Upload
kdcci
View
65
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Regional Development Australia Pilbara CEO Diane Pentz presented the "Cost of doing business in the Pilbara" report at the Karratha and Districts Chamber of Commerce and Industry's fourth annual Pilbara Pulse Economic Summit.
Citation preview
Cost of doing business in the PilbaraWITH DIANE PENTZ
About us
Regional Development Australia
LOCAL LEADERS
55REGIONAL COMMITTEES
• Economic• Environmental• Social • Cultural
Cost of Doing Business in the Pilbara
$“The Pilbara costs of doing business are far higher than the rest of WA and most of Australia”RDA Pilbara, Cost of Doing Business in the Pilbara, May 2013
$
In just 12 months…
MAY 2013 MAY 2014
Investment Production
Economic and Business Impacts
$$
$
High costs threaten new businesses/start-ups
High costs put the squeeze on existing businesses/NGOs
High costs do not support economic diversification
Regional Price Index (RPI) Estimated every two years by the WA Department of Regional Development.
According to the 2013 results people would need to earn 18% more to make ends meet in the Pilbara, compared to Perth.
On average regional cost of living decreased by 19% since 2013. +
Karratha19%
+Port
Hedland22%
+Newman
12%Region/Town Pilbara Karratha Port Hedland Newman
Year 2011 2013 2011 2013 2011 2013 2011 2013
Composite Index
137.1 118.6 137.5 118.8 136.1 121.8 137.9 111.9
Cost of basic living
+Karratha
19%
Food+1.6%
Housing
+36.7%
Cigarettes, Tobacco, Alcoholic
drinks+8.8%
Transportation
+12.36% Household equipment
and operation+8.1%
Recreation and Education
+11.8%
Clothing+6.9%
Health and Personal care
+26.3%
Cost of Big Mac
Perth $5.35
Karratha $6.25 +17%
Affordability
42%HIGH INCOME EARNERS
(earn more than $2000 a week)
Karratha Newman Port Hedland Perth Western Australia Australia0
200
400
600
800
1000
1200
1400
1600
1800
Median Individual Weekly Income 2001-2011
2001 2006 2011
LABOUR COSTS
Pilbara Weekly Income
0
$1-$199
$200-$299
$300-$399
$400-$599
$600-$799
$800-$999
$1,000-$1,249
$1,250-$1,499
$1,500-$1,999
$2,000 or more
0
5000
10000
15000
20000
25000
Pilbara Weekly Income - Males
No.
of w
orke
rs
0
$1-$199
$200-$299
$300-$399
$400-$599
$600-$799
$800-$999
$1,000-$1,249
$1,250-$1,499
$1,500-$1,999
$2,000 or more
0
500
1000
1500
2000
2500
3000
Pilbara Weekly Income - Females
No.
of w
orke
rs
We also pay more for…
WATER
Karratha +47%
Port Hedland +31%
POWER
Electricity prices increased 86% in
the past five years
FUEL
Petrol +15.1%
Diesel +12.3%
AIR TRAVEL
Karratha to Perth $1260
Port Hedland to Perth $1506
Housing
Port Hedland’s all-time rental high was $2544
per week in September 2012.
Properties for saleProperties for rent
House pricesRental prices
House pricesRental prices
Properties for saleProperties for rent
2005 - 2012
2013 -
Construction
Construction costs are 1.75 to 2 times higher
in the Pilbara compared to those in Perth
DISTANCE * HIGH LABOUR COSTS * HIGH ACCOMODATION COSTS * HIGH MATERIAL COSTS
Looking forward
Difficult to predict!
Global market variations
Cost of living and business
Dependence on China
Overall cost structures remain high compared to
Perth
3 – 4% Global Gross Domestic Product 2014 to 2017
The Future
• Pilbara Population: Now 66,000 and by 2020 between 71,000 (low growth) & 82,000 (high growth)
• Between 2,000 and 6,000 new dwellings needed• Current GRP is $32 billion = 13% of WA and 80% of WA
mineral exports but with only 3% of the population. Export trend continues significantly upwards to 2020.
Our Needs
• We need innovative, private sector led housing solutions
• Reduction in the regulations and constraints facing SMEs
• Innovative funding models for NGOs which are crucial to the health, education and social needs of our communities
Diane PentzCEO
Regional Development Australia Pilbara
W| 08 9144 0651M| 0427 191 272