21st June 2011

The largest survey ever conducted in Australia about the social impact of non-resident (fly-in-fly-out or drive-in-drive-out) mine workers has revealed massive opposition to the practice by Queensland's Bowen Basin communities.

The new research conducted by Queensland University of Technology (QUT) shows that the increasing reliance by the booming mining sector on large numbers of non-resident workers is having a negative impact on local economies. Community wellbeing and safety has also been negatively impacted, along with housing availability and affordability. There are also too many demands on local infrastructure and amenities.

Only 11 per cent of people in these Queensland communities felt that the mining industry had a positive impact on their lifestyle, according to Professor Kerry Carrington, head of QUT's School of Justice, who led the research project.

"The survey shows that there is very little support, or what they call 'social licence', for mining projects which rely heavily on non-resident workforces. Even respondents from within the mining industry were strongly opposed to new projects with a high proportion of non-resident workers," Professor Carrington said.

"Sixty-one per cent of respondents would actually support new projects if 25 per cent or less of the workforce were non-resident workers. In contrast, 55 per cent of respondents would oppose projects with between 25 and 50 per cent non-resident workers. And 79 per cent of people would oppose new projects with between 50 and 75 per cent non-resident workers; while 82 per cent would oppose projects in excess of 75 per cent non-resident workforce component.

"The reasons for the opposition arise from the adverse impacts on housing and rental affordability and availability, depletion of local infrastructure and human services, and erosion of community wellbeing, safety, and lifestyle."

Professor Carrington said the vast majority of the 559 survey responses came from people living in towns in the Bowen Basin Region (Collinsville, Dysart, Blackwater, Emerald, Moranbah and Moura and surrounding communities) which service most of Queensland's coal mining and resources sector development.

She said around a quarter of the respondents worked in the mining industry, and more than half of the remaining respondents were volunteers or community representatives in local organisations, therefore they were rich with local knowledge.

"While the state and national economy is clearly benefitting from the resources boom, the impact on local communities needs to be much more carefully considered. Mining activity has sprung up around many country towns, without regard to sufficient planning for this sudden increase in transient population and the flow-on effects on services, infrastructure, housing and community wellbeing," Professor Carrington said.

"While there is a common assumption that mining activity brings money into these local economies, this survey has shown that many local businesses report they are actually suffering, and even closing down, because of the 'fly-over-effects' on the local economy, and an inability to compete with mining industry wages.

"Moreover, the non-resident workforce is not spending a lot of money in the local community, with alcohol and fuel being the two key exceptions."

Professor Carrington said the non-resident miners themselves were not to blame, as they were also negatively impacted, particularly in terms of the effect on their families.

"In an era of critical skills shortage, an enlightened resources sector should act in concert with mining communities, to maximise their social licence to operate, and actively seek partnerships to mitigate the negative effects and maximise the positive social impacts on communities, workers and their families," she said.

"There are differing and even competing policy responses to mining development across Australian jurisdictions, including Queensland's new social impact guidelines, Western Australia's 'Royalties for Regions' program, NSW's moratorium, and the Australian Government's proposal for a Minerals Resource Rent Tax (MRRT).

"There is a clear need for national leadership in this contested public policy space.

"A proportion of the proposed MRRT could be one way of providing the critical investment so desperately needed in Australia's mining communities."

NB. This project was entirely separate from the ARC funded research into violence in mining towns, reported in the media late last year. The final report for that research will be released in the coming months.

Media contact: Michaela Ryan, QUT media officer, 07 3138 4494 or michaela.ryan@qut.edu.au

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