Friday, 16 May 2014

Toowoomba Region Economic Profile - 2014

Toowoomba Regional Council commissioned REMPLAN to provide a consolidated economic report for the Toowoomba region.

The 'Toowoomba Region Economic Profile - April 2014' was released early May 2014 and provides an update of the Toowoomba Region Economic Profile - 2013. The Economic report covers a range of topics including: regional overview; demographics; employment; industry; housing; tourism; trends and a summary.

Of significant note for the region in this issue is the announcement of investment and development of two major infrastructure projects, being the Toowoomba Second Range Crossing and the Brisbane West Wellcamp Airport.
  • In January 2014 the Australian Government and the State Government of Queensland declared that "One of Queensland's highest priority road infrastructure projects have been secured for the state, with the federal and Queensland governments announcing they will deliver the vital Toowoomba Second Range Crossing (TSRC)."  The Queensland Deputy Premier said that the TSRC would help drive Queensland's economic growth by creating jobs and providing a gateway to the state's resource-rich Surat Basin and the agricultural food bowls of the Darling Downs.
  • Located approximately 17kms west of Toowoomba's CBD is the Brisbane West Wellcamp Airport which is due for completion by October 2014.  The 2.87 runway km runway will be capable of catering for Boeing 747s and will cater for both passenger and freight transport.  Part of the airport is the Wellcamp Business Park which will focus on aviation, logistics, transport, corporate and mining services.

The 'Toowoomba Region Economic Profile - April 2014' was released early May 2014 and is now available to download on Councils website:
Hard copies can be obtained by contacting Toowoomba Regional Council’s Economic Development section on 131 872.


Wednesday, 14 May 2014

Successful ‘Resources for Regions’ Funding for Singleton Council

Singleton Council has been successful in their application for funding for two projects from the NSW Government’s Resources for Regions initiative. The projects are the Singleton Livestock Markets ($6 million) and Ryan Avenue upgrades ($2.9 million) with Council being allocated a total $8.9 million from the Resources for Regions funding program, announced in March 2014.

Funding from Resources for Regions is a Restart NSW Fund Program, for infrastructure for mining affected communities. Restart NSW is the NSW Government’s fund established to improve economic growth and productivity in the Sate by funding major infrastructure projects.

The objective of the Resources for Regions program is to relieve infrastructure constraints and reinvest in regional communities affected by mining, projects must improve local economic and social infrastructure.

The successful funding has made the local news: 

“Singleton Council general manager Lindy Hyam and Mayor John Martin were delighted with the news which they said was reward for more than two years of project planning”.

“The application process requires considerable work, it requires a full benefit cost analysis based on treasury guidelines, it is considerable work that must be done well in advance,” Ms Hyam said.

Working with Morrison Low, REMPLAN was applied to determine the Cost Benefit Assessment component of Singleton Council’s two successful projects for the Resources for Regions funding application. The Cost Benefit Assessment was required to meet specific guidelines based on Treasury requirements when applying for federal funding.

Requirements for the economic benefits of the project (benefit-cost-ratio) for the region and NSW economy included:

  • The Construction phase:
    • direct output was assessed as a cost under the NSW Government Guidelines for the Cost Benefit Ration calculation.
    • direct output and annual maintenance costs expressed in Net Present Value (NPV) terms applying a 7% discount rate with sensitivity testing at 4% and 10%.
  • Operational phase:
    • annualised benefits in terms of avoided costs, savings, new revenues and increased productivity as a result of the project,
    • direct annual output generated over the lifetime of the respective infrastructure to be expressed in NPV terms applying a 7% discount rate with sensitivity testing at 4% and 10%.
  • Estimate the cost benefit ratio as per NSW Government guidelines
  • Model the flow-on benefits (multipliers effects) of the construction and operational phase of the projects in terms of output, jobs, wages and salaries and value-added for Singleton and NSW, to assess the wider economic benefits.

For more information, please contact REMPLAN.

Monday, 12 May 2014

City of Greater Bendigo in the news using REMPLAN

City of Greater Bendigo - using REMPLAN to promote the region and industry strengths

REMPLAN recently completed a report on behalf of the City of Greater Bendigo. The report was commissioned to understand the value of residential building construction within the region.
The report contained data relating to the economic contributions of the residential building construction sector in terms of output, employment, wages and salaries and value-added. The data was compared to the City of Ballarat and City of Greater Geelong to highlight the relative economic contributions of this sector across these regions.
In addition to economic data, obtained from “REMPLAN Economy”, the report provides an analysis of residential building approvals (number and value) from the City of Greater Bendigo’s Online Economic Profile.
The report also identifies the distribution of residential building construction by location (based on ABR data provided by Council), as well as a residential market analysis including median price trends and home ownership.
Not only has the report provided City strategy manager Trevor Budge with region specific analysis to make the following statement, “the data confirmed that a strong and adaptable residential construction sector is crucial to the city’s future development”; it has also provided insights for the Urban Development Institute of Australia.

A copy of the on-line article can be found at BendigoWeekly.com.au

Construction Works Hard For City

“Bendigo's construction industry contributes about $922 million to the city’s total economic output”

According to REMPLAN research, more than $260 million comes from the residential building construction sector.
The Residential Building Construction Economic Analysis, gave estimates about the economic contributions of residential building construction in terms of output, employment, wages and salaries, and value-added.

The data found 6.7 per cent of local are employed in construction with an additional 659 people employed in residential building.
The analysis will be unveiled tomorrow and will discuss ways the industry can adapt and meet the requirements of the city’s housing sector. 

City strategy manager Trevor Budge said the data confirmed that a strong and adaptable residential construction sector is crucial to the city’s future development.
“From 2001 to 2013, the number of residential building approvals increased 16 per cent, the majority of which were ‘new houses’,” Mr Budge said.

 “The result of this rapid growth also has flow-on affects to the wider Greater Bendigo economy- residential building construction in Greater Bendigo makes a greater relative contribution to the region’s annual output compared with that of other regional cities Ballarat and Greater Geelong.
“To encourage and accommodate development, it is important local industry meets this demand with high quality, affordable and diverse housing options.”

Urban Development Institute of Australia board member Damien Tangey said the residential development sector would need to shift its mindset to ensure the city’s growth.

“Greater Bendigo will experience significant demographic change in the next decade – households are forecast to become smaller and we’re going to live longer – so local engineers, surveyors, developers, real estate agents, builders and others associated with the urban development sector will need to identify how they can work together to vary their housing products to meet these more diverse community needs,” he said.
Council commissioned the research to understand the real value of residential building construction in the region. For more information, please contact REMPLAN.

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At REMPLAN we are a team of economists, demographers and software developers. We develop online analytical tools and information resources for economic development and planning practitioners in local, state and federal government agencies, consulting firms, university researchers and students.

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