scale of businesses in the area; competition from service providers in other larger centres; and pressures from the regionalisation of services by banks and other national organisations and the regionalisation of government services.


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9 Mining and Energy Sector

9.1 Sector (S3) Overview

Mining and energy are major activities in the region. There is a need to maximise regional benefits from these activities.

Sector Key Features

Mining - coal and gas Coal mining is significant through mining operations and some support activities. The Gloucester Coal Company operates two open-cut mining operations producing thermal and coking coal for domestic and export markets. AGL is developing coal seam gas.

Gloucester Coal: currently operates two mining operations at Stratford and in Duralie (outside the LGA). The deposits are located in the Gloucester Geological Basin, and the company has licenses (Coal Exploration Licenses A311, A315 and EL6904), which cover a major area of the Basin. Leighton Mining operates the mine under contract to Gloucester Coal. Duralie produces around 2 million tonnes of coal per year. At Duralie, Leighton Mining is responsible for all of the mine planning, surface mining operations and site rehabilitation (with 70 employees).

Gloucester Coal Seam Gas (CSG) Project: involves the development of coal seam gas in the area. The project includes: the installation of gas wells; construction of a central processing facility; and construction of a high-pressure pipeline to transport the gas. The project is being implemented by AGL, who acquired the coal gas seam assets in December 2008. AGL has other gas projects in the Hunter, Central Coast and Sydney Region.

Stratford Industrial Park: Gloucester Coal is proposing the development of an industrial/energy park (Stratford Industrial Park) at the site of the compression plant. Industries which could benefit from access to gas, electricity, steam, water or proximity to rail will be being targeted for the site. Gloucester Council has commissioned a technical study to identify the synergistic activities that could be located in this industrial park.

9.2 Mining in the Region (S3.1)

Gloucester Coal: currently operates two mining operations at Stratford and in Duralie (outside the LGA).

9.2.1 Employment in the Mining Sector

There were around 100 persons employed in the mining sector in Gloucester Shire in 2006. ABS Census data shows there were 99 jobs in the mining sector in Gloucester LGA, with 76 of these jobs being held by local residents. Since 2006 there has been increase in jobs in the sector. The other employment that is associated with mining is contractors, who are involved in construction, maintenance, servicing and some operations at the mine.

Table 55. Employment in Mining Gloucester Shire 2006 Males Females Persons


Gloucester Residents Employed in Mining 68 8 76



Jobs in Mining in Gloucester Shire 83 9 92

Jobs in Non-metallic mineral product manufacturing 4 3 7

Total Mining 87 12 99




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Table 56. Jobs in the Mining Sector Gloucester Shire 2006

Males Females Persons Mining

Coal mining 64 9 73

Oil and gas extraction 0 0 0

Exploration and other mining support services 19 0 19

Total Mining 83 9 92

Manufacturing

Non-metallic mineral product manufacturing 4 3 7

ABS Census 2006 Working Population Data

Occupation data shows that of the 92 mining jobs (in 2006): 47 were machinery operators and drivers (including 36 drillers, miners and shot firers); 24 were tradespersons and technicians; 5 were professionals; and 7 were managers.

9.2.2 Gloucester Coal Operations Current Mines Gloucester Coal currently operates two mining operations at Stratford and Duralie.143 The deposits are located in the Gloucester Geological Basin, and the company has licenses (Coal Exploration Licenses A311, A315 and EL6904), which cover a major area of the Basin and include known coal deposits. The Stratford mine has operated since 1995. Information from Gloucester Coal, indicates that the site has involved investment of $39 million covering site work, buildings and the coal processing plant. The mine had a capacity of 2.7 Mtpa in full production and had 120 employees. Coal production from the Stratford Main Deposit ceased in mid 2003. The area is now being utilised for the Stratford Coal Handling and Preparation Plant, which takes coal from the Duralie site.

Source: http://www.gloucestercoal.com.au/operations.php

143 Duralie mine is outside the Gloucester LGA.

http://www.gloucestercoal.com.au/operations.php


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Bowens Road North (BRN): This deposit commenced production in early 2003 and is located 1.5 km north of the Stratford Main Deposit. Coal mined this deposit is used either blended with raw coal from other GCL operations and washed to produce coking and thermal coals for the export market or sold as an unwashed thermal coal into the domestic market. Duralie Project The Duralie Project commenced mining operations in March 2003. Duralie is located in the southern part of the Gloucester Basin, and is 20 kilometres south of GCL's Stratford Operation (outside of Gloucester Shire). Duralie is integrated with the Stratford Operation, with coal being transported to Stratford by using a shuttle train on the existing rail line. Duralie produces around 2 million tonnes of coal per year. Duralie produces a high fluidity coking coal. To optimise the recovery of coal, Duralie coal is blended with other raw coal and washed to produce low ash coking coal and a higher ash thermal coal. This occurs at the Stratford Coal Handling and Preparation Plant (CHPP). All coal is transported by rail to Newcastle for export or for distribution to New South Wales power stations. Leighton Mining operates the mine under contract to Gloucester Coal. At Duralie, Leighton is responsible for all of the mine planning, surface mining operations and site rehabilitation. Leighton also provides drill and blast services for the Bowens Road North Mine. There are 70 Leighton employees at the mine, working 11 hour shifts on a continuous roster, six days a week. Leighton indicates that most employees live locally and are long-term employees. The team is involved in the operation and on site maintenance of the equipment.

There is a proposal from Gloucester Coal to extend mining at the Duralie site. As of July 2010, the project had under ‘assessment’ status from NSW Department of Planning. The Duralie Coal Extension Project includes the following: extending the open cut mining area to extract an additional 20.5 million tonnes of coal and approximately 114 million bank cubic metres of additional waste rock; continuing mining operations for an additional 9 years until 2020; extracting up to 3 million tonnes of run-of-mine (ROM) coal a year; transporting ROM coal to the Stratford coal mine by rail for processing; constructing and utilising additional infrastructure; continued employment of up to 135 full-time employees; and progressively rehabilitating the site.144

The expected employment impact of extension of the Duralie mine is continuation of between 110-120 full time employees of Gloucester Coal and Leighton for a further 9 years to 2020. The extension will result in an increase in the amount of coal produced per year, from 2 million tonnes to 3 million tonnes. The application submitted by Gloucester Coal Ltd to the NSW Department of Planning indicates that the estimated capital investment value of the project is $55 million.145 There has been local opposition to extension of mining at Duralie.

Impacts of the Project

An economic impact assessment was undertaken as part of the Environment Assessment and it indicates the following:

The project has a net production benefit of $247 million, distributed among stakeholders including: Duralie Coal Pty Ltd (DCPL) and Gloucester Coal Ltd (GCL) shareholders; the NSW Government via royalties; and the Commonwealth Government in the form of company tax.146

The net benefits to the community are estimated at $336 million.

The regional impacts for (Gloucester and Great Lakes is estimated at $208m in annual direct and indirect regional output or business turnover; $84m in annual direct and indirect regional value-added; $10m in annual household income; and 166 direct and indirect jobs.

The report indicated that the project would be unlikely to cease before the 9 year period is completed. It highlighted the need to take advantage of the stimulation to regional economic activity that the project brings to the region, to strengthen and broaden the region’s

economic base. 147

144 Duralie Coal Extension Project. NSW Department of Planning. http://majorprojects.planning.nsw.gov.au/index.pl?action=view_job&job_id=2761, accessed 15 July 2010. 145 Environmental Assessment Duralie Extension Project. Executive Summary. Gloucester Coal. P ES-1. 146 Appendix G Duralie Extension Project Socio-Economic Assessment, Prepared for Duralie Coal Pty Ltd by Gillespie Economics, November 2009, P ES1 147 Appendix G Duralie Extension Project Socio-Economic Assessment, Prepared for Duralie Coal Pty Ltd By Gillespie Economics, November 2009, P ES2

http://majorprojects.planning.nsw.gov.au/index.pl?action=view_job&job_id=2761


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9.3 Future Opportunities (3.1) - Mining

9.3.1 Mining Opportunities

Mining activity has been a major component of the local economy and coal and gas will remain important in the region. New mining exploration is now being undertaken adjacent to current mining operations and in relatively close proximity to the Gloucester township.

The key regional response needs to be to maximise the regional benefits from mining activity. Expansion is occurring in existing mine areas, and there are leases held over wider areas. There is a need to preserve the balance and avoid encroachment of mines into areas around the town centre or in view corridors. Encroachment will negatively affect other sectors of the regional economy such as tourism and agri-tourism. S3.1 Mining Opportunities Opportunities Description Impacts Strengths Constraints Development Requirements

S3 Maximising Regional Benefits

S3.1. Mining -Gloucester Coal: currently operates two mining operations at Stratford and Duralie. - There is a need to maximise the benefits in terms of local jobs, service provision, and royalties to the local area.

- Expansion occurring in existing mine areas.

- Leases held over wider areas by a second company

- Need to preserve the balance and avoid encroachment of mines into areas around the town centre or in view corridors

Existing Mines - Expansion of existing mines and gas project will increase regional jobs. Mine employs estimated 120 persons.

- Need to encourage more mining employees to live in the area.

- Mining/gas contractors represent the major week day market for motels.

Future Areas - Need to avoid encroachment on Gloucester Town Area and view corridors.

- Significant deposits of coal that can be mined (expansion around existing areas). - Coal seam gas deposits are substantial.

- Potential encroachment on town areas (from other leases) - Not all employees/contractors live in the area – use of contractors who come in to region.

Development - Recognise that industry will continue and seek to maximise the regional benefits. - Seek to maximise number of local jobs (direct employees and servicing businesses) -Attract more employees to live in the area. - Develop Stratford Industrial Park to secure long term industry jobs.

- Need to avoid encroachment on town area. Mining activity closer to the town centre would negatively affect the tourism and agri-tourism sectors.

- Explore opportunity to secure a share of state royalty income for strategic development projects /infrastructure

This could be modelled on the WA Royalties for Regions Program

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9.3.2 Assessment (3.1) - Mining Maximising benefits involves more local employees and service suppliers to the mine. There is a need to secure funding for the diversification of the economy for the post coal period. There are several dimensions to this: establishing other activities (e.g. in the Stratford Industrial Park) ; and securing funding for strategic infrastructure to support diversification (under a share of royalties program – like the Royalties for Regions program in Western Australia).

9.4 Gloucester Coal Seam Gas Project (S3.2)

9.4.1 The Project

The Gloucester Coal Seam Gas (CSG) Project involves the development of coal seam gas in the area. The project includes: the installation of gas wells; construction of a central processing facility; and construction of a high-pressure pipeline to transport the gas. The project is being implemented by AGL, who acquired the coal gas seam assets in December 2008.148 AGL has other gas projects in the Hunter, Central Coast and Sydney Region.

The gas will supply a growing market in Sydney and Newcastle. Gas from the Gloucester will be delivered into the existing New South Wales gas market through the pipeline connection into the existing Newcastle/Sydney gas network at Hexham. Several advantages have been identified for the development of the reserves: natural gas can fuel power generation and have lower emissions; and the Gloucester Basin reserves are located close to markets, including the growth region of Newcastle and the Hunter Region. 149

The Gloucester Basin has significant reserves. This has been assessed to comprise current reserves of 423 petajoules (PJ) of 2P (Proved and Probable) Reserves and 630 PJ of 3P (Proved, Probable and Possible) Reserves. Gas from the Gloucester Basin would produce at 20-30 PJ per year which is more than 10% of the existing New South Wales market.150

There are three components to the development in the Gloucester area: gas field area; corridor for the gas pipeline and the site for a Central Processing Facility. Pilot drilling of wells, testing and exploration has been undertaken since 2008.

148 AGL acquired the Gloucester Basin coal seam gas assets in December 2008. The petroleum export licence ( PEL 285) has 175 PJ of 2P reserves certified by NSAI as at February 2008, representing approximately 26% of New South Wales certified reserves. 149 CSG is a relatively ‘clean’ energy source compared to other hydrocarbons, burning much more efficiently than coal or oil and generating approximately 40% less greenhouse emissions than conventional electricity generation. Gloucester Coal Seam Gas Project Factsheet – Project Overview; Gloucester Coal Seam Gas Project Factsheet – Frequently Asked Questions. 150 Gloucester Coal Seam Gas Project Factsheet – Project Overview; Gloucester Coal Seam Gas Project Factsheet – Frequently Asked Questions.


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Source: Gloucester Coal Seam Gas Project Factsheet - Project Overview

The Project involves four integrated components.

Project Components

1. Gas Field Development Area (GFDA): development of producing wells and associated infrastructure within the Concept Area and Stage 1 GFDA. The project development plans for 60-90 wells between the east of Gloucester and to the south of Stratford. All gas from the wells is carried to the Central Processing Facility by underground pipelines.

2. Central Processing Facility (CPF): this facility at Stratford comprises compression of gas up to 30PJ per year with an 80 TJ/day average, water treatment facility including associated storage and evaporation ponds, small scale ancillary power generation facility, and other ancillary infrastructure.

3. Gas Transmission Pipeline: high pressure gas pipeline from Stratford to Hexham

4. Hexham Delivery Station (HDS): custody transfer point for Coal Seam Gas (CSG) from the pipeline to the Sydney Newcastle trunk pipeline. Source: www.agl.com.au/about/EnergySources/indevelopment/Pages/GloucesterGasProject.aspx

The central gas processing facility is adjacent to the Gloucester Coal processing plant at Stratford and will be part of the Stratford Industrial Park. Permanent employment is estimated by AGL at 30-40 ongoing jobs when the project is operational. There are also current contractor jobs associated with exploration and pilot testing, and there will be jobs associated with the construction of the gas plant and the pipelines.

9.4.2 Spin Off Developments There are some spin-off developments from the plant.

Industrial development: Gloucester Coal is proposing the development of an industrial park (Stratford Industrial Park) at the site of the compression plant. Industry which could benefit from access to gas, electricity, steam, water or proximity to rail are being are being targeted. Council has commissioned a technical study to identify synergistic activities that could be located in the industrial park.

Water: there is the potential to use some of the low salt content (treated water) for irrigation for agriculture or for industrial use.151 All water is to be stored on site in dams under strict environmental requirements and the treatment processes are monitored.

The NSW Department of Planning released the Gloucester Gas Project – Environmental Assessment (EA) in November 2009. The EA concluded that the proposed plans were environmentally acceptable

151 AGL has DPI approval for this. Water from the coal seam gas project, Community Information Fact Sheet, Number 5 September 2008

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provided that recommended safeguards outlined in the report were implemented.152 The Gloucester Gas Project Environment Assessment Report indicates that the project is considered to be consistent with economic development initiatives of Gloucester Shire Council. The report suggests that the project would potentially offset, some of the jobs lost in other sectors such as agriculture and forestry.

9.4.3 Economic Impacts The Gloucester Gas Project Environment Assessment Report (EA Report) indicates that there will be impacts for Gloucester during the construction phase and operational phase of the Gloucester Gas Project. Construction Phase: The EA Report indicates that construction is likely to result in between 300-465 temporary construction jobs, some of which would likely be sourced from persons in the local area. Presence of the construction workforce along the length of the pipeline will have short term impacts for the local economies of Gloucester and surrounding LGAs, due to the demand for goods and services by the construction workforce. (accommodation, food, fuel, infrastructure and other supplies), These benefits would also occur at other townships along the pipeline as construction moves along the length of the pipeline. The development of Stage 1 GFDA is expected to be approximately 18 months (or over) and the CPF and pipeline construction is expected to be approximately 12 months.153 The EA indicated that Construction Workers Camps would be established as part of the Project to accommodate workers within the Stage 1 GFDA and mid way along the pipeline.154 Gloucester Gas Project – Estimated Construction Phase Jobs

Number of Employees

Stage 1 GFDA (construction and drilling) 50-100

Central Processing Facility (CPF) construction 40-50

Pipeline construction 200-300

Management and office staff 10-15

Total Construction Personnel 300 - 465

Source: Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM, P16-14 (P338).

Operational phase: the EA Report indicates that up to 40 personnel would likely be associated with operation of the Gas Project.155

Stratford Industrial Park: There is potential for indirect economic impacts through the development of the Industrial Park. Gloucester Coal is proposing the development of the industrial park at the site of AGL’s Central Processing Facility, adjacent to Gloucester Coal’s processing plant at Stratford. The industrial park would provide businesses with reduced cost access to energy and treated water and access to the Sydney to Brisbane rail line for transporting goods.

152 Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM. http://majorprojects.planning.nsw.gov.au/files/44238/Volume1_Environmental_Assessment_11Nov09.pdf, accessed 15 July 2010. 153 Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM, P20-5 (P389). 154 Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM, P20-5 (P389). 155 Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM, P20-7 (P391).

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9.5 Future Opportunities (3.2) - Energy and Gas

9.5.1 Energy and Gas Opportunities

This is a major project, which has a relatively long time horizon. The key is to maximise local benefits from the development and operations phases. S3.2 Energy & Gas Opportunities Description Impacts Strengths Constraints Development

Requirements

S3 Maximising Regional Benefits

S3.2 Energy & Gas Gloucester Coal Seam Gas (CSG) Project (AGL) - Major opportunity relates to securing local jobs on the project. - Developing synergistic industries utilising electricity, gas or water at Stratford Industrial Park

- Involves the development of coal seam gas in the area. -The project includes: the installation of gas wells; construction of a central processing facility; and construction of a high-pressure pipeline to transport the gas. - Maximise local returns from the project\.

- Development - there are current contractor jobs associated with exploration and pilot testing, and there will be jobs associated with the construction of the plant and the pipelines. -Operational employment is estimated by AGL at 30-40 ongoing jobs when the project is operational. - Potential for local businesses to provide engineering support to operations.

-Long term gas deposits - Potential for new energy related industry at Stratford.

- Some community concerns about the project.

Development - Project has been assessed by the NSW Department of Planning as environmentally acceptable.156 - Assess potential linked activities for Stratford site - Identify opportunities for supply of local services to the project

156 Gloucester Gas Project – Environmental Assessment. November 2009. Volume 1. Main Report. AECOM. http://majorprojects.planning.nsw.gov.au/files/44238/Volume1_Environmental_Assessment_11Nov09.pdf, accessed 15 July 2010.

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9.5.2 Assessment (3.2) - Energy and Gas

This is a significant long term project for the area that can create 30-40 operational jobs at the compression plant. There are synergistic benefits from the operations of the plant, in terms of water and energy availability, which can provide a resource base for new industries at Stratford. There are opportunities to maximise local benefits in terms of jobs and business providing support services.

9.6 Royalties for Regions (S3.3)

Royalties for Regions is an initiative of the Western Australian Government that allocates the equivalent of 25 % of the State’s mining and onshore petroleum royalties to the State’s regional areas each year. This funding is allocated to regional investment in projects, infrastructure and community services. In 2009/10 this provided $619 million for regional communities.

There are 3 funds: Country Local Government Fund, Regional Community Services Fund and Regional Infrastructure and Headworks Fund (including Regional Grants Scheme). There is the potential to develop a similar program for funding strategic projects in mining regions in New South Wales, including projects and infrastructure to support diversification of the regional economies.

Royalties for Regions Program

Program Description Country Local Government Fund Provides funding to local government to build and maintain their community infrastructure. Nine mining regions

are eligible for funding. Administered by the Department of Regional Development and Lands.

Regional Community Services Fund The Regional Community Services Fund Assists regional communities: to achieve improved access to a range of community services; to overcome disadvantages caused by remoteness; and to attract and retain essential regional government employees. Some of the projects/programs that the fund supports are Patient Assisted Travel Scheme, Boarding Away from Home Allowance, Royal Flying Doctor Service, Community Resource Centres, and Country Age Pension Fuel Card.

Regional Infrastructure and Headworks Fund (including Regional Grants Scheme) A provision of $201.9 million was allocated in 2008-09.

Strategic Major Regional Projects The Regional Infrastructure and Headworks Fund supports large-scale, strategic regional infrastructure and headworks projects . Projects include the Ord-East Kimberley Expansion Project, the Exploration Incentive Scheme, Pre-Feasibility Pilbara/Gascoyne, Regional Workers Incentives, Housing for Workers; hospital upgrades (Kalgoorlie Hospital, . Nickol Bay Hospital), and Pilbara Revitalisation Plan. Regional Grants Scheme (announced February 2009) Program offers contestable funds for community, private and public organisations to improve and develop infrastructure and services in their regions and ,make communities vibrant places to live. The grants fund projects that attract investment and increase jobs as well as improve the quality of life in the regions. Grants for round one totalled $32.4 million (for a total of 320 projects).Projects ranged from small building improvements to major facility upgrades; from support for community events to the expansion of environmental and tourism attractions. The scheme’s broad objectives are to: increase capacity for local strategic planning and decision-making; retain and build the benefits of regional communities; promote relevant and accessible local services; assist communities to plan for a sustainable economic and social future; enable communities to expand social and economic opportunities; assist regional communities to prosper through increased employment opportunities, business and industry development opportunities, and improved local services. Nine Regional Development Commissions administer the Regional Grants Scheme with support from the Department of Regional Development and Lands. Example: Munda Biddi Trail : $3 million to construct the Nannup to Albany section of the Trail. Munda Biddi Trail is a world-class cycle touring trail. The project will increase visitation to the Great Southern and South West regions, build the viability of existing tourism outlets and diversify and strengthen the regional economy.

Source: Royalties for Regions Progress Report December 2008 – June 2009, Western Australia Government 2009 http://www.royaltiesforregions.wa.gov.au/Default.aspx

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Regional Infrastructure and Headworks Fund

Location Priority projects as per cabinet approval on 29 June 2009 $M

Shire of Ashburton Onslow Multi-Purpose Complex, Tom Price Town Centre Revitalisation (Shire of Ashburton Strategic Plan)

17.0

Shire of Roebourne Karratha Learning and Leisure Precinct, Town Centre Enhancement (Karratha 2020 Vision)

20.3

Shire of East Pilbara Newman Town Centre redevelopment/land release incorporating the Newman Cultural Precinct (Newman Tomorrow)

20.0

Town of Port Hedland Multi-purpose recreational facility, Marquee Park, Hedland Youth Precinct, McGregor St precinct redevelopment, crime prevention and safety initiatives, Town Cycle Plan and public amenity enhancement (Hedland’s Future Today)

20.2

Pilbara wide Health equipment (Western Australia Country Health Service) 2.5

Pilbara wide Pilbara Water Feasibility Study (Department of Regional Development and Lands) 2.5

Pilbara wide Pilbara Underground Power Project (Office of Energy/Horizon Power) 35.0

Source: Royalties for Regions Progress Report December 2008 – June 2009, Western Australia Government 2009 P22

Strategic Major Projects

Initiative 2008-09 $M

Nickol Bay Hospital 0.40

Housing for Workers 20.00

Regional Airports Development Scheme 0.50

Regional Grants Scheme 39.96

Regional Grants Scheme Strategic Reserve

0.04

Ord-East Kimberley Expansion Project 14.00

Housing for Workers – South Hedland Town Centre Revitalisation

4.20

Exploration Incentive Scheme 1.90

Pilbara Revitalisation Plan 120.00

Source: Royalties for Regions Progress Report December 2008 – June 2009, Western Australia Government 2009 P18


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10 Attracting Business

10.1 Stratford Industrial Park (S4.1)

The proposal by Gloucester Coal is for an industrial park or energy park.157 The site is located on Bucketts Way, and is 1 km from Stratford and 15 kms from Gloucester. The industrial area would comprise 235 acres. As well as having access to energy and treated water, the site provides access to the Sydney-Brisbane rail line.

Gloucester’s 2010 Local Environment Plan (LEP) was approved by the NSW Department of Planning on the 11 June 2010 and this includes a zoning of 95-hectares of land near Stratford as heavy industrial (IN3) land. Two thirds of this site is the subject of the AGL Gas Project proposal and a 70-lot industrial park is planned for the site.158 The AGL Gas Compression Plant will be the key tenant. Activities that have been identified as potential for the site include: industries using coal based materials in chemical production; energy intensive industries such as aluminium extrusion; brick manufacture; bulk chemical manufacture; heavy and light engineering; timber milling and processing; rail maintenance and repair; and intermodal freight and logistics. Some local businesses that service the mining sector are likely to move to the site. Council has commissioned a technical study to identify synergistic activities that could be located in the industrial park. Appropriate buffers are planned for the site, and the following is an indicative master plan.

Source: Stratford Industrial Park Brochure 2009

157 Stratford Industrial Park Brochure 2009 158 New Gloucester LEP Protects Shire’s Environmental Values. NSW Department of Planning. http://www.planning.nsw.gov.au/DesktopModules/MediaCentre/getdocument.aspx?mid=333, accessed 15 July 2010.

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10.2 Future Opportunities (S4.1) - Stratford Industrial Park

10.2.1 Opportunities Industry Park offers the opportunity to attract major industries to the region. This is one of the major development opportunities for the Shire. There is a need to stage the development of the site and have an active program of business attraction.

S4.1 Stratford Industrial Park

Opportunities Description Impacts Strengths Constraints Development Requirements

S4 Attracting Business

S4.1 Stratford Industrial Park (energy park) -Staged development of the park -Attraction of new industries to the region

- Industry Park offers the opportunity to attract major industries to the region. - Gloucester’s 2010 Local Environment Plan (LEP) includes a zoning of 95-hectares of land near Stratford as heavy industrial (IN3) land. Two thirds of this site is the subject of the AGL Gas Project proposal and a 70-lot industrial park is planned for the site.159 - Businesses that have significant input requirements for energy and water, and require transport of goods to Brisbane and Sydney, are potential candidates for the industrial

park. The AGL gas compression plant will be the key tenant. - Identified activities include: industries using coal based materials in chemical production; energy intensive industries such as aluminium extrusion; brick manufacture; bulk chemical manufacture; heavy and light engineering; timber milling and processing; rail maintenance and repair; and intermodal freight and logistics and businesses providing services to gas plant and the mine.

-The Park provides an opportunity to attract major businesses to Gloucester. The site will provide for increased jobs in the region.

- Suitable site for heavy industry. - Access to treated water. - Access to gas and electricity Highway location. - Rail access - Sydney-Brisbane rail line with a rail loop at the site. - Master plan prepared.

AGL is the only confirmed operation. - Opportunity assessment report being prepared. - The industrial park will need to be a staged development. - Planning issues: to facilitate business attraction there is the potential for lots to have pre-approved uses.

Development - Renaissance Planning has completed the master plan for the park. - Council has commissioned a technical study to identify synergistic activities that could be located in the industrial park.

Attraction - Identify and actively target potential businesses. -Ensure that businesses have access to State Government Incentives. - Coordinate business attraction with Gloucester Coal.

159 New Gloucester LEP Protects Shire’s Environmental Values. NSW Department of Planning. http://www.planning.nsw.gov.au/DesktopModules/MediaCentre/getdocument.aspx?mid=333, accessed 15 July 2010.

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10.2.2 Assessment (S4.1) - Stratford Industrial Park

The Stratford Industrial Park needs to be a key component of Gloucester’s future development. It offers the opportunity to attract significant businesses to the region. The 2010 Gloucester LEP paves the way for the development of a 70 lot Stratford Industrial Park.

There are a number of factors that favour the development of an industrial park at Stratford: AGL’s gas compression plant will be located at the site (to pipe commercial quantities of gas to Newcastle and beyond); there is potential for on-site electrical generation; there is an abundant supply of treated, industrial water (from Gloucester Coal and AGL); the site is located on the Sydney-Brisbane rail line with a rail loop at the site; there is road access through Bucketts Way; and there is natural buffering due to the topography of the site and surrounding area.

The supply of industrial quality water (treated, low salt water) at the site could be suitable for agricultural (e.g. vegetable growing, irrigation of pastures) or for industrial use. Renaissance Planning has been commissioned by Council to complete a demand assessment for the proposed Stratford Industrial Park. These consultants completed a structure plan for the industrial park in November 2009.

The structure plan suggests a number of industries that could operate at the site, including: industries using carbon or coal based materials in chemical production; energy intensive industries such as aluminium extrusion; brick and paving manufacturing, utilising local clay and energy; heavy and light engineering plants to service the coal mine and potential future gas and/or electricity plants; timber milling or processing and laminating; rail service and maintenance; and intermodal freight and logistics.160

Businesses that have significant input costs for energy and water, and require transport of goods to Brisbane and Sydney, are targets for the industrial park. However a key issue in attracting business to the park is the site’s isolation from a major urban area. The structure plan indicates that demand is likely to be intermittent as a result of this, and there are likely to be significant variations in the requirements of individual tenants.161 Renaissance Planning concludes that subdivision at the park will need to be staged and be varied in response to market demand.

During construction of Stratford Industrial Park, which comprises of the main avenue and connecting roads, there will be short term demand for jobs in construction, civil construction and landscaping. The long term impact on employment will depend on the success of attracting businesses to the site and the scale of these businesses and their linkage with other service providers in the region.

There are several key issues: there is a need to identify potential industries and to also identify businesses within each of the industries. Research is required on their requirements as part of a planned targeting of businesses. Information needs to be tailored to each.

Council and Gloucester Coal (as developer) need to be jointly involved in these activities. There needs to be a mix of businesses targeted – those that are linked to the mining and gas sector; and other businesses that take advantage of the assets of the industrial park.

160 Stratford Industrial Park Structure Plan. Renaissance Planning, November 2009, P10. 161 Stratford Industrial Park Structure Plan. Renaissance Planning, November 2009, P10.

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10.3 Future Opportunities (S4.2) - Light Industrial Businesses

10.3.1 Light Industrial Opportunities Future demand for light industrial land will be driven by population growth and industrial demand from mining, agribusiness and other industry sectors. A static population or a major decline in agribusiness would negatively impact on the light industrial sector (e.g. engineering and servicing). S.4.2 Light Industrial Businesses Opportunities Description Impacts Strengths Constraints Development

Requirements

S.4.2 Light industrial businesses -Continue to attract / encourage light industrial businesses -Priority is for businesses servicing a broader market

-There will be ongoing demand for light industrial sites in the Shire -Demand is from businesses servicing local markets and businesses servicing broader regional markets.

Industrial activity provides demand for local business services and provides local jobs.

-Overall demand will be driven by population growth and industrial demand (mining, agribusiness, new industry). -Existing industrial estate has capacity for growth.

-Relatively small population -Away from major population centres. -Static population or an agribusiness decline will impact on this sector.

Development - Maintain existing industrial areas park close to town centre. - Assess future demand for sites . - Target attraction of these businesses.

10.3.2 Assessment (S4.2) - Light Industrial Businesses

The analysis by Ratio Consultants and consultations, indicate that the current supply of industrial land in the Gloucester Industrial Estate is adequate to meet future requirements. The current occupants comprise: businesses that are servicing the agribusiness sector; building and construction related businesses; and several manufacturing businesses that are servicing broader markets.

There are opportunities to develop light industrial businesses in the region. This would be based around: businesses servicing a regional population and regional businesses (mining, agribusiness, building and construction).

This requires a combination of encouraging existing businesses and attracting new businesses into the region. While there is scope for expansion of the Gloucester Industrial Estate, some vacancies may emerge as businesses servicing the mining and gas sector may move to Stratford.

A key issue is having businesses which service broader markets from Gloucester. This includes businesses servicing the mining sector elsewhere in the Hunter Region.

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11 Supporting Growth - Gloucester Town & Infrastructure

11.1 Overview - Requirements for Growth

Supporting regional growth involves a combination of town centre improvements and a range of support policies and programs. This chapter focuses on the town centre and infrastructure (tourism and industrial). 11.2 Gloucester Town Centre (S5) As a town centre, Gloucester is unique in having a streetscape that includes a range of inter-war buildings, which creates a village atmosphere in what is a compact retail and service centre. 162 At the time of the last study (2006), the Gloucester Town Centre had approximately 21,000 m2 of gross leasable area (GLA) comprising: retail and retail services (13,700 m2 GLA ) of retail goods and services floor space and commercial, professional, community and trade services (7,070 m2 GLA). The study predicted a longer term requirement for additional floor space of 5,980 m2 GLA (3990 m2 GLA retail and services; 1,990 m2 GLA for additional commercial, professional, community and trade services) 2021. This produces total 2021 floor space of 26,750 m2 GLA (17,690 m2 GLA of shopfront floor space and some 9,060 m2 of commercial, professional, community and trade services floor space). The retail centre currently has a balance of retail stores, retail level services (e.g. shop fronts services–hairdressers, travel agencies, dry cleaners,), and several cafes and restaurants. Commercial activities include banks, financial and legal services, and consulting services. There are also some community services located in the town. The co-location of these activities in and adjacent retail core, provides accessibility and the potential for more vibrant town centre. The future development of the tourism industry would have positive impacts on the viability of cafes and restaurants and other retail activity. The Gloucester town centre has a key role to play in the future of the region. There is a need to strengthen the town centre to ensure long term viability and vitality.

11.3 Future Opportunities- Gloucester Town Centre

11.3.1 Opportunities (S5.1) – Creating a Vibrant Town Centre Major issues in creating a more vibrant town centre are: improvements in the public domain to make the village more attractive; development of cafes and restaurants; retail competition to improve prices and reduce leakage; extension of retail trading hours during holiday periods and week ends; and increased residential densities around the town centre.

162 Gloucester Shire Council, Local Environmental Study 2006, Hunter Development Brokerage, March 2006 P9

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S5 Improving the Town Centre Opportunities Description Impacts Strengths Constraints Development Requirements

Supporting Growth

S5 Improving the Town Centre

S5 .1 Creating a Vibrant Town Centre - Increase residential densities - Revitalise the town centre - Maintain a competitive retail sector. - Maintain business services in the centre

Town Centre is strategically important for resident attraction, for tourism and for business. - Increase densities in town centre, including provision of units for seniors. - Make the town centre more attractive to visitors.

- A more vibrant town centre is important for development of tourism - Stronger centre will improve the level of business activity – in retail and in services.

Compact town centre: - Village feel - Rural outlook with view corridors - Good retail precinct. Co-location of services.

Town centre needs improvement: - Currently lacks vitality. - Needs to be made more visitor friendly.. - Early retail closing times. - Range of cafes etc.

Development - Increase residential densities around town centre - Improve public domain areas. - Develop more cafes and restaurants. - Improve retail mix and competition. - Lengthen retail opening hours. (e.g.. trial on long weekends etc.). - Create a more tourist friendly town centre environment. - Develop multi-use tourism centre as a gateway to the town,. - Need to consider the role of incentives for strategic r developments (including role of Section 94 and variations for key strategic projects).

11.3.2 Assessment (S5.1) – Creating a Vibrant Town Centre

The town centre has significant potential. An increase in population will increase demand for retail and services. Growth in visitor numbers will strengthen the hospitality sector and other tourism related services. The town centre is compact and has scope for improvement (increased residential densities and public domain improvements) which will underpin increased levels of activity.

11.4 Infrastructure (S6)

The key town infrastructure to assist development are : a the development of a multi-purpose Gateway Centre as an active tourism and community hub; the provision of industrial land for light industrial and support activities adjacent to the town; and consideration of the role of Section 94 contributions in relation to strategic development projects.

11.5 Gateway Centre (S6.1)

Gloucester lacks a clear entry point to the town and the current visitor information centre is not located in the right position.

11.5.1 Opportunities (S6.1) - Gateway Centre A feasibility report has been completed on a new facility that would: integrate visitor information; provide an interpretive centre on the region; provide an entry point to Gloucester; and be multi-use for tourism and community uses... The concept is for a multi-use facility that would provide: visitor information; an orientation to the national parks areas; office accommodation for the NPWS and Parks NSW; café and tourism retail; meeting facilities; and car and bus parking. The concept is for a multi-use facility that would be used for community activities as well the tourism role.

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S6.1 Gateway Centre Opportunities Description Impacts Strengths Constraints Development

Requirements

Supporting Growth

S6 Infrastructure

S6.1 Gateway Centre - Establish a new centre for tourism and community use.

Develop multi-purpose tourism /community facility centre as gateway to the town.

- Provides a visible entry point and source of information for visitors – to Gloucester and to national park areas. - Creates a new community facility.

- Brings together tourism information, NPWS and Parks NSW. - Provides a gateway to the town.

- Facility will also include a café , meeting spaces, and parking area.

- As a multi-use facility it provides for community use (e.g.. meetings, community cinema, events space etc).

- Need to secure funding for the building.

- Needs to secure other government agencies as tenants.

Development - A feasibility study has been completed. - Building costs may need to be reviewed.

- An update of the business plan is required.

- Capital funding needs to be secured for the facility.


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11.5.2 Assessment (S6.1) - Gateway Centre A feasibility study has been conducted. This study would need to be revisited in terms of estimates of construction costs. There is also a need update the business plan for the facility. The major issue is securing infrastructure funding for this facility and ensuring that it is operationally sustainable in the long term. A key feature of the latter is having NPWS and Parks NSW as tenants in the facility. An issue raised in the consultations was whether the Gloucester Golf Club could be developed to perform this role rather than constructing a new building. This was seen as a potentially lower cost solution in terms of construction costs and operational costs. While this could possible perform the tourist information functions of a visitor information centre, it would not have the collocation of NPWS and Parks NSW. This Gateway Centre should be seen as a strategic project for Gloucester’s future development. To proceed, it would require some funding support from the NSW Government. As strategic infrastructure to revitalise a region, it could be a potential project under a “royalties for regions” type program.

11.6 Industrial Land (S6.2)

Industrial land is critical to future of Gloucester. This has two components: land available for light industrial activities and support activities (located in the current industrial estate); and other industries being located in Stratford Industrial Park (analysed in detail in Section 10.1 of this report).

11.6.1 Opportunities (S6.2) - Industrial Land Major issues relate to: ensuring the industrial areas are suited to specific uses; attraction of new businesses to the region; and the staged development of the Stratford Industrial Park site. Development at Stratford is likely to be staged as tenants are attracted to the industrial park. This will require an active business attraction program. At the same time it is expected that some businesses located in the Gloucester Industrial Area, and who are supplying mining and gas sectors, may move to the Stratford Industrial Park. S6.2 Industrial Land Opportunities Description Impacts Strengths Constraints Development

Requirements

Supporting Growth

S6 Infrastructure S6.2 Industrial Land - Ensure that adequate supply of industrial land is available in line with demand.

- Growth in population and in local industry will maintain a demand for light industrial land. - Mining/energy linked activities and synergistic activities will locate at Stratford Industrial Park. There is a need to ensure that suitable sites are available.

- Stratford Industrial Park will attract heavier industries

- Light industrial is likely to remain in existing industrial estate which is near town centre.

-Land is available for industrial use. - Gloucester Mining wants to develop the Stratford industrial park.

- Small scale of existing industries (no large employers). - Stratford demand is likely to be intermittent. - Competing with other larger centres for businesses

Development - Need to assess future demand and requirements of specific industries. - Need to maintain current light industrial land. - Stratford will involve staged development and targeted attraction. - Targeted attraction will be required if new business are to come into the area.


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11.6.2 Assessment (S6.2) - Industrial Land

Discussions with Council indicate that the current Gloucester Industrial Area has capacity for expansion (including sites being available if some businesses move to Stratford). Growth in population and in local industry will maintain a demand for light industrial land and mining and energy linked businesses and synergistic activities will locate at Stratford Industrial Park.

Key issues are: a need to assess future demand and industrial land requirements of specific industries; maintenance of industrial land in Gloucester town for light industry and support activities and businesses requiring being in proximity to the major population centre; active program of targeted business attraction to secure new businesses into both industrial areas.


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12 Supporting Growth - Marketing & Engagement

12.1 Overview

There are a number of elements to support sustainable growth and a revitalisation of the Gloucester region. These supports underpin the programs and initiatives outlined in this report and include marketing the region (S7); collaboration and community engagement (S8); and arrangements for implementation of the strategy. These elements will be scoped in detail in the final strategy report (Report 3).

12.2 Marketing the Region (S7)

This includes marketing of the region covering population (resident attraction), business attraction, tourism, and agribusiness.

S7 Marketing the Region Program Description

Supporting Growth

S7 Marketing the Region

S7.1 Population -Active program of marketing the region as a lifestyle location. - Development of Shire information and update of resident information kits.

S7.2 Business Attraction -Targeted program of business attraction focused on: industrial businesses for Stratford Industrial Park (in partnership with Gloucester Coal) and light industrial businesses (Gloucester). - Attraction of tourism related businesses (e.g. accommodation, restaurants) - Attraction of agribusinesses (growers). - Redevelop marketing materials based on the research conducted for this strategy..

S7.3 Tourism -Development of new Gloucester tourism brand. - Redevelopment of collateral (online and print). - Active targeting of identified markets. - Coordination with broader regional marketing (Hunter Tourism)

S7.4 Agribusiness -Development of the regional agribusiness brand and marketing of region as a food region -Development of channels to market for new producers.

12.3 Collaboration and Community Engagement (S8)

This involves active involvement with industry and the community in implementation of the strategy and the development of specific initiatives. One vehicle is the use of the Community Economic Transition (CET) Program. The Community Economic Transition (CET) Program, which is funded by Industry & Investment NSW, aims to: bring together a variety of business, community and residents groups (including climate change action groups and transition town groups) to develop a plan that will reduce the community’s carbon footprint and to identify new opportunities for local economic growth.163

Program Description Supporting Growth

S8 Collaboration and Community Engagement

S8.1 Community Economic Transition Program (CET) (S8.1)

-Utilisation of the program to support implementation of this economic development strategy.

Gloucester is a recipient of CET funding and the initial Community Information evening on August 2 2010 attracted approximately 100 persons. The program addresses various sectors with a view on environmental and economic sustainability. It is consistent with the economic development strategy outlined in this report.

163 Gloucester Community Economic Transition Plan Steering Committee Meeting Presentation Slides, June 9 2010, (State & Regional Development & Tourism Division. Industry & Investment NSW)


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Source: Gloucester Community Economic Transition Plan Steering Committee Meeting Presentation Slides, June 9 2010, (State & Regional Development & Tourism Division. Industry & Investment NSW)

A number of issues were identified in relation to economic and environmental sustainability of the region.

CET Themes Activities Proposed

Tourism and Culture Ecotourism; walking and cycling tracks; arts & crafts; community events and celebrations; and heritage values. These identified activities align with strategic directions for tourism proposed in this strategy report. These relate to experience/adventure and nature based tourism segments and the other activities relate to improving the tourism offer of Gloucester.

Food growing, distribution and consumption Growing local food; farmers markets; food eating habits; community gardens; home gardens; and food distribution/food miles. These activities fit with the philosophy of the Gloucester Project. Gloucester Shire Council’s Economic Development Unit has already developed the Gloucester Farmers Market. In the related area of ‘agriculture’, diversification and jobs and re-skilling were listed.

Community infrastructure and essential services Village beautification; sporting and recreation facilities; community buildings and facilities; emergency services (bushfires and floods); and power, communication, waste management and water.

Other There are also a range of activities suggested under Transport, Housing and Business Efficiency, and Green Jobs and Business Development.

12.4 Implementation (S9) The implementation of the strategy involves a strengthening of the Economic Development Group and the use of industry taskforces. These will be scoped in the final report. Program Description

Supporting Growth

S 9 Implementation

S9.1 Economic Development Group - Give the group a strategic focus and inclusive membership.

-Strengthening the Economic Development Group (including membership) to implement the economic development strategy. - Defining its role (strategic direction and information) and ensuring that all key sectors including mining and energy are represented. -Taskforces would report to the Economic Development Group.

S9.2 Agribusiness Taskforce - Form a taskforce to develop agribusiness

-Creation of an agribusiness taskforce to develop and drive the implementation of the agribusiness programs. - Taskforce needs participation from all segments of agribusiness. - This includes the formation of agribusiness industry cluster.

S9.3 Tourism Taskforce - Form a taskforce to develop tourism

-Creation of a tourism taskforce to develop the sector and to drive specific tourism opportunities in the region.

S9.4 Data requirements - Improve regional information and track performance.

-Implementation of the strategy requires improved local information. -This information can be used to track performance of the region and outcomes of the economic development strategy. - Information can also be used in preparation of business cases and submissions. - Information also needs to be used in a business prospectus and in business attraction activities. - Specification of the data that is required for regional development, including industry


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data collection and regional indicators will be outlined in the final report.


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13 The Next Steps

This report provides an analysis and assessment of future opportunities for Gloucester regional economy and key development issues. It completes the main component of the project (Stage 1). The final stage of the project (Stage 2) involves incorporating the information in this report into an economic development strategy and action plan. This Stage 2 report is being finalised in parallel with this opportunities report.

Major components of this report will be incorporated in the final strategy report (Report 3). Areas where further analysis is being conducted for the strategy report have been identified in this report.

Stages Segments

Stage 1: Regional Economy Review and Opportunities Assessment

Report 1: Local Economy Review Segment 1 Local Economy Review - this comprised a regional audit to provide an evidence base on the regional economy and infrastructure. (this report

Report 2: Opportunities and Requirements Report Segment 2 Opportunity Assessment and Requirements - this segment has identified and scoped business opportunities for the region

Stage 2: Economic Development Strategy

Report 3: Economic Development Strategy

Segment 3 Economic Development Strategy Report – this segment involves the development of the economic development strategy and action plan (including recommendations on structure issues).


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Disclaimer

Disclaimer

This report is for the use only of the party to whom it is addressed and for the specific purposes to which it refers. We disclaim any responsibility to any third party acting upon or using the whole or part of the report and its contents.

This report (including appendices) is based on estimates, assumptions and information sourced and referenced by Buchan Consulting. These estimates, assumptions and projections are provided as a basis for the reader’s interpretation and analysis. In the case of projections, they are not presented as results that will actually be achieved.

The report has been prepared on the basis of information available at the time of writing. While all possible care has been taken by the authors in preparing the report, no responsibility can be undertaken for errors or inaccuracies that may be in the data used.

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