Andrew McEwan Chairman of the National Board of Directors for the Facility Management Association (FMA) of Australia

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1 LOOKING FORWARD OUTBACK PIA QLD State Conference Longreach September 2008 Paper Title Sustainable Planning - The Moranbah Response Authors Andrew McEwan and David Jackson Affiliations David Jackson Member Planning Institute of Australia Andrew McEwan Chairman of the National Board of Directors for the Facility Management Association (FMA) of Australia Contact Details: David Jackson Andrew McEwan Jackson Planning Director, Specialist Planning and Projects 66 Adsett Street Planning Group Taringa QLD 4068 Department of Infrastructure and Planning Ph: (07) PO Box 15009, City East Qld 4002 Fax: (07) Ph: (07) Mob: Fax: (07) Non-refereed submission Paper Description The paper provides an overview of planning in a rapid growth environment, the issues, challenges and impacts for planning and the need for sustainable responses. It considers the impacts of the rapidly expanding mining industry sector on local communities and examines Moranbah as an example of how an innovative planning approach is attempting to respond to these pressures. Abstract Moranbah is located in the Northern Bowen basin and originally established as a mining town in The current population (approx. 9,000) is projected to increase to 12,400 persons by 2016, generating the need for over 1,600 new dwellings. Expansion in the mining sector has fuelled demand for accommodation and has resulted in the cost of an average house soaring from $36,543 in 2000; to $99,806 by 2003 and an unprecedented $343,094 by Future urban expansion of the town was seriously constrained by mining leases; pressures on urban infrastructure were escalating and housing availability and affordability were becoming a major issue for the community. In November 2005, the then Minister for Environment, Local Government, Planning and Women, initiated the formation of the Moranbah Growth Management Group which was charged with the responsibility for developing strategies to address these issues. A Strategic Plan was completed in 2007 and implementation of its recommendations is currently in process. This collaborative approach between governments and the private sector is delivering innovative, sustainable and task oriented outcomes in a highly dynamic and demanding planning environment.

2 LOOKING FORWARD OUTBACK PIA QLD State Conference Longreach September 2008 SUSTAINABLE PLANNING - THE MORANBAH RESPONSE A paper by Andrew McEwan and David Jackson 1.0 BACKGROUND The paper provides an overview of planning in a rapid growth environment, the issues, challenges and impacts for planning and the need for sustainable responses. It considers the impacts of the rapidly expanding mining industry sector on local communities and examines Moranbah as an example of how an innovative planning approach is attempting to respond to these pressures. Andrew previously headed up Strategic Projects in the Department of Infrastructure and Planning which had a role to undertake a strategic planning process for Moranbah and has been the principal state representative on the Moranbah Growth Management Group (MGMG)established by the State in November 2005 to address issues of growth in Moranbah. David Jackson has been the Project Facilitator for the MGMG and responsible for managing the ongoing activities of the MGMG. This paper draws on the experiences of the two authors. 2.0 MORANBAH IN CONTEXT Moranbah is located approximately 200 kilometres south west of Mackay in the Northern Bowen basin. The town was established by the Utah Development Company in 1971 to accommodate mine workers and their families. The town is strategically located with respect to a number of existing and proposed mining projects and recent major expansions in coal mining operations in the region have generated significant increases in housing demand. Moranbah continues to have a significant role in providing a quality environment for existing and future residents and an expanded service centre function to the mining industry. It is projected that the continued mining activity will increase the present permanent population of Moranbah from around 9,000 persons to well over 12,000 persons by 2016 generating the need for over 1,700 new dwellings. The town was originally intended to expand in a south easterly direction into the Grosvenor Downs Estate however this area is underlain by significant coal measures. A proposal for urban development in Grosvenor Downs Estate resulted in the State Government calling in the application and effectively sterilizing the prospect of future urban development to the south east of the town. Without the Grosvenor Downs Estate the initial perception was there was only a very limited amount of suitably designated urban area available for future development.

3 Waiting lists for rental accommodation were (and remain) high and housing and rental costs have escalated to unprecedented levels. The cost of an average house soaring from $36,543 in 2000; to $99,806 by 2003 and an unprecedented $343,094 by 2006 In response to this situation the former Belyando Shire Council commissioned Buckley Vann Town Planning Consultants to prepare a Planning Study to examine future development options for Moranbah. At the same time Anglo Coal Australia Pty Ltd (Anglo) had also commissioned Humphries Reynolds Perkins Planning Consultants to investigate alternative growth options for Moranbah. These studies identified the key issues facing Moranbah and provided advice on a range of potential development scenarios for the future development of the town. In addition to these planning studies the State Government established the Moranbah Growth Management Group (MGMG) in November 2005 to manage these issues of growth and the need for new infrastructure through a Strategic Planning Process. The MGMG was chaired by Jim Pearce, Member for Fitzroy and comprised representatives from Council, State Government Departments, Unions, Anglo and BHP Billiton Mitsubishi Alliance (BMA). 3.0 THE PLANNING ISSUES The key planning issues may be summarised as follows: Rapidly escalating demand for accommodation resulting from major expansions to coal mining operations in the region. A highly constrained supply of housing stock. The need to identify suitably unconstrained land for future urban development. Major concerns over existing and future town water supply allocations and record drought conditions. A highly constrained existing urban footprint (Moranbah is effectively surrounded by mining leases) A Council (then Belyando Shire) trying to deal with major growth issues with limited resources. Changing community and commercial expectations on housing choice Moranbah s current predominance of single detached dwellings; the need for higher density/lower occupancy rate dwellings and amenity issues with rapidly increasing pressures for single person accommodation camps and a potential imbalance between the proportions of permanent residents to temporary residents. Pressures on existing infrastructure and the need for additional facilities and services. Environmental challenges relating to proposed open cut mining operations. 4.0 THE RESPONSE The MGMG identified the need for a series of technical studies required to address existing data gaps. These included a major flood study, a water demand study, traffic study, commercial centre study, and infrastructure reviews. These studies were initiated and managed through the Project Coordinator David Jackson. An essential element of the approach was the agreement to shared funding responsibilities between Council, State Government and the two mining companies BMA and Anglo. This included funding for the technical studies as well as the Project Coordinator position.

4 The studies were completed; reviewed; considered and discussed at successive MGMG meetings prior to their acceptance as a commonly agreed position. The early days of the MGMG were characterised by understandable tensions as the respective positions of governments and the private sector were put on the table, discussed, reassessed, redrawn, reviewed, eventually resulting in a position that was accepted by all parties. With time these tensions eased as the need to move forward to achieve an agreed position become more readily accepted by all parties and proceedings began to focus more on the common interest in solving the problems rather than defending individually held views. The completion of the technical studies provided the basis for the development of a Strategic Plan for future growth in Moranbah, a first draft of which was completed by December The Strategic Plan identifies the current and longer term strategic growth issues and opportunities for Moranbah; the nature, scale and location of future urban growth and the infrastructure and agreements required to achieve these growth objectives. It establishes priorities for future infrastructure provision over the next 15 years with a design population of 15,000 persons. The Plan contains the following Strategic Objectives for Moranbah: Moranbah has regional significance as a key centre to the mining industry. Urban expansion should preserve and complement the existing character of Moranbah without compromising future mining activities in the area. Future urban expansion occurs by way of infill within the existing urban area together with Greenfields expansion to the south west across Grosvenor Creek. The existing town centre will remain the principal focal point for retailing and commercial and community services and facilities. Encourage people to become permanent residents of Moranbah through: o Ensuring sufficient land (including a contingency buffer) is available for future housing and; o Ensuring planning decisions encourage affordable housing choice that include a range of dwelling styles and lot sizes to better accommodate the diverse range of household types. Commitment is given to facilitating the necessary provision of infrastructure required to reach the projected 2008 housing targets as the priority short term objective. Growth beyond 2008 will respond to prevailing market conditions at that time. Implementation of the Strategic Plan will be facilitated by the cooperative efforts of State and Local government and private sector. The Plan sets out a series of strategy areas and identifies responsibilities for its implementation. The Strategic Plan was agreed to by the MGMG members in June 2007.

5 STRATEGIC PLAN URBAN PROPOSED GROWTH PATTERNS

6 Concerns at a lack of progress in implementing the Strategic Plan began to surface within MGMG members in late 2007 and culminated in the preparation of the Strategic Plan Implementation Project which detailed specific strategy projects, time frames, priorities and costs of implementation with proposed collective funding by the MGMG members. This was agreed to in December The recent Local Government amalgamations provided a serious distraction during the early part of 2008 however the first priority project, the Structure Plan and Infrastructure Charges plan for the Greenfields urban expansion area to the south west of the town is currently being undertaken by GHD and is scheduled for completion by October this year. The other identified projects are to follow. The Draft Planning Scheme was amended to include the south west option for future urban development.

7 DRAFT BELYANDO SHIRE PLANNING SCHEME

8 5.0 OBSERVATIONS From the experiences of Moranbah and the MGMG Project the following observations are made: 5.1 Planning Observations There is a clear imperative for planners to ensure that as far as possible the examination of constraints and opportunities during the preparation of future planning schemes is as thorough and forward looking as is possible the consequences of unforeseen constraints can have far reaching impacts. Historical low growth in many Queensland regional centres has possibly blunted both levels of government preparedness for rapid growth scenarios the need for genuine supplies of readily available land for future urban development is paramount if Councils are to avoid the major supply/demand imbalances experienced in Moranbah. Equally, experience has repeatedly shown that theoretical development yields increasingly used by planners to predict future urban development capacities are notoriously optimistic and rarely achieved in the field. This can easily result in false expectations and potential under supply conditions. Traditionally, housing choice and location has not been well addressed by planning schemes in rural areas. Moranbah has highlighted the potentially conflicting objectives for housing choice between governments, the community and commercial interests. The predominance of detached dwellings on large allotments in rural areas no longer reflects the changing community and commercial expectations and requirements and the need for greater housing choice and affordability remains a critical issue for Moranbah, but one which has been identified as a priority for resolution through the MGMG process. The lack of resources available to local government in Queensland s rural communities remains a major constraint to good planning. Rural communities that are either currently or likely to experience rapid future growth will need to anticipate many of the issues faced in Moranbah and this will have serious resourcing implications in most cases. 5.2 Economic Observations Accommodation shortages continue to challenge Moranbah and are unlikely to be satisfactorily resolved until the new Greenfields land comes on stream. A principal objective of the Strategic Plan is to encourage growth in the permanent residential population. Changing household characteristics, market perceptions, consumer expectations and economic circumstances now demand a significantly broader and more diverse approach to accommodation choices than the traditional 3-4 bed room detached dwelling that characterise most of rural Queensland. The current lack of housing choice in this regard should be viewed as a potential opportunity to which both the planners and the market need to respond. There are also a number of economic realities that are providing cause for concern in the accommodation arena. The continued expansion of the mining operations is driving significant demand for additional accommodation and there is significant debate over how best to respond to this pressure. There are strong economic and social arguments for seeking to concentrate as much growth as possible within the existing urban communities. There will also be circumstances where distance to and/or accessibility to a particular mine site may dictate that accommodation would be better provided in close proximity to the mining operation for reasons of safety, cost and convenience etc. Seeking the appropriate balance between these alternatives is not easy but must be adequately addressed through the planning scheme to enable both the mining

9 companies and Councils to get a better understanding and certainty on the location and composition of future accommodation requirements. This equally applies to the composition and location of the various accommodations types WITHIN the urban area. To date there has been a tendency for Single Persons Quarters (SPQ S), where they are located within an existing urban area, to be hidden away in industrial estates or other less visible parts of town. Whilst the early SPQ s can hardly be described as architectural master pieces they are still a legitimate part of the urban community and should be treated as such. Clearly there are issues of scale (the balance between economic viability and community acceptability) and location (again economic and community interests) which need to be worked through, however this debate needs to be had and agreement reached on the appropriate policy response to enable mining companies to determine their individual approaches to their accommodation needs and Councils to plan and provide these future accommodation requirements within the context of its planning scheme and policies. Failure to address this critical issue will almost inevitably result in mining companies making whatever alternative arrangements are necessary to achieve their operational requirements. Economic imperatives would appear to carry more weight than planning outcomes at this time. 5.3 Community Observations The impacts of housing demand exceeding housing supply are profound. The imbalance in market conditions in Moranbah resulted in housing prices increasing almost ten fold between 2000 and 2006 which in turn has put extreme pressure on rents. Accommodation in Moranbah is currently extremely scarce and expensive. This has created significant problems for residents whose incomes are not directly related to the booming mining industry teachers, Council staff, retail and local commercial operators whose incomes remain governed by influences external to the mining industry. This non - mining worker force now finds it very difficult to compete for accommodation in the face of the better resourced mining sector employees. For example in order to attract say a butcher from out of town to Moranbah now requires some form of subsidised accommodation to make this a viable business proposition, the same applies to the teacher, the policeman, the shop assistant etc. Spiralling accommodation costs also impact on the potential for Moranbah to retain its youth unless of course they are involved in the mining industry, young people seeking alternative vocations are generally forced to seek employment in other locations. 6.0 ASSESSMENT OF MGMG ACTIVITIES 6.1 Positives The MGMG process is continuing and supported by all member parties MGMG provided a powerful and well resourced collaborative forum for discussion and action at a time of considerable need. Although initial proceedings where guarded, with time and familiarity there has been increased openness and willingness to share information and resource actions which will make a positive contribution to achieving better planning outcomes for Moranbah. The resourcing arrangements enabled the undertaking and delivery of the Strategic Plan and Implementation Plan within a relatively short time frame and during a time when technical expertise was at a premium. The technical outcomes have provided Council with a magnitude and quality of information that

10 would not have otherwise been possible with the resourcing of the MGMG members. The MGMG members have recognised the benefits flowing from this collaborative process and they remain committed to implementing the Strategic Plan objectives. 6.2 Negatives The need for the establishment of the MGMG highlights the difficulties Local Governments face in planning in high growth rural communities with limited resources. This highlights the need for regional communities to ensure that their planning schemes provide for an ample supply of appropriately zoned land which is genuinely capable of being developed within short time frames and that an implementation plan and programme has been developed for the delivery of that land prior to the pressures for development occurring. Despite the obvious urgency of the need to address major planning problems and even when the will for action prevails (setting up the MGMG) there will always be exceptional and extraneous circumstances which contrive to delay decision making and action. The greatest threat to addressing issues is time. 7.0 FINAL VERDICT The MGMG approach was a successful mechanism for dealing with exceptional circumstance during an exceptional period of economic growth in the Bowen Basin. In relation to its addressing the planning issues highlighted at the start of this paper we believe the process has been successful and a credit to the working relations established between the key stakeholders. In terms of outcomes: The Strategic Plan and Implementation Project have set in place the mechanisms required to address the accommodation shortage through the decision to expand the town to the south west and undertake the structure planning and infrastructure charges planning for this area that will provide for urban expansion for a future population of up to 15,000 permanent residents in the town of Moranbah. Successful delivery of housing stock in the short term remains an issue. The availability of the land to the south west only became an option for future urban development after an agreed solution was collaboratively developed with mining companies, State Government and Council. The MGMG forum was used as the basis for all discussions and resolutions regarding future town water supply allocations and water agreements are no in place. Council (then Belyando Shire) was greatly assisted in dealing with these major growth issues through the availability of the resourcing of the MGMG process. Through the MGMG process the changing community and commercial expectations on accommodation choice and availability have been brought to the table for discussion and resolution and further action. Pressures on existing infrastructure and the need for additional facilities and services have been addressed through the various technical reporting undertaken as part of the Strategic Plan preparation and subsequent actions identified as part of the Implementation Programme. Concerns over environmental issues relating to proposed open cut mining operations where raised through the MGMG and the State has recognised that additional consideration needs to be given to this issue as part of the EIS processes for new mines.

11 In conclusion, whilst the MGMG processes can be considered to have been successful in the case of Moranbah; and whilst the same or similar processes may work in other areas, it does not provide a panacea for planning in high growth areas across the board. Rather the above discussion merely highlights the critical need to better resource planning in regional Queensland areas generally and in particular those experiencing or about to experience the peculiarities of high growth associated with mining expansions. Thank you.