Kalgoorlie We are all no doubt tired of hearing the terms Coronavirus and Covid-19 whilst trying to deal with the economic and social fall out of the pandemic. So maybe it’s time to start planning for tomorrow which we can influence, rather than dwelling on what has occurred which we cannot.
We have been saying, since the explosion of the expansion of iron ore mining in the Pilbara spawned fly in fly out (FIFO), that FIFO was the curse of the bush and should be severely curtailed once the construction phase was over. This sentiment has been the subject of books and articles, reiterated by the City of Kalgoorlie Boulder (CKB) the Kalgoorlie Boulder Chamber of Commerce and Industry (KBCCI), sundry regional politicians and many rural based business leaders.
FIFO has stalled the growth of larger Centres like Kalgoorlie Boulder for the last decade and pitched smaller towns into a state of severe decline. We expected the review by the Productivity Commission to provide the foundation for positive changes to Government policy with respect to FBT and tax incentives, to encourage people to reside outside the major metro cities, but what a let down that was! The Commissioners can never have ventured west of the Great Divide as they clearly misunderstand the realities on the ground! Fortunately their recommendations were rejected by the Federal Government!
So it looks like Covid-19 is going to do the job for us by creating NEW OPPORTUNITIES!! As they say every cloud has a silver lining!! At the base of this piece are extracts from the Kalgoorlie Miner this month on industry views on the sustainability of FIFO in this changing health environment. The lock down of the State has reinforced these views. Permanently employed people on mine sites should be domiciled in the nearest town to that mine that has an established infrastructure. If this is beyond a safe self-drive distance, then DIDO using contracted buses is the next alternative. If that distance is too great then it should be FIFO from the nearest Centre in that region with a suitable air strip. With a short stay camp on the mine and the family living in the closest town.
The benefits to regional communities will be immediate. Money, which currently by passes them entirely, will start to flow through their shops and cafes giving the local economies a much needed boost. There will be people available to join sporting clubs and form football and cricket teams, volunteers for many clubs and community services and candidates for local government elections and generally the return to creating communities, once the life blood of the bush and decimated to near nothing by FIFO in recent years.
For Kalgoorlie Boulder it will mean the end of a decade of stagnant population growth, stuck as we are at about 32,000, as all the new mining activity that has been generated in the region over the last ten years will have to have their respective work forces living in the City, facilitating its growth towards the target of 50,000. With that population level as a base the City can continue to grow by diversification. We have many opportunities because of our long successful record in mineral production and processing, as well as our unique location on the main transport routes into WA making the City ideal as a transport hub. Gone will be the huge number of ‘Hi Viz’ people passing through the Kalgoorlie airport, collected and deposited by coaches from mine site camps, with nary a cent spent in the City.
With an increase in demand for residential property rents will recover to pre slump levels, essential to make new residential developments economically viable and underpin property values across the board.
For the mining industry it will reduce their costs, risks to production and will improve workforce stability.
For employees it will provide an environment that is more community focused and supportive than that available in the city, less stress from FIFO, enjoy a lower cost of living so affording the opportunity to get established with home ownership and moving towards a better cheaper more convenient relaxed lifestyle and with it financial stability.
For Governments at all three levels it is far more economical to have vibrant non metro Centres than having to prop unviable towns as they fall below sustainable levels.
There now needs to be a concerted push to make this happen and that means:
• Directions from Governments, Federal and State, that tax and other incentives for FIFO will be phased out over say three years to give time to establish alternative infrastructure.
• Government and utility supplier costs associated with land development reduced to reflect real costs as a massive percentage of development cost is that which is imposed by these entities, some of which appear to be unaccountable to anyone!
• Planning schemes checked to see that they meet the requirements to facilitate residential commercial and industrial development speedily.
• Land for new residential commercial and industrial developments identified and progressed to subdivision stage.
• Investors encouraged to commit to developing residential accommodation.
• Mining companies, and others that currently fly in workers, committing to end the practice for full time operational and staff entering into medium term Lease agreements with developers to enable projects to be financed to get them underway. Once established ongoing commitments from miners will become less necessary.
The door has been opened by this Virus to change the way Australia operates, we should not let the opportunity pass and slide back into recent bad habits, so it’s up to all of us to make our voices heard at State and Federal Government levels to ensure the structural changes to the various tax and planning laws are made promptly, as the time to act is NOW.
– Chris Fyson FAICD
To read the article by the Kalgoorlie Miner on April 2nd re FIFO in the region, click here – Kalgoorlie Miner re FIFO
