Stayover Dalby, Queensland Need and Demand Assessment Need and... · 2016. 9. 29. · Stayover Dalby – Need and Demand Assessment 3 Stayover Dalby facilities such as cinema rooms,

Stayover Dalby, Queensland

Need and Demand Assessment

Prepared for Ausco Modular

January 2016

Stayover Dalby – Need and Demand Assessment

i Table of Contents

TABLE OF CONTENTS

INTRODUCTION ............................................................................................................................................. ii

1 STAYOVER DALBY .................................................................................................................................. 1

2 PLANNING FRAMEWORK ...................................................................................................................... 5

3 MAJOR PROJECTS ................................................................................................................................ 12

4 PROJECTED WORKER NUMBERS ......................................................................................................... 22

5 NON‐RESIDENT WORKER ACCOMMODATION .................................................................................... 27

6 BENEFITS OF STAYOVER DALBY .......................................................................................................... 34

7 CONCLUSIONS ..................................................................................................................................... 39


ii Introduction

INTRODUCTION

This report presents an independent assessment of the need and demand for the continuing

operation of the Stayover Dalby workers accommodation facility. The Stayover facility on

the Warrego Highway (Stayover Dalby) at Dalby is a non‐resident (workers) accommodation

village of 558 rooms, which has been in operation since approximately 2010.

This report reviews the need and demand for Stayover Dalby, including specifically the role

it has played in the Dalby economy over the past five years and the link between the Ausco

facility and the hotels/motels within town.

This report is presented in a number of sections including:

Section One reviews the existing facility.

Section Two provides a review of the planning environment.

Section Three details major projects which would result in demand for non‐resident

(workers) accommodation.

Section Four presents estimates of projected worker numbers throughout the Dalby

region.

Section Five reviews non‐resident worker accommodation within the Dalby area.

Section Six outlines the benefits of Stayover Dalby.

Section Seven details the conclusions of the need and demand for the continued

operation of Stayover Dalby.


1 Stayover Dalby

1 STAYOVER DALBY

i. Stayover Dalby is located on the Warrego Highway on the western edge of town in

Dalby. It is a 558 person non‐workers accommodation village designed to provide

convenient, comfortable and serviced accommodation for workers of the mining and

resource companies operating in the region.

ii. In recent years, the facility has been an essential element of supply in non‐resident

accommodation for workers associated with the Queensland Gas Corporation (QGC)

coal seam gas project and the Arrow Energy Project.

iii. Chart 1.1 illustrates the number of room at the Stayover Dalby facility and occupancy

rates. The key information includes:

a. The number of rooms (on the left hand axis) that have been operational at

the site at 558 since February 2012.

b. The occupancy rate, illustrated in red, which included the number of rooms

occupied during any one night. This indicates varying rates between 4% ‐ 89%

over the past five years, with substantial demand peaking from January 2012

until recently, in line with the construction of infrastructure for the QGC

project as the ‘workfront’ moved through the local area.

c. The total usage of facilities at the site includes rooms held for specific

contractors/firms but not necessarily occupied on any one night. This

indicates a provision of close to 100% usage over the project until late 2013.

iv. Overall, the Stayover Dalby facility has been an essential element in accommodating

the workforce in the Dalby region historically and more recently as part of the coal

seam gas project.


2 Stayover Dalby

CHART 1.1 – STAYOVER DALBY ROOMS AND OCCUPANCY

v. The attraction of Stayover Dalby to large companies undertaking projects within the

Dalby region is reflective of a number of factors including:

a. Workers are accommodated in bulk workforce locations and able to be

bussed to and from facilities, reducing travel times and impacts on local

infrastructure.

b. The guarantee of a certain number of rooms which would always be available

for the company, to accommodate its workforce flexibly.

c. The workforce is ‘supervised’ with regard to their behaviour and impacts on

the local community.

d. A dining hall is provided, catering for all dietary needs and ensuring a healthy

diet for the workers, and relieving workers of the need to find the time and

have the skills and energy to provide food for themselves after long shift

work.

e. Modern facilities such as Stayover Dalby provide an enhanced level of

amenity including gymnasium, BBQ facilities, landscaping, entertainment

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Occu

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umber of rooms

Month of Year

Rooms (LHS) Occupancy (RHS) Total Usage (RHS)


3 Stayover Dalby

facilities such as cinema rooms, computer/Wi‐Fi services, billiard table, duty

manager and on‐site security and the like.

f. Ease of connections to town.

g. Specialised facilities such as first aid centre, training room, ice rooms, alcohol

monitoring devices and the like.

h. Substantial laundry facilities as part of cleaning requirements for miners.

i. The operator is responsible for compliance with corporate requirements

relating to elements such as HS&E (audits, reporting, microbiological testing

of food, etc), governance, local content reporting, consolidated invoicing, etc.

vi. These factors are reflective of the review by the Queensland Government Enquiry

into “Fly‐In Fly‐Out and Other Long Distance Commuter Work Practices in Regional

Queensland” detailed in Report Number 9, 55th Parliament, Infrastructure, Planning

and Natural Resources Committee October 2015.

vii. Recommendation 8 of that committee specifically states:

“The committee recommends as part of the development of a whole of

Government policy framework for managing FIFO impacts, the Queensland

Government include minimum standards for the provision of substantial

temporary and permanent accommodation for FIFO workers that include:

a. Room design that provides for adequate protection from noise and

light to aid with fatigue management.

b. Permanent private spaces for each employee and storage facilities.

c. Reliable access to communications services in a private space.

d. Access to health services, including social activities and gyms.

e. Recreational areas to encourage socialising, and


4 Stayover Dalby

f. A variety of healthy food options, and the standards advise against the

practice of ‘motelling’ or ‘hot‐bedding’.”

viii. Reflecting the role of the facility as a non‐resident worker village, most users locate

at the site for periods of 2 – 3 weeks while they work a shift of three weeks on, one

week off. Whilst the duration of the overall stay varies by individual, it is estimated

to be an average of 6 – 9 months. The facility has a strict resident code of conduct as

well as safety induction as part of the check‐in procedure to the facility.

ix. Overall, Stayover Dalby has played an important role in the development of major

projects within the Dalby region and can continue to play that role into the future as

discussed in the remainder of this report.


5 Planning Framework

2 PLANNING FRAMEWORK

This section outlines the key principles and policies relating to the Dalby Town Planning

Scheme in operation as well as the Western Downs Planning Scheme currently in draft. This

section is not intended to be a detailed review of planning considerations, but rather the

strategic context of relevance to the assessment of economic need.

Darling Downs Regional Plan

i. The Department of State Development, Infrastructure and Planning released the

Darling Downs Regional Plan in October 2013. The purpose of the plan was to

identify the state’s interest in land use planning for the region and to address the

emerging regional issues of land use competition between the agricultural and

resources sectors. The plan covers the area from Toowoomba/Southern Downs

Regional Council in the east through to Maranoa/Balonne to the west.

ii. At page 20 of the plan under the heading Providing Certainty for the Future of Towns,

the following is stated:

“Population growth presents both opportunities and challenges for the

region. Local Governments can assist communities to adapt to population

growth by, for example, providing an adequate supply of serviceable land to

accommodate anticipated needs of the required scale and type for residential,

retail, commercial and industrial land uses. This includes providing an

adequate supply of land for non‐resident workforce accommodation, if there

are large approved projects directly associated with mining, major industry,

major infrastructure or rural uses that require non‐resident workers to stay

for extended periods.”

Dalby Town Planning Scheme

iii. The Dalby Town Planning Scheme 2007 was adopted as the planning scheme on 20th

October 2010. Section 2.2 of the Town Planning Scheme entitled Desired

Environmental Outcomes under the heading of Economic states the following:



“To promote a strong and growing economy, which ensures that economic

activities that are diverse, efficient and resilient and to provide necessary

infrastructure and the efficient use of resources.

The Town of Dalby will continue its proud heritage as a prosperous and

productive economy that reinforces the district’s strengths in agriculture and

related industries, Commercial/government services, educational and health

facilities and transport infrastructure with its location advantages servicing

western Queensland and South East Queensland.

Future economic activity will build on existing industries and the district’s

agricultural resources whilst diversifying this base in a manner consistent with

the area’s character and the sustainable use of resources. There will be an

enhanced tourism industry, which is based on, but does not compromise, the

district’s natural assets, its cultural heritage and its Rural town character.

Dalby will have a strengthened role as the major community and economic

centre for the Western Darling Downs with integrated road, rail and air

transport and information systems, educational infrastructure that is fully

integrated with the community to meet the needs of the rural, manufacturing

and service industries with community and Commercial groups to research

and contribute to the continual development of innovation and community

creativity.

Higher order retail, professional and Commercial services and Government

facilities will be provided within the central town area and a range of

employment opportunities will be available in identified industrial land within

and near the city. The Town will become both economically stronger and a

more attractive place to live, work and conduct business. Use of the Town’s

economic resources, especially good quality agricultural land, will not have

been compromised by other forms of land use or development.”



iv. The Dalby Town Planning Scheme, therefore, recognises the importance of

diversifying in the economy and a strengthened role as the major community and

economic centre for the Western Darling Downs.

v. In the definitions section of the Dalby Town Planning Scheme, an “accommodation

building” means any premises used or intended for use as a boarding house, guest

house, hospital, host farm, hotel (unlicensed or private), motel, residential club,

serviced rooms or the like where residential accommodation is provided in a room or

rooms that are not self contained.

vi. Separately, “caravans/transportable building park” means any premises used for the

placing thereon of wheeled structures, registered or capable of being registered

under the provisions of the Transport Operations (Road Use Management) Act as

amended, designed or adapted for human habitation and capable of being moved

from one place to another by towing or under its own power, and/or

accommodating more than one transportable building. The term includes:

a. The setting up and use of tents for temporary use;

b. A managers office and residence; and

c. Associated recreation, communal and ablution facilities.

The term does not include accommodation building or multiple dwelling herein

separately defined.

vii. The Planning Scheme, therefore, differentiates between an accommodation building

as a permanent structure as compared with relocatable/caravan parks.

Western Downs Planning Scheme Draft

viii. A draft Planning Scheme was prepared by Western Downs Regional Council, which is

still subject to a final state interest check. In Section 3.2 of the Draft Western Downs

Planning Scheme at 3.2.1.1 Regional, Local and Historical Overview sub‐point 6, the

following is stated:



“Dalby is the eastern gateway to the Western Downs, located approximately

220 km west of Brisbane. It is traditionally the commercial and retail centre

supporting the rural activities in the district and is the second largest cattle

sales centre in Australia. More recently, Dalby has become an administrative

centre to the emerging resources sector. Dalby is a major centre focused on

the thriving Cunningham Street, with a mix of surrounding residential

neighbourhoods and nodes of industrial activity. Dalby has a rich cultural

heritage in agriculture, rural industry, manufacturing and mining which is

reflected in the traditional character of the main street, set against the scenic

backdrop of Myall Creek and the surrounding plains.”

ix. At Sub‐paragraph 10, the following is stated:

“The Western Downs represents a significant proportion of the Surat Basin, a

rich energy province extending from Central Southern Queensland to Central

Northern New South Wales including the Western Downs, Maranoa and

Toowoomba Regional Council areas. With significant proven reserves of

thermal coal and coal seam gas located in the Surat Basin, the Western

Downs is set to undergo a significant degree of change and growth. The

changes will not only impact on the economy in the region, but will also have

impacts on growth management, including infrastructure provision,

environmental protection and the retention of the lifestyle so valued by the

existing community. The coal seam gas industry is not a long term extractive

industry operation and therefore a balance must be achieved in growth

management between short and long term land use impacts.”

x. Further at Section 3.2.2 Opportunities and Challenges under the heading of 3.2.2.1

Housing Need sub‐paragraph 4, the following is stated:

“There is an identified shortfall in non‐resident workforce accommodation in

Western Downs. Fly‐in/fly‐out (FIFO) and drive‐in/drive‐out (DIDO) demand is

often not met by mining and petroleum mining lease camps or current

accommodation providers.”



xi. Further at 3.2.2.2 entitled Managing the Growth of the Resources and Energy Sector,

it is identified the following:

(1). Mineral, gas and extractive industry activities have the potential to

positively and negatively impact triple bottom line, including potential:

‐ Negative environmental impacts, arising from vegetation clearing,

salinity, loss of arable land, ground water and surface water

disturbance and loss of air quality through articulate emissions;

‐ Positive and negative economic impacts arising from housing price

fluctuation, growth in an emergence of complementary industries and

services, social and physical infrastructure demands;

‐ Positive and negative social impacts including increased employment

opportunities, shifts and sectorial employment, housing shortages,

social instability, lifestyle, health and amenity impacts, and loss of

generational farming communities;

(2). The likely impacts of the rapidly expanding resources sector on the

Western Downs are highly dependent on the location, magnitude and

operation of individual mining and petroleum projects.

Notwithstanding, the flow‐on effects of this sector are likely to result in

demand spikes in non‐resident workforce accommodation, supporting

services, including industry, retail and commercial activities.

(3). Whilst the growth of the resources sector provides a significant

opportunity to diversify the economic base of the Western Downs, it is

necessary to ensure the traditional rural industries which underpin the

cultural identity of the region are protected.

(4). Population growth, including the influx of non‐resident workers

associated with the mining and resources sectors, is likely to impact on

the physical and social fabric of Western Downs. It is important to



ensure that individual settlements are maintained as strong and

resilient communities which can adapt positively to the future

opportunities and challenges.”

xii. Section 3.3.4 entitled Element – Housing and Affordable Living specifically recognises

at sub‐point 3.3.4.1(2) that non‐resident workforce accommodation locates within

urban centres.

xiii. Overall, the draft Planning Scheme recognises non‐resident worker accommodation

as an essential part of the urban environment and essential to the growth of the

region.

xiv. In the definitions section of the Draft Town Plan, non‐resident workforce

accommodation is specifically described as:

“premises used to provide accommodation for non‐resident workers.”

xv. This is specifically different to the definition of short term accommodation which is

described as:

“premises used to provide short term accommodation for tourists or travellers

for a temporary period of time (typically not exceeding three consecutive

months) and may be self contained. Examples include:

‐ Motel

‐ Backpackers

‐ Cabins

‐ Serviced apartments

‐ Accommodation hotel

‐ Nature based tourism

‐ Farm stay



‐ Resort complex”

xvi. It is also different to the term entitled “relocatable home park” which is described as:

“premises used for relocatable dwellings (whether they are permanently

located or not) that provide long term residential accommodation.”

xvii. The draft planning scheme will in future, therefore, distinguish between non‐

resident workers accommodation, relocatable home parks and short term

accommodation. The first is targeted at servicing non‐resident workers, the second

permanent residents and the third being for travellers/tourists. The draft planning

scheme, therefore, reflects a distinction that did ( does and should) exist in market

terms, that there is a difference in the customer base and operation between non‐

resident worker accommodation as compared with relocatable home parks and

short term accommodation.


12 Major Projects

3 MAJOR PROJECTS

i. Western Downs Regional Council, including the Dalby region, is a major source of

energy projects in Queensland.

ii. The subject site is located in the Surat Basin Energy Resource Province (SBERP) which

contains a diverse range of energy opportunities including oil, coal seam gas, natural

gas, underground coal gasification and coal. Historically, resource activities within

the Surat Basin Energy Resource Province had been oil, and to a lesser extent natural

gas, in the western extent of the Basin and coal in the eastern extent. Over the past

ten years coal seam gas has become a major developmental opportunity within the

SBERP with a number of major gas field and pipeline projects being promulgated

including:

a. Santos GLNG Project;

b. APLNG Project (Origin, Conoco Philips and Sinopec);

c. Arrow Energy Project; and

d. Queensland Curtis LNG Project (QGC).

iii. The Surat Basin Energy Province is highly prospective and there is a range of coal, gas

and mineral exploration projects being undertaken, some of these fall into the remit

of the larger projects outlined above, while others are driven by smaller energy

players.

iv. The CSG projects of most relevance to the Stayover Dalby facility today and in the

future are the Queensland Curtis LNG project (QGC) and the Arrow Energy project.

Both have extensive development areas under their control in the Warrego Highway

corridor between Miles to Dalby, with pipeline construction to Gladstone.

v. Figure 3.1 below shows the gas field development areas of the Arrow Energy projects

highlighting a development corridor between Wandoan to Miles and through to

Chinchilla and Dalby.


13 Major Projects

FIGURE 3.1 – COAL SEAM GAS DEVELOPMENT AREAS


14 Major Projects

vi. The projects being developed by Santos and Origin are to the west of this area

situated around Roma and Miles and of less relevance to accommodation facilities in

Dalby.

vii. The development of coal seam gas projects is characterized by a relatively long

construction phase which includes the drilling and capping of a large number of wells

and in field pipelines connected to a major transmission pipeline to transport the

CSG to LNG processing facilities located on Curtis Island in the Port of Gladstone. A

series of many field compression stations and several central processing plants are

also required in order to remove water and other impurities and compress the gas

for transmission through the pipelines.

viii. The large employment demands of these major gas projects mean that workforces

are temporary in nature and, therefore, predominantly non‐resident with remote

communities unable to supply the large volumes of specialised workers required to

meet temporary labour demands. It also moves with the workfront as the facilities

and pipeline is built.

ix. Large scale CSG projects entail a range of construction and operational processes,

which are located both on and off tenements. These processes include:

a. Drilling, installation, operation and maintenance of production, monitoring,

and potentially underground gas storage injection wells;

b. Installation, operation and maintenance of gas and water pipeline gathering

and transmission networks;

c. Construction, operation and maintenance of water management and

treatment infrastructure, and associated waste (e.g. brine and solid salt)

management and end‐use infrastructure;

d. Construction of gas treatment and compression facilities;


15 Major Projects

e. Various support and ancillary activities, and the installation, operation and

maintenance of associated supporting infrastructure including, but not

limited, to:

i. installation and operation of workforce accommodation and

associated facilities, including sewerage treatment;

ii. Installation of power supply, including generation facilities and

powerlines (overhead and underground) various support and ancillary

activities for the installation, operation and maintenance of

associated infrastructure including, but not limited to access roads;

borrow pits and quarries; lay down, stockpile and storage areas;

maintenance, workshop, construction‐support, warehousing and/or

administration facilities, ordinarily co‐located with other facilities; and

f. Demolition, decommissioning and rehabilitation of infrastructure and

disturbed areas.

x. The process of extracting coal seam gas relies on the drilling of production wells

(which are supported by monitoring and storage wells), which are in turn connected

to a low pressure gas gathering system. These low pressure gathering pipelines are

connected to treatment and compressor facilities (also called field compression

stations) which compress the gas for transmission in high pressure pipelines. These

high pressure pipelines connect to hub compression facilities (central processing

plants) prior to transmission to LNG facilities in Gladstone or other third parties (e.g.

power generators).

xi. The extraction of gas generates significant volumes of brackish water, which requires

desalinization treatment at reverse osmosis plants. There have been a range of

investigations into the potential uses for surplus treated CSG water. Currently,

irrigation is considered the most cost effective use for this water. Using treated CSG

water for irrigation could assist in stabilising annual agricultural production volumes

of the region’s core agricultural commodities of beef cattle, grain and cotton.


16 Major Projects

xii. The operation phase of gas projects is characterized by small ‘custodial crews’

undertaking ongoing inspections and basic maintenance of wells and pipelines and

larger overhaul crews responsible for overhauling well heads and transmission

infrastructure. Additionally, the process of extracting CSG produces large amounts of

brackish water which requires treatment through reverse osmosis plant before the

water can be discharged.

xiii. It can be difficult to differentiate between construction and operations phases of

CSG projects because individual wells may only have a life of five to ten years

(depending on reserves) and new wells need to be drilled over a long horizon to

ensure stable levels of production.

xiv. The CSG workforces are a mix of gas company employees; employees of major

engineering contractors (e.g. Laing O’Rourke, Theiss, etc.) and employees of smaller

scale contractors.

QGC Project

xv. The QGC project is more advanced than the Arrow Energy project, with major

construction of downstream and upstream facilities nearing completion. Chart 3.1

illustrates total workforce numbers for the QGC project, based on a presentation

entitled Chinchilla CSG Local Content Forum from December 2014.

xvi. This indicates a total workforce which was approximately just over 4,000 in 2011 that

increased to over 14,000 by 2013 and is projected to fall over back to around 3,500 –

4,000 persons over the longer term. This includes a breakdown of number of

contractors and employees, indicating a substantial number of contractors, in‐excess

of 2,000 – 2,500 over the longer term.

xvii. Relevantly, in an operations bulletin dated July 2015 and released by QGC, it is

indicated that QGC recently mothballed worker camps at Kenya, Jordan and Ruby‐Jo

(near Dalby) reflecting a reduction in construction activity.

xviii. The development of drilling rigs is now the most important component of the project

with around 25 new wells being constructed each month.


17 Major Projects

xix. In minutes from a meeting of the QGC Central Gas Field Community Committee from

Wednesday 3rd December 2014, longer term employment by QGC was estimated at

3,400 employees and contractors, with the majority of contractors (estimated 2,000)

to be upstream (i.e. near Dalby and Chinchilla). The main operational base for QGC

longer term has been established in Chinchilla. It is also indicated in that report that

in relation to camps, that demobilisation of camps has been planned in stages with

third party camps, with future requirements likely to be around half the number of

beds used in the past three years and approximately 300 – 400.

CHART 3.1 – QGC WORKFORCE NUMBERS

Arrow Energy Project

xx. The Arrow Energy Social Impact Assessment (SIA) Chapter 22 outlines the number of

field based workers and housing requirements for the Surat Gas project at Table 22.5

(repeated as Table 3.1). Chart 22.2 of the report shows the likely construction

workforce and operational workforce as well as onsite support workforce over time

(repeated as Chart 3.2).


18 Major Projects

xxi. The estimated temporary workforce accommodation facility sizes and years for peak

capacity at each development region is indicated at Table 22.6 of the SIA, indicating

that for Dalby some 300 beds would be required at peak from 2015 to 2019. Further

demand will be required outside this period.

TABLE 3.1 – ARROW ENERGY WORKFORCE


19 Major Projects

CHART 3.2 – ARROW ENERGY WORKFORCE

Other Major Projects

xxii. Advance Western Downs is a key initiative of the Western Downs Economic

Development Task Group and the strategic partnership between the Western Downs

Regional Council, Local Chambers of Commerce and key business leaders across the

region. The website for this organisation lists the major projects in the Western

Downs region as at July 2014. Some of the major projects in and around Dalby

include:

a. Coal mine projects including Dalby West, Dalby Project, Kumbarilla and

Western Creek.

b. Underground coal gasification proposals by Golden Cross Operations at

Dalby.

c. Surat Basin to Halys 500 kv Transmission Line by Powerlink.

d. New Aclands Mine in Oakey.


20 Major Projects

xxiii. Map 3.1 outlines proposed projects in and around Dalby as at May 2013. This

indicates a significant range of projects including coal seam gas, coal and urban

gasification as well as mineral development and power plants within the region. A

range of these projects will continue to demand non‐resident workforce

accommodation both existing and proposed for future construction as well as

maintenance and a range of other requirements.

xxiv. Further, the Queensland Treasury in its Queensland Government Statisticians Office

Surat Basin Non‐Resident Population Projections 2015 – 2021 lists major projects

within the Western Downs including:

a. Kogan Creek Solar Boost Project by CS Energy.

b. Braemar 3 Power Station by ERM Power.

c. Elimatta Project by New Hope Group.

d. Ironbark Project by Origin Energy.

e. North Surat – Collingwood Coal Project by New Hope Group.

f. Surat Basin Rail Project – Surat Basin Rail.

g. The Range Project by Stanmore Coal.

h. Wandoan Coal Project by Wandoan Joint Venture.

xxv. Reinforcing much of the documentation within the relevant planning scheme, there

are numerous existing and proposed energy projects throughout the Western Downs

region area including around Dalby, which will demand non‐resident workforce

accommodation.


21 Major Projects

MAP 3.1 – MAJOR PROJECTS WESTERN DOWNS


22 Projected Worker Numbers

4 PROJECTED WORKER NUMBERS

i. In 2015, Queensland Treasury and Trade prepared estimates regarding the projected

size of the non‐resident workforce on‐shift within the Surat Basin, contained within

the publication Surat Basin non‐resident population projections, 2015 to 2021. The

report provides three alternative projection series (Series A, B, and C), with projects

in Series A including only committed projects and projects in Series B‐C including

projects at various stages of planning. Surat Basin is defined as the local government

areas of Maranoa (R), Western Downs (R) and Toowoomba (R).

ii. In 2014, there was an estimated 14,490 non‐resident workers on‐shift within the

Surat Basin. By 2021, the number of non‐resident workers on‐shift in the Surat Basin

is projected to decline to between 3,650 workers (Series A) and 5,470 workers

(Series C). All this information is summarised in Table 4.1.

TABLE 4.1 – SURAT BASIN NON‐RESIDENT WORKERS ON SHIFT

Year Ending Western Downs Surat Basin

June Series A Series B Series A Series B Series C

2014 9,100 9,100 14,490 14,490 14,190

2015 5,170 5,170 7,170 7,170 7,170

2016 3,690 3,970 5,400 5,830 5,830

2017 3,660 4,750 5,270 6,660 6,710

2018 3,640 5,150 4,980 6,620 6,690

2019 3,650 4,360 4,930 5,750 5,850

2020 3,070 3,930 4,310 5,340 5,940

2021 2,450 3,250 3,650 4,460 5,470

Source: Queensland Treasuary, Surat Basin Population Projections, 2105‐21



iii. There was an estimated 9,700 non‐resident workers on‐shift within Western Downs

Regional Council in 2014, having increased by 7,100 persons since 2007, largely due

to the construction workforces of the APLNG and QCLNG projects. Under projection

scenarios, the number of non‐resident works on‐shift in Western Downs Regional

Council is projected at an estimated 2,500 – 3,250 non‐resident workers on‐shift by

2021. These levels are still higher than existing levels prior to the development of the

LNG projects. Importantly, there is still substantial demand over the next 6 – 7 year

period including peaks of 3,500 – 5,000 non‐resident workers in 2018.

iv. The Queensland Treasury and Trade publication, Surat Basin Population Report,

2015, provides estimates of the size of the non‐resident workforce on shift within

the Surat Basin as of June 2015. This was released in December 2015, after the above

report. This indicates that there was an estimated 3,560 non‐resident workers on‐

shift within Western Downs Regional Council in 2015.

v. The Queensland Treasury projections relate to non‐resident workers on‐shift. At any

time a significant proportion of the non‐resident workforce will be off‐shift.

vi. Importantly, for Western Downs Regional Council, the ongoing non‐resident

workforce over the period 2016 to 2019 is projected at close to 4,000 workers, more

than four times the non‐resident workforce prior to 2010. Even by 2021, this figure is

still around 2,500 workers according to Queensland Treasury forecasts.

vii. There are a number of challenges in accurately projecting the future demand for

non‐resident workforce facilities in a region such as the Surat Basin where gas

development is the current primary driver of demand. This is because gas projects

are developed over large areas and include long developmental horizons with new

wells being drilled some twenty years after a project is commenced.

viii. The decline in non‐resident workers after 2014 anticipated by Queensland Treasury

is largely associated with the completion of the main high pressure transmission

pipelines.



ix. Energy Skills Queensland (ESQ) prepared the ‘Queensland CSG to LNG Industry

Workforce Plan‐Operations and Maintenance 2014‐2034’ (ESQ Workforce Plan),

which articulates the likely workforce requirements for the Queensland CSG

(upstream) and LNG (downstream) industries based on a number of scenarios,

including:

a. 39,000 wells ‐ Base scenario based on Santos GLNG, APLNG, QCLNG and

Arrow Energy CSG/LNG projects;

b. 45,000 wells ‐ Base scenario plus 15% more wells; and

c. 59,000 wells ‐ Base scenario plus 30% more wells.

x. The ESQ Workforce Plan relates to Queensland, providing a range of insights into the

CSG sector and its workforce requirements. Figure 4.1 below reports the anticipated

workforce requirements of the upstream component of the CSG/LNG industry.

Upstream refers to gas field and pipeline construction, operation and

decommissioning. While Figure 4.1 is based on a more expansive industry than what

is represented within the Western Downs region, it does highlight that as well

development activity slows, well servicing activity increases. Also, Figure 4.1

highlights how ‘gas field and facility development’ generally tracks in line with ‘CSG

drilling and well completions’. If all of these workforce types are combined, Figure

4.2 indicates that the peak upstream workforce in Queensland is projected to occur

in about 2024 with a lesser peak occurring in 2018. These peaks are respectively

estimated at being 40% and 30% greater than the 2014 estimate. The relevance of

Figures 4.1 and 4.2 to the Western Downs region is that both have a significant

number of wells yet to be completed.



FIGURE 4.1 – TOTAL UPSTREAM WORKFORCE REQUIREMENT BASED ON 45,000 WELLS



FIGURE 4.2 – PROJECTED WORKFORCE NEEDED (UPSTREAM) FOR THE CSG TO LNG INDUSTRY IN QUEENSLAND 2014 TO 2034 FROM ESQ REPORT FOR VARIOUS DEVELOPMENT SCENARIOS


27 Non‐Resident Worker Accommodation

5 NON‐RESIDENT WORKER ACCOMMODATION

Non‐resident Worker Accommodation

i. Non‐resident worker accommodation as defined in the Draft Planning Scheme

specifically targets non‐resident workers and does not include motels and hotels.

ii. Within Dalby, there are two non‐resident worker facilities being:

a. Stayover Dalby of 558 rooms.

b. Pioneer Village Caravan Park has a caravan park facility but also 152 room

workers accommodation village, which is not currently operational.

iii. In addition, there have been a number of non‐resident workforce accommodation

facilities on actual mining leases operated by the gas company. As indicated recently,

facilities operated by QGC at Kenya and Windabri with 200 and 140 rooms

respectively, have been closed recently. The Ruby Jo camp, west of Dalby has been

reduced in size and the nearby camp located at Jordan is no longer in use.

iv. Other information in relation to gas company leases are more difficult to ascertain.

Motels/Hotels

v. There are a range of other accommodation facilities within the region that can

contribute to accommodation of workers if required. Table 5.1 lists hotels/motels

within Dalby, with these facilities illustrated at Map 5.1.

vi. The quality of services provided and management of these facilities varies and a

number would cater for workers outside the gas industry in terms of representatives

from broader industries and the like.

vii. Information from the ABS publication No 8635 indicates there were some 10

motels/hotels with 15 rooms or more within Dalby and that these facilities supplied

some 257 rooms with 683 beds as at June 2014, the last official date of this

publication. The room occupancy in the year to June 2014 was around 62.1% (refer

Table 5.2).



MAP 5.1 – EXISTING ACCOMMODATION FACILITIES DALBY



TABLE 5.1 – EXISTING ACCOMMODATION FACILITIES DALBY

% of total Camps or % of total

Facility No. of rooms Motels/Hotels accommodation

Non‐Resident Workers Accommodation/Camps

Pioneer Village Workforce Accommodation* 152 21.5% 16.0%

Stayover Camp 554 78.5% 58.3%

Total 706 100.0% 74.2%

Motel/Hotels

Country Pathfinder Motor Inn 16 2.3% 1.7%

Dalby Fairway Motor Inn 24 3.4% 2.5%

Dalby Homestead Motel 20 8.2% 2.1%

Dalby Manor Motor Inn 28 11.4% 2.9%

Dalby Mid Town Motor inn 21 3.0% 2.2%

Drovers Motor Inn 34 4.8% 3.6%

Kobbers Motor Inn 22 3.1% 2.3%

Motel Myall 27 3.8% 2.8%

The Australian Hotel Motel Dalby 20 2.8% 2.1%

The Gallery Motor Inn 15 2.1% 1.6%

Windsor Hotel 18 2.5% 1.9%

Total 245 100.0% 25.8%

Total Accommodation 951

* Not operational at date of report in January 2016.



TABLE 5.2 – ABS HOTEL/MOTEL DATA, JUNE 2014

viii. Relevantly, the average length of stay as reported in the ABS publication to June

2013 was 1.9 nights. This is reflective of a short term accommodation visitors as is

typically expected of a motel, compared with non‐resident workers spending up to

three weeks each shift within non‐resident workforce facilities.

ix. The number of rooms as at June 2014 in the ABS Publication is similar to indications

of existing motel/hotel rooms. The number of rooms within motels is currently

estimated at around 245 rooms, significantly lower than the 558 rooms within the

non‐resident worker accommodation facility. Importantly, the 245 rooms in motels

would not have been enough to accommodate all workers in the past 3 – 4 years.

Further, no one motel is more than 34 rooms, meaning workers cannot be

accommodated together in one site/location.

x. Overall, there is a large difference in the services, nature and pricing of facilities

between hotel/motel accommodation and non‐resident worker accommodation

villages. The former is more attractive to visitors and independent business travellers

and short term contractors, while the latter is more attractive to employers seeking

to accommodate a large number of workers close to their place of employment and

where all amenities can be provided in the one location (e.g. three meals per day,

recreation facilities and the like) with consistency.

Dalby (Wambo SA2)

Establishments 10

Rooms 257

Beds 683

Persons employed 109

Room nights occupied 58,260

Room occupancy rate % 62.1%

Average takings per room night occupied ($) 146.8

Takings from accommodation ($M) 8,553,938.0

* Statistics for hotels, motels and serviced apartments with 15 or more rooms

SA2 level from July 2013 ‐ June 2014.

Source: ABS Cat. No. 8635.3.55.001



xi. Relevantly, as identified earlier in the report prepared by the Queensland

Government on FIFO workers, workers should be provided with their own rooms.

Many of the motel rooms detailed above include multiple beds within each room

which is not ideal for the ongoing non‐resident worker.

Choice Between Non‐Resident Worker Accommodation and Hotels/Motels

xii. The choice of housing transient workers in hotels/motel and houses versus non‐

resident workforce accommodation facilities varies from employer to employer. In

general, there has been an increasing demand for non‐resident workforce

accommodation as a result of the following factors:

a. Village facilities allow the workers for a single company undertaking a

contract in the area to be accommodated all together in the one location.

This controls employment conditions giving an employee uniformity of

conditions for a large workforce rather than being spread across a number of

accommodation styles, with different services and standards.

b. A centralised accommodation location to coordinate the transport of workers

to and from the project site and alleviates multiple transport routes in the

township area.

c. A food mess or dining hall is provided in the village, providing for all dietary

needs and ensuring a healthy diet for the workers, relieving workers of the

need to find the time and have the skills and energy to provide food for

themselves after long shifts.

d. Villages can be designed and segregated for day and night shift workers to

ensure that night shift workers are not disturbed during the day. This is

difficult to achieve in hotels/motels and traditional houses in residential areas

with other users in the surrounding areas as well as other housemates being

active during the daytime.

e. Modern villages provide an enhanced level of amenity in terms of room

quality, landscaping, etc. compared to the older styled camps.



f. Cleaning, gardening, repairs and maintenance issues can be left to others.

g. The ability of modern villages to provide amenities for each worker rather

than shared facilities.

h. There is direct access to first aid on‐site together with other facilities such as

entertainment and a gymnasium.

i. Workers have substantial cleaning requirements and specialised, extensive

laundry facilities can be provided at the villages.

j. Appropriate provision for vehicle parking (typical residential houses and

hotels/motels do not cater for the private vehicles of 4 – 5 single workers

resulting in undesirable street parking practices.

k. A resident code of conduct is enforced by site based management and

security, ensuring that protocols and standards of behaviour are observed,

encouraging an appropriate balance between lifestyle, sleep and nutrition.

xiii. In reality, therefore, major employers within the Dalby region would ultimately be

choosing between operating their own camps on remote mining leases or facilities

such as Stayover Dalby.

xiv. The hotels/motels within Dalby appear to only have been used during peak periods

of construction demand and, therefore, accommodation needs at that time. With

the completion of initial construction, the demand for accommodation facilities has

fallen from peak levels and, consequently, hotels/motels are now attracting minimal,

if any, business from this non‐resident workforce, with the preference from the

major companies for the workforce to be in non‐resident workforce accommodation

villages. This is consistent with information provided by the Parliamentary

Committee report Number 9 of the 55th Parliament into the fly‐in fly‐out workforce

in Queensland.

xv. This reflects the importance of modular non‐resident workforce accommodation, as

compared with permanent bricks and mortar hotel/motel accommodation in



locations such as Dalby. Modular accommodation can be downsized in line with

demand.

xvi. The large provision of motels/hotels does not take away from the need for Modular

accommodation, with the two separate style of facilities able to operate in

conjunction with each other, serving different roles, in appropriate quantities to

meet market demand.

Conclusions

xvii. The importance of non‐resident workforce accommodation is evidenced through

information provided in Section 1 which indicated that Stayover Dalby has 558 rooms

fully occupied across an extensive period of time. The amount of rooms occupied at

the site was well in‐excess of the number of motel rooms within the region,

indicating that without a facility such as Stayover Dalby, accommodating the needs

of non‐resident workers within Dalby would have been difficult in that timeframe.

xviii. Further, assessing the supply and demand for non‐resident worker accommodation

facilities (i.e. a perfect matching of supply and demand) is not appropriate. In reality,

there should always be a supply in‐excess of demand (such that the average

occupancy is well below 100%) to accommodate the potential peaks, which could be

either expected or unexpected, and to provide for choice of location and operator.


34 Benefits of Stayover Dalby

6 BENEFITS OF STAYOVER DALBY

i. In addition to being an important element of meeting the accommodation

demands of major workforce and construction projects in the region, non‐resident

workforce accommodation such as Stayover Dalby has other important benefits

including:

a. Housing price impacts.

b. Money spent within the local economy.

c. Free accommodation and meals to fire‐fighters and emergency services

workers.

ii. Each of these issues are discussed below.

Housing Impacts

iii. Historically, within Dalby during the peak of the gas construction boom,

occupancies were running at 90% ‐ 100% as evidenced by the use of motels as well

as information provided in relation to Stayover Dalby (Section 1). This is not an

ideal situation due to increased demand for traditional housing and the impact on

housing prices for locals.

iv. Chart 6.1 reviews residential house price growth within Dalby over the period from

2005 to 2015. This indicates rapid growth in house prices from 2005 – 2010 with a

fall and stabilisation in more recent years in‐line with the decline in demand from

the construction workforce associated with the coal seam gas project. It would be

expected that house prices would likely continue to fall over the next few years.

v. Information is also available in relation to rental data which indicates that rents in

Dalby for three and four bedroom houses as sourced from the Residential Tenancy

Association of Queensland increased from June 2010 to June 2013 and have fallen

since June 2013 through to June 2015 (refer Table 6.1).



vi. Consequently, with spikes in accommodation demands, facilities such as Stayover

Dalby help to ease pressures on household rents and prices generally in areas

where peak demand occurs for local resident populations.

vii. The rapid house price movements as well as rents indicate the market being

unable to respond to increases in demand when projects are being undertaken.

When mining projects are committed, the mining company usually starts

construction within a short period of time. Without the certainty of construction, it

is very difficult for investors to invest in new accommodation in towns like Dalby.

Consequently, investment in accommodation will always lag investment in mining

construction.

viii. During periods of high demand, such as experienced recently at Dalby, increases in

rental housing prices have the potential to result in significant social impacts.

Increases in house prices also lead to increases in rents, leading to division in

places such as Dalby with existing residents priced out of the market.

ix. The ongoing use of Stayover Dalby, therefore, is vitally important to a stable

economic environment. The large transient nature of construction workforces is

better suited to modular accommodation, rather than building permanent

buildings such as hotels/motels, with a number of hotels/motels now experiencing

lower vacancy levels due to the short term construction demand now being over,

and the lower level of demand, in line with lower construction activity, being over

catered for by bricks and mortar buildings.

x. In a location such as Dalby, however, with the diverse economic base on a major

route, there should still be an underlying level of demand from a range of

industries on motel facilities, looking at short stay accommodation.



CHART 6.1 – HOUSE PRICE GROWTH, DALBY

TABLE 6.1 – RENTAL GROWTH, DALBY

$‐

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Med

ian Price ($)

Financial Year

Dalby Median Price for Houses (Calendar Year)

HouseSource: Location IQ,Price Finder

Dalby 3‐Bedroom House 4‐Bedroom House

Number of Houses Rented

• Year to June 2010 73 44






Median Rent ($)

• Year to June 2010 $280 $340

• Year to June 2011 $270 $340

• Year to June 2012 $300 $380

• Year to June 2013 $300 $390

• Year to June 2014 $290 $370

• Year to June 2015 $250 $300

Source: The State of Queensland Residential Tenancies Authority



Local Community Spending

xi. Information provided by Stayover Dalby indicates that in 2014 some $2.54 million

dollars was spent directly in the Western Downs Local Government Area by the

operation of the village. This comprised a range of industries including pest

control, Australia Post, laundry, stationary supplies, electrical repairs, waste

removal, hardware supplies, air‐conditioning services and the like.

xii. This $2.54 million in direct spending would also have multiplier effects in the wider

economy, usually resulting in at least a doubling in spending.

xiii. In addition, the workers at Stayover Dalby would also spend in the town, by virtue

of them staying in town rather than out on mining tenements/leases. This

spending in particular would be directed to the following types of facilities:

a. Service stations as part of petrol/refuelling.

b. Food and catering stores, with a number of workers choosing to eat offsite at

various times during their stay.

c. Local clubs/hotels in terms of entertainment spending.

d. Liquor outlets.

e. Taxi services.

f. Local convenience facilities such as supermarkets, newsagents, health‐food

stores, chemists and the like.

xiv. It is difficult to be precise on how much money is spent by non‐resident workers at

Stayover Dalby. On average, individuals in Queensland spend around $13,500 each

year on retail items. Allowing for some food/meals to be catered for at Stayover

Dalby, this figure would reduce to around $10,000 a year for non‐resident

workers.

xv. If Stayover Dalby is 50% occupied, the total spent on retail items by non‐resident

workers would be equivalent to $2.79 million a year (i.e. 558 workers by 50%



occupied by $10,000 a year). The proportion of this retail expenditure by non‐

residents workers spent locally could be as high as 40% ‐ 50% given workers are in

camp three out of every four weeks and away from home, meaning an additional

$1.1 ‐ $1.4 million available locally.

xvi. The amount of money spent annually within the town, therefore, is significant,

with a wide range of businesses benefiting directly from Stayover Dalby, and also

indirectly in terms of workers spending on local facilities.

xvii. Most of this spending would be lost from the local economy if Stayover Dalby was

closed and these workers were redirected to camps provided on the mining leases,

with no flow‐on benefits from their easy access to the town.


39 Conclusions

7 CONCLUSIONS

i. There is a clear need and demand for the Stayover Dalby facility for the following

reasons:

a. Major mining investment is being undertaken and proposed for the Dalby

region which will result in ongoing demand for accommodation and

appropriate planning for accommodation should continue.

b. With Stayover Dalby's existence, the Council can seek to attract large

workforces to use the town as a base and obtain the economic benefits of

that.

c. The need to accommodate non‐resident workers within the town is also an

important factor to consider in this analysis as compared with camps on

mining leases.

d. The majority of future workers within the Dalby region will require single

person non‐resident worker accommodation as compared with shared

accommodation including multiple beds per room in a number of motels.

e. Investment in major housing is unlikely to occur given the uncertainty of

housing as a long term investment for a town like Dalby.

f. The Stayover Dalby facility allows for orderly development of residential uses

and lessens pressure on price increases in house and rental markets that has

occurred in Dalby and other mining towns in recent years, affecting local

communities.

g. The single persons quarters in the form of the non‐resident worker

accommodation benefits the entire Dalby community by adding people who

will spend money on a range of facilities within the Western Downs and

surrounding regions. Information provided by Stayover Dalby indicates that in

2014, some $2.54 million was spent directly in the town by the operation of


40 Conclusions

the village, with further spending by users of the site in relation to service

stations, RSL, retail outlets, liquor and the like.

ii. The hotels/motels in Dalby are not of the size or composition to cater for the

demands of major CSG operators and contractors. If Stayover Dalby was to close,

the CSG operators would most likely reopen their recently closed camps on mining

leases or relocate to more remote gas tenement locations where there is excess

accommodation capacity. This would result in a loss of business to the town due to

these facilities being located some distance from town, and workers not visiting

regularly the retail facilities, clubs, pubs etc as they do now given the Stayover

facility forms part of the Dalby urban area.

Location IQ 02 8248 0100

Level 6, 56 Pitt Street Sydney NSW 2000

www.locationiq.com.au

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