11.2 Sustainable Development and Infrastructure

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 APRIL 2021

11.2.2 PROPOSED HOLIDAY HOUSE – 72 (LOT 211) WOODITCH ROAD, MARGARET RIVER

Attachment 1 – Revised Bushfire Management Plan dated 17/02/2021

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Revisions to BMP Lot 211 (#72) Wooditch Rd, Margaret River

The following document provides additional evidence in response to DFES’s comments regarding the Simplified Bushfire Management Plan for Lot 211 (#72) Wooditch Rd, Margaret River prepared as part of a reapplication for short stay accommodation license.

17/02/2021

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1. Policy Measure 6.5 a) Preparation of a BAL Assessment Issue Assessment Action

Vegetation Classification: Plot 5 – Vegetation Exclusion Further photo evidence provided in the table below.

Photo ID: - Plot: - Vegetation Classification or Exclusion Clause Excludable - 2.2.3.2(f) Low Threat Vegetation Description / Justification for Classification Low threat vegetation including gardens and fruit trees of the established asset protection zone. Compliant with WAPC Schedule 1: Standards for Asset protection Zones and Local Government Firebreak and Fuel Hazard Reduction Notice.

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Vegetation Classification: Plot 3 and 4 – Class B Woodland classification Further photo evidence provided in the table below.

Photo ID: - Plot: - Vegetation Classification or Exclusion Clause Class B Woodland - Woodland B-05 Description / Justification for Classification Trees 2-15m high with foliage cover 10-30%, predominantly Eucalypts and Agonis. Grassy understorey, lacking tiered shrubby layer of vegetation and deep surface litter.

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APZ Management

Changes made to the spatial representation of risk management measures map to include width of asset protection zone. These separation distances are also specified in the compliance table of the BMP.

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2. Policy Measure 6.5 c) Compliance with the Bushfire Protection Criteria Element Assessment Action

Location, and Siting & Design A 1.1 & A 2.1 Additional photos have been provided as evidence to justify the original vegetation classifications and exclusions, along with the addition of the APZ dimensions to the spatial representation of risk management measures map, in order to validate the BAL rating for the existing dwelling identified in the initial BAL Report.

Vehicular Access A 3.1 In line with the Department of Planning, Lands and Heritage’s Position Statement: Tourism land uses in bushfire prone areas; Table 1; Performance Principle 2; Acceptable Solution 2.2, a BHL Assessment has been undertaken to identify the larger scale bushfire risk for vegetation abutting Wooditch Road as a single access route. The BHL Assessment Map provided below identified predominantly residential and rural residential properties abutting Wooditch Road between the existing dwelling at Lot 211 (#72) and Wallcliffe Road. These properties have been classified as moderate risk based on their combination of non-vegetated areas, grassland, asset protection zone low threat vegetation and varying classifications of remnant vegetation. Based on this assessment, the predominant bushfire hazard level for vegetation abutting Wooditch Road has been deemed moderate and a single access road can be considered as an acceptable solution for a holiday house where the dwelling is existing and considered outside a residential built-out area.

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Water A 4.3

Further investigation has identified an accessible reticulated fire hydrant located approximately 235m from the property for firefighting purposes.

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11.2 Sustainable Development and Infrastructure

11.2.4 SCOTT RIVER SUSTAINABLE ECONOMIC STRATEGY

Attachment 1 – Scott River Sustainable Economy Strategy

Attachment 2- Scott River Strategy Actions Breakdown

Attachment 3 – Strategy Addendum

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SCOTT RIVER

SUSTAINABLE

ECONOMIC

STRATEGY

2020 – 2030

OCTOBER 2020

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PREAMBLE

The Scott River Sustainable Economic Strategy adopts a ten year timeframe (2020-2030). The recommended initiatives, for example, to upgrade infrastructure, improve resilience and grow economic output to 2030 and beyond, have been prioritised. The aim is for the Scott River region to become an agricultural powerhouse of ‘State and Regional Significance’.

The strategy will be implemented as the world transitions through a period of unprecedented change. The drivers of change are significant and include technological disruption, climate change, environmental upheavals, food sustainability, renewable energy, and pandemic impacts on the global economy. Strategic responses will be further challenged as the world enters the 4th industrial revolution and fossil-fuel conventions are phased out during 2020 - 2040.

Global uncertainty and change of this calibre makes long term planning a challenge. However, investors and managers should take comfort in a plan that offers guidance over the longer term. This strategy leverages Scott River’s unique advantages, strengths and emerging opportunities to capitalise on the clean, green shift towards sustainability. If suitably resourced and adopted, this strategy will establish the Scott River region as a credible force among WA’s innovative agricultural regions for decades to come.

This report is based on a substantial collection of information gathered through a desktop review, interviews and the analysis of wide ranging material. High-level strategies have been presented as practical initiatives for implementation at the ‘local’ level. Critical to the success of the strategy is government recognising the ‘strategic’ value of the region come 2040 when climate change is expected to have reduced the agricultural output of many other regions across Western Australia. At that point in time, Scott River is expected to have fully implemented this plan and be seen as a reliable workhorse that is effectively and efficiently delivering premium quality food.

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ABBREVIATIONS

AMR Augusta Margaret River BOM Bureau of Meteorology DAFWA Department of Agriculture and Food WA DBCA Department of Biodiversity, Conservation & Attractions DPIRD Department of Primary Industries & Regional Development IA Infrastructure Australia LSWGG Lower South West Growers Group LBLCDC Lower Blackwood Land Conservation District Committee PCAS Pasturefed Cattle Assurance System RDA Regional Development Australia SD Southern Dirt SoAMR Shire of Augusta Margaret River SoN Shire of Nannup SRR Scott River Region SR Scott River SCP Scott Coastal Plain SWDC South West Development Corporation WALGA Western Australian Local Government Association WAPC Western Australian Planning Commission

CONTACT DETAILS

Queries in respect to this report can be forwarded to:

Marketrade E: [email protected] M: (61) 0407 581 481

DISCLAIMER This document has been compiled in good faith by Marketrade and is not a substitute for legal or technical advice. No person or organisation should act on the basis of any matter contained in this document without obtaining appropriate professional advice. Marketrade and its associates make no representation or warranty, expressed or implied, as to the accuracy, completeness, reasonableness or reliability of the information contained in this document, and accept no liability, jointly or severally, for any loss or expense of any nature whatsoever (including consequential loss) arising directly or indirectly from any making available of this document, or the inclusion in it or omission from it of any material, or anything done or not done in reliance on it, including in all cases, without limitation, loss due in whole or part to the negligence of Marketrade and its associates. This notice has effect subject to the Trade Practices Act 1974 (Cwth) and the Fair Trading Act 1987 (WA), if applicable, and to the fullest extent permitted by law.

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Contents

Executive Summary ...... i Background ...... 1 Introduction ...... 2 Socio-Economic Profile ...... 4 Economic Profile ...... 6 Challenges ...... 10 Stakeholder Aspirations ...... 14 Strategic Analysis ...... 16 Drivers of Change ...... 16 Climate Change ...... 18 Water Availability ...... 20 Electricity & Clean Energy ...... 22 Supply Chain Assets ...... 23 Import Substitution ...... 24 Town Linkages ...... 24 Improving Resilience ...... 26 Sustainable Agriculture ...... 27 Branding & Promotion ...... 28 Farm Inputs & Costs Of Production ...... 30 Investment Impediments ...... 31 Tourism ...... 31 Land Planning ...... 32 Partnerships & Alliances ...... 35 Infrastructure Requirements ...... 36 Road Priorities ...... 39 Investment Opportunities ...... 43 PPP Options ...... 44 Strengths, Weaknesses, Opportunities & Threats ...... 45 Strategies ...... 46 Vision ...... 46 Goals ...... 46 Strategies ...... 47 Action Plan ...... 51 KPI’s ...... 55 Appendix ...... 56 Infrastructure Projects ...... 56 LGA Population Projections ...... 58 Dairy in WA ...... 59 Grant Funding Options ...... 63 References ...... 64

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The Scott River region is located on the lower south west corner of Australia and is recognised as an agricultural area of ‘State and Regional Significance’. It receives over 950mm of annual rainfall and enjoys five ‘peak’ growing months and mostly frost-free winters. The comparatively flat farm land hosts intensive agriculture for beef, dairy and horticulture, with some farms operating large ‘pivot’ irrigation systems. The region generates over $78 million in agricultural output annually and has scope to achieve $117M in output by 2040 provided infrastructure is upgraded, challenges are addressed and the region attracts investment in emerging opportunities.

This report sets out strategies that meet latent and anticipated needs of the Scott River region (SRR) while continuing to protect, sustain and enhance the natural, built and community resources required for the region to reach its economic potential during 2020-2030.

A number of challenges and opportunities have influenced the Scott River Sustainable Economic Strategy, including:

 Infrastructure gaps (e.g. unsealed roads, mobile black spots & power supply limitations) have limited the region from achieving its potential since the late 1990’s. Eleven infrastructure projects have been identified, indicatively costed (at $203M) and evaluated, which if addressed within the medium term would enable the region to reach its full agricultural potential.

 20 years of limited investment in infrastructure has left farmers to carry the cost of operating with poor quality roads, and limited communication and power, to the detriment of farm productivity and profitability. In turn, investment in farming operations, innovation, capacity and expansion has been limited. Some farms are selling up and forestry is taking over productive grazing land.

 Diversified crops would benefit Scott River (SR), however, candidate crops such as hemp, amaranth, flaxseed, etc are not being pursued. The lack of seed cultivars suited to SR, poor roads to link farms across SR, rising power costs (impacting irrigation), limited water for allocation and limited collaboration among farmers have been contributed factors. Subsequently, trials of new diversified crops have not been a priority. Conversely, the diversification of crops and expansion of farm production in SR could generate 50+ additional jobs within SR and 80+ jobs in the broader economy.

 The region’s unique advantages include high rainfall, cool climate, productive soils, low biosecurity risks and little or no frost. Climate change could potentially improve the region’s

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 Scott River is home to WA’s largest dairy farms, however, in recent years dairy and beef farms have been selling or leasing land to forestry companies to grow Bluegum plantations for woodchip export. Bluegum plantations have increased from 5,000ha in 2000 to over 13,000ha in 2020. Recent Bluegum plantings will be harvested around 2030. The Shire of Nannup has proposed local planning amendments to slow the Bluegum ‘forestation’ of SR.

 State land planning has not delivered a community facility within the SRR. Subsequently, with no central facility residents disperse to socialise, disperse to source family and business requirements, and are challenged to interact as a community. Land planning has contributed to restricted access for recreation and tourism, has influenced limited investment in farm growth, and has made it difficult for residents to build social inclusion and community cohesion. A review of land planning is needed.

 Local challenges are acknowledged across the Scott River region, however, there is limited unity to address the challenges. Poor mobile communications, unsealed roads, limited water remaining for allocation, and inequitable power supplies have contributed to an element of regional frustration and despair.

Despite the challenges, the region has a potentially bright future especially if infrastructure gaps are addressed within the medium term. The Scott River Sustainable Economic Strategy 2020-2030 aspires to increase capacity and encourage investment in farm output and downstream processing in Scott River’s dairy, beef & horticulture sector; expand output of ‘boutique’ products in the micro agri-sector; establish a renewable energy sector with possible expansion into hydrogen; encourage growth in tourism at Quannup within the Jangardup-Donnelly River precinct; bring collaboration and unity to the fore at the social-community and commercial-enterprise levels; raise the profile of Scott River through regional branding; and address long term gaps in infrastructure that in turn will trigger investment across the region. An implicit assumption is that government will re-assess the importance of the region as a strategic agricultural area (i.e. producing food) and choose to invest in infrastructure that will benefit the State and the region from the anticipated impact of climate change.

The strategy adopts a vision set out for the region in 2001, which remains valid and aspirational:

1 For example, reduced runoff will reduce waterlogging thus increase the amount of arable land; an increase in sunny days will increase the length of the growing season, increasing crop growth & output.

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A vital sustainable agricultural community living in balance with economic development and the unique environmental values of the waterway and vegetation systems of the region.

In seeking a sustainable economic future for Scott River, the strategy sets objectives that reflect a shared purpose for the region.

Objectives

 Increase economic output by 50% to $117M by 2040.  Attract investment and enterprise.  Retain businesses experienced at operating in Scott River.  Foster a thriving small and micro enterprise agri-sector.  Encourage innovation and technological advancement.  Grow SR’s capacity in beef, dairy, sheep and horticulture.  Encourage a clean economy and eco-conservation.  Support high quality of life within a radiant natural environment.  Facilitate stronger communities and social inclusion.

Rather than attempt to ‘pick winners’ the strategy focuses on high-level initiatives aimed at attracting investment, increasing agricultural capacity, encouraging sustainable economic prosperity and building a thriving social community over the medium term. Each strategy is accompanied by a set of practical initiatives captured in the action plan, which is set across three stages extending from 2020 to 2030. Key performance indicators are identified to monitor and manage the strategy.

Strategies

 Upgrade infrastructure  Grow & Leverage Alliances  Stimulate Micro Agri-Business  Review Land Planning  Improve Town – Community Linkages  Strengthen Community  Collaborate to Prosper  Enhance Biodiversity

A compendium of data, stakeholder consultations, literature review findings, and analysis is presented in a separate addendum.

This strategy sets out recommended initiatives based on preliminary, high- level analysis. Further investigation is required, for example, where specific initiatives are to be assessed for commercial consideration.

iii

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Stakeholders This project is a collaboration between the Shire of Nannup (SoN) and the Shire of Augusta Margaret River (SoAMR) with support from the South West Development Commission, Bunbury Fibre Plantations, Western Dairy, and the Lower South West Growers Group (LSWGG).

Project Brief The purpose of the project was to identify and prioritise innovative strategies and infrastructure requirements to address identified challenges to economic, environmental and social resilience in the Scott River Region (SRR).

Methodology • Literature review (35+ articles reviewed) • 30+ stakeholders interviewed by phone • 11 stakeholders participated in 2 forums • 2 stakeholders participated in an online survey

History Europeans first moved into the Scott River region in the 1860’s. Group settlements began in the west of the region in the 1920’s. Conditional purchase blocks were sold and cleared in the 1960s, mainly for dairy and grazing (beef). Bluegum plantations emerged in the 1990’s along with intensive horticultural activities including the use of 40ha centre pivot irrigation systems for growing potatoes in rotation with grazing and cropping. In 2001 the Scott Coastal Plain – A Strategy for a Sustainable Future set out a vision for intensive agriculture with an emphasis on managing the natural environment, water, and land use planning. The Strategy envisaged the growth and diversification of agriculture through tourism, agroforestry and mining. The 2001 Strategy identified infrastructure gaps in roads, power and communication that were inhibiting the region’s economic potential (refer to the quote from 2001 below). As at 2020 the infrastructure gaps have not been addressed and continue to limit the region’s economic output.

In 2009 the Augusta-Walpole Coastal Strategy set out a comprehensive framework for land use planning to preserve environmental and landscape values of the coast. The Strategy continues to guide subdivision and development decisions and provides recommendations for coastal tenure and management, settlement, coastal access, tourism and protection of the environment. In 2015 the Lower South West Growers Group (2015) investigated approaches to attract investment in infrastructure, value- adding and agricultural opportunities. In 2020 the Shires of Nannup and Augusta Margaret River, with the support of government and industry, initiated this project to set out a medium term approach to improve the region’s resilience by identifying and prioritising infrastructure requirements and identifying sustainable economic strategies.

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“There are a number of infrastructure issues to be addressed, such as the provision of suitable power, roads and telecommunications, if the economic potential of the area is to be recognised.” Scott coastal plain - a strategy for a sustainable future. Department of Agriculture and Food, Western Australia, 2001, page 8.

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The study area for this project was the Scott River region (SRR), shown below inside the grey line, bordered by Brockman Highway, Stewart Road, Barlee Brook, Donnelly River, the Southern Ocean coastline and the Blackwood River. The region extends 70 km along the coast and 20 km inland, covering around 105,000 hectares or 1,050km2. Private freehold land covers 43,000ha (430km2) with 62,000ha (620km2) being State forest, national parks, nature reserves, Crown land and other minor uses.

Topographically, the mid-blue shaded areas around the Scott River and the Scott National Park comprises low lying land vulnerable to waterlogging, which makes some of the farm land unusable in winter and spring. The yellow shaded areas closer to the Brockman Highway comprise higher elevation (i.e. hills, low scarp ) that drain into the Scott River Plain and could potentially host large surface (gully) dams to provide irrigation when a drier climate becomes the norm (e.g. 2030 onwards).

The SRR has a Mediterranean climate with cool (8-18°C), wet winters and warm (10-28°C), dry summers. Annual rainfall averages 957mm spread over 160-260 days with 500-700mm falling during May to August. The peak growing season is November to April with over 100 sunny / semi- sunny days. Since 1897 temperatures have risen, the number of clear

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days has increased, the number of rainy days and rainfall has declined and the reliability (timing) of rainfall has declined. However, for the next 10-20 years the SRR is expected to experience a milder climate with less but comparatively high rainfall (700-800mm p.a.), and more sunny days, which is ideal for intensive agriculture.

Cape Leeuwin Climate Statistics 1901 – 2020

Cape Leeuwin is 13km southwest of Scott River and offers 120yrs climate data. (source: BOM)

Land utilisation is a key driver of economic output within an agricultural area such as SR. A range of factors limit the economic Scott River Freehold Land Use (2020, Est.) potential of SR including remnant vegetation (i.e. Remnant 2 emergent native bush) on Forestry, Vegetation, freehold land, cleared land 32%, 23%, 12,960ha that is not irrigated, and land 9,315ha that is irrigated but not fully utilised. Collectively this Irrigated not Irrigated (Pivots), accounts for 53% of the Fully Used, 3%, 1,215ha 15%, freehold land or Cleared not 6,075ha approximately 21,500ha. In Irrigated, addition, issues such as 27%, waterlogging, unsealed 10,935ha roads, cost of irrigation systems and access to capital influence how much land is utilised within SR. Addressing gaps in infrastructure, lowering input costs (e.g. power), increasing labour supply, increasing (summer) water supply, more simplistic land planning, and stronger collaboration among SR farmers would encourage higher utilisation of freehold land within the region.

2 Emergent native bush is that which is comparatively young & immature and spread naturally onto previously cleared / semi-cleared (grazing / cropping) farm land within the past 8-18yrs; mostly on coastal plots south of Woodarburrup and Milyeannup Coast Roads; prime horticultural land where expanded output would have export value. 3

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Within the SRR, freehold land in the Shire of Nannup is zoned ‘priority agriculture’ and hosts intensive agricultural activities on plots ranging from 100ha to 2000ha; and freehold land within the Shire of Augusta Margaret River is zoned ‘general agriculture’ and hosts mostly smaller commercial, lifestyle and hobby farms on plots ranging from 25ha to 500ha. Coastal lots are zoned ‘rural conservation’ that prohibits subdividing until coastal access is provided and shoreline land is ceded to government for management purposes (refer to the diagram below).

Socio-Economic Profile

The socio-economic profile includes neighbouring suburbs of Karridale, Kudardup and Peerabeelup, adding 385 persons to Scott River’s small population of 160. Data on small populations have privacy and confidentiality restrictions, limiting the insight that can be gleaned. The larger ‘all-inclusive’ population presents a richer profile by including three adjoining suburbs that include children, students, employees, small business owners and under-employed residents. The larger group will ultimately provide some of the support required to grow investment, employment and output across the SRR.

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Summary: In 2016 (ABS census), SRR had a small population of 545 residents, 134 families, around 1.7 persons per dwelling, and a median age of 45 (i.e. marginally older than similar regions). Many of the 0-14yr olds live in the suburbs of Karridale & Kudardup (i.e. where smaller landholdings dominate). Half the population were in the workforce, which has three equal ‘bands’ of under-employed, fully employed and over- employed persons in terms of hours worked per week (median 39hrs worked each week). A majority of the labour force were employed as managers, professionals or labourers, mostly within the agriculture, forestry & fishery sector, and various ‘other’ sectors employ over half the region’s labour force. Most family incomes exceed $800 per week whilst personal incomes generally exceed $400 per week. The actual SRR is a large, sparsely populated rural area with one person every 656ha, hosting families, couples and singles in 105 dwellings. Socio-economic details for the eight suburbs including the five suburbs within the study area (SRR) follow (source: ABS 2016 census).

Population: 545 Median Age: 43 105 residents aged 14 or less 362 residents aged 16-69; 82 aged 70+

No. Families: 141. 74 with children, 67 without children.

Education: 381 completed year 10 high school. 186 completed University or TAFE.

Employment: 258 employed (71% of the working age population). 168 employed Full Time. 90 Part Time. 16 Unemployed. 121 employed in Agriculture, Forestry. & Fisheries. 137 employed across 11 different sectors.

Roles: 117 employed as Managers or Professionals. 74 employed as Labourers; 67 employed in administrative, clerical & services.

Weekly Income: Median family income $1100. Median personal income $650. 137 residents personal income is less than $499 / week.

Hours Worked Weekly: Median: 39hrs 85 residents work 49+ hrs / week. 88 residents work less than 34hrs / week. 56% of employed residents work more than 40hrs / week.

Suburbs: 69% of the population live in two suburbs. Karridale 277 residents & Kudardup 99 residents Six other suburbs average 28 residents or less.

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Socio-Economic Profile of SR & Adjacent Suburbs (2016)

SCOTT RIVER Avg No. Avg. No. Median Median REGION. ABS STATE Avg. No. Median Motor Median No. No. Private People Weekly Monthly SUBURB No. People Male % Female % Children Weekly Vehicles Age Families Dwellings per Household Mortgage CLASSIFICATION. per Family Rent per Household Income Repayments QUICKSTATS. 2016 Household East Augusta 27 53% 47% 53 5 1.0 45 2.0 $762 $769 $0 2.4 Courtenay 50 49% 51% 39 9 1.0 21 2.5 $1,312 $1,600 $185 1.9 Scott River 55 53% 47% 30 11 2.4 23 3.6 $2,124 $0 $0 1.9 Scott River East 17 65% 35% 37 4 2.0 12 2.0 $2,250 $0 $0 2.0 Lake Jasper 11 50% 50% 44 0 0.0 4 2.7 $1,718 $0 $0 1.8 sub total SR 160 53% 47% 41 29 1.0 105 2.5 $1,633 - - 1.9 Peerabeelup 9 50% 50% 66 3 0.0 9 2.0 $824 $0 $0 2.0 Kudardup 99 48% 52% 47 33 1.3 62 2.2 $928 $1,950 $150 2.6 Karridale 277 48% 52% 45 69 2.2 153 2.3 $1,125 $1,733 $209 2.2 TOTAL 545 50% 50% 45 134 1.2 329 2.3 $1,219 $1,667 $185 2.0 Kudardup, Karridale & Peerabeelup shown in red, lie adjacent to the Scott River region, and potentially impact regional sustainability.

Economic Profile

The SRR is zoned for agricultural purposes and hosts 65+ farms involved in dairy, beef, sheep, horticulture, and viticulture, as outlined below.

Commercial Farming in SRR

No. LAND AREA No. No. OUTPUT SECTOR FARMS ha LIVESTOCK EMPLOYEES p.a. Beef 41 21,000 12,500+ 26 5000+ head Sheep 16 1600+ 4,000+ 11 1000+ head Dairy 8 4000 16,000+ 37 70M+ litres Horticulture 2 200+ - 8~18+ 6000+ tonnes Forestry - 13,000+ - 5-11 250,000 tonnes Viticulture 1 20 - 2-6 - TOTAL 68 ~39,820 32,500+ ~100 ~342,815t Source: DPIRD 2019, LSWGG & Personal Communications 2020

The SRR hosts 20+ hobby and lifestyle properties (20-100ha) producing varied quantities of avocados, alpacas, heritage vegetables, organic meats, value-added preserves & bush foods etc, mostly for niche markets. Scope exists to expand the region’s micro scale agri-business sector targeting local and regional markets (e.g. through alliances, community - social enterprise, facilitated guidance – mentoring, new crops, ag-tech, automation, etc).

Two commercial horticultural properties in SRR produce broccoli, cauliflower, potatoes (ware & seed), Chinese cabbage, lettuce, beetroot, 6

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rocket, celery, cabbage, avocado and lucerne. Seed potatoes are exported to Indonesia & Mauritius and have significant potential to increase output for export (e.g. to Egypt). One of the horticultural growers has a packing shed in Yarloop whilst another uses facilities within the nearby ‘Beenup Sheds’. Scope exists to expand horticultural production within SRR, however, unsealed roads in SR can damage fresh produce during transport, which reduces margins and profitability, discouraging expansion.

WA’s largest dairy farms are located in the SRR, making a significant contribution to the State’s milk supply and cattle for the beef market. There are 2230ha of irrigated pastures (grasses) grown in SRR, with approximately 1910ha associated with dairy farming. Four dairy farms are privately owned and four farms are under corporate ownership. One dairy farm recently exited and another is poised to exit, potentially leaving seven dairy farms.

SRR beef farms produce mostly premium quality, grass-fed cattle, which are sold to local feedlots and processors (i.e. abattoirs). One beef farm produces Wagyu year-round using irrigation and the high annual rainfall. Beef grazing in SRR has been in decline since the early 2000’s as evidenced by the corresponding steady growth in Bluegum forestry plantations. A group of SR beef farmers is investigating a processing facility to supply branded, premium quality beef in a ‘farm to fork’ inspired venture.

Forestry in SRR is managed by three corporate entities. Bluegum is the target timber for SR plantations, which has increased from 5,000ha in 2000 to over 13,500ha in 2020 (i.e. 32% of the cleared land in SR). Logs are harvested during summer-autumn and trucked to Bunbury for processing into woodchips before being shipped from Bunbury port. In recent years log & woodchip prices have been buoyant driving the expansion of Bluegum plantations in SRR and across the southwest. Forestry and harvesting generates limited employment within SR as foresters generally employ contractors from outside the area to service plantations across southern & lower south west WA. Anecdotally, there is local concern for the impact of agroforestry on groundwater levels and soil quality.

Agricultural operations can vary significantly within a region and from year to year. Similarly, average yields per hectare can change significantly. Recent estimates for yields per hectare within the SRR are outlined below. Recent increases in farming costs and the trend among SR land owners to lease land to agro-forestry has influenced average yields.

Scott River Yields per Hectare (2020)

Sector Gross Revenue per ha Gross Margin per ha Beef $1200 $960 Sheep $1600 $1280 Dairy $1450 $300 Irrigated Agriculture $7500 ~ $17,500 $1750 ~ $9700 Agro-forestry $1600 ~ $2000 $1000~$1200

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Source: LSWGG & Pers Comm 2020.

There is scope to increase the use of freehold land for food production within SRR by 50% or more through:

 Better use of irrigated land not fully utilised (up to 1,400ha),  Establishing irrigation on cleared land (up to 11,000ha),  Converting comparatively young, immature native scrub on private land3 into cleared farm land (up to 3,000ha),  Making better use of irrigated areas not fully utilised, for example, cropping during fallow periods (up to 1,000ha),  Converting forestry plantation (~13,000ha) into fodder or food production, and  Expanding horticultural production into comparatively unused areas of SR’s southern coastal strip.

In 2019 DPIRD identified 12,000ha of SR farm land having high-moderate suitability for intensive agriculture that could be used more effectively to increase output. There is scope to increase dairy, grazing, horticulture or niche agri-business output, however, farmers are required to invest in infrastructure in addition to irrigation, plant and equipment with no compensation from highly competitive markets.

Scott River Region Annual Output (20184)

Milk $34,000,000 Forestry $30,000,000 Beef $ 8,200,000 Horticulture $ 5,000,000 Wool $ 750,000 Sheep $ 600,000

EST. TOTAL $78,550,000

Employment Scenarios The expansion of farming activity within SR could increase employment in proportion to ‘existing practices in SR’ or in accordance with employment multipliers5. The tables below show the potential increase in employment across three scenarios if farm output were to increase. In practice however, expansions can be subject to limitations in respect to staff availability, market demand, ability to fund expansions and the availability of infrastructure to support a larger industry and higher output.

3 By way of comparison, 87% of the Shire of Nannup is native bush and 5%-6% is plantation forest; within the SoN, the SRR is zoned priority agriculture; to preserve native bush SR farms have buffers and creek line vegetation; clearing emergent scrub along coastal plots south of Woodarburrup & Milyeannup Coast Roads could generate export-grade output. 4 Source: DPIRD 2019, LSWGG & Personal communications. 5 For example, as set out in Islam N & Johnson P, Agricultural Processing and The Western Australian Economy, Department of Agriculture and Food, WA, Perth, Report 13/2000, page 43. 8

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Employment Scenarios within SR

10% 20% 50% Increase Increase Increase Sector Growth Prospect Output $ Output $ Output $ Added Added Added Jobs Jobs Jobs Created Created Created

Dairy Low- $3.4M $6.6M $17.0M Moderate 3.3 7.4 18 Beef Moderate- $800,000 $1.6M $4.1M High 2.6 5.2 13 Sheep / Wool Moderate- $135,000 $270,000 $675,000 High 1.1 2.2 5.5 Horticulture High $500,000 $1.0M $2.5M 1.8 3.6 9.0 Forestry Moderate- $3.0M $6.0M $15.0M High 1.1 2.2 5.5 TOTAL JOBS 9.9 20.6 51

Employment Scenarios within the Broader Economy

10% 20% 50% Increase Increase Increase Sector Growth Prospect Output $ Output $ Output $ Added Added Added Jobs Jobs Jobs Created Created Created

Dairy Low- $3.4M $6.6M $17.0M 0.0205 Moderate 7 13 34 Beef Moderate- $800,000 $1.6M $4.1M 0.0257 High 2 4 10 Sheep / Wool Moderate- $135,000 $270,000 $675,000 0.0234 High 0.5 0.75 2 Horticulture High $500,000 $1.0M $2.5M 0.0215 1 2 5 Forestry Moderate- $3.0M $6.0M $15.0M 0.0219 High 6 13 32 TOTAL JOBS 16.5 32.75 83

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Population projections for the Shire of Nannup (SoN) and the Shire of Augusta Margaret River (SoAMR) differ markedly. Combined, the two Shires could potentially host an extra 2,735 persons by 2025 or up to 5,351 by 2030 (i.e. if recent trends continue). Their respective influences on the SRR could be significant in respect to labour supply, services capability, product availability, investment attraction, community engagement and industry development. Population projections for both shires are presented in detail in the appendix.

Challenges

The SRR is dedicated to agricultural use. A raft of challenges has prevailed since the 1990’s. Agricultural output has been constrained due to inadequate infrastructure and associated challenges as outlined below.

Infrastructure  SRR has 103km of unsealed roads, deterring investment & expansion, increasing operating costs, discouraging visitors & tourism, posing a safety hazard when driving, especially in the wet season.

 Mobile black spots are widespread, limiting productivity and the uptake of agritech, limiting family (residential) use of digital communication, workers are unable to use digital technology which discourages the relocation of families.

 SCP 2001 Strategy notes a “lack of agricultural workforce means the focus will be on crops and other agricultural activity with a high mechanisation requirement”. However, modern mechanisation and ‘ag-tech’ requires ‘mobile digital communication’. The SCP has numerous ‘mobile phone black spots’ that limit mechanisation, automation and innovation.

 The Shire of Nannup has a comparatively low resident population, a low rate base, a narrow industry base, home to an extensive (State-owned) conservation estate, and has limited capacity to fund infrastructure for an intensive agricultural area like SR.

 Majority of the remaining gravel supplies are captive within conservation estate, imposing extra cost to repair farm land & public roads. Biodiversity controls are inflating the cost of maintaining unsealed roads, farming and regional development.

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Labour Supply  Shortage of labour in SRR (trades, unskilled & seasonal), causes delayed repairs & prolongs downtime, disrupts harvest / production schedules, and adds to operating costs. Quality workers are generally able to find employment elsewhere in the Capes region without driving 50km+ each way to work.

 Shortage of worker accommodation6, lack of rental properties and limited houses for sale in proximity, no dedicated facilities to house workers, ingrained reluctance of regional workers to travel to SRR, discourages the expansion of farms & industry.

Agri-Operations  Waterlogging (Jul-Sept) in low lying areas around Scott River; high levels of water run-off inundates (saturates) low-lying areas, reduces the amount of useable arable land, makes unsealed roads boggy, and limits the range of truck and transport options.

 Land planning and environmental restrictions discourage the clearing of young, immature native scrub on private (mostly coastal) farm land, limiting growth and restricting output. SRR has over 64,000ha (640km2) of conservation estate to protect biodiversity whilst land planning & environmental regimes restrict comparatively small areas of private land hosting young, immature native scrub from being cleared for farming purposes.

 Distance to market from SR is greater than competing regions. SRR has a high reliance on regional roads & transport contractors, imposing higher costs (i.e. favours value-adding but lack of infrastructure makes it marginal or uneconomic to value-add).

 Some of the private land along the coast, east of Swan Lakes, is underlain with moderate7 quality ag-lime sand used in agricultural operations, which will become more valued as existing ag-lime supplies run out; priority is to ascertain the quality and quantity and if valued, facilitate access to ensure ag-lime supplies are readily available to SR farmers.

 Minimising nutrient-rich runoff (e.g. dairy effluent) into the Scott River8, to maintain healthy waterways & groundwater quality, which will require investment in new farming infrastructure and practices, whilst profits are in decline.

6 Interim solution could be a campground within SR (i.e. nature based facility) in close proximity to SR farms; campers working on SR farms allowed to stay up to 90 days; jobs posted at the campground; one night stay for non-workers; 7 Current main source of ag-lime are sands from the nearby Redgate deposits with a pH of 8-9 compared to pH 6-8 for southern SR coastal ag-lime sands (i.e. with lower calcium content). 8 Use of a Z-Filter may be used to limit waste water run-off into waterways, especially during the winter rain period. 11

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 Land zoning supports intensive agriculture & mostly large farms, whereas the lack of infrastructure in the SRR makes it difficult to invest in and optimise ‘large’ farm output, limiting the region’s agricultural potential.

 WA’s dairy industry is facing steady decline. Australia’s retail oligopoly dictates milk prices to local milk processors; WA’s three milk processors operate old plants with limited capability and to remain profitable set ‘thin’ prices to WA’s dairy farmers; WA’s 140+ dairy farmers are individual ‘price takers’ forced to accept comparatively low prices driven by an oligopoly of retailers and processors. Some farmers are more efficient than others and can sustain operations while others are less efficient and ultimately exit the industry. The number of dairy farms in WA has declined from 440 in 1990 to 140 in 2020. WA’s milk production has been declining for over 20 years (e.g. WA produced over 800 million litres of milk in 2000 and around 370 million litres in 2020; more than 50% decline in 20 years).

 Iron exists naturally as a sub-surface mineral across select areas of the SCP, however, if disturbed it can cause actual acid sulphate soils (AASS) and the acidification of water; much of the SCP is classified as a ‘high risk area’ (shown below). SR Farmers report minimal occurrences of AASS, meaning it remains undisturbed as potential acid sulphate soil (PASS);

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Energy  Limited power supply in eastern-most SRR including no 3- phase power, instead diesel generators are used as back-up supply, which increases operating costs & deters growth.

 SRR has a limited supply of power. Existing dairy farms & irrigation systems use much of the available supply. Any new processing facility or additional irrigation systems would require upgrades to power supply capacity.

 Electricity costs are rising, which threatens the viability of (pivot) irrigators; irrigated summer crops are a mainstay of SRR, however, grower margins are under threat and renewable energy has not yet been developed9 in SR.

Community - Social  SRR is distanced from local towns & urbanised rural areas, presenting a time/cost barrier for SR residents to source labour, goods & services, which has inflated costs & limited resource options.

 There is no dedicated ‘hub’ for the SR community; residents disperse to shop & socialise across the surrounding region; isolation and exclusion has been normalised across the community; there is no central facility to share information, aspirations, solutions and opportunities.

Case Study

Simplot Australia was a vegetable processing operation in Manjimup, 80km from SR. Prior to 1999, Simplot planned to increase the supply of locally grown potatoes to support a doubling of processing capacity. To increase the supply of locally grown potatoes Simplot “sought government assistance to resolve issues relating to land clearing”10. However, Simplot was unsuccessful and was unable to utilise its available manufacturing capacity. When combined with cultivar difficulties, challenges relocating process plant from interstate, and other factors, Simplot Australia (Manjimup) suffered financial losses that contributed to its closing. Land clearing is a critical issue in SR, contributing to the exit of some beef and dairy farmers, and has contributed to lower growth in horticultural output, which has contributed to an increase in plantation forestry. A more conciliatory, strategic approach to land planning and environmental regulations is required to increase farm (food) output as climate change reduces the sustainability-viability for some of Western Australia’s traditional farming / food producing areas. Land use restrictions were imposed long before the urgency of responding to climate change, pandemics and national self-sufficiency. Continued challenges limiting the SRR from becoming an agricultural area of ‘State & Regional Significance’ will lessen WA’s self-sufficiency in food and/or contribute to a heavy reliance on imports from interstate and abroad, for example, in daily staples such as vegetables, milk and dairy.

9 AMRCCE’s clean energy & biogas project could potentially deliver lower cost power to SR farmers. 10 Islam, N, and Johnson, P. (2003), Agricultural Processing and the Western Australian Economy. Department of Agriculture and Food, Western Australia, Perth. Report 13/2003, page 15. 13

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Stakeholder Aspirations

Consultations with stakeholders identified aspirations aligned with sustaining, improving and better utilising the agricultural potential of the SRR. Key findings from stakeholder consultations are outlined below.

 Water. The value of water worldwide is expected to rise, especially as climate change brings new harsher realities to some areas. High rainfall areas such as the SRR will be more highly valued for the availability of water, the ability to support food production, and the ability to facilitate new opportunities in R&D, innovation and advanced processing.  Hemp. WA is 20+ years behind the world in Hemp R&D and significant catch-up is required to trial, pilot, expand, market & up-scale capacity to establish an intensive hemp sector in WA. Hemp was trialled on SR farms and yields were comparatively high11; large crops could be planted to support a local processing facility; local roads would need upgrading to transport the lightweight, bulky hemp from the paddock to the processing plant (which itself would require significant investment). Hemp would grow well on SR’s black peet soils, which are usually less acidic (5-7pH), and could support high yields over summer- autumn similar to millet, sudex, sorghum and maize. Planting several thousand hectares would be required to support a small scale processing plant within SR, potentially at the Beenup Sheds site.  Plantation Forestry. Foresters are anxious for government to incorporate short rotation hardwood plantations into carbon sequestration programs. This would increase the value of plantations, stimulate investment in plantations and bring more jobs in harvesting, transporting and processing. Environmentally, forest plantations help manage water table levels, dry land salinity and erosion control. Policy is needed that recognises the medium term ‘capture and storage of carbon by hardwood plantations’.  Cropping. SRR could benefit from a more diversified range of summer & winter crops, increasing its expertise in a broader range of crops & markets, and in turn attracting a wider range of buyers, investors and farmers that would increase the value of SR farms over the long term. However, high winter rainfall and waterlogging makes perennial crops unsuited to SRR and year round crops are unlikely to emerge until waterlogging or heavy winter rains reduce. This may change, for example, when the effects of climate change become more pronounced (e.g. 2030 onwards), or when surface dam capacity increases, such that

11 Trials in SR by AG WA in the late 1990 have yielded 50% more hemp than comparable regions in WA. 14

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run-off declines and the previously waterlogged land becomes arable.  Increasing SR output should focus on trialling year-round crops in areas not affected by winter waterlogging and where centre pivots can operate (in summer). One approach is to leverage (fund) local growers into trialling crops supported by corporate investors. This requires having water licenses in place, land ready to sow, sales outlets in place, and targeting investors that have a track record in horticultural operations. Packaging & promoting this type of program is a weak link that SR needs to address.  Seed potatoes. Seed potatoes are a significant opportunity for the SRR. Coastal growing areas with pivots in summer can yield high volumes of seed potatoes with relatively short rotations. There is strong demand for seed potatoes in several overseas markets. A growers cooperative or pooled resources among experienced growers could potentially expand SR’s seed potato output to world scale.  Farmers Market. AMR Farmers Market has an under-supply of eggs, chicken & duck meat, fresh fish (aquaponics / aquaculture), boutique herbs & potatoes. These could be grown & sold by some of the small lifestyle & hobby farms in SR. Ideally a raft of community-based programs & ventures could be facilitated working alongside the existing small family-based agri-enterprises in SR. Using SR branding the program could aim to expand its reach to more distant markets.  Collaboration. Southern Dirt is exploring a co-op model to pool growers & suppliers; facilitate economies of scale; the adoption of hi-tech processing to capture high value niches; e-commerce technologies to reach end consumers; trialling new, alternative crops; and working with SR beef farmers investigating ‘farm to fork’ processing initiatives.  Small farms. Small farms in SR (i.e. 20ha-100ha) with modest levels of capital can struggle to survive financially. They could benefit from outside support (e.g. EDO’s & agri-specialists) to improve capacity & yield on small lots. Possibly a 2-year program could be trialled targeting farms/owners who can invest in small scale facilities but need support with planning, compliance, administration, farm management and marketing.  Town linkages. A costly but long term solution to town linkages is a bridge from Albany Terrace to Pericles Street, at the Blackwood river mouth. It would open up SRR to Augusta, stimulate Augusta as a regional hub, create flow-through traffic from Vasse Hwy / Brockman Hwy, and improve access to the eastern side of the Blackwood (i.e. national parks). The bridge would be approximately 450m in length and would cost in the vicinity of $70M - $80M.  Beef. SR beef growers are investigating a micro abattoir to maximise value and to control quality from “farm to fork”; aim is to improve animal welfare (i.e. no trucking) by processing on- farm (minimise handling) and provide full traceability; leverage

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SR’s free range grass-fed qualities (PCAS), and leverage provenance – SR branded as a clean, green & safe source; and to target premium value niches through innovative channels (e.g. online, direct delivery, air freight, etc).  Workers village. SRR would benefit from a workers village, for example, capable of housing 40-50 dairy workers and 20-30 horticulture workers, including families, with support services within the village (e.g. shop, social amenities & rec facility). The workers village could be located in Augusta (if a ferry was operating) or in the Kudardup & Courtenay area (i.e. consistent with the Kudardup town strategy).  Value Adding. SRR dairy farmers would support an unorthodox, unconventional approach to process and value-add milk; WA imports ‘thousands of tonnes’ of cheese, butter and yoghurt from eastern Australia each year and this is expected to increase annually; SR is highly suited to dairy farming (cool, flat, irrigated pastures & large scale); power, water and labour / staff are potential barriers. A co-operative or corporate-backed venture could trigger dairy processing / value-adding in SR.

There is considerable ‘up-side’ within the aspirations of SR farmers and land owners. Local and State governments are encouraged to revamp communication and relationships with the SRR that supports investment decision making. In parallel, government planning and policy in SR needs to be reviewed given the comparatively low investment levels since 2000 and the relatively low cost of finance expected during 2020-2030. Failure to bring about change in SR will be amplified in the medium-long term when SR’s highly productive land is forested and local farming expertise is found to be in short supply.

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Drivers of Change

Drivers of change affecting the lower south west and the SRR in Particular are outlined below.

 Climate change. Anticipated 30% reduction in rainfall, declining from 950mm p.a. to 650mm p.a.; less rain, less certain timing of rainfall (e.g. fewer rainy days in winter & longer dry spells in summer) and progressively higher evaporation as temperatures increase. Farming practices will need to respond accordingly, for example, an increase in surface dam capacity to support irrigation during a longer summer and a warmer winter.

 Low-density urbanisation. From Kudardup to Margaret River, including possible development of the Kudardup town

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settlement, supporting an increase in the supply of labour and service capacity within local towns.

 Tourism. Continuing to grow across the Capes region; potentially a longer visitor season (i.e. due to an extended dry season), wider range of services & experiences (e.g. mobile, pop-ups, online, shared services & innovative offerings), a wider range and higher level of visitors, and a stronger local tourism economy.

 Micro power grids. Gradual emergence of micro power grids across WA, more renewable energy facilities, more open access to power distribution networks, and lower cost electricity for households & industry.

 Transport. Increased & improved capacity to transport & distribute produce from the south west to State, domestic & overseas markets via Busselton-Margaret River airport, Bunbury Port and proposed Waterloo Industrial Park.

 Growth in Agriculture. Anticipated growth in the Myalup- Wellington and Southern Forests agricultural areas (e.g. irrigated agricultural precincts), potentially supporting new processing facilities.

 Asia. Asia’s steadily increasing demand for food, driving a rise in export opportunities for WA producers, and potentially higher, stronger prices in Asia’s premium & mid-level food markets.

 Global demand. Rising global demand for healthy, ‘clean’ and functional foods, growth in protein consumption (i.e. dairy is a low cost protein), and a steady increase in online food purchases. Health and wellness, food safety and social impact are driving a rise in global awareness of ‘farm to fork’ food qualities.

 New technologies. The merging of technology, communication, robotics/AI and miniaturisation of industrial applications (e.g. food processing), enabling the development of lower cost processing plants at a ‘local’ scale, rather than high cost ‘global’ scale. These new technologies are more personalized, distributed, and resilient, with superior ability to be hyper- focused, customized and adaptive in meeting the needs of ever- changing markets.

 Clean energy. The emergence of clean energy, internet & 5G+ mobile communications and hydrogen-powered transport gradually displacing the ‘fossil fuel age’. A steady rise in biosphere consciousness and the need for local solutions to deliver more effective global responses to climate change, extinctions, fragile ecosystems and social resilience.

 Global Pandemic. The COVID-19 pandemic and emerging national interest in flexible working arrangements, re- engineering conventional business models, national priorities

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(e.g. food, medical, energy, industry inputs & infrastructure), social practices and the resilience of communities.

Climate Change

Climate change affects places differently but can include an increase in severe storms, flooding, higher temperatures and evaporation, less rain, extended drought and rising sea levels.

Annual rainfall at Cape Leeuwin (15km south west of SR) has declined by 240mm (23%) since 1960. Since 1901, the mean minimum and maximum temperatures have increased and continue to trend upwards. The number of rain days per year has declined from 192 in 1901 to 168 in 2019 and continues to decline. Since 1901, rainfall in summer-autumn (Dec-May) has declined by 27% whilst winter-spring rainfall (Jun-Nov) has declined by 14%. Rainfall during summer-autumn decreased from 302mm in 1960 to 219mm in 2019 whilst winter-spring rainfall decreased from 746mm in 1960 to 594mm in 2019. Climactic patterns at SR indicate a drier, longer summer-autumn and warmer winter-spring with reduced rainfall. The warmer, drying trend is expected to continue and supports an investigation to increase surface dam capacity in establishing an irrigated agricultural precinct at SR.

Cape Leeuwin Climate Data

Indicator 1961-1990 1991-2020 Change & Trend

Mean Rainfall mm 1048 808 -23% trending down Mean No. Rainy Days 143 111 -22% trending down Annual Mean Max. Temp. deg.C 19.9 20.2 +1.5% trending up Annual Mean Min. Temp. deg.C 14.0 14.6 +4.2% trending up Winter-Spring rainfall mm 746 594 -20% trending down Summer-Autumn rainfall mm 302 219 -27% trending down Source: Bureau of Meteorology

SR requires a degree of ‘future proofing’ to sustain its agricultural significance over the medium-long term. An increase in surface dam capacity(e.g. 12-15GL) would enable summer irrigation with less reliance on groundwater. Farming practices would adapt by incorporating surface dam water to ensure maximum yield during the longer summer-autumn- winter growing period. Without an increase in surface dam capacity, expansion of agricultural output at SR will increase demand on aquifers that are expected to come under pressure from lower rainfall and higher evaporation as a consequence of climate change (as shown below, the red lines indicate long term [100yr] trends in monthly rainfall at Cape Leeuwin, 15km south west of SR).

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250 Cape Leeuwin. Monthly Rainfall. 30Yr Averages. 1901-2020 200 1901-1930 1911-1940 1921-1950 150 1931-1960 1941-1970 1951-1980 100 mmRainfall 1961-1990 1971-2000

50 1981-2010 1991-2020

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: BOM

Rainfall patterns across south western Australia indicate a drier interior, with progressively less rain further inland away from coastal areas, and a steady migration south west of the isohyets lines (linking areas of similar annual rainfall). Scott River lies south west of 1400 ANNUAL RAINFALL SCOTT RIVER the 800mm isohyets line REGION 2013-2019 (mm) and in recent years has 1200 received around 800mm 1000 of annual rainfall (shown right). Long term trends 800 suggest the 800mm 600 isohyets line near SR will be revised downwards to 400 around 650mm annual rainfall during 2040-2060 200 (i.e. as rainfall declines 0 by 30%). It is 2013 2014 2015 2016 2017 2018 2019 imperative that the Scott River Milyeannup Fouracres ‘State Significance’ of Source: weather.agric.wa.gov.au Scott River is duly recognised and actioned before other agricultural areas in WA fall below 250mm annual rain (refer to the diagram on the following page).

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In a drying climate, the main issue for agricultural areas like SR will be access to water. This will determine pasture types, making the most from shorter rainfall seasons, having water for irrigation over a longer & drier summer, and responding to changes in market demand (i.e. crops & output) – subject to having water available for irrigation.

Water Availability

Yarragadee is the SRR‘s main aquifer for groundwater extraction, with an allocation limit of 12.5GL, which is fully allocated. Alternative groundwater sources have an allocation limit of 13.4GL with 8.2GL unallocated. The unallocated groundwater is dispersed across SR, of varying quality, comparatively lower volume, and has an inherent risk of higher iron content (i.e. corrosive). Whilst the majority (66%) of the region’s available groundwater is allocated the remaining available water is not of sufficient volume or quality to significantly expand agricultural activities within SRR. Additional water supplies are required such as a larger surface dam capacity, for example, to develop large scale processing (e.g. value-adding), increased cropping / grazing & horticulture, or to introduce high value fruit crops.

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Water availability in SRR at March 2020 12 is shown below.

Indicator Volumes in KL

Water Allocation Limit (i.e. maximum available) 25,976,700

Volume of Water Allocated 17,056,200

Balance of Water Unallocated 8,911,500

% Allocated & Committed 66%

Of the six groundwater areas monitored & licensed within the SRR, three areas are near fully allocated (e.g. Blackwood-Yarragadee [south], Blackwood Rosa Surficial & Blackwood Rosa [Leederville]). Water remaining for allocation (8.9GL) is in the Leederville Aquifer (42%), Superficial Scott (43%) and the balance (15%) is shared among surficial and Leseur aquifers. Unallocated superficial and surficial sources are generally thin, shallow aquifers associated with higher iron content and potential acid sulphate soils that have inherent risks, limiting their use.

Development of surface dam capacity in upper - higher areas of the Scott River region13, reticulated to intensive farming operations, would improve SR’s irrigation capability similar to Myalup-Wellington, Harvey Water and the Southern Forests Irrigation Scheme. 12-15GL of surface dam capacity in SR would reduce reliance on groundwater, reduce waterlogging, increase the amount of arable land, increase the reliability of water for summer- winter cropping and incentivise value-adding. Larger scale surface dam capacity would provide assurance to potential new processing ventures and reduce reliance on unallocated groundwater that is naturally high in iron (Fe), making water abrasive, damaging pivots, pipes and pumps and adding to costs. Developing 12-15GL of surface dam capacity in SRR could trigger new dairy processing ventures that would significantly improve WA’s dairy capacity, supply, imports and exports as shown below.

Employment Output Output Impact Impact on Investment on & off - Milk Cheese / on WA WA Farm Powder Exports Imports

12-15GL 150 jobs on 0.7 0.7 million Up to 0.5 Replace a Surface Dam Billion tonnes of million significant Capacity 400 jobs off litres of cheese or tonnes of share of (e.g. IAP - milk powder dairy WA’s imports Irrigated Agricultural Up to 100,000 product. except Precinct) milking Cows. specialty items. Source: www.nicheagribusiness.com.au

12 Information supplied by Department of Water & Environmental Regulation. 13 SR farmers suggested surface dam(s) could be located on crown land, in the general area, bound by Chester Rd, South Coast Rd, Milyeannup Coast Rd and Brockman Hwy, which is currently State forest; on the immediate northern side of South Coast Rd. Two surface dams each 2km x 2km x 2m deep, with 800mm annual rainfall, could capture 12.8GL of rain; runoff from the adjacent forest would be relatively low but could add more than 2.0GL annually into each dam. 21

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According to DWER there has been no formal study undertaken on the feasibility of pumping winter flows to an off-stream storage or on-stream gully wall dam in the Upper Scott River catchment. As such there has been no hydrological assessment of potential sites for an increase in surface dam capacity. In 2018 DWER presented hypothetical scenarios to SR growers using gauged winter flows from Brennan’s Ford 14 that included hypothetical dam options in the upper Scott River. Development of additional surface dam capacity warrants further investigation beginning with a hydrological assessment of potential sites, flows and capture volumes.

Electricity & Clean Energy

Power supply for the SRR is from Western Power's substation at Beenup (i.e. which is connected to Muja–Collie via a 132kV line). The sub-station was established for the now closed Beenup mine. However, in the event of an outage the alternate supply is from the Margaret River substation, which is limited by the distance (40km) from the Scott River area, the lower capacity (66kV) feeder line to SR, and the escalating demand requirements of Margaret River. A high grade power line extends east from Beenup to Don Rd, however, beyond Don Rd is a low grade single phase line (i.e. not suitable for commercial operations). Within SR the main energy users are large scale dairy farms and farmers / growers using power to run pivot irrigation systems. The region is otherwise limited in its scope to significantly increase its power usage (e.g. to add pivots or a new processing plant) without an upgrade to the regional distribution network. There are currently no plans to upgrade the power supply system in SR.

Augusta Margaret River Clean Community Energy (AMRCCE) is proposing a renewable energy capability at Beenup to reduce reliance on the southwest grid power to 40% or less. AMRCCE is working towards establishing a wind, solar and biogas facility that would produce around 60% of the Shire of Augusta Margaret River’s energy requirements (and significantly reduce greenhouse emissions). The energy infrastructure would include 10MW of wind energy (i.e. five 2MW turbines), 5MW of solar energy, and 2MW of base load energy from biogas (dairy effluent), for a total 17MW. The proposed renewable energy program is expected to bring a range of benefits including providing access to renewable energy for lower socio- economic groups; build financial resilience by reducing energy costs; giving substance to marketing Augusta Margaret River as a GREEN destination; redirecting dairy effluent to generate power and reduce the cost of managing effluent; fostering economic development through local investment and jobs; and encouraging development of renewable industries & technology. AMRCCE is preparing the licenses required to establish a renewable energy facility at Beenup within the short term (i.e. 2020-2022) as well as a bankable proposal to secure the investment to develop clean energy in SR.

14 Brennan’s Ford is in the lower Scott Coastal Plain, close to Scott River, whereas areas in State Forest in the upper reaches of the SRR have seasonal creek flows, high annual rainfall, and topographical features to support an increase in surface dam capacity (i.e. built above ground). 22

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WA’s power network is inherently weak at the fringes. Much of SR’s power network was installed by mining operations, which have mostly ceased & left the region, leaving ‘quality’ infrastructure to service some but not all of SR’s farming operations. AMRCCE’s proposed wind farm & biogas venture, and the proposed changes to WA’s power distribution regulations in 2021, could bring increased power supply to a ‘fringe’ of the south west grid. Development of a larger wind farm (e.g. 200MW) could provide the basis to invest in hydrogen, aquaculture, agri-processing or advanced manufacturing within Scott River. If this was realised, SR could then have capacity to support Waterloo Industrial Park or Bunbury Port.

Supply Chain Assets

Scott River has access to three significant supply chain assets including Bunbury Port, Busselton Margaret River Airport and Beenup Packing Sheds. A fourth facility, the Waterloo Industrial Park, is proposed on the outskirts of Bunbury within the medium to long term.

Bunbury Port is expected to provide containerised cargo services within the medium term. Export of dry, chilled and frozen produce from SR would open up opportunities in key export markets for premium branded product. Beef, dairy and sheep produce would require ‘export certification’ which is usually associated with high volume export facilities that can justify the additional costs required.

Busselton Margaret River Airport was slated to commence regular domestic passenger flights in May 2020. The airport will provide direct links to east coast markets and enable transhipment to overseas markets via Melbourne and Sydney airports. Regular air freight opportunities would provide scope to deliver high quality premium branded product into high yielding niches, for example, during periods of peak demand across separate end markets.

Beenup packing sheds are significant, privately owned facilities centrally located within the SRR. Vegetable processing has operated within the facility and scope exists to introduce processing opportunities for dairy, beef and sheep. The facility also offers scope to accumulate produce in preparation for shipment, consolidate orders of complementary produce, or pack produce into shared containers. To this end, branding SR produce using a common identity would enable co-operative SR sellers to supply a combined, larger volume targeting buyers seeking a variety of produce from a single source.

Utilising the ‘accessible’ supply chain assets will require consistency of supply, premium quality produce, quality assurance and traceability, distinguished branding, cold chain integrity, highly targeted marketing relationships, diversified customer base and best practice processing operations. To this end, some SR farmers are pursuing co-operative alliances to investigate processing facilities using niche-scale facilities, specialist managers and premium quality produce.

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Import Substitution

In 2018 there was more than $302M worth of imported ‘agriculture-related’ goods brought into the Shires of Nannup (SoN) and Augusta Margaret River (SoAMR). Agriculture related imports (shown below) provide opportunity for ‘import replacement’ initiatives. Specifically, in food manufacturing, livestock & grains, beverage (wine & beer) manufacturing, fishing (seafood) & aquaculture.

Goods Imported into the SoN & SoAMR

SoN SoN SoAMR SoAMR INDUSTRY TOTAL DOMESTIC OVERSEAS DOMESTIC OVERSEAS SECTOR IMPORTS IMPORTS IMPORTS IMPORTS IMPORTS ($ Million) ($ Million) ($ Million) ($ Million) ($ Million) Beverage $1.6 $3.2 $38.6 $80.6 $124.00 Manufacturing Livestock, Grains & Other $13.3 $0.84 $46.4 $5.2 $65.74 Agriculture Accommodation $2.5 $3.6 $12.8 $34.8 $53.70 Food Product $2.9 $1.5 $13.4 $15.0 $32.80 Manufacturing Saw Mill, Wood & Paper Product $8.8 $3.8 $0.8 $0.8 $14.20 Manufacturing Forestry Fishing $3.3 $0.18 $7.0 $0.9 $11.38 Hunting Aquaculture $0 $0 $0.7 $0.05 $0.75 TOTAL $32.4 $13.1 $119.7 $137.3 $302.50

The two shires import an estimated $1.2B of goods & services annually compared to $302M relating to agriculture as shown above. Imports for beverage and food manufacturing are potentially a ‘strong fit’ with the agricultural focus of the SRR. Further investigation is warranted.

Town Linkages

Transportation, communication and service delivery are important elements in facilitating stronger linkages between communities and towns such as Augusta, Nannup, Margaret River and the Scott River region.

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Travel distance by road from the Scott River region to neighbouring towns ranges from 46km to 71km, or 35 to 53 minutes drive each way. Margaret River plays an integral role in offering the widest range of goods and services. More recently online purchasing & home delivery has helped reduced the tyranny of distance for Scott River residents.

A previous study15 noted ‘the region once had comparatively strong social institutions (e.g. church, sports groups, CWA and local schools), however, the rise of automated dairies, bluegum plantations, social media & TV contributed to a decline in the “sense of belonging & connection to communities”. Further, poor quality roads in SR are a barrier for residents to access services or increase their social engagement by increasing travel times and fatigue. Improved roads would reduce social exclusion, encourage relocation of workers and families, and potentially support an increase in the supply of housing.

In the absence of facilities to underwrite a stronger sense of community, Scott River residents socialise across the region in Margaret River, Nannup, Augusta and within the locality (e.g. Glenarty Rd Winery). Similarly, hospital and health services are available in Augusta, Nannup and Margaret River, the latter offering a wider range of services and capacity. Traditional community facilities (e.g. Alexander Bridge Hall & SR Fire Shed) are small and not well suited for community gatherings. Improved online and mobile health services may in future help Scott River residents access services from within their home – when mobile communications are upgraded. Education is available in Margaret River, Nannup, Augusta and Karridale with vocational and tertiary education in Margaret River, whilst recent growth in online learning is expected to prevail and flourish (but requires digital communication that is not widely available across the SRR).

It is imperative that greater social connectedness is achieved within SR. Higher levels of community engagement is required that fosters flexibility and adaptability. A central community facility, workers housing and accommodation, and improved mobile communications will help the region adapt, respond and innovate as changes unfold across society in general.

A ferry linking East Augusta to Augusta (i.e. crossing the Blackwood River) would enable residents and industry to benefit from cost and time savings, less driving (lower risk), better housing options (for workers), improved emergency options (e.g. fire escape), improved social inclusion and

15 Towards a Sustainable Lower Blackwood Region. A Whole of Landscape Perspective . By Lower Blackwood Catchment & Curtin University. August 2017. Page 12. 25

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heightened tourism stay and spend. A ferry crossing the Blackwood River 16 would significantly improve transportation and service delivery in strengthening linkages between Augusta and SR.

Other options to improve linkages between SR and the surrounding towns include:

 Community bus service, offering pick-ups & deliveries on specific days (e.g. Fridays, every 2nd Tuesday, etc).  Community road-side shelters that allow residents to ride share (e.g. hop-on / hop-off), to improve access to & from local towns.  An online portal that facilitates a ‘sharing economy’ among community residents, for example, loaning idle machinery, plant & equipment, vehicles, tools, expertise and surplus/idle materials.  Establishing a register of mobile and/or temporary services that can be redirected to areas of demand on a specific day or occasion, co-funded by users and the community.  Facilitating seasonal migration by establishing facilities for medium term stay in caravans, motorhomes & campers to increase the supply of casual workers for seasonal industries.  Coordinating social-community ventures pooling people & resources to address opportunities based on unmet demand (e.g. food, services, facilities, equipment, materials).  Establish farmers markets that gather/sell surplus produce from across SRR to foster micro-enterprise & agri-opportunities.  Promoting communication, interaction and exchange between residents and groups. For example, hosting open forums where groups share achievements, insights & challenges at a local, LGA and State level.  Providing a choice of mechanisms (e.g. social media, online survey, feedback forms, workshops & direct consultation) to identify priorities to action/adopt that foster stronger ties and involvement across the wider community.

Improving Resilience

An underlying aim of this strategy is to improve the economic, environmental and social resilience 17 of the Scott River Region. Resilience at Scott River could be improved through a range of initiatives including:

• Localised power supply, e.g. renewable, clean energy, micro grids, biogas, etc.

16 Suggested ferry route / location: Point Irwin, north-west of Scott River Rd & Pericles St intersection, East Augusta, on crown land; & foreshore car park on the northern end of Victoria Parade, Augusta; ferry distance of 350-400m; cable- driven electric ferry (renewable powered). 17 Social resilience is the ability to cope with external stresses and disturbances as a result of social, political & environmental change. Resilience is the capacity to cope with stress, overcome adversity or adapt positively to change. 26

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• Distributive power from SR supplied across the SW regional grid. • Increased supply of lower cost water, via an increase in surface dam capacity, to increase summer cropping & value-adding. • Less reliance on fossil-fuel based herbicides, pesticides & fertiliser. • Developing local (seed) cultivars for new & innovative crops. • More value adding, and supplying less commoditised goods. • Using under-utilised land, e.g. new technology, crops & farms. • More homes & accommodation for workers, families & community; including a nature-based campground for workers. • Better quality, sealed roads, with safe dual lane bridges & causeways. • Sustainable limits on forestry plantations, prioritising food production and year-round cropping. • Improving linkages between Scott River & Augusta, e.g. a ferry. • Planning improvements that allow greater flexibility of land use and stimulates higher levels of investment in agriculture. • Sustainable tourism, based on limited sites & access, exclusive experiences, premium quality and prices. • Community inclusion through shared facilities, social participation, and active engagement. • Increase worker employability through training, education & support; improving the appeal of working in SR. • Community cohesion through activity programs, mentoring, etc. • Landcare initiatives, regenerative practices, custodianship programs, feral eradication & . • Upgrading and leveraging infrastructure to attract investment. • Facilitating open communication & engagement among residents, farmers & local entrepreneurs. • Better utilisation of arable & irrigated land through increased cropping & grazing.

The SRR requires guidance and support to build a more resilient community by increasing collaboration, fostering connections and building ‘local’ capacity. One approach is to explore the adoption of initiatives associated with community revitalisation programmes. The challenge lies in engaging residents not accustomed to participating in social-community programs and this includes residents with disparate socio-economic profiles.

Sustainable Agriculture

Regional agricultural performance is largely determined by climate, land characteristics and land management. Climate in SRR has historically been favourable, however, climate change projections suggest challenges and opportunities in the medium-long term. Land characteristics18 at farm level are manageable and generally of low-moderate risk but less clear at the regional level (e.g. unused land & forestry plantations). Land management

18 Land characteristics include soil acidity, water repellence, nutrient (P) status, wind erosion, water erosion, soil compaction, dry land salinity, soil organic carbon and acidification of waterways. 27

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in SRR is viewed by most SR farmers as a ‘role of custodianship’ in applying principles of regenerative farming, agro-ecology, and holistic / sustainable agriculture (e.g. pasturefed cattle assurance system – PCAS). The future looks bright for agricultural performance in the SRR and more so given a proposed wider range of sustainability indicators (e.g. managed by DAFWA), the future uptake of digital technologies to assist with monitoring and management, and applying deeper experience and capabilities when responding to local challenges (e.g. changing soil, water & climate conditions). SRR is moving progressively towards sustainable agriculture as outlined in the table below.

Agricultural Resource Condition in the South West of WA

Indicator Condition & Confidence SRR Status Trend

Poor, trending High level evidence Local Ag lime supplies help sustain Soil Acidity down &/or consensus moderate acidity levels (e.g. 5.0 ~ 5.5pH vis-a-vis 3.5~4.0pH). Poor, trending Limited evidence Mostly porous sandy loam soils, Water down &/or consensus with areas of waterlogging. Repellence Excess, stable Limited evidence Regularly monitoring phosphorous Nutrient Status trend &/or consensus & soil nutrients. (P) Low risk, Limited evidence Moderate-high levels of ground Wind Erosion variable trend &/or consensus cover reduce risk. Low risk, stable Limited evidence Dairy effluent & run-off requires Water Erosion trend &/or consensus effective management. High risk, trend High level Vulnerable but manageable with Soil Compaction is unclear consensus, lacking practices that limit & treat soil evidence compaction. Soil Organic Insufficient data Highly variable, Variable. Applying biomass / Carbon trend is unknown organic material helps productivity. Acidification of Insufficient data Highly variable, ASS are present in SR. Low-mod Waterways trend is unknown reliance on affected groundwater.

Source: Report card on sustainable natural resource use in agriculture. Status and trend in the agricultural areas of the south-west of Western Australia. Department of Agriculture and Food WA. 2013.

Branding & Promotion

Selling ‘unbranded’ product to a downstream processor or end user brings little if any long term benefit to a farmer or a region such as the Scott River. Branding helps differentiate a product, enabling it to hold a ‘position’ in the minds of buyers and consumers. High quality, safe, sustainable, GMO free, quality assured, environmentally friendly, free range, organic, certified & compliant, family owned, made in West Australia, etcetera are attributes commonly used to brand and position agricultural produce. There is no regional branding used in SR and scope

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exists to elevate the ‘provenance’ of the region through common branding – used consistently by all farms on all types of produce grown in SR.

Agricultural produce within SR includes dairy, beef, lamb, vegetables, fruits and specialty products. Across agricultural produce, for example beef, the functional and physical attributes are often similar among competitor and substitute products - but not identical. Branding must focus on ‘characterisation’ to establish a personality that buyers & consumers can relate to and build loyalty towards. The brands characterisation becomes the basis for differentiation within the consumers mind and the marketplace. Scott River has previously been characterised as ‘wild’ and ‘naturally’. Other associative words for Scott River include breezy, fresh, green, gentle, and southern. A tag line (slogan) for the regional branding of Scott River could be Naturally Wild & Fresh. Combining the tag line with a logo to brand all produce originating in SR helps consumers recognise & identify the brand and arouse emotions and desires to buy (i.e. see the brand example shown below).

Zoned as ‘priority agriculture’ it follows that SR establishes a ‘brand’ to sell the provenance of the region to retailers, wholesalers, intermediate users, overseas buyers and end users ~ consumers.

The challenge will be maintaining an ongoing branding program and not being overwhelmed by established brands such as ‘Margaret River’ and ‘Southern Forests’ for example. Tools such as a style guide, registering the name & logo, controlling ‘authentic’ use of the brand (i.e. licensing), setting quality assured product standards (i.e. traceability), association with leading hospitality outlets / chefs / events in Margaret River, a focused marketing program, and collective support of farmers across SR could elevate the brand to being ‘socially’ sought within 2-3 years.

SR is encouraged to leverage its brand through a website, social media (Twitter, Instagram & Facebook), email and online advertising as well as traditional forms such as signage, print media, advertising, publicity, trade shows & events as budgets and opportunities arise. The use of ‘clever’ video and photography in guerrilla tactics (e.g. viral clips on social media) would be invaluable to establish initial awareness. Marketing services can be outsourced to experts and funded through a levy on local farms in proportion to their size and use of the brand. For example, if 20 large farms in SR were levied $2,000 and 20 small farms were levied $750 this would provide $55,000 annually to fund outsourced specialist expertise ($25,000) and a targeted marketing program ($30,000).

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Farm Inputs & Costs Of Production

Indicative (generic) costs of production for dairy, beef, horticulture and sheep are set out in the table below (i.e. as a % of total costs). Operating costs within the agricultural sector can vary substantially. The table highlights costs that farmers are able to influence, how costs vary across each sector, and shows that between 33% and 45% of input costs are delivered by road (shown in red font). Implication being that SR’s unsealed roads impose an element of risk & ‘wear & tear’ that contributes to a higher cost of transport for around 33% to 45% of input costs.

Indicative Cost of Production

COST ELEMENT DAIRY BEEF HORTICULTURE SHEEP

Feed / Fodder 34% 6% 7% Pasture / Crops 5% Agistment 6% Seed 9% Sheep/Lambs/Cattle 20% 18% Shearing 21% Water 2% 2% 2% 2% Fertiliser 6% 9% 10% 8% Crop Chemicals 1% 2% 7% 4% Animal Health 3% 4% 10% Electricity 3% 2% 2% 1% Fuel & Oil 2% 5% 5% 7% Freight / Transport 7% 6% 6% 6% Consumables 2% 1% 5% 2% Repairs & Maint. 6% 10% 8% 3% Labour 16% 10% 19% 6% Admin & Marketing 4% 4% 8% Ins., Fees & Rates 2% 4% 4% Indicative costs of production (excluding finance), not specifically for SR farms. Source: Dairy Aust, MLA & Horticulture Australia.

In respect to the financial performance of horticultural operations 19. The average total cost of growing vegetables is increasing, mostly due to overheads (e.g. electricity, insurance, repairs and labour). High overhead costs are reducing profitability. Some larger scale and better performing growers can have low costs. Studies have shown that location does not necessarily drive profitability of horticultural operations. Scott River horticultural growers are vulnerable to costs associated with repairs & maintenance, electricity and ‘delivered’ inputs due to unsealed roads.

19 Investigating the Costs Associated with the Production, Sale and Distribution of Vegetables. A.Kelly & RM Consulting Group for Horticulture Innovation Australia, 2014 30

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Investment Impediments

Impediments to investing in value-adding facilities within Australia’s agricultural sector apply equally to SR and include:

 Australia’s comparatively high cost of labour and feed, and the lack of scale in the production of agricultural inputs.  Unwillingness to invest in R&D and marketing to attain competitiveness, differentiated product or innovation to compete.  Perceived cost and difficulty of ‘export accreditation’ (AQIS) and market entry (overseas) to grow beyond ‘local scale’.  Strict processing restrictions and quarantine regulations increase the cost burden, reduce margins and add to operating complexity.  Small firms often lack the scale to support and sustain exports.  Industry protection and export subsidies in competing countries reduce Australia’s competitiveness in overseas markets.  Livestock exports are profitable and easier than local processing.  Development of processing operations is capital intensive, finance for expansion can be limited, favouring expansion of existing (old) operations using available capital.

SR needs investment to increase capacity, grow output, and to better utilise the available land for food production. Scope exists for SR farmers to form a cooperative and pool resources to develop shared processing facilities, R&D projects or infrastructure such as clean energy (e.g. AMRCCE’s wind farm project). However, SR also faces impediments associated with 20+ years of limited infrastructure, uncertainty within domestic and international markets, and the ever-changing dynamics of finance within Australia’s agricultural sector.

Tourism

SRR is at its infancy in tourism, especially in the western half. Access to SR’s (western) ‘tourism nodes’ is currently limited to mostly 4WD whilst the unsealed roads across SR are generally not suited to RV’s, caravanners & hire cars. Subsequently, visitation to SR is limited to regional residents and weekend visitors, mostly during Summer-Autumn (when access is less restricted by flooding). East Augusta has 40+ holiday rentals, however, it is a highly seasonal destination. Nearby, Augusta is seeing growth in ‘extreme’ outdoor experiences but accommodation utilisation remains low (e.g. 35% - 45%), suggesting mostly day use visitors. Augusta’s tourism operators are challenged by labour shortages, seasonality, regulation, insurance, ‘lifestyle’ standards of operation and low profitability. The Augusta hotel site could be redeveloped improving the quality and range of tourism experiences in Augusta. In the eastern half of SR, camping is available at Black Point and Lake Jasper where visitation averages around 12,000 visitors annually and access requires 4WD to visit most areas. Development of Quannup by the Shire of Nannup could potentially attract 31

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over 35,000 visitors annually – to the eastern half of SR. Developing tourism in the Jangardup / Jasper area would enable SR’s (western) agricultural zone to remain largely ‘tourism free’ and help retain its low biosecurity risk.

Cape Leeuwin Lighthouse receives over 100,000 visitors and Margaret River (45km away) receives over 1.4 million visitors annually. Margaret River Busselton Tourism Association is working towards linking trails across the region (e.g. Wardandi, Cape to Cape and Mountain Bike trails) to build capacity in trails tourism and grow year-round visitation across the region. Currently the majority of visitors to Margaret River arrive by car (self drive) and visitors could potentially flow into (western) SR if roads improved, however, visitors could also be diverted to the Jangardup / Jasper area for nature based experiences if roads were sealed and/or Quannup was developed with campground / eco-cabin accommodation. Passenger flights into Busselton Margaret River airport (commencing 2020- 21) are expected to increase interstate visitation and grow demand for short stay accommodation, hospitality, self drive tourism and cultural, nature and adventure based experiences.

Tourism in Scott River could benefit from: Augusta Abalone opening a tourism facility; the ‘Augusta Race’ re-emerging and gaining popularity; Augusta Hotel being redeveloped into a focal point for community and visitors; Augusta’s ‘extreme’ outdoor adventure sites attracting more visitors with overnight stay; opening of the Wardandi Trail (inland rail trail); nature based tourism continuing to drive significant growth in visitation to the Capes region; and establishment of a ferry crossing on the Blackwood River feeding visitors eastwards towards the Jangardup / Jasper area (i.e. if roads were sealed).

SRR’s high biodiversity, coastal access and strong emphasis on conservation will remain a strong drawcard to visitors and will require genuinely sustainable tourism approaches. It is recommended that the SoN pursue the development of Quannup with 2WD access to the Jangardup / Jasper area as a priority and make it the main focus for tourism in the SR region. A nature based campground at Quannup along with an educational / research/ training facility managed by traditional owners will provide the region with a ‘drawcard’ to enable the western portion of SRR to remain dedicated to intensive agriculture.

Land Planning

The Augusta-Walpole Coastal Strategy (2009) is the definitive land planning framework for the SRR, which aims to retain the area’s unique environmental and wilderness values. The Strategy’s vision is: ‘the unique environment and wilderness values of the Augusta-Walpole coast are protected and conserved with sustainable use occurring for the wellbeing of present and future generations.' The 2009 Strategy was to be reviewed after five years, however, eleven years has lapsed without review.

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Since its release the Strategy has helped ‘protect and conserve’ the landscape and biodiversity, however, the region has struggled to achieve its potential to the detriment of the local economy and community. Key issues are outlined below.

 Mining has helped bring investment that has upgraded infrastructure within SR (e.g. sealed roads, power lines and sub stations), however, mining can also bring significant environmental and conservation risks whilst supplying much needed limestone, sand and gravel needed in farming and civil (road) operations.

 UCL along the coastal foreshore (i.e. a narrow strip of land between high & low tide) is void of management responsibilities due to an impasse over subdivision on private lots fronting coastal UCL20. The impasse means subdivision is not supported, restricted access prevails, tourism and recreation is limited, and the development of short stay accommodation and coastal access has not eventuated.

 Land capability and soil suitability suggests plots of land along Woodarburrup, Scott River and Milyeannup roads (i.e. coastal areas) are highly productive, however, limited funding for new roads and subsequent maintenance means unsealed (4WD) roads prevail that damage fresh produce, reduce grower margins, and discourage investment and expansion of cropping or grazing.

 Five coastal recreation nodes were identified including Swan Lake and the Deadwater, Black Point, Lake Jasper, Jasper Beach, and Donnelly River mouth, however, access is via freehold property that is closed to the public until the access impasse is resolved.

 Tourism accommodation in the SRR includes camping at Lake Jasper and Black Point (i.e. mostly 4WD access), 30-40 holiday homes at East Augusta, and 3-4 farm stays in East SRR. There are limited 2WD accessible facilities for RV’s, caravans or campers within SRR. Tourism and recreational visitation across the SRR is seasonal, however, demand is increasing (e.g. for fishing, camping, surfing, walks, nature appreciation, etc). It is inherently difficult to provide the required infrastructure due to isolation, biodiversity, limited access and limited resources to monitor and manage facilities. As a result, tourism development on private & crown land has been low compared to other regions.

20 For example, owners of coastal land can subdivide large plots into 40-80ha lots, however, very few owners have subdivided as it requires conceding 150m of coastal land to DBCA and providing public coastal access. 33

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 SRR’s power supply is limited by Margaret River’s capacity to provide back-up. If SRR was to increase demand for electricity there would be cause for an upgrading of power infrastructure. Similarly, telecommunications are troubled by mobile black spots as well as slow data delivery and poor quality back-up via satellite services, deterring the uptake of agri-tech and industry modernisation. Residential water supplies are sustainably harvested by households. However, groundwater supplies for farming are near fully allocated, deterring agri-industry expansion and contributing to the under-utilisation of farm land. Power, communications and water were identified in 2001 and 2009 Strategy documents as ‘holding back economic potential’. The lack of interim reviews have suppressed the urgency of addressing SR’s infrastructure requirements.

Implicit in effective ‘agricultural’ land planning is for land uses (i.e. farm operations) to be viable and sustainable. However, inadequate road and communication infrastructure, and to a lesser extent power supply infrastructure, has restricted land use, farming approaches and investment within the SRR. This is evidenced by the prolonged, gradual conversion of land previously occupied by dairy and beef farms to Bluegum forestry plantation, steadily increasing from 2,000ha to over 13,000ha with indications of reaching over 15,000ha in the short term.

The Shire of Nannup have proposed land planning amendments that have potential to benefit the SRR – if adopted, as outlined below.

The Shire of Nannup’s proposed Local Planning Scheme No. 4 aims to increase the range of permitted land uses on the SCP to include agricultural production as well as tourism, logistics and commercial enterprises (relating to agriculture).

The Shire of Nannup’s proposed Local Planning Policy 3 – Plantation and Agroforestry aims to regulate land zoned ‘priority agriculture’ by discouraging the use of whole farms for plantations and limit new plantations from being sited on highly capable agricultural land.

Future policy changes (e.g. LPS) should aim to preserve land zoned ‘priority agriculture’ and ‘general agriculture’ exclusively for food production rather than forestry; consider allowing the creation of new additional lots (e.g. via subdivision) including small plots (e.g. 5-20ha) to host agricultural ventures, agricultural processing facilities, and accommodation for workers and their families; and support the clearance of young, immature native scrub on private land for the purpose of year- round agricultural use (e.g. irrigated & non-irrigated).

Land planning in SR has set a vision and strategic approaches that have not succeeded in advancing the economic and social status of SR. In response, forestry is flourishing, tourism and recreation have been sidelined, agricultural operations are burdened with providing basic

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infrastructure, and investment to better utilise arable land, or value-add the region’s high quality produce, has been elusive. Government has been slow to review the effectiveness of land planning strategies in SR and should immediately investigate land planning approaches that help attract investment that increases the diversity and value of food, energy and output within SR. In doing so, the region would be well placed to leverage its comparatively high rainfall when climate change sets in whilst other agricultural regions will be falling into economic decline. To do nothing would perpetuate the oversight of recent years to the detriment of existing and future Western Australians.

Partnerships & Alliances

Farmers within SR and the surrounding areas are supported by the Lower South West Growers Group (LSWGG). A principal role of the LSWGG is to increase the capacity and profitability of farming ventures through R&D projects, capacity building, marketing supply chains, alliances and partnerships. The LSWGG works closely with the Lower Blackwood Land Conservation District Committee (LBLCDC) to promote a sustainable agricultural community. Alliances & partnerships will be critical in growing SR output and will require more than the entities outlined below.

Entity Scope of Alliance with LSWGG Southern Dirt Project management, industry representation, project management Lower Blackwood Land Conservation Administration support, communications, project management, District Committee events, field days, webinars AMR Community Project management, investment facilitation, renewable energy Clean Energy development, dairy industry waste management Western Dairy Industry development, farm management support, industry representation Vegetables WA Advocacy and representation, R & D, value chain and export development, benchmarking, quality assurance, marketing and business services. Department of Primary Industries Industry development, R&D, market & export assistance, and Regional biosecurity and quality assurance, and plant science. Development Department of Water allocations, water monitoring and management, water Water and sources, alternative water supplies, hydrological assessments, Environmental and resource performance. Regulation

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Infrastructure Requirements

In 2001 the planning study ‘Scott Coastal Plain: A Strategy for a Sustainable Future’ identified infrastructure gaps that were limiting the region’s economic potential. In 2020, the same infrastructure gaps remain and are presented below ranked in order of priority during consultations with SR farmers. Capital costs are indicative. A brief description of each project is presented in the appendix.

HIGH PRIORITY • Install two 4G mobile phone towers, capital cost $1.5M • Seal 103km of roads, western portion of SRR, capital cost $45M • 20km transmission line (3-phase), eastern SRR, capital cost $15M • 12-15GL surface dam capacity, reticulated irrigation, capital cost $34M

MEDIUM PRIORITY • Activate Quannup Station, capital cost $6.7M • Ferry across the Blackwood River, capital cost $3.6M • Central community facility, capital cost $7M • Workers housing & accommodation, capital cost $5M

LOW PRIORITY • Tourism infrastructure, near Beenup dredge site, capital cost $1M • 70km sealed dual lane ‘Highway One’, capital cost $60M • Tourism Route Jangardup-Lake Jasper-Vasse Hwy, cap. cost $26.5M

Benefit Cost & Net Present Value of Infrastructure Requirements

Nine of the infrastructure projects were subjected to high-level assessment using benefit-cost analysis and net present value to gauge the merit of the investments as shown below. Eight of the projects have ‘positive’ benefit- cost ratios and six have a positive NPV suggesting potential viability and value to the economy. Further investigation is warranted for these projects in particular. A comparison of benefit-cost and NPV for 4% and 8% discount rates is presented in the appendix.

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Two 4G 12GL Surface Ferry to Cross 20yr appraisal period & Seal 106km 20km 3-phase Phone Dam & Pipe Blackwood 8% discount rate of Roads Power Line Towers Network River Capital Costs $46,640,000 $1,500,000 $34,000,000 $15,000,000 $3,600,000

Whole of Life Costs $49,850,000 $1,780,000 $36,261,000 $15,500,000 $5,320,000

Present Value of Benefits $61,922,229 $15,890,199 $92,100,393 $21,657,026 $5,734,987

Present Value of Costs $48,214,647 $1,666,592 $33,586,254 $15,264,111 $4,380,486

Benefit Cost Ratio 1.28 9.53 2.74 1.42 1.31

Net Present Value $13,707,582 $14,223,607 $58,514,139 $6,392,915 $1,354,501

Quannup Seal Highway 20yr appraisal period & Community Workers Campground One - Coastal 8% discount rate Hub Accommodation & Eco-Park Drive - 70km Capital Costs $7,920,000 $84,000,000 $7,000,000 $5,000,000

Whole of Life Costs $8,620,000 $85,715,000 $7,700,000 $5,500,000

Present Value of Benefits $8,857,122 $21,288,957 $4,669,413 $4,326,349

Present Value of Costs $7,943,381 $84,848,455 $7,343,381 $5,245,272

Benefit Cost Ratio 1.12 0.25 0.64 0.82

Net Present Value $913,741 -$63,559,498 -$2,673,968 -$918,923

Infrastructure Ratings

Infrastructure projects in SR have been assessed for their impact on the sustainability of the region. Six criteria were identified and assigned a weighting, and then used to assess eleven infrastructure projects. Each criteria along with its’ weighting and respective scoring is described in the matrix below. The assessment and rating of each infrastructure project is presented in rank order on a following page.

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Assessment Description Assessment Scale Criteria What is the infrastructure’s 1 = low, one-off impact, minimal Economic likely impact on production 3 = moderate impact & growth, Impact (output), jobs, investment and medium level effect growth in agriculture in SRR? 5 = high impact, sustained flow-on, recurring effect

What is the infrastructure’s 1 = low, one-off impact, minimal likely impact on community Social 3 = moderate impact, medium term well-being, inclusion, Impact effect cohesiveness, participation, diversity, safety, aspirations & 5 = high impact, sustained, positive population in SRR? effect

What is the infrastructure’s 1 = long term, high level negative likely impact on soil, flora, effect, no positive effect Environmental fauna, groundwater, water 3 = medium term, positive & quality, pollution/waste & Impact negative effects, neutral overall biodiversity in SRR? 5 = long term, low level negative impact, high level positive effect

What is the infrastructure’s 1 = low, one-off impact, minimal likely impact on the wider Regional region’s community, industry, 3 = moderate, medium term effect & region-wide benefits Impact environment, prosperity, appeal / brand & perceptions? 5 = high impact, sustained, positive effect

What is the infrastructure’s 1 = low, one-off impact, minimal likely impact on visitation, 3 = moderate, medium term effect & Tourism length of stay, spend, brand / benefits Impact appeal, enterprise, seasonality & viability-sustainability? 5 = high impact, sustained, positive effect

What is the likelihood of the 1 = low likelihood, some degree of Achievability & infrastructure project being opposition, delays expected funded, built & maintained to 3 = moderate support & likelihood Continuity give maximum socio-economic benefit to SRR? 5 = high likelihood, strong case & support, overdue initiative

Weighting Scale Description 5 Critical, urgent, overdue 4 Important, pivotal to growth 3 Moderate value 2 Marginal value 1 Low value

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Criteria

Lake One’

- Roads

park

& ommunity - surface dam Scott River km

River Towers Capacity Eco GL

106 20km power coastal drive 15 accommodation - entral C Weighting* transmission line Facility Workers housing & C rehabilitated wetland 70km ‘Highway 2 x 4G Mobile Phone Jasper Tourist Drive Seal Jangardup Seal 12 a Ferry across Blackwood Tourism infrastructure Quannup Campground & Economic 5 5 5 4 3 5 4 4 2 3 4 4 Impact 25 25 20 15 25 20 20 10 15 20 20 Social 5 4 3 4 5 4 4 4 4 3 3 1 Impact 20 15 20 25 20 20 20 20 15 15 5 Environmental4 4 4 3 4 3 3 2 3 2 2 2 Impact 16 16 12 16 12 12 8 12 8 8 8 Regional 3 3 3 4 3 3 4 4 3 3 3 3 Impact 9 9 12 9 9 12 12 9 9 9 9 Tourism 2 4 4 5 3 3 5 5 5 5 1 1 Impact 8 8 10 6 6 10 10 10 10 2 2 Achievability 2 5 5 4 4 3 2 1 5 2 3 3 & Continuity 10 10 8 8 6 4 2 10 4 6 6 TOTAL 88 83 82 79 78 78 72 71 61 60 50

* Score in orange font (e.g. 3); Red weighting multiplied by score shown in blue font (e.g. 20)

Limited infrastructure has adversely impacted farm operating costs and margins, land utilisation, regional output & employment, farm values and regional prosperity. Land planning regimes have contributed to the region not achieving its economic potential. Climate change and technological advancement could bring the region into bringing greater ‘State Significance’. Alternatively, if infrastructure is not upgraded then land planning should be revised to enable a wider range of uses including subdivision into small lots (e.g. 10-50ha) for agricultural, commercial, tourism and semi-conservation purposes; residential, worker & tourism accommodation on undeveloped land; commercial & light industrial enterprises; and purposes that attract investment, employment and utilisation of ‘priority agricultural’ land.

Road Priorities

Road usage in the SRR is dominated by forestry (transporting logs), dairy (milk tankers), horticulture (e.g. potatoes & vegetables), beef / sheep (e.g. livestock movements) and farm inputs (e.g. ag-lime, fertiliser, fuel, etc). Heavy vehicle movements in SRR are estimated at 15,623 p.a. (totalling 406,900 tonnes) as outlined below. An increase in farm activity could significantly increase road usage from the current levels (shown on a following page).

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Road Usage in Scott River Region

Sector Item Daily Annually

Dairy 71,000,000+ litres milk 30+ truck 10,248 truck transported p.a. movements daily movements p.a.

Farm Inputs 43,700 tonnes fert., lime, 11+ truck 4,262 truck grain & silage transported movements daily movements p.a. p.a. into SR

Stock 22,000 head p.a. moved 2+ truck movements 961 truck movements to / from SR daily p.a. Movements Forestry 250,000+ tonnes logs Seasonal. Up to 20+ 10,000+ truck trucked from SR p.a. truck movements movements p.a. daily.

Horticulture 6,000 tonnes fresh Seasonal. 2+ truck 408+ truck produce transported from movements daily. movements p.a. SR p.a.

Stakeholders Employees, Contractors, Seasonal. Up to 10,000+ vehicle Students (bus), Tourists, 100~120+ persons movements p.a. Residents & Others daily. moving through SR.

Four roads within SRR are sealed or partly sealed (shown in black below). Six roads are unsealed (shown in red below) and have potential to significantly improve the region’s productivity and output if upgraded (i.e. sealed). Some roads within the SRR are best left ‘unsealed’ to preserve ‘wilderness’ values, for example, in isolated areas with high biodiversity.

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Preliminary indicative cost to upgrade (seal) all 106km of the SR’s priority roads is $46.5M. The indicative cost to upgrade and maintain the priority roads for 40 years, and extend their life until around 2060, is $87.8M, as shown below. The estimated cost to maintain sealed roads for 40-years is $3.96M compared to $7.08M to maintain unsealed roads; the extra cost ($3.12M over 40yrs or $78,000p.a.) may challenge Shire budgets.

Priority Roads to Upgrade Within Scott River Region

Road & Priority Rationale Cost21

Central road, interconnecting role. Length: 18km Construction: $7.9M 1. Governor Broome Improve access for essential services. Sealed R&M: $0.673M Rd Better facilitate high quality produce. Reconstruction: $6.3M 44-49 vehicles per day. Life Cost: $14.87M Unsealed R&M22: $1.20M Interconnecting role. Length: 19km Construction: $8.4M 2. Woodarburrup Rd & Improve access for essential services. Sealed R&M: $0.71M Milyeannup Coast Better facilitate high quality produce. Reconstruction $6.7M Rd 17-33 vehicles per day Life Cost: $15.8M Unsealed R&M: $1.27M Community access role. Length: 15km Construction: $6.6M 3. Scott River Rd Improve access for essential services. Sealed R&M: $0.56M (lower portion) Interconnecting role, increase tourism. Reconstruction: $5.3M 113-142 vehicles per day. Life Cost: $12.46M Unsealed R&M: $1.0M Interconnecting role, increase tourism. Length: 12km Construction: $5.27M 4. Fouracres Rd Improve east-west linkage. Sealed R&M: $0.448M (eastern section) Improve access for essential services. Reconstruction: $4.25M Life Cost: $9.97M Unsealed R&M: $0.804M Improve access to farming properties. Length: 32km Construction: $14M 5. Pneumonia, Tourism access to Lake Jasper & Quannup Sealed R&M: $1.2M Jangardup & Scott Station. Reconstruction: $11.3M Roads Create east-west tourism drive route. Life Cost: $26.5M Unsealed R&M: $2.14M Improve access to farming & forestry Length: 10km properties. Construction: $4.4M 6. Dennis Rd Sealed R&M: $0.373M Alternative access to Brockman Hwy. Reconstruction: $3.5M 27-38 vehicles per day. Life Cost: $8.27M Unsealed R&M: $0.67M Length: 106km

Construction: $46.57M Total Sealed R&M: $ 3.96M Reconstruction: $37.35M 40yr Life Cost: $87.87M 40yr Unsealed R&M: $ 7.08M Sealed road life cost based on 40yr life, triennial [3yr] R & M, and reconstruction after 38yrs.

21 Costs are based on WALGA 2017/18 Southwest Road Expenditure: Construction $351,918 / km x 1.25; Maintenance $2,493 / km x 1.25; Reconstruction $283,560 / km x 1.25; 1.25 multiplier provides allowance for pre-planning, regional loading, local materials, variations & contingency. 22 Unsealed R & M compares maintaining status quo, unsealed road, with new sealed road; calculated using $1771/km R&M every 2nd yr for 18 years and then re-sheeting @ $35,147 per km, then 18 years of R & M every 2 nd yr; 40yrs R&M for 18km unsealed road costs (9yrs x 18km x $1771/km) + (18km x $35147) + (9yrs x 18km x $1771) = $1.2M. 41

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Consultations with SR landowners indicated that traffic across SRR would increase if the roads were sealed (i.e. due to more frequent deliveries / despatches, wider range of vehicles able to access sites, and anticipated increases in output contributing to increased haulage of product). The 2018/19 average daily vehicle counts within the SRR (shown below) would be expected to increase by 30%-50% once roads were upgraded.

2018/19 Traffic Counts Scott River Region

SITE No. DAILY % & No. % & No. TREND MOVEMENTS* CARS TRUCKS Brockman Hwy, West of 588 77% 453 23% 135  Scott River Rd Brockman Hwy, West of 413 75% 310 25% 103  Stewart Rd Brockman Hwy, East of 772 83% 641 17% 131 Glenarty Rd Vasse Hwy, South of 385 84% 323 16% 62  Stewart Rd

Stewart Rd, South of 271 80% 217 20% 54  Milyeannup Coast Rd Dennis Rd, South of 27 63% 17 27% 10 Brockman Hwy Wilson Rd, west of 32 53% 17 47% 15  Glenarty Rd Scott River Rd, west of 33 88% 29 12% 4 Milyeannup Coast Rd Scott River Rd, east of 17 82% 14 18% 3 Milyeannup Coast Rd Scott River Rd, North of 142 82% 116 18% 26 Governor Broome Rd Scott River Rd, South of 113 74% 84 26% 29 Governor Broome Rd Scott River Rd, South of 148 57% 84 43% 64 Brockman Hwy

Governor Broome Rd, East 49 75% 37 25% 12 of Scott River Rd Coostien Rd, South of 14 93% 13 7% 1 Governor Broome Rd Governor Broome Rd, East 44 82% 36 18% 8 of Coostien Rd Twenty Four Rd, East of 134 92% 23 8% 11 Bussell Hwy Van Sittart Rd, South of 51 78% 40 22% 11 Twenty Four Rd Bussel Hwy, South of 1776 85% 1510 15% 266  Chapman Rd Pericles St, South of Scott 31 94% 29 6% 2 Road * Daily Monday to Sunday, East-West, 2018/19 avg. Source: https://trafficmap.mainroads.wa.gov.au/map

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Investment Opportunities

Industry investment opportunities identified within the SRR include:

 Beef abattoir (mobile, micro or modular), processing 5,000- 10,000 head of cattle p.a., delivering packaged, branded, premium ‘grass fed’ beef to local & State retail and wholesale markets. Capital cost of $2.2 - $3.2M.

 Dairy processing plant (yoghurt, butter, cheese, ice cream), processing 50M – 200M+ litres milk p.a., supplying retail and wholesale markets within WA and overseas. Capital cost of A$10-$20M+.

 AMRCCE’s 10MW wind farm & biogas facility, delivering an effective management strategy for dairy waste and distributing renewable energy via the south west grid. Capital cost $20M ~ $25M.

 Wind farm & hydrogen plant, utilising SRR’s wind & water resources to produce 5MW renewable energy mated to a 4.5MW PEM23-type electrolyser (high pressure hydrogen plant); hydrogen stored on site for redistribution to industry, transport sector and micro-power generation. Capital cost $15M ~ $20M.

 Spray drying plant to powderise vegetables for superfood markets, niche-scale facility with capacity to process a range of food products; selling to retail & wholesale markets at State & National level. Capital Cost $0.75M ~ $2.0M.

 Community facility, a central facility providing goods and services to the local community; potential services include retail / wholesale, depot / storage, transit / transport, social & hospitality, permanent & temporary accommodation, and host varied activities within a multi-purpose facility. Capital cost $5M-$9M.

 Micro enterprise, agri-businesses, niche scale, owner-operated, supplying local and regional markets, retail and wholesale, capital cost $5,000 to $20,000, weekly income up to $700+.

a. Eggs, chicken caravan, 30-450 chickens, 6,000~90,000 eggs p.a. b. Mushrooms, grown indoor, 10m2 grows 15kg, 10-15hrs week. c. Micro greens, grown indoor, 10m2 grows 15kg, 10-12hrs week. d. Gourmet herbs, hydroponically grown, 4m 2 grows 150 small pots. e. Ducks & chickens, slaughtering off site, 20-40 birds/week.

23 Proton Exchange Membrane, outlined in Hinkley et al. (2016) Cost assessment of hydrogen production from PV and electrolysis. CSIRO, Australia. 43

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PPP Options

A public private partnership (PPP) is a cooperative arrangement between government and the private sector to bring about improved services to a region. Within the SRR there are several projects that could adopt a PPP approach.

 Seal Milyeannup Coast Rd (partnering with horticultural growers)  Seal Dennis Rd (partnering with forestry plantation owners)  Workers accommodation (partnering with dairy & beef farmers)  Community facility (partnering with resident farmers & land owners)  4G communications towers (partnering with land owners)  12-15GL surface dam capacity & irrigation network (partnering with farmers)  20km of power line (partnering with dairy farmers)  Community co-operative venture at the Beenup Sheds

For example, the surface dam project could be co-funded by SR farmers (e.g. via a co-operative), the Federal Government’s regional infrastructure loan fund (e.g. up to $10M loan) and the State Government. It would require hydrological and environmental assessment, review of dam location & construction costs, feasibility & planning assessment, approvals, construction, and commissioning & operating.

The Blackwood River ferry project could be co-funded by the Federal Government’s Community Development Grants Programme , the State & Local Governments and community groups. It would require site assessments24, road and landing site designs & costs, feasibility & planning assessment, and approvals and construction.

The Beenup Sheds could be acquired by a community cooperative that has SR participants/members involved in dairy, beef, horticulture and sheep enterprises. The cooperative could host a range of activities at the Sheds, for example, a micro-abattoir, vegetable processing plant, butter and/or cheese processing plant, a wholesale / retail facility (linked to an online sales outlet) and a cold storage facility (to support storage & delivery services). Government funding could be used to establish agri-research facilities at Beenup for initiatives across the Capes region.

24 For example, Point Irwin & Donovan Street bushland. 44

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Strengths, Weaknesses, Opportunities & Threats

The strengths, weaknesses, opportunities and threats of the Scott River region are outlined below.

STRENGTHS WEAKNESSES Mediterranean climate, cool winters, mild Low-lying land near Scott River affected by summers, ideal growing & grazing conditions. water-logging; impedes access & usage. Abundance of groundwater & high annual Limited supply of 3-phase power in eastern rainfall ~950mm p.a. section of Scott River region. Areas of high quality soils suited to a range Limited supply of affordable gravel inflates the of agricultural activities. cost of farm works & road repairs. Proven capacity to yield quality beef, sheep, Limited supply of skilled & trained agri-workers dairy, horticultural & forestry produce. & limited trade’s persons within SRR. Low level biosecurity risk due relatively Focus on traditional crops, limited experience isolated from potential risks & contaminants. growing alternative & innovative crops. Large farm plots supporting intensive & No overnight accommodation facilities & poor irrigated agriculture, cropping & grazing. quality roads deter travellers & visitors. Flat arable land, low gradients, slow runoff & Unsealed roads, narrow causeways & seasonal practically no frost. flooding limits transport options. SRR’s agricultural capability will be less Limited collaboration between growers to affected by climate change than other regions. initiate new ventures & approaches. Many SR farmers have decades of local Distant from markets, wholesalers & experience; best available to grow the region. processors; reliant on costly transport. Abundance of wind, water & sun; high clean High biodiversity within SR has attracted a energy potential in a ‘fringe’ area of SW grid. blanket approach restricting farm operations. OPPORTUNITIES THREATS Accessing distant markets via air (Busselton Climate change reducing rainfall by 30% and Airport) or sea (Bunbury Port). irregular rainfall reducing peak yields. Using consistent year-round winds to establish Highly targeted sales, over-reliant on a specific renewable clean energy facilities. customer group, collapsing during a crisis. Trialling new crops such as hemp, lavender, Acid sulphate soils leaching into the Scott River hazelnuts, flaxseed/linseed, sudex, sorghum, or impacting public infrastructure. maize, millet & amaranth. A new local facility to value add to dairy, beef Poor communication infrastructure limiting or horticultural produce (e.g. at Beenup). adoption of agri-tech & farm growth. Establishing a provincial brand for locally Land planning regimes not adapting to made produce (e.g. Scott River Fresh). changing circumstances & land owners exiting. Fostering agri-venture partnerships with land Depletion of affordable A-grade agri-lime in the owners, agri-investors and corporate entities. region, leading to higher haulage costs. Establishing nature-based campgrounds on No investment in roads, communication & private & crown land for workers to stay power infrastructure causing farms to sell-out extended periods. and WA’s food production declining. Re-purposing dairy farm waste as biogas A dramatic fall in beef or dairy prices causing a (energy) & nutrient-rich fertiliser & diverting sell-off of herds & farms, a sell-out to forestry. dairy effluent from entering waterways. Trialling micro-agricultural enterprises on Rising electricity prices making irrigation vacant farm land to supply food to SW region. uneconomic & cessation of summer cropping. Adopting innovative technology (e.g. spray Sustained shortage of workers forcing farms to drying) to value-add local produce. scale back, close down or pursue agro-forestry. Increasing surface dam capacity, help reduce Ageing land owners with no succession to waterlogging & support year round farming. younger generation; selling out to forestry Ferry across Blackwood river to strengthen linkages, tourism, services & employment.

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The priority is to address the region’s weaknesses, leverage its’ strengths, take advantage of the opportunities, and build resilience to address threats. This includes managing the social, environmental and economic realms in a way that builds resilience and delivers sustainable outcomes for the region.

SSttrraatteeggiieess

This strategy sets out a framework that aims to deliver sustainability through economic prosperity, a low-carbon environment and social equity. Implicit in the strategy is that local government policies, resourcing and support will mesh seamlessly with the aspirations of local land owners, residents and businesses – in ‘collaborative sustainability’. The challenge is mobilising government and vested stakeholders in a united direction over a ten year period (i.e. 2020-2030) to realise the aims of the strategy.

The strategy is guided by a ‘stretch’ goal to increase SRR’s economic output from $78M in 2019 to $117M by 2040; a 50% increase in output through improved land use, increased value-adding, and the development of a renewable industry.

Vision

The vision for the Scott River region as outlined in the 2001 ‘Strategy for a Sustainable future’ is......

A vital sustainable agricultural community living in balance with economic development and the unique environmental values of waterway and vegetation systems of the region.

Source: Scott coastal plain: A strategy for a sustainable future. Department of Agriculture and Food, Western Australia. 2001. P. 7

Objectives

Objectives are presented as ‘long run, open-ended attributes ’ the region aspires to achieve and that reflect a shared purpose for the region.

Objective: Attract investment & enterprise. (via communication, engagement, adaptability & infrastructure)

Objective: Retain businesses experienced at operating in SR. (via upgrading infrastructure, support local groups, improve land planning, and create prosperity & wellbeing for families)

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Objective: Support high quality of life within a radiant natural environment. (via engaging with residents, address local priorities, building alliances, and support environmental programs)

Objective: Foster a thriving small & micro enterprise sector. (via alliances & networking, promoting ideas & concepts, support local aspirations, and mentoring & guidance)

Objective: Encourage innovation and technological advancement. (via sharing ideas & information, R&D & trials & pilot projects, communication upgrades, and alliances & exchange programs)

Objective: Facilitate Stronger communities & social inclusion. (via worker housing & accommodation, programs & facilities to integrate community, diversity in groups & initiatives)

Objective: Clean economy and eco-conservation. (via renewable energy ventures, sustainable practices, pro-active landcare programs, and adapting & sustaining ‘green’ principles)

Objective: Make SR an enviable place for agriculture. (via unified branding, consistent targeted messages, reporting progress & achievements, premium quality produce & lifestyle).

Objective: Grow SR’s capacity in beef, dairy, sheep & horticulture. (via upgrading infrastructure, increased water supply, limiting agro- forestry, producer co-ops & alliances, regional branding, R&D)

Strategies

The strategies address challenges, capitalise on opportunities and increase SR’s capacity to produce premium agricultural output. Each strategy is accompanied by a set of actions, some of which are presented in the action plan. Some initiatives outlined in the strategic analysis, and not mentioned in the strategies, have considerable merit that warrant further investigation (e.g. hydrogen production, Highway One, tourism). Rather than attempt to ‘pick winners’ the strategy focuses on high-level initiatives that if implemented will attract investment, increase agricultural capacity, and encourage sustainable economic prosperity for the medium-long term.

Strategy 1. Upgrade infrastructure

Actions: For Shire of Nannup & Shire of Augusta Margaret River  Investigate & identify the requirements to present high priority infrastructure projects as ‘shovel ready’.  Prepare business cases to support funding applications for high priority infrastructure projects.

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 Advocate with Local & Federal members for infrastructure upgrades as a matter of urgency.  Engage with RDA and Infrastructure Australia on packaging a collection of infrastructure projects into a high ($) value program.  Periodically prepare & submit grant applications for high & medium priority infrastructure projects.  Engage with DWER & DPIRD to undertake a preliminary hydrological assessment of sites, costs and design options for establishing 12-15GL surface dam capacity.

Strategy 2. Improve Town – Community Linkages

Actions: For Shire of Nannup & Shire of Augusta Margaret River  Prepare a preliminary feasibility study for a ferry on the Blackwood river (i.e. recommendation is Point Irwin to Donovan St Bushland).  Engage with community to refine the ferry proposal.  Engage with community on potential initiatives to improve linkages.  Explore scope to establish a SR Community Group to foster local initiatives, projects & events, etc.

Strategy 3. Grow & Leverage Alliances

Actions: For LSWGG & LBLCDC  Engage with SR farmers to identify & scope collaborative projects, issues & agendas.  Engage with Southern Dirt on R&D and economic projects to attract investment & increase output.  Establish dialogue with DPIRD on market opportunities, emerging / latent demand & agri-product development programs (e.g. year-round crops, fallow crops).  Engage with farmers & growers on a regional brand & promotional campaign.

Strategy 4. Stimulate Micro Agri-Business

Actions: For Shire of Augusta Margaret River, DPIRD & SWDC  Engage with land owners in far western Scott River (SoAMR) to scope a program of micro-business development & increased diversity of product.  Identify & engage with mentors & facilitators to assist local land/farm owners develop new ventures/crops.  Encourage preparation of pre-feasibility & business plans to identify ‘viable’ micro ventures to adopt.  Investigate community / social enterprise approaches to increase small farm output & diversity (SoAMR).

Strategy 5. Review & Simplify Land Planning

Actions: For Shire of Nannup & Shire of Augusta Margaret River

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 Review local planning schemes to improve flexibility of ‘use’ within SR to encourage investment & growth.  Engage with WAPC to conduct a review of the Augusta- Walpole Coastal Strategy to address gaps & soften restrictions to encourage investment & growth.  Engage with DWER to soften restrictions on clearing young, immature native scrub for the purpose of year- round farming to encourage investment & growth.  Continue to pursue local planning amendments to limit overuse of SR by agro-forestry.

Strategy 6. Strengthen Community

Actions: For Shire of Nannup & Shire of Augusta Margaret River  Seek grant funding to facilitate a preliminary feasibility for a community facility & worker accommodation facility.  Engage Community Liaison Officers to facilitate a community revitalisation program.  Engage with local groups to facilitate inter-group exchanges & initiatives (e.g. between farmers, residents & community).  Support local community groups in facilitating community enterprises & social engagement.

Strategy 7. Enhance Biodiversity

Actions: For Shire of Nannup & Shire of Augusta Margaret River  Engage with SR dairy farmers & AMRCCE to fast-track biogas digester project to help manage dairy effluent.  Continuation of programs to upgrade SR farm skills & expertise in regenerative agriculture practices.  Support LBLCDC in facilitating sustainable agriculture and landcare projects within SR.  Compile ecological performance indicators from across SR to monitor, report & manage SR’s ecosystem in collaboration with farmers & land owners.  Support LBLCDC to facilitate projects at ‘farm level’ to improve adaptation to climate change.

Strategy 8. Collaborate to Prosper

Actions: For Shire of Nannup & Shire of Augusta Margaret River  Investigate packaging the revitalisation of SR as a Regional Deal.  Engage with SR’s horticultural growers to expand capacity through a co-operative style business model.  Investigate and establish a community co-operative to operate & facilitate the SR community facility.  Engage with community groups to foster collaborative projects & initiatives that unite residents & farmers.

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 Engage with community to investigate approaches to leverage the SR brand to increase investment in community / social / commercial initiatives.  Engage with traditional owners, local community & tourism operators to activate Quannup Station.

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Action Plan

Three phases of strategy implementation set across 2020 to 2030.

2020-23. Infrastructure upgrade & land planning review.

2023-26. Investment attraction, community enrichment, and ecological management.

2026-30. Increase diversity & output, climate adaptation, and strategy review-renew.

2020-2023 Infrastructure upgrade & land planning review.

Initiative Role Timing Measure Determine & action requirements for Scoping paper identifying SoN & SoAMR (& high priority infrastructure projects 2020 - 2021 pathway to ‘shovel ready’ to become ‘shovel ready’. LSWGG & LBLCDC) Projects – if possible. Engage with RDA & Federal Members on packaging a collection of SoN & SoAMR 2020 - 2021 Application submitted for infrastructure projects into a high ($) assessment by IA value program with Infrastructure Australia. Engage with SR dairy farmers & Joint approach SoN & SoAMR (& AMRCCE to fast-track biogas digester 2020-2021 documented & resources project to manage dairy effluent. LSWGG & LBLCDC) committed to proceed. Advocate with State & Federal Acknowledgement & members for infrastructure upgrades SoN & SoAMR Ongoing suggested pathways as a matter of urgency. actioned.

Investigate development of branding SoN & SoAMR, Brand developed, style for agricultural produce from SRR 2020-2021 guide issued, & branding LSWGG & SD actively used. Prepare business cases & grant applications for high priority SoN & SoAMR 2021 - 2022 Grant applications infrastructure projects. submitted

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Initiative Role Timing Measure Periodically prepare & submit grant applications for high & medium SoN & SoAMR 2020-2023 Grant applications priority infrastructure projects. submitted Engage with DWER & DPIRD to effect prelim hydrological assessment of SoN & SoAMR 2020-2021 Prelim hydrological sites, costs design options for 12- assessment undertaken 12GL surface dam capacity. Review local planning schemes to Review completed & improve flexibility of land use in SR SoN & SoAMR 2021-2022 proposed amendments to encourage investment & growth. submitted for review Engage with WAPC to review the Acknowledgement & Augusta-Walpole Coastal Strategy to SoN & SoAMR 2021-2022 review process encourage investment & growth. announced Engage with DWER to review & ease restrictions on clearing young, SoN & SoAMR 2021-2023 Review commenced & immature native scrub for year-round changes proposed farming to encourage investment & growth. Continue to pursue local planning amendments to limit overuse of SR SoN & SoAMR 2021-2023 Amendments enacted by agro-forestry. Engage with traditional owners, local community & tourism operators to SoN 2021-2024 Facility opened for day activate Quannup Station as a use & overnight stay nature-based accommodation & tourism destination.

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2023-2026 Investment attraction, community enrichment, & ecological management.

Initiative Role Timing Measure Periodically prepare & submit grant applications for high, medium & low SoN & SoAMR 2022-2025 Grant applications priority infrastructure projects. submitted Develop pre-feasibility & business Grant applications case to establish a Blackwood River submitted, funding ferry service. SoN & SoAMR 2021-2024 accumulated over time Develop pre-feasibility & business Grant applications case for a community facility & a SoN & SoAMR 2021-2024 submitted, funding workers accommodation facility. accumulated over time Investigate packaging revitalisation projects in SR as a Regional Deal SoN & SoAMR 2021-2026 Agreement signed, (Local, State & Fed Govt project). funding secured Engage with community on facilitated Programs commenced & community enrichment program. SoN & SoAMR 2022-2024 supported Compile existing eco-performance indicators from across SR to improve LSWGG & LBLCDC 2022-2026 Comprehensive reporting management of ecosystem with system accessible to all farmers & land owners. parties

Continuation of programs to upgrade SoN & SoAMR Wider range of SR farm skills & expertise in 2021-2026 regenerative agriculture regenerative agriculture practices. (LSWGG & LBLCDC) practices across SR Support LSWGG & Southern Dirt in Selection of projects facilitating sustainable agricultural SoN & SoAMR & 2021-2026 successfully completed projects in SR. LSWGG Engage land owners in far western Scott River (SoAMR) to scope a SoAMR & LSWGG 2021-2026 Pilot & micro projects micro-business development program established to increase diversity of product. Engage with Southern Dirt on R&D and economic projects to attract LSWGG & LBLCDC 2021-2026 Participants & projects investment & increase output. underway Engage with farmers & growers on a SoN & SoAMR (& Branding & regional regional brand & promotional identity program LSWGG 2021-2026 campaign. established

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2026-2030 Increase diversity & output, climate adaptation, & strategy review-renew.

Initiative Role Timing Measure Periodically prepare & submit grant applications for high, medium & low SoN & SoAMR 2026-2030 Grant applications priority infrastructure projects. submitted Engage with RDA & Federal Member Funding secured for on funding support for infrastructure SoN & SoAMR 2026 - 2030 critical projects projects. Initiate a review of SR land New R&D and investment utilisation, output, diversity of SoN & SoAMR 2026 - 2030 initiatives identified produce & climate adaptation. Review market opportunities, LSWGG & Southern New opportunities emerging / latent demand & agri- Dirt 2028-2030 identified & actioned product development programs Support LSWGG & Southern Dirt in Selection of projects facilitating a diversity of sustainable SoN & SoAMR 2026-2030 successfully completed agricultural projects in SR. Initiate a review & renewal of this SoN & SoAMR strategy. 2028-2030 Renewed strategy Support LBLCDC to facilitate projects at ‘farm level’ to improve SoN & SoAMR 2026-2030 New initiatives adopted adaptation to climate change.

Engage with Southern Dirt on R&D and economic projects to attract LSWGG & LBLCDC 2026-2030 Participants & projects investment & increase output. underway

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KPI’s

Suggested key performance indicators to monitor and manage economic sustainability within the Scott River region include:

 Renewable energy capacity installed (Western Power data)  Water resources allocated [used] & unallocated [unused] (DWER data)  Adoption & reach of provenance branding (LSWGG & anecdotal evidence)  Diversity of agricultural produce (LSWGG estimate)  Value of regional output (ABS data)  Employers + Employees per 1000ha (ABS data)  Net new farm establishments (LSWGG estimate)  Irrigated & cleared land utilisation (LCDC estimate)  Population of residents & workers in SR (census data)  Median household income (census data)  No of households (census data)  Area forested [ha] (LSWGG & LBLCDC estimate)  Area under irrigation [ha] (LSWGG & LBLCDC estimate)  Area cleared & actively farmed [ha] (LSWGG & LBLCDC estimate)

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AAppppeennddiixx

Infrastructure Projects

A brief description for each of the infrastructure projects follows.

Seal 106km of roads in the western section of SRR. The roads are currently a mix of all-weather, unsealed and unformed, unsealed roads. The aim is to establish a network of sealed roads within the SRR that will facilitate heavy vehicle and passenger vehicle access to all properties irrespective of the season or traffic levels. Refer to the ‘Priority Roads’ section for further details.

Install two 4G mobile phone towers. One uni-directional mobile phone tower is located on Brockman Highway boosting mobile signals along ‘parts’ of the highway. Much of the interior of SR has mobile black spots as recognised by the Federal government’s black spot program. The placement of one 4G tower near the SR Fire shed and another 4G tower near the Jangardup / Stewart Road intersection would significantly improve mobile communications.

20km transmission line (3-phase). Extending from Don Road to central Jangardup Road. The upgrade would increase capacity to expand dairies in eastern SRR and potentially distribute power from wind / biogas facilities in SR to coastal areas further east. Expansion of agricultural activities would be possible given the upgraded power line.

12-15GL surface dam capacity. Located in the lower reaches of State forest bordered by Brockman Hwy, Hamersley Road, Milyeannup Coast Rd and Chester Rd, within proximity to seasonal streams & creeks; and utilising the natural (down-sloping) topography. Given 750mm annual rainfall within SRR (i.e. post climate change), surface – gully dams totalling 4km x 4km x 2m deep could collect and store in excess of 12GL of rain annually, plus captured runoff, to harvest and supply in excess of 14GL annually, reticulated to SR farms operating irrigation systems (pivots), year-round cropping/grazing or value-adding (processing) of local produce.

Quannup Station. A former pastoral lease occupying 4368 hectares of natural vegetation with a significant portion assigned as freehold to the Shire of Nannup. Primarily intended for conservation with precincts for low-key recreation, tourism and coastal access (e.g. Jasper Beach). Anticipated uses include camping, fishing, 4WD’ing, nature/cultural/heritage appreciation, and Institute for Environmental Sustainability (i.e. with involvement of local Aboriginal communities and native title claimants). Capital estimates include 100 unpowered camp sites, campground amenities, unsealed roads and 20 eco-cabins (modular cabins, renewable power & services) & caretakers’ facility.

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Ferry across the Blackwood River. Consultations suggested ferry infrastructure at Point Irwin (eastern side) and either the northern end of Victoria Parade (near the existing sealed carpark) or Donovan St Bushland (south of Augusta Yacht Club) on the western side. Capital cost estimates include a ferry docking facility at each side, sealing the road to access each ferry dock, and acquiring a WA-made clean energy powered electric cable- driven ferry (i.e. wind, solar & hydrogenerator powered). Indicative ferry size is 18m x 8m, aluminium construction, capable of carrying up to 28 tonnes (e.g. 6+ cars or 4 cars with caravans or one cement truck / light industrial truck).

Community Facility. A multi-purpose facility providing a range of services to SR residents. Potentially a semi-industrial (agricultural) style facility of approximately 80m x 30m with internal areas for retail, hospitality, public services (e.g. office space), community hall / conference facility, wholesale and private offices (e.g. incubator for micro enterprises) and external areas for storage, delivery, transit / trucking, temporary parking and public breakout (i.e. protected area for outdoor activities). Retail / wholesale and hospitality / social activities operated by a community cooperative.

Workers housing & accommodation. Potentially includes up to 20 self contained worker units for permanent & seasonal workers (i.e. up to 2 persons per unit); up to 12 self-contained family units (up to 6 persons per unit) for permanent workers; in addition to necessary infrastructure & services to support a ‘village’ of up to 60 workers or 112 people (i.e. common outdoor areas, parking area, access road & landscaping, etc).

Tourism infrastructure, former Beenup dredge site. The former dredge site on Scott River Rd is being rehabilitated by BHP into a wetland with native vegetation on the perimeter. Local and migratory birds frequent the area along with local fauna. Concept is to install bird hides, raised walkways, interpretive shelters, pathways and a parking area that enables visitors to view the local birds and wildlife within a near-natural setting.

‘Highway One’ Coastal Drive. Concept is to establish a sealed dual lane road that links east Augusta to the Vasse Highway via the SR coast line (i.e. following along Milyeannup Coast Rd & Woodarburrup Rd & Scott Road). The ‘Highway One’ coastal drive opens up access to Scott National Park, D’Entrecasteaux National Park and Quannup. Highway One extends around the coastline of Australia. This project opens up the southwest corner of Australia to 2WD vehicle and visitor traffic as part of a national highway.

Tourism Route Jangardup to Vasse. The concept is to seal & link existing roads & tracks including Pneumonia Rd, Jangardup Rd to Woodarburrup Rd to Scott Rd to Vasse Hwy. The project opens up year-round access to Lake Jasper, Donnelly River and Quannup for tourism and recreation.

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Sensitivity Analysis Infrastructure options. A comparison of 4% and 8% discount rates on the benefit-cost and Net Present Values for nine of the infrastructure projects is presented below.

Two 4G 12-15GL Ferry to Cross 20yr appraisal period. Seal 106km 20km 3-phase Phone Surface Dam Blackwood 4% & 8% discount rate of Roads Power Line Towers Capacity River 8% Benefit Cost Ratio 1.28 9.53 2.74 1.42 1.31

4% Benefit Cost Ratio 1.93 14.47 4.30 2.19 1.86

8% Net Present Value $13,707,582 $14,223,607 $58,514,139 $6,392,915 $1,354,501

4% Net Present Value $45,621,212 $22,969,996 $114,305,855 $18,196,816 $4,054,953

Quannup Seal Highway 20yr appraisal period. Community Workers Campground One - Coastal 4% & 8% discount rate Hub Accommodation & Eco-Park Drive - 70km 8% Benefit Cost Ratio 1.12 0.25 0.64 0.86

4% Benefit Cost Ratio 1.56 0.35 0.88 1.20

8% Net Present Value $913,741 -$63,559,498 -$2,673,968 -$725,438

4% Net Present Value $4,577,183 -$55,136,617 -$893,092 $1,048,651

LGA Population Scenario

During 2001 and 2019 the Shire of Augusta Margaret River (SoAMR) has averaged annual population growth of 2.6%. Applying this historic growth rate to SoAMR’s 2019 population of 16,172 provides an indication of possible future population. For example, SoAMR’s 2025 population is projected to be 18,848, an increase of 2,676 in six years; 2030 is projected to be 21,412, an increase of 5,240 in eleven years.

During 2001 and 2019 the Shire of Nannup has averaged annual population growth of 0.7%. Applying this historic growth rate to SoN’s 2019 population of 1,386 provides an indication of possible future population.

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For example, SoN’s 2025 population is projected to be 1,445, an increase of 59 in six years; 2030 is projected to be 1,497, an increase of 111 in eleven years.

Collectively, the population of the two shires could potentially increase by around 5,351 people by 2030. The majority of population growth occurring within the SoAMR. Projected population growth within the region will have implications for labour supply, level of business / enterprise activity and housing / accommodation supply-demand, which could impact the nature of agri-business development within the SRR, for example.

Shire of Nannup & Shire of Augusta Margaret River Population 2001-2019 & Projected Population 2020-2030 25000

20000

15000

10000

5000

Augusta-Margaret River (S) Nannup (S) Source: ABS 3218.0

Dairy in WA

WA has the agricultural land and water to increase milk production significantly25.

Success factors for dairy production and processing

o Concentrated storable products produced in remote locations are cost effective and sustainable as these operations will not be compromised by rising land values. . Low cost land . High levels of automation

25 Source: www.nicheagribusiness.com.au

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. Dependable water supplies . Long growing seasons . Local knowledge and experience . Proximity to processing . Access to energy

The general formula for dairy farming & milk processing

o Source or grow feed close to cows. o Locate cows close to processor / process plant. o Processor to be world scale to be cost effective. o WA has been internationally benchmarked as world competitive. (International farm comparison network, 2010)

Dairy is an accretive industry (i.e. grows gradually).

Dairy farms grow and expand at a slow rate either by buying more land, feed or cattle. It is unusual or almost unknown for large dairy farms to start from scratch. The capital investment is significant - but the cash flow is constant - so assuming the returns are higher than the costs - there is positive movement forward.

Also true of dairy processing facilities. Most large dairy processing facilities in Australia start small and expand through geographic advantage. It is unusual, but not unknown for new plants to be built.

Economic benefits of Dairy

o 100 cows employ 1 person on farm and 0.7 off farm o 100 cows will produce between 750,000 and 1,000,000 litres of milk o Factories employ about 1 person for this volume of milk (depending on the products) o For every person employed in a factory, 8 people are employed in the community. (Johnson Peter., 2003) o Dairy also adds value to out of specification or specially grown feed grain

Inhibitors

o No world scale processors in WA due to legacy issues from the quota system that was in place since 1932 Metropolitan Milk ACT (Western Australian STATE GAZETTE , 1932) . (Therefore, no economies of scale) o Few corporate farms (access to capital is limited) o WA has the land and feed resources, water & population to support a world scale industry – but getting to a critical mass requires political will and support.

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Western Australia & Milk / Dairy

o WA’s Population 2.7 million (at 2020) o 1 billion litres of milk is required to produce & supply all the dairy products consumed in WA. o 370 litres milk consumed per person per year (i.e. approx. 1 litre per person per day, as shown below) o Drink: 100 litre p.a. (275 ML per day) o Cheese: 140 litre p.a. (380 ML per day) . 13.5 kg cheese . 124 litres to whey - to make powder as nutritional supplements. o Butter: 80 litre p.a. (220 ML per day to make the butter) . 4 kg butter (11 gram per day) . 76 litres to Skim milk powder for export o Yoghurt: 10 litres (27 gram per day) o Ice- cream: 10 litres (27 gram per day) o Infant formula: 1.76 kg and 1.25 kg other powders. (These require approx. 30 litres) o Cream: 6 litre (16mL per day) o Source, (Dairy Australia , 2020)

Milk production in WA

o 370 million litres - produced on farm. (Dairy Australia , 2020) o 270 million litre – Drank (i.e. as fresh & flavoured milk). o Export 50 million litre (Bulk to Singapore) o Remaining milk goes into: . yoghurt . cheese . Niche products.

A Legacy of the regulated quota system is that very few storable dairy products are made in WA. As a result, WA imports a large volume of dairy products each year from east coast Australia including.  36,500 tonnes cheese  11,000 tonnes butter  48 million litres of ice-cream  ~ 7,500 tonnes of milk powders  ~ 20,000 tonnes of yogurt

WA’s population is 2.7 million and growing at 40,000 per year. Demand for dairy products is closely tied to population growth.

WA’s major Processors are offshore owned multi nationals. . Lactalis – France; processes 19.6 billion litres milk worldwide. . Mengniu – China; processes 6.4 Billion litres milk worldwide including 1 Billion via Lion Australia

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. Browns - Shanghai Ground Food; Purchases WA milk only. Exports cheese to China.

SR suffers from tyranny of distance. High cost to get milk to the processor and the market. The capital cost to produce value-added dairy products can be prohibitive. SR’s labour & accommodation shortage means staffing is problematic. SR’s power & water supply is not ‘world competitive’. Value-added dairy producers are generally world scale, low cost, very competitive, which makes exporting risky unless the plant is globally competitive or can supply a differentiated product. The dairy market is constantly evolving, finding a viable niche is challenging. Designing & building a processing facility suitable for SR’s milk supply capability takes extensive R&D and capital. Dairy in Australia will continue to decline until milk imports are considered to be strategically ‘low’ and dairy farming is afforded a lifeline through regulation (price setting), investment incentives (to process on-farm), government subsidies or made exempt from certain taxes, fees & charges, for example.

References Dairy Australia . (2020). Consumption summary. Retrieved from https://www.dairyaustralia.com.au/industry/production-and- sales/consumption-summary

Dairy Australia . (2020). Production and Sales . Retrieved from https://www.dairyaustralia.com.au/industry/production-and-sales/latest- production-and-sales-statistics

International farm comparison network. (2010). Retrieved from https://ifcndairy.org/

Johnson Peter., N. I. (2003). Agricultural processing and the Western Australian economy. Retrieved from https://researchlibrary.agric.wa.gov.au/: https://researchlibrary.agric.wa.gov.au/cgi/viewcontent.cgi?article=1022&context=misc_pbns

Western Australian STATE GAZETTE . (1932). Metropolitan Milk Act. Retrieved from https://www.legislation.wa.gov.au/legislation/prod/filestore.nsf/FileURL/mrdoc_12656.pdf/$FILE/Metropolitan%20Whole%20 Milk%20Act%201932%20-%20%5B00-00-00%5D.pdf?OpenElement

Case Study: Badgingarra Dairy WA Dairy and Energy (WADE) plans to build a $1.2B, 24,000 head dairy farm south of Badgingarra, producing 30,000 tonnes of powdered milk (infant formula) per annum, 100% exported to China as premium grade product; creating up to 480 ongoing jobs, using 10 gigalitres of water annually (from groundwater sources), using dairy effluent to generate power, with development phased over a three to four year period; using a free stall system where cows have access to large barns with food, water, shelter and bedding, and outside the barn they will have access to irrigated pivot areas (fodder, feed); Badgingarra was chosen because lower land values, suitable climate for cows, the availability of water, the adjacent Brand Highway, adjacent Bunbury Dampier gas pipeline and high-voltage power; the project will be managed by WA Dairy & Energy (WADE), backed by Tsing Capital Australia (Chinese financier).

Source: https://www.abc.net.au/news/2020-03-09/effluent-powered-dairy-proposed-to-target-baby-formula-market/12034690

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Grant Funding Options

Community Development Grants Programme https://www.regional.gov.au/regional/programs/community-development- grants.aspx email: [email protected]

Tackling Tough Times Together https://www.frrr.org.au/grants/TTTT Community resilience, environmental sustainability, community health & wellbeing.

Building Better Regions Fund https://www.business.gov.au/SearchResult?query=Building+Better+Region s+Fund&useAndSearch=true&type=1 Infrastructure projects & community development activities.

Regional Deals https://www.regional.gov.au/regional/deals/ Ten year project between Federal, State & Local Governments to facilitate community-identified projects addressing the needs of regional Australia.

Regional Investment Corporation Water Infrastructure Loans https://www.ric.gov.au/water-infrastructure

Clean Energy Finance Corporation Bioenergy, Wind & Hydrogen https://www.cefc.com.au/where-we-invest/renewable-energy/

Australian Renewable Energy Agency Renewable Hydrogen Deployment Funding Round https://arena.gov.au/funding/renewable-hydrogen-deployment-funding- round/

Mobile Black Spot Program https://www.communications.gov.au/what-we-do/phone/mobile-services- and-coverage/mobile-black-spot-program

National Water Infrastructure Development Fund https://www.nationalwatergrid.gov.au/nwi-development-fund/water- infrastructure-projects

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RReeffeerreenncceess

In chronological order.

National Farmers Federation submission to Senate inquiry into financial and regulatory technology. January 2020

The Value of Agriculture in the Scott River – a review (DRAFT). Department of Primary Industries and Regional Development. February 2019.

Enhancing Niche Tourism. Prospects for south west Western Australia to integrate tourism and agri-food systems. Bankwest Curtin Economics Centre. February 2019

The 2030 Big Picture Series: Perspectives on the economic opportunities for the South West of Western Australia. RSM. May 2019

Diversify WA. An Economic Framework for WA. Western Australian Government. July 2019

Australian Farmland Values. 2019. Western Australia. Rural Bank.

Western Australian Renewable Hydrogen Strategy. Department of Primary Industries and Regional Development, July 2019.

Augusta Margaret River Clean Community Energy. Annual Report. 2018-19

AMRCCE Renewable Energy Project. Dairy Farmers Consultation Report. By Ag Grow Energy Resources. Sept 2018.

Manjimup Hemp Milling Pre-Feasibility Study. Stage 1 Report. By Strategy Matrix for the Shire of Manjimup. Feb. 2018

Manjimup Hemp Milling Pre-Feasibility Study: Stage Two Report. Technical & Financial Modelling. Manjimup Agriculture & Food Strategy. By Strategy Matrix for the Shire of Manjimup. June. 2018

Waterloo Agri-Food Planning Analysis. Department of Primary Industries and Regional Development. June 2018

Inquiry into Microgrids and Associated Technologies in Western Australia. Horizon Power’s Submission to the Economics and Industry Standing Committee. Horizon Power. 2018

Emerging Technologies in Agriculture. Consumer perceptions around emerging Agtech. GHD & AgThentic. For Agrifutures. August 2018

Research Activities on Rural Roads. Agrifutures. October 2017

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Towards a Sustainable Lower Blackwood Region. A Whole of Landscape Perspective. By Lower Blackwood Catchment & Curtin University. August 2017

New Opportunities. In New & Emerging Agricultural Industries In Australia. Coriolis. RIRDC / Agrifutures Australia. December 2017.

Socio-economic Impacts of the Forest Industry. Western Australia. Forest & Wood Products Australia. Dec 2017.

Pathways To Competitiveness. Coriolis, July 2016. (DAFWA & R4R)

Markets for Western Australian Seed Potatoes. Department of Primary Industries and Regional Development, December 2016. (Radhakrishnan, M. and Dawson, P., Bulletin 4882)

Water Forever. South West. Final Report. Water Corporation. July 2015

South West Regional Blueprint. 2014. South West Development Commission.

Fresh Thinking 2013-2050. Department of Agriculture and Food, Western Australia, Victor Fazakerley & David Windsor. 2013

Augusta-Walpole Coastal Strategy. WA Planning Commission, July 2009

Plantation forestry and water management guideline. WA Department of Water. June 2009

Building Resilience in Rural Communities. University of Queensland & University of South Queensland. 2008

Effects of agricultural practices on water quality of the Scott River: with focus on primary production. Artemis Kitsios, University of WA, Honours Thesis. Bachelor of Environmental Engineering. 2004.

Agricultural Processing and the Western Australian Economy. Islam & Johnson. Western Australian Department of Agriculture. 2003

Scott Coastal Plain a Strategy for a Sustainable Future. Department of Agriculture and Food, Western Australia. 2001

A Case for Regional Development. Scott River Growers Group. 2001

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intentionally blank

66 481 Shire of Augusta Margaret River: consolidating Scott River Economic Strategy into an Action Plan  = retain in action plan  = reframe for action plan

 = exclude from action plan

1. Upgrade infrastructure Action Status Lead Notes Investigate and identify the requirements to present high Steering priority infrastructure projects as  group ‘shovel ready’. Prepare business case to support Reframe: Work with Optus or another telecommunications provider on funding for mobile phone towers Mobile Black Spot funding application for round 6. Use data from strategy as evidence of need.  Shires Rationale: The Strategy currently provides good data and evidence of the need that can inform grant applications without requiring an additional business case. Prepare business case to support Reframe: Prepare a business case to explore which roads must be sealed, funding for sealing 103km of road which could remain gravel, what maintenance regimes might improve road condition of gravel roads, and what the Cost/Benefit Analysis of different

approaches would be. The business case would check the robustness of the life costs shown in the Strategy. The business case would determine  Shires the best solution that will succeed in attracting funding. Rationale: There is not a strong case made for sealing all 103km of road identified in the strategy and it may not form a viable case for attracting funding. Improving road conditions is important and the most effective way forward should be identified.

482 Prepare business case to support AMR could offer letter of support if Shire of Nannup wants to lead this. funding for 20km transmission For SoN to SoN line (3-phase) to east Scott River determine

Prepare business case to support AMR could offer letter of support if Shire of Nannup wants to lead this. funding for activating Quannup For SoN to SoN Station determine

Prepare business case to support This would only occur after a preliminary feasibility study has been funding for a ferry across undertaken (listed in Strategy 2). Blackwood River  AMR Shire

Prepare business case to support The strategy doesn’t make a convincing case that the creation of a new funding for a central community “hub” or community facility would improve connectivity. The yet-to-be- facility formed Scott River Action Group would need to determine a need and then n/a  progress a feasibility study. A better option might be to shift the focus to

some of the other recommendations around improving community connectivity. Prepare business case to support Reframe: Explore options and support community-led initiatives for funding for workers increasing accommodation for workers. accommodation Rationale: A business case for a central workers accommodation facility Steering would be contingent upon (a) an assessment that a central accommodation  group facility is a more appropriate way of addressing workers accommodation than on- farm housing; (b) selection of a site; (c) construction of a ferry if the chosen site is in Augusta; (d) an investment model/attraction of funding. At this point in time it is unclear whether a central facility, as suggested in the Strategy, is the most appropriate solution. Prepare business case to support This is a low priority project, and would require a project lead to drive it. Steering funding for tourism infrastructure BHP might potentially fund this project as a public relations exercise in  group near Beenup successful mine site rehabilitation.

483

Prepare business case to support This $60 million project has a negative Benefit/Cost ratio and Net Present funding for 70km Highway One Value. It would entail significant environmental disturbance and there is no seal  n/a economic case made for pursuing .

Prepare business case to support funding for For SoN to Tourism Route Jangardup-Lake SoN determine Jasper-Vasse Hwy

Advocate with Local and Federal This can occur to help plant the seed, but a business case will be Steering members for infrastructure necessary for each infrastructure project for it to be seriously considered.  group upgrades as a matter of urgency Engage with RDA and Requires further steering group review of which projects are developed Infrastructure Australia on sufficiently for inclusion in this initiative. Steering packaging a collection of  group infrastructure projects into a high ($) value program Periodically prepare and submit Requires the formation of a steering group and governance model. May grant applications for high and require financial co-contributions. Determination needs to be made by both medium priority infrastructure  Shires Councils as to how much resourcing they want to contribute to Scott River projects Region.

Reframe: Engage with DWER and DPIRD on the broader objectives of:

Engage with DWER & DPIRD to Steering • Improving winter productivity (including alternative crop and forage undertake a preliminary  group options) hydrological assessment of sites, • Better understanding the ASS risks of amended hydrological costs and design options for regimes in the SRR

484 establishing 12-15GL surface • Identifying opportunities and associated constraints for various dam capacity potential water supply options. • Improving summer productivity (including alternative crops, more water efficient and sustainable processes, consideration of various irrigation options, dairy effluent re-use, and options for increased summer moisture availability) Rationale: While water supply has been identified as an issue, particularly in the context of a drying climate, there are a number of serious challenges associated with building a large surface dam to address this issue. Broadening the inquiry into other options for water productivity may result in a more viable solution. 2. Improve Town-Community

Linkages Action Status Lead Notes Ferry forms part of the strategy to alleviate social isolation and attract farm workers and contractors from Augusta. Requires the formation of a Prepare a preliminary feasibility steering group, governance model, and project lead. Determination needs study for a ferry on the to be made by Council as to how much resourcing they want to contribute Blackwood river (i.e. AMR Shire  to Scott River Region. recommendation is Point Irwin to Donovan St Bushland).

Engage with the community to Community engagement is part of the feasibility study and doesn’t need to refine the ferry proposal be listed as a separate action. Should only be undertaken if Council has committed resources to the project so as not to build up false expectations,  AMR Shire or conversely create angst among those community members who don’t want to see a ferry.

485 FTE would be required for Shire staff to undertake the engagement, and to action any outcomes from the engagement. Shire involvement in this Engage with community on course of action would require deprioritising other Community Development potential initiatives to improve Steering  tasks or funding additional staff hours. linkages. Group

This could be driven by the community organisations within the steering Lower SW group (once formed). Explore scope to establish a SR Growers Community Group to foster local  Group, Lower initiatives, projects & events, etc. Blackwood Landcare

3. Grow and Leverage Alliances Action (identified for LSWGG & Notes Status Lead LBLCDC) Engage with SR farmers to Lower SW identify & scope collaborative Growers projects, issues & agendas  Group, Lower Blackwood Landcare Engage with Southern Dirt on Lower SW R&D and economic projects to Growers attract investment & increase  Group, Lower output Blackwood Landcare Establish dialogue with DPIRD on Lower SW market opportunities, Growers emerging/latent demand & agri- Group, Lower product development programs  Blackwood (e.g. year-round crops, fallow Landcare crops)

486 Engage with farmers & growers Lower SW on a regional brand & promotional Growers campaign  Group, Lower Blackwood

Landcare 4. Stimulate micro agribusiness Action Status Lead Notes

Engage with land owners in far western Scott River (SoAMR) to FTE would be required for Shire staff to undertake the engagement, and to scope a program of micro- Steering action any outcomes from the engagement. This course of action would business  group require funding additional staff hours if led by the Shire. This could be a development & increased good action for industry bodies. diversity of product.

Identify & engage with mentors & facilitators to assist local Steering Incorporate into above project if adequate resourcing given. land/farm owners develop new  group ventures/crops.

Encourage preparation of pre- feasibility & business plans to Steering Incorporate into above project if adequate resourcing given. identify ‘viable’ micro ventures to  group adopt.

487

Investigate community / social enterprise approaches to Steering Incorporate into above project if adequate resourcing given. increase small farm output &  group diversity (SoAMR).

5. Review and simplify land planning Action Status Lead Notes Reframe: Scope to review land use permissibility between Shires for consistency of approach. Review local planning schemes to improve flexibility of ‘use’ Rationale: The case for reform of land use planning is not comprehensive within SR to encourage or well-conceived. There is no objective assessment of current investment & growth  Shires impediments in the land use planning framework. There is already significant flexibility in the land use planning framework for the SRR, which

provides a primacy of agricultural use, with permissibility of adjunct uses such as value adding, accommodation for workers and rural tourism opportunities. The rationale for this action is not clear. Some of the ‘restrictions’ referred to are agreed outcomes of an extensive process relating to treatment of Engage with WAPC to conduct a mostly conservation land adjoining the coastal environment. There is review of the Augusta-Walpole limited relevance to the sustainable economic development of the Scott Coastal Strategy to address gaps n/a  River region. It appears the primary objective of this statement is to review & soften restrictions to encourage the requirement to cede a foreshore reserve at subdivision and access to investment & growth. coastal nodes which are outside of the scope of the Scott River Strategy considerations.

488 Reframe: Engage with DWER to better understand the role of Regulation 5, Item 14 exemptions (Environmental Protection Act 1986) to clearing Engage with DWER to soften regrowth on farmland in SRR, and discuss the criteria for the restrictions on clearing young, declaration of the ESA (Environmentally Sensitive Areas) in context of the immature native scrub for the Scott Coastal Plain. purpose of year-round farming to encourage investment & growth. Rationale: While the Shire of Augusta Margaret River has a presumption against native forest logging, the Regulation 5, Item 14 exemptions are for the

purpose of clearing regrowth under 20 years old on land that has been grazed  Shires or used productively in that 20-year period. These exemptions do not apply to remnant bushland, and do not apply in Environmentally Sensitive Areas (ESA). The entire area of Scott River, including large areas of paddock, is currently declared an ESA. This means if a paddock is not grazed for a number of years and vegetation has started to regrow a farmer would be expected to undergo a permit process to revert the paddock back to farmland. In the context of food security and ensuring farmers can retain existing productive land it may be worth exploring whether some of the amended landscapes in the SRR could have a more streamlined approach to clearing regrowth.

Continue to pursue local planning Determine if issue is valid and if so seek consistent approach to forestry amendments to limit overuse of  Shires permissibility and considerations in SRR through consistent scheme SR by agro-forestry. provisions and policy.

6. Strengthen community Action Status Lead Notes The Strategy doesn’t make a good case for why this $7 million facility is needed, or where it would be located. Without any real justification for Seek grant funding to facilitate a why this is needed, or what its purpose would be, it is unclear whether preliminary feasibility for a  n/a pursuing a feasibility study would have any value. community facility & worker accommodation facility

489

Engage Community Liaison Steering Officers to facilitate a community Determine what this looks like and how to progress.  group revitalisation program.

Similar to earlier action on engaging with the community to improve linkages. For Shire involvement FTE would be required to undertake the Engage with local groups to engagement, and to action any outcomes from the engagement. Shire facilitate inter-group exchanges & Steering involvement would require deprioritising other CPD tasks or funding initiatives (e.g. between farmers,  group additional staff hours. residents & community).

Support local community groups in facilitating community As above As above As above enterprises & social engagement

7. Enhance biodiversity Action Status Lead Notes AMR Shire has given financial support to AMRCCE. Engage with SR dairy farmers & Consideration to be given to how/what support SoN and other AMRCCE to fast-track biogas Steering stakeholders may choose to provide. digester project to help manage  group dairy effluent

AMR Shire has given support to Lower Blackwood LCDC to undertake this Steering work. Consideration to be given to how/what support SoN and other Continuation of programs to  group stakeholders may choose to provide. AMR Shire provides opportunities upgrade SR farm skills & through a competitive grant round.

490 expertise in regenerative agriculture practices

Support LBLCDC in facilitating sustainable agriculture and As above As above As above landcare projects within SR

DWER, Compile ecological performance Lower DWER measure/assess keystone species and groundwater dependent indicators from across SR to Blackwood ecosystems. Unsure whether landowners have sufficient ecological monitor, report & manage SR’s  LCDC, expertise to monitor, report, and manage. ecosystem in collaboration with Aboriginal farmers & land owners. This is probably best managed by a State Government authority. groups

Support LBLCDC to facilitate Steering This is achieved specifically through LBLCDC’s regenerative agriculture projects at ‘farm level’ to improve  group training. Steering group could consider other ways to support adaptation. adaptation to climate change.

8. Collaborate to prosper Action Status Lead Notes

Investigate packaging the A Regional Deal brings all levels of government together around a clear set Steering revitalisation of SR as a Regional of objectives. Strategy doesn’t provide much detail. Steering group can  group Deal. explore.

491

Engage with SR’s horticultural For the purpose of value adding, marketing, pooling product for larger growers to expand capacity Steering markets, etc there may be some benefit in a co-operative model. Lack of a through a co-operative style  group rationale makes it difficult to determine whether this is a viable concept and business model what role the Shire would play. Steering group could explore this further.

Investigate and establish a community co-operative to As previously highlighted under Strategy 6, there is lack of clarity around n/a operate & facilitate the SR  what the community facility is, where it is, and what its purpose is. community facility.

Engage with community groups This is a very similar action to several others listed under the Strengthen to foster collaborative projects & Steering Community and the Improve Town-Community Linkages strategies. See initiatives that unite residents &  group comments in those sections. Suggest consolidating these actions. farmers

There is currently no regional branding used in SR and scope exists to elevate the ‘provenance’ of the region through common branding – used Engage with community to consistently by all farms on all types of produce grown in SR. This investigate approaches to action may be contingent upon first developing a value-add. leverage the SR brand to Steering increase investment in  Group community / social / commercial initiatives

For SoN to SoN AMR could offer letter of support if Shire of Nannup wants to lead this. Engage with traditional owners, determine local community & tourism

492 operators to activate Quannup Station.

493

A D D E N D U M

SCOTT RIVER

SUSTAINABLE ECONOMIC STRATEGY

2020 – 2030

494

PREAMBLE

For the purpose of this addendum, the project Brief required the following deliverables: • Consultation Outcomes report will be an appendix to the final strategy; and is subsequently included in this document. • All photographs, significant correspondence, meeting minutes and any other relevant information is to be provided in original formats and pdf.

The purpose of this addendum is to meet the requirements of the project Brief and to provide a collection of data, information and references that may assist in the preparation of future business cases, grant applications and regional reports.

The Addendum is organised into sub-headings. The content is self-explanatory, without commentary, intended for use in future reports (e.g. via cut & paste). Original sources (references) have been provided where possible.

Some of the material within this addendum was not specified in the Brief but was prepared during analysis of the region and/or in undertaking the project (e.g. to inform consultations, workshops, presentations, project meetings, etc).

A collection of material was also uploaded to Dropbox. Some of that material was not able to be incorporated into this (WORD) document.

DISCLAIMER

This document has been compiled in good faith by Marketrade and is not a substitute for legal or technical advice. No person or organisation should act on the basis of any matter contained in this document without obtaining appropriate professional advice. Marketrade and its associates make no representation or warranty, expressed or implied, as to the accuracy, completeness, reasonableness or reliability of the information contained in this document, and accept no liability for any loss or expense of any nature whatsoever (including consequential loss) arising directly or indirectly from any making available of this document, or the inclusion in it or omission from it of any material, or anything done or not done in reliance on it, including in all cases, without limitation, loss due in whole or part to the negligence of Marketrade and its associates, sub-contractors and alliance members. This notice has effect subject to the Trade Practices Act 1974 and the Fair Trading Act 1987 (WA), if applicable, and to the fullest extent permitted by law.

PREPARED BY

A: 78 Solomon St Fremantle WA 6160

E: [email protected] M: 0407 581 481 W: www.marketrade.com.au ABN 63351 688958 495

A D D E N D U M

CONTENTS

LITERATURE REVIEW ...... 1 CONSULTATION FINDINGS ...... 23 PHONE CONSULTATIONS ...... 24 WORKSHOP CONSULTATIONS ...... 39 STRATEGIC ANALYSIS ...... 49 SOCIO-ECONOMIC PROFILE ...... 49 LAND USE ...... 53 MISCELLANEOUS EXTRACTS ...... 54

496 A D D E N D U M S COTT RIVER SUSTAINABLE ECONOMIC STRATEGY 2020-2030

497 A D D E N D U M S COTT RIVER SUSTAINABLE ECONOMIC STRATEGY 2020-2030

LLIITTEERRAATTUURREE RREEVVIIEEWW

The literature review includes prescribed literature, specified in the project brief, and non-prescribed literature, which was reviewed to further inform consultations, regional analysis and strategy development. Referenced reports were uploaded to a cloud-based library set up specifically for the project (e.g. Dropbox).

PRESCRIBED LITERATURE Report Title Purpose & Key Risks & Challenges Relevance to Scott Excerpts to Note Implications Findings River Region. The 2030 Big Picture The report highlights a An immediate challenges The Report highlights the The south west can The SW has a strong Series: Perspectives series of upgrades to is securing the remaining ‘up side’ that Scott River anticipate growth in cause for optimism. Bunbury port, Busselton $13M to finalise the growers & the region trade, exports, tourism, Investors in Scott River on the economic Airport & regional SW Busselton airport could benefit from during manufacturing and the region could expect flow- opportunities for the infrastructure, which is terminal – to enable 2020-2030. natural growth of on benefits if the South West of Western presenting an array of visitor inflows & cargo Improvements in business. Specific identified regional Australia. RSM. May business opportunities outflows via the airport. infrastructure, logistics growth is expected in investments are delivered 2019 for an expanding and industry capability / lithium, cruise ship in the coming 2-5 years. economy – both capacity could drive arrivals, defence force Exports via the new traditional and new, investment & growth (navy) stopovers, airport could provide emerging enterprise. within the Scott River inbound fly-drive visitors benefit if domestic region. and agriculture exports. demand was subdued or local prices fell.

Pathways To Coriolis identifies key Government policy (e.g. The Report presents case An internationally Scale, yield & low cost Competitiveness. factors that make a firm that focuses on studies on pork, dairy, competitive agricultural are key indicators of & agribusiness sector agribusiness industry & potatoes, citrus & oats to sector “requires policies global competitiveness Coriolis, July 2016. globally competitive (i.e. market development) show how agribusiness and institutional for an agribusiness or (DAFWA & R4R) low cost inputs, large being under-resourced firms can achieve global frameworks that facilitate agricultural sector; scale production, high and not delivering the competitiveness. Dairy & innovation, least-cost foreign investors seek yields, profitable & desired outcomes. potatoes are well production, efficient risk these ‘factors’ to justify reinvesting in capacity). Government supporting represented in the Scott management and the investing in local firms.

498 A D D E N D U M S COTT RIVER SUSTAINABLE ECONOMIC STRATEGY 2020-2030

Three types of regions & firms that are River region. A focus on allocation & reallocation Coriolis categorises firms agribusiness firms are not within proven, highly reducing input costs, of resources such as land, into three types: 1 – identified that have productive ‘strategic’ investing in production water and management Rockets. 2 – Sharks. 3 unique characteristics regions that could capacity / scale, skills to areas of – Castles. Important to with corresponding generate immediate increasing yield and production and recognise the presence of strategies to be significant flow-on reinvesting in value- investment with the each type in the Scott competitive & sustain benefits if supported adding would help bring highest expected net River Region, viable operations. effectively. Firms or the Scott River region to returns”. Coriolis P. 33. acknowledging the Actions are identified industry groups attracting global competitiveness. Quoting Agricultural differences in strategies that can assist firms & government support but Government must focus Competitiveness & the requirements to industry sectors to taking longer than on infrastructure as well Taskforce, Australian attain global become more globally expected to realise the as resources such as land, Government Productivity competitiveness. competitive (e.g. study desired outcomes or water, labour & key Commission, April 2014. Important to identify & tours, expert advice, R&D becoming affected from inputs and facilitating resolve challenges in the projects, investing in ‘unexpected’ entry into national & Scott River region technology, increasing developments overseas export markets (i.e. relating to land use / capacity, partnerships & (e.g. quotas, tariffs, diversification of market availability, water, labour alliances). indirect barriers, trade risk). & skills, access to disputes, pandemics, etc). technology / automation, The transition to ‘global capacity to reinvest & competitiveness’ is a grow capacity, quality & lengthy, costly process value of support services that endures wins & / suppliers, and access to losses. markets & higher demand.

New Opportunities The report focuses on Nine of the 26 ‘new Scott River region has a Factors underlying the 26 Opportunities exist for In New & Emerging emerging agricultural opportunities’ are cool temperate ‘emerging’ products the (9) emerging industry (sectors) being potentially suited to the Mediterranean climate, included: premium industries to value add Agricultural Industries those with annual sales Scott River region. with cool-wet winters & products, on-trend, new and expand into In Australia. Coriolis, growing from $1m to ‘New’ industries often dry-hot summers, and or emerging cuisine, and multiple categories, for December 2017, RIRDC $10m+ during 2018-2022. require significant capital comparatively high health benefits (i.e. these example, hemp seed / Agrifutures Australia. Twenty six products were investment such that pre- rainfall (e.g. 1000mm factors support demand; being processed into oil,

499 A D D E N D U M S COTT RIVER SUSTAINABLE ECONOMIC STRATEGY 2020-2030

identified & profiled planning through to p.a.). The climate is a recognised value in the flour, butter, biscuits, including Marron1, Sheep commercialisation follows suited to the growing of market place). Each of beer, milk, burger milk, Chestnuts, recommended pathways hemp, sheep, hazelnuts, the nine ‘potential’ patties, etc. Hazelnuts, Jackfruit, to increase likelihood of marron and Eucalyptus opportunities suited for Scope exists to establish Pomegranate, Flaxseed success. Some of the (oil). Scott River region Scott river ‘could be a working party to /linseed, Hemp seed, nine products benefit has comparatively large realised within a five year explore each of the nine Eucalyptus oil, Deer, from existing local plots of farm land (e.g. timeframe’. The nine ‘product opportunities’ in Silver perch, Seaweed, expertise (e.g. marron, 2000ha sites) that are product profiles within further detail and Redclaw crayfish, Buffalo hemp seed, sheep milk, sufficient to support a the Coriolis report potentially determine if milk, Camel milk, Chillies, hazelnuts & eucalyptus gradual increase to ‘large contain useful insights to resources / funding and Taro, Cassava, Prunes, oil). The main risks & scale’ production, inform a pre-feasibility, a capability is available to Rambutan, Pitaya (dragon challenges are associated offering global study tour, enquiries to establish a pilot project fruit), Black tea, Chia, with being the first competitiveness. If the local experts / recognised as the first step in Amaranth, Mustard seed, grower-producer in the product was ‘value- authorities or a starting ‘gradually’ developing a & Lavender oil. Scott River region. added’ (e.g. processed point for a small scale new industry in the Scott into a shelf-ready pilot project. River region (i.e. over 5- product), the cost of 10 years). delivery to market would be negligible. Enhancing Niche The report presents Risks include maintaining Scott River region is South West tourism is Visitors to regional WA Tourism. Prospects for support for a niche high quality product in comparatively isolated & challenged by long are burdened by the cost, tourism strategy, where perpetuity; managing bio- distanced from local driving distances the time required, the south west Western specific tourist groups are security to avoid towns and visitor ‘hot between centres, poor lack of knowledge and Australia to integrate targeted by promoting an damaging Australia’s spots’. Subject to zoning, road & transport the discomfort of tourism and agri-food explicit, niche experience, ‘clean & green’ compliance & safety infrastructure, mixed travelling to the regions. systems. by aligning high quality reputation (e.g. avoiding parameters, agri-business accommodation offerings It is therefore imperative Bankwest Curtin agri-food products with disease outbreaks or ventures in the SRR could and political differences that agri-food tourism food enthusiasts, to quarantine controls); host visitors offering that discourage joint ventures are truly Economics Centre. overcome the Risks include a potential tours, hospitality, marketing. unique & appealing, offer February 2019 impediments associated over-reliance on visitors accommodation and The south west has a real value, and have an with regional tourism. seeking food experiences merchandising. An reputation for exceptional offering that Agri-food tourism is vis-a-vis visitors seeking alliance of ‘unique’ agri- restaurants, wineries and delights visitors beyond investigated as a vehicle nature, adventure, food producers could link festivals, attracting food expectations so they

1 Products in red text were the ‘best’ , highest potential emerging industries. Products underlined offer ‘value-adding’ and are potentially suited to Scott River region’s competitive advantages.

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for regional development culture, heritage or eco / multiple sites, each with enthusiasts year-round, become ambassadors – by leveraging unique geo tourism experiences. complementary enabling SRR to be a food promoting the experience features of small farms, Surrounding region has components, making a supplier AND a visitor & region. If that’s not boutique local products, limited public transport, compelling visitor destination through food possible, a niche, agri- collaborative marketing poor telecommunication experience. Food tourism. A point of food tourism venture will approaches & aligning coverage, mixed quality tourism can include difference could be local come to depend on a mix closely with the region’s of accommodation & tastings, meals, packaged bush foods tied in with of day trip, overnight anchor activities. eateries, varied opening ‘take home’ products (i.e. locally grown foods (e.g. visitors and local VFR hours, hire cars not delivered abroad), site bush herbs & lamb, local visitors much like most allowed on unsealed tours & events. honey brewed into meed other niche regional roads & places of interest & beers, etcetera). tourism operators. spread across the region. Ideal is to form a ‘cluster’ of agri-food tourism operators that provide a strong offering that appeals to ‘food’ visitors while also attracting general visitors-tourists.

South West Regional The ‘Blueprint’ sets out Challenges in Opportunities within the Comparative advantages The ‘Blueprint’ focuses Blueprint. 2014. an aspirational agribusiness: agricultural sector of agribusiness in the on regional imperatives development framework Increasing investment in include: Increase south west include: with potential to change South West to guide government, food processing capacity investment in food 6,000km2 agricultural the way land is used in Development industry, business and vis-a-vis other industry processing capacity land. the SRR. Critical Commission. communities during sectors. including abattoir Strong export culture. imperatives include 2015-2050. Sustaining water sources capacity; Facilitate Diversified farm produce. infrastructure – roads, Transformational actions & irrigation efficiency in capital to increase scale Strong reputational brand airport-aviation & water; are presented that the face of climate of production; Improve (e.g. clean, green, fresh). industry & market address strategic change. Broadband supply chain logistics to Strong expertise in diversification, inward challenges such as capacity & the enabling of link production to producing premium bound investment & infrastructure, water, on-farm technology to market; Identify new quality food & wines. engaging with Asia; communication, industry improve productivity & water sources and people & community – and population growth. output. Costs & time improve irrigation training, safety, well The Blueprint links required to develop efficiency; Address being & community regional advantages with exports and to diversify regulatory barriers to enterprise; strengths such as mining markets. export; and identify new Regional priorities capacity, diverse common user include Freight routes

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economic base, natural infrastructure from Scott environment, premium requirements such as River meet requirements food & beverages, close saleyards. for export of food; links to Asia and a upgrade passing lanes on significant workforce to Brockman Hwy; high benefit from emerging capacity broadband & opportunities. region-wide mobile phone access; Identifying options for dairy value adding & expansion of dairy processing capacity; debottlenecking & expand livestock growing & abattoir capacity; expand horticultural production into high-value markets;

Augusta-Walpole The strategy The Scott River region has The Strategy aims to Key issues include: The vision statement Coastal Strategy, WA encompasses the coastal ‘high’ environmental and address issues such as recognition of the priority underlying the Strategy area cultural values that coastal access, tenure & agriculture and general is: Planning Commission, between Augusta and warrant preservation and management of agriculture zones on “The unique environment July 2009 Walpole and provides a hosts a diversity of unallocated crown land, Scott coastal plain; Power and wilderness values of framework for coastal economic uses development along the supply to the Scott River the Augusta-Walpole planning, management including agriculture, coast & in national parks, area is limited & any coast are protected and and sustainable use of horticulture, mining & mining and heritage. significant increase in conserved with the coast. tourism. The Strategy Relevant objectives load would require sustainable use occurring The strategy addresses a acknowledges the include: Provide for upgrading of for the wellbeing of range of issues including: prohibitive cost of sustainable agriculture infrastructure; projected present and future Coastal processes; providing adequate and other primary drop in rainfall due to generations”. A majority tourism & recreational infrastructure to cater for industry pursuits; climate change is a long- of the land within the uses; access, growth. Innovative Maintain, protect & term issue; the slowness study area is development & approaches will be sustain water sources; of data services in the conservation estate settlements; areas for required for power, water Provide opportunities for study area; limited managed by DBCA and conservation & and sewerage sustainable tourism & funding for road government”. Private protection; managing infrastructure. A recreation; Provide for construction and land uses for crown land; subdivision significant portion of the appropriate maintenance is a major horticulture, agriculture

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standards; & mining. area is national park (e.g. infrastructure; allow for problem that may be and tourism must The strategy sets out Scott N. P. & Gingilup sustainable land use on made acknowledge the ‘high’ recommendations & Swamps Nature Reserve) private land; Due to worse with a significant environmental and actions to achieve which support a diverse rare, threatened & increase in new roads; cultural values and the objectives including range of flora & fauna. endemic flora species in Climate change could infrastructure constraints restore the natural Over one third of the area the region there are strict potentially increase associated with the environment, protect & (40%) is privately owned controls prohibiting the evaporation, decrease region. sustain water sources, land. There is limited clearing of rare or poorly rainfall, affect water provide for sustainable road access to sections of reserved vegetation for supply, affect water agriculture, and ensure the coast & national subdivision or quality (i.e. by future development & parks and poor quality development purposes. eutrophication and algal infrastructure is roads to some Popular recreation areas blooms), increase sustainable. agricultural and for tourism include Swan frequency of bushfires The Scott River region residential areas. Acid Lake (east Augusta), and impact agricultural straddles two ‘precincts’ sulphate soils exist in Black Point, Lake Jasper, production. within the planning area. parts of the Scott River & Jasper Beach & Donnelly The report highlights coastal plain & require River mouth. areas of high importance effective management to along with appropriate minimise long term planning & development damage. Dieback is also approaches to preserve present in some areas the integrity of the east of Augusta. region. Sustainable planning approaches will remain important in managing the Scott River region. Research Activities The report examines an Conventional approaches Anecdotal evidence from The report states Several farms & primary on Rural Roads. ‘exploratory’, alternative to cost-benefit analysis SRR suggests a “substantial benefits producers in the SRR approach to cost-benefit can overlook variables horticultural producer could be delivered to currently rely on Agrifutures. October analysis of improving that influence regional ceased production due to agricultural producers by unsealed & poor quality 2017 road quality in rural transport characteristics. the loss of value caused rural road upgrades and roads to transport inputs areas. The research The social benefits of by damage to product that these benefits & outputs; the higher focused on direct and in- upgrading roads are during transport along should be included within cost of inputs, the direct variables, namely reported to have a poor quality local roads; any benefit-cost additional cost of truck agricultural negligible effect on C:B the quantum of loss analysis of these repairs, the cost of production and social analysis mostly due to could be identified and projects” p.viii). repairing local roads, and benefits that are not (low) population of ‘added’ as the ‘value’ of “Significant network the current loss of value

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related to ‘conventional’ regional areas (e.g. low benefits potentially effects of road upgrading in output, could be taken road economics such as population, poor C:B attainable due to road are apparent, and are as the potential benefit usage & population. The outcomes). upgrades (i.e. as one likely to be more so (i.e. the savings) – from report highlights that “a The report suggests approach to C:B analysis). where interactions occur upgrading local roads - challenge faced by rural agricultural value added Sealing unsealed roads between modes of when determining net areas is that their low and road maintenance would allow producers to transport” (p.viii) benefits. A range of cost and dispersed costs should be included increase farm output & / benefit scenarios could populations, and in C:B analysis of road sales revenue, increase be explored for a given associated low traffic improvements. However, farm-gate access to just-in- level of investment in volumes, result in low further research is time delivery, and access roads that would be aggregate valuation and required to extend & potential price premiums, expected to remove some associated low benefit validate the approach, however, the volume of of the disadvantage from cost ratios”, that weaken including pilot studies product affected, and the operating in the SRR. economic support for under a range of price premiums would rural & regional road scenarios. need to be determined. upgrades. Scott Coastal Plain a The Strategy represents The region’s land uses The region’s climate, The objectives include: Consultations must Strategy for a the objectives of include: irrigated availability of quality 1) Involve all the establish where the landholders, farmers, agriculture, groundwater for stakeholders; 2) Produce original Strategy’s Sustainable Future. government agencies, timber plantations, irrigation, large lot sizes, a framework for objectives have not been Department of industry groups, grazing / dairy, roads, areas of excellent loams sustainable land use; 3) achieved & address any Agriculture and Food, conservation groups and conservation & and clay soils, and Preserve ecological shortcomings in this Western Australia. the general community mining. There are a opportunity for integrity; 4) Produce current strategy (e.g. 2001 (i.e. varying land uses). number of infrastructure mechanised horticultural sustainable agriculture; branding). The region has State & issues to be addressed, production are features 5) Proper management of Consultations need to regional significance for such as provision of limited across many parts change; determine the agricultural production suitable power, roads and of WA. Sealed roads in 6) Monitor performance; effectiveness of land & and potential for telecommunications, if the region have mostly and 7) Promote the water use and diversification through the been the result of mining, region; management is meeting tourism, agro-forestry economic potential of the and unsealed roads are The vision is: A vital the goal of being and mining. The strategy area is to be recognised. often hampered by sustainable agricultural sustainable. sets a regional/catchment Preserving the Scott River flooding / inundation, community living in Monitoring records of the approach for land users and Hardy Inlet are seasonal damage & soft balance with economic Waters & Rivers to contribute in deemed critical in soils. There is a lack of development and the Commission should maintaining ecological determining the future of (gravel) road-base unique provide an indication of quality of the catchment. agricultural activities in materials within a close environmental values of ecological trends within The strategy presents a the region. Nutrient haulage distance (other waterway and vegetation local waterways & water

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range of detailed concentrations in the than DBCA gravels systems of the region. resources. DAFWA’s guidelines to manage Hardy Inlet were of a generally not available assessment of land sustainably. The concern (i.e. total for local govt road agricultural uses strategy focuses on nitrogen, nitrate/nitrite & purposes). The lack of concluded limited managing land, water and phosphate affordable gravel in additional employment future development concentrations); whilst proximity increases the would be generated by potential, whilst Scott River had nitrogen cost & difficulty of beef, wool & sheep balancing economic, and phosphorus upgrading roads. grazing. Similarly, social & environmental concentrations above Limited heavy vehicle forestry generally factors to achieve BMP guidelines as well as access to some areas is employs specialists sustainable development. sediment build-up & an impediment to working across a wider Three development elevated tannin levels business viability, region, thus diluting local scenarios are used to (the latter is also a economic development & employment frame potential positive factor in regional prosperity. opportunities. approaches to minimising algal blooms). Poor sand substrates & Employment from sustainable development. The strategy highlights minimal gravel depth horticulture can vary the importance of means roads are often across areas & crops & managing the local not suitable for heavy with seasonal or ecology while sustainably haulage. continuous growing improving the economic (noting SCP hosts output of the region. summer cropping due to winter water-logging, resulting in mostly seasonal & casual employment).

Australian Farmland The Farmland Values Climate change is Investment in farmland is Farms are getting bigger, Farmland values Values. 2019. report tracks farm sales impacting the reliability strongest where rainfall farm values are determine equity, and (& values) across of rainfall, which is is high & reliable. The increasing and farm land when farm values rise, Western Australia. Australia, reporting impacting the long-term outlook is for is becoming more tightly the increase in equity can Rural Bank. annually. It provides an profitability, value and steady growth for held, presenting a barrier be used to invest in assessment at the selling of farm land. Australian agricultural for new entrants. growth. Conversely a regional and municipal In 2018, the South West productivity & Long term trend is fewer decline in farmland (local) levels. In recent of WA had a decline in profitability. farmland sales; fewer values can jeopardise years, farmland values median farm values due In 2018 the south west opportunities to expand ongoing farm operations have increased faster to tight margins region had significantly or acquire suitable farm & sustainability. than the CPI & are challenging dairy and fewer sales of small land; increased Climate change is

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expected to continue orchard industries, parcels of land (50-80 ha competition among farm expected to focus rising (i.e. whilst interest contributing to an 8.4 per & 80-120 ha), compared land buyers; driving an investor / farmer rates are low, commodity cent fall in farm values, with significantly more increase in farm values. attention on prices remain high and contributing to a sales of larger parcels of comparatively high farming operations downward trend land (160+ ha) at lower rainfall areas such as remain profitable). commencing in 2008. prices, pushing values Scott River (~1,000mm down overall. p.a.). Investor attention may result in consolidation of lots, larger farms, more diversified farming & increased need to upgrade roads, infrastructure & communication.

A Case for Regional An initiative of growers Knowledge of the SRR is Closure in 1999 of The report notes that Objectives of the Scott Development. within the Scott River low, thwarting investor Simplot’s potato farming studies on the region River Growers Group Inc. region, the report interest. The inherent operation & closure of prior to 2000 mostly were: Scott River Growers explores potential potential of the Beenup BHP’s mineral sands focused on To establish a facility for Group (SRGG). 2001 development site has failed to attract operation in 1999 led to environmental factors packaging & processing opportunities in the Scott government support. The a decline in jobs, local and often neglected or regional products; River region; focusing on region’s traditionally business activity & overlooked economic attract support to further the former Beenup mine strong focus on the economic prosperity in factors. SRR represents develop industry; site facilities (i.e. admin environment & eco- the region. The former around 105,000ha with develop a research centre facility & associated sustainability has BHP site includes 370m2 + 42,900ha of freehold land to progress industry; to infrastructure on a 58ha frustrated growers & 80m2 admin building, used for diversified sheep provide encouragement site), products that can impeded land use within 245m2 laboratory / wool / beef grazing, for farmers as a peak be grown in the region, the SRR. It is suggested building, 230m2 dairy, horticulture & body. and marketing branded that restrictive land use amenities building & forestry. DAFWA reported the produce from the region. policies & the inability to 280m2 workshop & The Lower Blackwood production yield of Hemp The Report identifies sub-divide land has storage area. Site Landcare Committee in SRR could >50% above alternative uses of the affected the viability of infrastructure includes a were a potential user / comparable WA regions. Beenup facilities some farms. Aligning water treatment plant & tenant of the former The report provides including horticultural Beenup with Manjimup 1200 kilolitre water tank; Beenup laboratory estimates of yield per processing, dairy (i.e. as a processing sewerage treatment facility. Margaret River hectare for varying land

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processing (i.e. cheese centre) is not well plant; 100 tonne Hemp Company & some uses (p.25-28). Branding factory), training facility, supported by the SRGG. weighbridge; 50,000 litre gov’t agencies were also & marketing produce business incubator, hemp The report notes that diesel tank; power, water among interested parties. from the region, aligned growing & biofuels / some crops require casual & communication to Margaret River, could processing plant. The labour for harvesting, facilities; & sealed access help improve prices & report aimed to inform which can be limited in road. The site had an profitability for local the SRGG in seeking to the region, leading to estimated value of $2.6M growers. increase economic output restricted cropping to $3.3M (2001). from the region. options. Socio-economic The report presents There has been a decline In the south west, where The number of jobs In 2016 the WA forest Impacts of the Forest findings of surveys & in forest industry the focus is on growing & generated by the industry industry generated more economic analysis of employment over time. processing mostly native has declined significantly full-time jobs than other Industry. Western WA’s forest industry, Although demand was (Bluegum) forest, 2,763 since 2006, however, industries, with 84% of Australia. Forest & focusing on the primary likely to remain firm, jobs were generated employment generated those employed in the Wood Products production & processing challenging business including 1,304 direct by hardwood plantations industry working full- Australia. Dec 2017. of native forest, softwood conditions and a difficulty jobs (primary had grown. The majority time, compared to 68% of & hardwood plantations recruiting workers, there processing), 1,355 flow- of forest industry jobs are the broader in WA. In 2015-16 the was a lack of investment on jobs, and 93 jobs in generated by the workforce. industry contributed in the industry (e.g. value secondary processing (i.e. processing sector, as is 71% of residents $275M in gross regional adding). The trend of of wood & paper). In the majority of the flow- surveyed in the South product & an additional declining employment 2017 Nannup had 13% of on economic impact (& West felt the forest $643M in flow-on effects. (i.e. in processing wood its workforce employed benefits). Important to industry had The southwest and fibre directly in WA’s forest recognise that local positive impacts on local contributed $327M in products) is likely to industry (i.e. the largest processing of wood and employment, however, GRP to WA. In 2017 the continue in the softwood proportion of any LGA – fibre generates jobs and fewer than 25% felt the industry generated 214 plantation and native but this has since exporting (logs) with little industry had positive direct jobs, 2456 indirect forest sectors unless declined). or no processing impacts on community jobs, and 1495 jobs in there was generates significantly liveability, and a majority secondary processing. new opportunity for less jobs. felt the industry had 30% of jobs were investment in the negative impacts on generated from growing industry. roads and local landscape & harvesting and around aesthetics. 70% of jobs from processing (i.e. value adding). AMRCCE Renewable The report presents Current dairy waste Removal of waste would 68% of the target farms The study confirmed ‘in- findings of consultations management practices in need to be low cost, representing 83% of the principle’ support within

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Energy Project. Dairy with dairy farmers in the the region were viewed practical and with a milking herd participated; the dairy farm Farmers Consultation Scott River & Blackwood as deficient but sound prospect of of the total herd community of Scott River. River catchment regions prohibitively expensive to continuity to captured in the study, The annual volume of Report. By Ag Grow to identify practices in upgrade. Anticipated secure farmer 70% was in Scott River waste water is significant Energy Resources. waste management, regulatory intervention in participation. Farm sizes region and 30% in at an estimated Sept 2018. existing infrastructure, waste management could varied and so too ‘grid’ Blackwood River region. 315,000m3. Further and interest in supplying impose further costs and electricity usage & cost Reliability of the Western analysis is required to dairy waste to a biogas threaten viability of dairy varied (e.g. Power supply was determine the energy (energy) facility proposed farms. <$100,000p.a. to considered good with content. Separation of by Augusta Margaret A biogas facility would >$200,000p.a.; some at most famers using their solids and liquids in the River Clean require supplementary off-peak rates of stand-by waste stream is Community Energy feed, which can suffer $0.12/kWh to peak rates generators less than 5 anticipated to reduce (AMRCCE). 10 of 13 losses due to predation at $0.21/kWh). Some times per year for <10 transport, capital and farms surveyed, by kangaroos & emus, farms in far eastern Scott hours in total. operational costs, and accounting for 84% of the and would need River were over 50km Some farmers report an preferred approaches herd, preferred removal prioritising with farms from the proposed biogas occasional significant loss need to be determined. of dairy effluent / waste – growing feed for dairy hub at Beenup, of locally grown fodder There is need to identify to a biogas facility - herds. presenting a challenge due to kangaroos & / determine a reliable subject to reliability collecting ‘distant’ waste emus. supply of bio digester and low cost. Overall for the biogas plant. feed stocks to combine there was comparatively with the dairy waste - to strong support in the increase energy Scott River region where production from the bio larger farms and greater digester energy plant. run-off concerns AMRCCE are exploring exist. these issues. Towards a Sustainable The report presents the Risks include absent The study identifies a There was a strong desire The report provides a Lower Blackwood findings of a mapping landowners not always range of aims that will to protect..the concise history of project in the lower effectively managing support sustainability: productivity of farming, communities Region. A Whole of Blackwood region, aimed weeds, ferals and fires. Keeping young people on agricultural land. and social endeavours Landscape Perspective. at presenting “an holistic Primary aim of keeping the farms; partnerships with Some smaller land during the 19th & 20th By Lower Blackwood approach to region as a ‘food local noongars for holdings & niche products century. Catchment & Curtin sustainability” by production area’ requires landcare purposes; has given rise to Future aspirations as a University. August capturing aspirations of stronger support at the waterways revegetated & avocados, alpacas, ‘food hub’ include value- the community. farm and regional level. restoring river & stream heritage vegetables, adding beef, dairy & 2017 Interviews & historical The report notes ‘many life; reducing fertiliser & organic meats, value- vegetables; more mid- records were used to farmers want nothing to organic matter flowing added preserves & size regenerative farms,

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investigate past & do with tourism & into waterways; policies bushfoods – that could more market gardening & present economic, social tourists’. A key challenge or regulations to manage benefit from regional fruit orchards, more and environmental is ‘finding ways for niche & water allocations; branding while some aquaculture, more nut pressures within the volume producers to work minimising impacts on have supplemented trees, and more boronia, catchment to identify a together’. Creating a native bushland; operations with minor lavender & flower farms. “shared future vision with local ‘brand’ for food acknowledging the highly tourism activities. A local food industry is a focus on sustainable marketing could be phosphorous leaching Chief concerns were: the required serving local agriculture and advantageous but easily nature of sandy soils future of the dairying communities & communities”. overwhelmed by other which has contributed to industry, the impact of minimizing ‘food miles’ to brands such as ‘Margaret pollution in waterways; blue gum plantations, strengthen the local River’ and ‘Southern farmers taking a more farm amalgamations economy. Wild Forests’. biological, regenerative affecting community, Southwest & Naturally approach to soil retaining youth in Southwest were improvement & farming; farming, govt support for suggested ‘local-regional’ agricultural development brands. & to improve environmental health.

NON-PRESCRIBED LITERATURE Diversify WA. An Diversify WA provides an WA needs to diversify its Diversify WA includes “...as global demand for Scott River has significant Economic Framework economic development economy, embrace aims to establish WA as safe and high quality potential to grow output, framework across six technology, think a leading producer of agricultural products employment & value for WA. Western priority sectors to creatively & innovate, & premium food, wine and continues to grow, the added. Australian leverage the State’s adapt to global agricultural commodities opportunity exists to Key to this will be Government. July 2019 strengths and to benefit transformations (e.g. using innovative significantly expand leveraging our ‘world- from global trends. climate change, 4th production methods; Western Australia’s food class biosecurity Priority sectors include industrial Priority initiatives include production Practices’; year round energy; Tourism, Events revolution, disruptive rebuilding sheep & wool and processing” (p.60). Production; dynamic and & Creative Industries; technologies and industries; digital “Margaret River owes its innovative culture International Education; improved infrastructure). connectivity (e.g. farms); worldwide fame as a supported Mining, Mining Reduced winter & spring innovative processing premium wine and surfing by agribusiness Engineering & Technical rainfall due to climate technology; and a region to its mild weather professionals and Services; Technology & change will remain a risk. growing tourism sector; and abundant sunshine. Its scientists; processing or Advanced Manufacturing; A challenge is SCP has available land, Mediterranean climate transforming agricultural and Primary Industries. development of new facilities, resources & means the South West produce into distinctive The aim is to create cultivation techniques, natural features to region has more products for niche

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150,000 new jobs across new crop varieties, the participate in the WA biodiversity per square markets (value adding). WA by mid 2024. use of different crop and Govt’s “Diversify WA” kilometre than the whole of Digital Farm grants pasture rotations, and strategy – if public the United Kingdom” Program is a WA Govt tailoring technologies and infrastructure can be (p.60). “By 2030, rainfall initiative to encourage farming methods to suit upgraded to justify in the south-west will adoption of digital farm changes in climate (i.e. private investment. reduce by between five and technologies and improve innovating & adapting). six per cent” (p.71). digital connectivity.

Manjimup Hemp The study investigates Hemp is a comparatively In respect to soil types, Industrial hemp grain, For Scott River, farmers Milling Pre-Feasibility the pre-feasibility of a new industry in Australia Hemp “does not tolerate fibre and oil can be will require trialling to Hemp milling (processing) with limited knowledge at drought, flooding, processed into textiles, examine rotations, Study. Stage 1 facility for industrial the ‘local’ level. Trial & saturated or saline soils” biofuel, paper, building opportunity cost of Report. hemp stalks & seed in error will be required in whilst the optimum soil materials, plastics, food growing hemp versus Manjimup. The report developing a sustainable pH is 5.8–6.0 and in some & cosmetics – a wide other crops, skill & By Strategy Matrix for explores the hemp plant, approach for the growing, areas up to 6.0–7.5. It is range of end uses. capability & machinery the Shire of Manjimup. its production history, harvesting & processing generally not The report notes there is requirements, preferred varieties, agronomy, of hemp. The report recommended to grow potential for “one processing technologies Feb. 2018 harvesting, processing emphasises the need to Hemp in wet, water- hectare of industrial & gross margins of hemp. and markets. Findings be market-driven in logged and flooded soil hemp grown for fibre to Development of a Hemp support the trial & establishing a hemp (i.e. Scott River region in produce 10 – 15 tonnes industry will require development of a hemp industry in WA. winter / spring). of biomass in a growth collaboration & industry in Manjimup There is currently a lack Transport costs dictate cycle of 3-4 months”. cooperation throughout based on an aggregation of industrial hemp that hemp milling The report notes “there is the entire supply chain – of growers, identifying a cultivars (i.e. seed) suited facilities should be within a small decorticator if WA is to achieve suitable cultivar for high- for WA conditions, which 40-50km of the crop (i.e. located in Nannup” industry-leading yielding grain varieties, will be pivotal in selecting harvested hemp is bulky where local capabilities. developing effective grain & establishing processing & lightweight). In 2017 entrepreneurs are The report highlights a processing facilities and technology, developing there were 19 licensed considering establishing vast collection of machinery, balanced skill and expertise in hemp growers in WA, commercial processing research into growing, scale-up of industry & hemp production some with pivot irrigation facilities (p.37). harvesting & processing utilising the entire hemp systems, and achieving systems, some with plots Hemp is a substitute for Hemp, with case studies plant to maximise earning competitive costs at the ranging from 3ha-20ha, most other natural & from across the globe to potential. farm level. Long term sowing Sept/Oct & man-made fibres & must inform trials & The report recommends a growth of a hemp harvesting Mar/April, be offered as a development in staged approach to industry in WA is largely trialling seed from France competitive substitute to Manjimup, WA & industry dependent on having & Canada, and using seed capture a credible share potentially Scott River. development “established primary and specific for grain or fibre of world markets. Eight focus areas critical

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commencing with a focus secondary processing markets (but not both). to developing a hemp on seed production capacity” – to support the industry include: the initially for bulk seed uptake of progressively plant & its agronomy; stock; and then for food larger crops, harvests and cultivar development; and oil, and followed processing output. processing later by stalk production technologies & systems; a for fibre and hurd. whole supply chain focus; development of end products & markets; working in partnership, collaborating; and attracting finance.

Manjimup Hemp The report’s purpose was Risk is increased if Cooperation among Gross margins for hemp Scott River growers need Milling Pre-Feasibility to investigate the growing small crops (e.g. growers will be required seed growers range from to establish a ‘growers feasibility of a hemp <20ha) spread across from the outset to fast- $-400/ha (on seed yield group’ to investigate, Study: milling facility to value- distances (e.g. >50km track learning & to 0.5t/ha @ $800/t) & up to plan, trial & develop Stage Two Report. add industrial hemp apart); ideal is a benefit from $5,200/ha (on seed yield hemp – as a potential Technical & Financial stalks & seed in combined minimum mechanisation-based 3.0t/ha @ $2,000/t). crop. Critical pre- Modelling. Manjimup Manjimup. The report 2500ha of crops within production systems, Gross margins for hemp requisites & benchmarks Agriculture & Food explores opportunities proximity; modern farming fibre growers range from (e.g. 2,500ha of for growing & processing R&D risks include: Plant techniques, & developing $-600/ha (on fibre yield combined crop for Strategy. industrial hemp & breeding - need to be WA local production systems 10t/ha @ $160/t) and up viability) need to be investigates the economic specific & high yielding; that suit the local to $7,400/ha (on fibre investigated and if By Strategy Matrix for viability & the scaling of Understanding hemp seed agronomy2. yield 30t/ha @ $280/t). attainable proceed to the Shire of Manjimup. capacity. The analysis is yields and quality traits; The Report suggests Gross margins for the planning & trialling. It based on ‘growers’ to Oil content; Improving relatively low capital (seed) processor range would be critical to align June. 2018 grow the crop in rotation seed shattering investment is required to from $-318/t (on seed with govt & specialists to with other crops & ‘a resistance; Increasing establish a seed processor recovery 80% @ guide R&D during the processor’ to harvest & grain size; & company, possibly $2,000/t) and up to formative years (e.g. with value-add to the hemp Improved knowledge of financed through a capital $5,994/t (on seed DPIRD, CSIRO, ihempWA,

2 Includes varieties bred for local conditions; role of hemp in rotation with other crops; water timing, rates, quality & qua ntity; soil testing and monitoring; stored soil moisture; nutrient requirements, application rates and timing; sowing rate, depth, date; plant growth, tissue testing; herbicides, pesticides – type, rate, timing; pests type, impact, control options; fungus type, impact, control options; seed shattering prior to harvest; sprouting of stored seed; role and u se of desiccants; harvest timing and equipment; and monitoring THC levels.

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crop. The Internal Rate grain flavours. raising within the grower recovery 95% @ Agrifutures, etc). of Return (IRR) for both Achieving optimum prices community enabling $8,000/t). Potential siting of a seed and fibre businesses requires crop quality fit growers to own a share of A seed crop was deemed ‘central’ processing were favourable; the for human consumption. the processing company & the best option for facility, for example, at seed business had the Failing ‘food grade’ the profits. Modelling Manjimup growers & and the former Beenup site, highest returns for the price would drop to pet suggests a capital had the lowest cost needs to be explored & grower & processor; in or feedstock standard investment of $2.8M for a infrastructure option for presented for example to comparison, a fibre only which is 70-80% lower ‘seed only business’, the processor. established international growing-processing than food grade. $16.4M for a ‘fibre only processors who could business had lower business’ and $19.2M for a bring expertise in returns. However, a combined ‘seed / fibre technology, products & combined seed/fibre business’. The Manjimup markets. Specialist business would provide study recommended a expertise in Hemp R&D, greater choice and more “detailed review and growing, processing & flexible decisions analysis marketing could be between seed/fibre of processing technologies, sourced abroad / production volumes and on-going commercial interstate to minimise better cashflow via evaluation, site analysis, development costs & multiple products. and detailed market timelines. assessment and end product analysis” as the next phase in developing a hemp industry in Manjimup.

Water Forever. South The report examines Principal risks include less The drying climate has Demand for water in the Coping mechanisms West. Final Report. water needs & sources in rainfall, hotter weather & reduced stream-flows south west is likely to include reducing water the South West for the more droughts. into dams & groundwater double from 12 billion use, increasing water Water Corporation. next 50 years in planning Challenges to address reservoirs since the litres to around 30 billion July 2015 recycling, and developing to maintain reliable include a drying climate, 1970’s. However, winter litres per year. new water sources. drinking water supplies in population growth, rainfall on the Scott Groundwater levels on There is a projected ‘gap’ a sustainable way. changes in how water Coastal Plain is able to the Blackwood plateau, A variety of ‘supply services are delivered, refill shallow unconfined where native woodlands (shortage) in supply options’ are being changes in technology aquifers and is likely to lie on deeper & clayey ranging from 8 to 14

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developed to and lifestyles, and be less affected by the soils will be impacted billion litres per year. accommodate likely growing demand from drying climate. Nearer from a drier climate, for Water recycling will changes in population industry & agriculture. to Scott River, the town example, include groundwater growth, water usage, of Augusta currently has groundwater flows into replenishment (e.g. near reliability of supply, and 320,000,000ltr of water the Blackwood River may Margaret River) where rainfall. Three main supply capacity compared decrease by 20% - 30%. wastewater is treated to water sources are to an estimated planned for the South 480,000,000ltr water drinking standards and west including surface usage / demand by 2060; recharged into a water (dams), suggesting a need for groundwater system, groundwater and investment in water stored in the aquifer, and seawater desalination. supply facilities (e.g. later taken out, re- micro seawater treated and supplied as desalination, surface drinking water. water or groundwater).

Western Australian The Strategy is aimed at Challenges for renewable Hydrogen is derived from The vision is for WA to In a decarbonised future, Renewable Hydrogen guiding WA’s production hydrogen are purification, renewable energy & develop production hydrogen provides the capabilities & support storage, comparatively water (H2O) using an capabilities and opportunity to use & Strategy. Department opportunities for low yields & low electrolyser to extract applications of renewable export renewable of Primary Industries downstream processing, efficiencies; a hydrogen hydrogen & oxygen; hydrogen, improving the hydrogen for economic & and Regional to grow a renewable industry will evolve as hydrogen can go into State’s hydrogen industry environmental benefit. Development, July hydrogen industry in WA economies transition storage, fuel cells, expertise, contributing to WA has strong 2019. by 2022, and to be a away from fossil fuel use; blended gases & power global decarbonisation. comparative advantages leading global producer trading partners such as generation - electricity; ‘An increasing number of as a hydrogen producer & by 2040. The WA South Korea & Japan are Scott River has an projects across Australia exporter including Government is working to already transitioning to abundance of water & are seeking to renewable energy, land, help industry develop hydrogen for transport & strong potential for demonstrate local use infrastructure, strong renewable hydrogen as a energy purposes; WA renewable (wind & and export pathways for industry presence, skilled safe, long term energy must begin phasing out biogas) energy; hydrogen renewable hydrogen’. workforce & access to source for WA’s future. diesel, coal & natural gas could fuel transport, markets. from industry & transport processing, heating / sectors. cooling & the export of energy. Markets for Western The report examines Further investigation is Scott River is a Need to further Under-utilised irrigated Australian Seed markets for exporting required to explore each comparatively large investigate quarantine land in the Scott River WA- grown seed market’s seasonality & producer of seed requirements in the region could be used to

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Potatoes. potatoes. A detailed product trends in seeking potatoes. respective markets; the increase seed potato Department of Primary methodology is used to to capture opportunity The region is recognised unit value of imports in production targeting evaluate 200 potential for Western Australian as one of the cleanest & some markets has been lucrative, high growth Industries and Regional markets resulting in six seed potatoes. most suitable seed declining (i.e. long term export markets. Development, markets being Biosecurity risk & import potato growing regions in prices are falling); in Extensive in-market December 2016. recommended. Pakistan, protocols can change the world. Its isolation some cases popular investigation & the (Radhakrishnan, M. Brazil, Egypt, Sri Lanka, without warning and provides a biosecurity potato varieties are not development of in- and Dawson, P., Niger and Bangladesh are alternative markets may advantage in being free grown in WA (e.g. Agata & market relationships high – medium value be t required at short of many of the diseases & Cupid for Brazil); WA would be required if Bulletin 4882) importers. The seasonal notice. WA’s relatively pests that affect other could supply seed for aiming to capitalise on window for WA seed small volume of supply growing regions. autumn & winter crops & the known opportunities. potatoes is June to means that success may Relative proximity to Asia mature seed for early Sufficient scale of September when depend on capturing a provides ready access to spring crop in Egypt; production would be European producers premium value segment a range of markets. some markets require required to gain buyer cannot supply due to within the identified import permits, interest & support. dormancy. markets. phytosanitary certificates & additional declarations.

Fresh Thinking 2013- The report investigates WA’s horticultural sector Essential to supporting Cash receipts per hectare Growth in WA’s irrigated 2050. Department of WA’s fresh fruit & must address four key businesses that can be for vegetable production agriculture sector vegetable demand & challenges: 1. profitable in a drying can be up to 100 times requires: Agriculture and Food, supply in 2025 & 2050, Maintaining climate, as competition more than broad-acre protecting land & water Western Australia, against the land & water competitiveness, for water intensifies. agriculture; each dollar resources; achieving Victor Fazakerley & resources required, and profitability & market Important to encourage of horticultural income competitiveness to David Windsor. 2013 the competitiveness & access in a dynamic more water generates another dollar succeed in all markets; capacity of the fruit & domestic & global efficient systems & in the wider community; developing the skills & in- vegetable sector in meet marketplace. 2. Securing making use of every two jobs created on market relationships to emerging food demand. access to land, water and unconventional water a farm generate an create opportunities; and The report focuses on labour resources for sources (i.e. an additional job elsewhere supporting nine fruits & fourteen production. 3. Meeting innovation challenge). in the value chain; transformational vegetables currently consumer expectations Carrots, onions, pumpkin Vegetable production improvements in water grown across WA. The for safety, quality and & sweet corn – highly employs more than 11% use efficiency. report categorises WA variety of food. 4. (export) competitive; of WA’s permanent farm Encouraging farmers to fruit & vegetables into Maintaining a social Broccoli, cauliflower, workforce; expanding move to a more four levels of “licence to operate” in strawberries & tomatoes irrigated food production competitive production competitiveness (i.e. the community & – strong domestic will create significant system or to transition export, domestic, local & environment. competitiveness; lettuce, regional employment from less to more

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low-no competitiveness). potatoes, cabbage, (p.7). competitive crops. Build Summary tables for the melons & citrus – locally capacity for industry to nine fruits & fourteen competitive; and beans, develop in- market vegetables provide a asparagus, capsicum & partnerships with export detailed analysis of cucumber – low level customers who seek projected production competitiveness. growth & investment (supply), demand & opportunities. imports. Waterloo Agri-Food The report provides The report states ‘there is Agri-food processing at The report identifies key Regional branding of Planning Analysis. analysis of the south west no shortage of industrial SCP could eventually get trends including: SCP’s agri-food output agri-food sector to inform land for siting new (agri- access to WIP, Busselton Increased Asian demand will become critical in Department of Primary planning and food) processing Airport Industrial Area & exports; increasing establishing provenance, Industries and Regional development of the facilities’ (p.iv). Existing and Peel Business Park agriculture exports; clean-green-safe Development. proposed Waterloo agri-food processors are for transhipment or national decline in land qualities, and positioning June 2018 Industrial Park (WIP), under no immediate logistics purposes (i.e. use for farming; rise of in highly competitive 10km east of Bunbury. pressure to relocate (to delivery to market). Two transformative markets. SCP will WIP is a 1335ha industrial WIP), and that Bunbury emerging agri-intensive technologies; increased require improvements in development with road & Port may become a more areas include Myalup- containerisation of agri- communication to adopt rail linkages to Bunbury attractive proposition Wellington and Southern food exports from the ‘transformative Port. The analysis once it offers regular Forests, both with south west; and the technologies’ that allow identifies 121 agri-food container services to key irrigation infrastructure emergence of potential farm productivity to businesses across five export markets and it has to support expansion; new export facilities improve and to reduce clusters in the south supporting road and rail and competing for (Bunbury, Busselton & reliance on ageing / west. infrastructure developed. markets & exports similar Kwinana). shrinking workforce. to SCP. Augusta Margaret The Annual Report The project aims to AMRCCE is working “We are currently looking Scott River could become River Clean provides a summary of develop a bankable towards establishing a 10 at three Enercon turbines home to a renewable AMRCCE’s progress in business case and obtain MW wind farm, and a each with a 116m high supply of comparatively Community Energy. developing a 10MW wind approvals to supply biogas plant using dairy steel tower, 138m low cost power. New Annual Report. 2018 / farm and biogas facility in energy into the grid at effluent. The facilities diameter turbine blades, ventures & processing 19 Scott River. the Beenup substation. are to be located in Scott a total height of 185m could emerge as a result. Investors will be sought River. If commissioned as and a combined Dairy farms could benefit to establish a wind farm proposed, the project will generation capacity of from waste being re- & a biodigestor. reinforce the region’s 9.95 MW.” purposed into energy Connection to the Beenup natural ability to support “A world first, using dairy whilst also receiving substation requires further expansion in effluent to produce fertiliser for cropping. “legislative, commercial renewable (wind) energy biogas as dispatchable / Nutrient run-off from

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and technical rule (e.g. 100 turbines, base load energy, and dairy farms could be changes to 200MW capacity). also substantially reduced, if address the Transmission provide a management not removed entirely. Network Congestion by strategy for dairy waste.” the WA Government in 2022”. Inquiry into Microgrids The report presents Microgrids are vulnerable Micro power systems (i.e. “Historically high retail “New energy and Associated Horizon Power’s vision of to cyber attacks; off-grid, utility-scale electricity prices, the technologies a State-led strategy on technology obsolescence power systems) are a widespread adoption of are enabling thousands of Technologies in clean energy, microgrids can reduce life of project new utility asset class distributed energy remote electricity Western Australia. & associated returns; that provides remote resources (DER), such as customers Horizon Power’s technologies. The vision customers with a full solar panels and energy to be shifted to a more Submission to the is based on three pillars: electricity service, storage, energy-efficiency economically-efficient Economics strategy & technology, without requiring a ‘poles efforts, and declining solution”. Horizon and Industry Standing jobs & State and wires’ network asset utilisation rates are Power believes high DER Committee. Horizon development, and connection. “WA has two simultaneously driving microgrids present Power. 2018 customers & pricing. The large interconnected profound change”. “This opportunities to reduce transition to a networks where the transformation is being State debt and create modernised ‘clean dynamics of wholesale driven by the combined new jobs (e.g. clean energy’ grid in WA markets have not yet forces of decentralisation, energy could create “encompasses regulatory been linked to DER digitisation & 50,000 jobs by 2030). change, job creation, pricing and services”. decarbonisation. Scott River has natural tariff reform & customer This will change in 2022. features that support engagement”. renewable (wind) energy to service south coastal towns. Emerging Technologies The report examines ten Consumers are SRR is troubled by poor With ‘customer as king’, Negative perceptions of in Agriculture. emerging agri- increasingly concerned mobile communications consumer preferences GMO’s, for example, have technologies, with cost, quality & & sub-standard NBN are having an impacted global Consumer perceptions the barriers to adoption, safety; consumers are services. Subsequently, unprecedented & adoption. Understanding around emerging and factors supporting sceptical of food agri-tech adoption is at profound impact on food consumer perceptions Agtech. agrifood tech innovation. labelling; social media & an early stage in SRR. & fibre supply chains (e.g. helps farmers align with GHD & AgThentic Consumer perceptions influencers are driving High risk agri-tech such organics, veganism & consumer demand and for Agrifutures. are explored in assigning trends faster; consumers as genetic editing, probiotics). Agri-tech has helps farmers adopt risk to emerging agri-tech increasingly want proof of nanomaterials & potential to unlock technologies that enable August 2018 options. The report provenance; These synthetic biology should productivity them to maintain a provides guidance on factors are pivotal in be avoided; low risk agri- improvements & new ‘social license’ to farm.

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agri-tech in the quest to driving negative or tech such as blockchain, value chains, improve Consumer perceptions & reduce production costs, positive ‘market’ IoT, 3D printing, satellites animal welfare, create technology change increase production influences on food, & drones should be new communication rapidly and farmers will yields, reduce farming & agriculture. considered. AI, big data pathways, and improve need to stay abreast of environmental impacts & & robotics are medium the efficacy of supply both to avoid negative remain globally risk and warrant in-depth chains. consequences. competitive. analysis. Building Resilience in The report presents The toolkit is intended for The toolkit focuses on 11 “Resilience refers to the The toolkit could be Rural Communities. findings from a 3-year ‘program coordinators’ resilience concepts that capacity of an individual applied across SRR, for study examining and would require are deemed pivotal in or example, implemented University of resilience in a rural resources assigned at the enhancing community to cope with jointly by SoN & SoAMR Queensland & community. Findings local level to deliver a individual and community stress, overcome through a credible University of South were captures into a resilience program. resilience. The ideas and adversity facilitator. Queensland. 2008 ‘toolkit’ to provide ideas Report suggests it is best information could or adapt positively to Alternatively, community & information to enhance to evaluate requirements provide support to change...the ability to groups (or group) could people’s and a before developing existing groups seeking ‘bounce back’ from be resourced with the community’s resilience. resilience-enhancing to build community negative experiences. toolkit and coordinate a strategies. resilience and/or The 11 resilience ‘resilience program’. For overcome hardship. concepts include: social example, to bring about networks & support; higher levels of positive outlook, collaboration, innovation, learning; early entrepreneurship or experience; environment social cohesion. & lifestyle; infrastructure & support services; sense of purpose; diverse & innovative economy; embracing differences; beliefs; and leadership. Effects of agricultural The report presents High winter rains, May to The highest “Agricultural practises in Suggestions from Scott practices on the water findings into a study of August, resulting in high concentrations of the Scott Coastal Plain River land owners to land uses and the impacts levels of ‘run off’ into the nutrients (N&P) were are only impacting the develop a 20GL surface quality on water quality in the Scott River is potentially from ‘run off’ into the water quality of the Scott dam has potential to of the Scott River: with Scott River. Specifically, one of the biggest threats river during winter rains, River at certain times of reduce run off and focus on primary the focus was on total to water quality. Run-off however, water the year” (e.g. winter). waterlogging, increase production. nitrogen, total also gives rise to temperature was too cold “Nutrient concentrations the availability of arable phosphorous and waterlogging in to promote excessive were also fairly high land, and provide scope

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cyanobacteria, seasonal comparatively low areas, growth of during low (summer) to increase agricultural Artemis Kitsios, climate variations, and further accentuating Phytoplankton, resulting rainfall periods, output from the Scott land uses (e.g. grazing). flows into the Scott River. in no significant impact indicating groundwater as River region. Conversely, University of WA, 2004. Overall TN & TP were Reducing ‘run off’ would on water quality of the a nutrient source”. without a dam, the risk Honours Thesis. found to be be expected to lower the Scott River in winter. remains that a significant Bachelor of comparatively low; risk of nutrient overload Warmer (summer) increase in grazing, Environmental cyanobacteria levels as well waterlogging. conditions supported a coinciding with ‘above Engineering increased during summer larger concentration of average’ winter rainfall, months when water cyanobacteria, noting could potentially increase temperature increased. that some species of nutrient levels and risk cyanobacteria can be water quality in the Scott toxic at low River. concentrations. Plantation forestry and The report aims to clarify Science accepts that new A concern of LGA’s is DoW cannot grant a Plantation forestry has water management the role of WA’s plantation forestry whether DoW should water access entitlement reduced stream and Department of Water in reduces water available manage plantations for a plantation forest. dryland salinity in areas guideline. WA forestry management. It from streams and through licensing and However, DoW can with average Department of Water. examines management groundwater, however, regulation. For example, provide advice to LGA’s annual rainfall is <900 June 2009 arrangements, the effects of each the conversion of pasture on water availability and mm (i.e. Scott River Plantation’s effects on individual plantation can to plantation forestry, as water quality associated 960mm p.a. & projected water resources, and vary. Large reduction in at Scott River can result with plantations. WA to fall to 650mm by current research. The groundwater or stream in less groundwater & Govt signed an 2030). DoW monitors report is a ‘guide for local flow is often associated stream flow, resulting in Intergovernmental forestry impacts by government and the with a large area of a Agreement on a National measuring & modelling plantation forestry forestry, high tree negative impact by Water Initiative that change in stream flow industry’. density, light or medium reducing the available recommends plantation and groundwater level. textured soils (e.g. groundwater and surface water use is licensed Modelling data & sandy), shallow water. Conversely, under certain forecasted ‘critical’ groundwater, & mature forestry can reduce circumstances (e.g. future dates should be trees with large canopies; stream salinity and the where there is made available to ensure which applies to many of effects of soil salinity on competition for water & land planning matches the plantations in SRR. plant growth. Forestry available water will water availability. plantations are steadily decrease as a result of Investing within SRR increasing across the SRR plantation forestry). It is could be jeopardised if – with no sign of abating. unclear if this has been water availability is exercised within the SRR. compromised in the near future.

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National Farmers The submission provides Technology development Barriers to agtech The NFF has a vision of a Agtech applications can Federation submission an overview of & adoption in the adoption include: lack of $100 billion agriculture be used in water approaches to support agricultural sector is access to connectivity; sector in Australia by management and to Senate inquiry into the uptake of agri-tech increasingly driven by (lack of) compatibility 2030 (currently $59B at maintenance alerts; financial and Australia’s farming consumers. For example, amongst agtech options 2020). Agtech is remote monitoring and regulatory technology. sector. The submission blockchain will enable & apps; concerns about expected to bring high- management of livestock, January 2020 recommends government farmers to connect data privacy & skilled jobs & export crops and soil; precision improve directly with consumers ownership; steady rise in market opportunities. chemical & fertilizer telecommunications (e.g. safety, provenance, processing power There has been a (recent) application; objective infrastructure and quality, traceability). requirements; unproven shift towards more measurement and coverage in regional Without connectivity SRR ability to capture error- customer-focused and traceability; better Australia; continue farmers may miss out on free data; incentivising farmer-led innovation managing stock, crops, implementing paradigm shifts in adoption along a supply (i.e. see AgTech Finder inputs, irrigation & recommendations in the consumer habits & chain; these challenges digital platform). regulatory compliance. Australia 2030: Prosperity technology. Technology give rise to the need for a Australia’s Rural SRR’s intensive through innovation advances rapidly and ‘high level advisory Research and agriculture practices can report; and support adoption will require group’ to oversee Development benefit enormously from changes to R&D tax approaches that facilitate development of a Corporations (RDCs) are agtech however, there incentives, venture benefits from paddock to framework that delivers expected to play a pivotal may be cause to ‘share’ capital investment plate. greater certainty to role in furthering the agtech across SRR / farms framework, and enabling farmers. development & uptake of to help manage risk & special investment agtech. defray costs. entities for rural R&D .

In August 2015, NAB surveyed a sample of agribusiness clients to identify their biggest business concerns. Energy costs, wate r scarcity and soil health were the top three. (source: Transforming Australian agribusiness with clean energy technology, Clean Energy Finance Corporation, Factsheet, Dec 2015).

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SCOTT RIVER SUSTAINABLE ECONOMIC STRATEGY

DAIRY ...... 24 INFRASTRUCTURE ...... 26 BEEF ...... 28 HORTICULTURE ...... 28 FORESTRY ...... 29 EMERGING CROPS ...... 30 COMMUNITY ...... 31 ENVIRONMENT...... 31 INNOVATION – R&D ...... 32 RENEWABLE ENERGY & REGENERATIVE FARMING ...... 32 TOURISM ...... 32 GOVERNMENT & GOVERNANCE ...... 35 MISCELLANEOUS ...... 35

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PHONE CONSULTATIONS

INTRODUCTION Phone consultations were undertaken in February 2020 with 30+ stakeholders, some requested anonymity (i.e. their names are not recorded in this document). Stakeholders with knowledge of, or first-hand experience with the Scott River Region were prompted on issues such as gaps, challenges, opportunities, risks, land management, ecological management, sustainable farming practices, infrastructure (roads, power, water & communication), labour supply, commercial opportunities, investment attraction, generating jobs, etc. A summary of key findings are presented in this document, using sub- headings where appropriate. DAIRY Scott River Dairy farms have exceptional scale of operation, enjoy an advantageous (cool) climate, have an abundance of high quality groundwater with high annual rainfall, have large flat land areas to grow significant feed year round, and have quality operators, however, some of the SR area is constrained by poor infrastructure (roads, power, communication & housing). Possibly two dairy farms in SR have recently closed down, perhaps leased to plantations, or exploring other options.

Labour is limited in the SR region, especially skilled labour and trades / service personnel. The relative isolation of SR, poor quality roads within Scott River, limited housing nearby, and workers having to drive 50+km contributes to a shortage of labour, especially when dairy workers need to arrive at work before sunrise & drive on local roads with roos, rain, trucks, etc.

Biogas / Biodigester plants in Europe are typically located near comparatively small dairy farms. Scott River dairy farms are significantly larger (e.g. 1500+ cows per farm). A biodigester at Scott River would be much larger than in Europe. The supplementary feed required of a large biodigester could reduce the supply of feed grown to support Scott River farms. Buying feed impacts heavily on dairy farm profitability (i.e. farms growing 100% of their feed requirement would have profitability greatly improved). SR has a distinct advantage (climate, rain, good soils) of growing feed ‘on farm’ especially since the price of feed has gone up in recent years as rain declines.

Installing centre pivots on farms to grow feed would increase farm output & improve farm profitability, however, pivots are expensive to install and run (i.e. electricity costs $0.12 - $0.21/kWh). An alternative is to buy feed rather than grow it (but reduces profit).

Nine large dairy farms in SR. 4 owned by Lactanz, managed by contract staff / employees, operated to sustain operations over the long term to match the investment objective of the

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corporate owner. 5 dairies owned privately, most are seeking to improve standards, quality and output. 2 possibly divesting or closing down dairy operations. Dairy farms in SR store waste / effluent in dams, unlined, with overflow potential, but aim to minimise nutrient runoff-leakage. Cost to build & line large dams to better manage effluent is prohibitive – but may become necessary given the sandy/leachy soils at SR and the need to reduce long- term leakage into the groundwater table. OR invest in a biogas / biodigester facility and redirect effluent to generate power. Note, dairy farms in NZ & EU typically have lined dams & efficient effluent / waste systems; WA has avoided investing in waste infrastructure & instead relied on large land holdings & large storage dams with lax policing of ecology / environmental impacts (e.g. industry code of practice in WA requires ‘no effluent discharged into waterways’ – a self regulated approach). This may change in the very near future.

It would be difficult to ‘value-add’ to milk in SRR. Distance to market can be a cost and a disadvantage. Whilst herds are comparatively big, and feed can be grown almost year- round, the market is most likely interstate or overseas (very competitive), impacting profitability and risking ‘market closure’ due to trade restrictions, regulations, price wars, etc. Profitability of the new dairy at Bannister Downs is unknown & uncertain (i.e. exporting chilled UHT milk to China). Globally competitive dairy producers cost of production range s from $0.13 - $0.20 per litre; SRR dairy farmers sell to processors at around $0.45 - $0.50 / litre and their cost of production is reportedly close to the selling price (i.e. not competitive against world’s best producers). Exporting SRR milk would require farmers to accept a low price in order to compete in global markets – where prices are also low.

SR dairy sector may steadily improve output / quality as farmers adopt better quality management practices, introduce technology across wider areas of their operation, adopt more efficient / effective waste practices and become more sustainable (e.g. renewable power & regenerative farming). The lack of 3G / 4G / 5G communications is a deterrent from investing in technology.

SR has comparatively flat farm land, making gravity feed of waste / water not possible; pumping requires comparatively high levels of electricity adding to variable farm costs. More additional dairy farms / cows at SR could emerge given a biogas facility (lower cost power) whilst benefitting from reduced cost of handling/managing effluent (i.e. supplied to biodigestor). SRR is distant from the milk processors making haulage costly and disadvantaging SRR farms. Further, SRR’s unsealed roads, wet winters, waterlogging, challenges for truck drivers and poor communication makes it difficult to invest in SRR.

WA has a poor, undeveloped market for surplus milk. A new dairy farm must sell its milk to an existing processor, there are no export channels that a (new) farm or a significantly larger farm can sell directly to. Dairy farms are at the mercy of processors who dictate price and profit of WA dairy farms (& hence declined from 400 to 140 farms in 20 years).

Research has shown that ‘variable costs per litre of milk decrease as the percentage of grazed pasture increases’. Overhead costs are not affected by grazed pasture. WA dairy farmers operate on a comparatively high percentage of grazed pasture and given WA dairy

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farms produce milk all year round their costs of production are equal to or better than many eastern states dairy farms. WA could be a competitive supplier to export markets – possibly more competitive than east coast farmers & processors (where export markets are well developed).

Dairies rely on transient workforce, e.g. backpackers, casual travellers and under / unemployed persons.

WA has around 140 dairy farmers and would need 300+ to justify investment in a new export facility. 20 years ago, WA had around 440 dairy farmers. Expectation is another 30- 50 farms will close in the next 4-5 years unless farm profitability improves.

Grain prices influence dairy farm costs and profitability. Grain crops & prices in the northern hemisphere influence grain prices in Australia, and more recently, drought & fires have driven up feed prices; SR dairy farms grow a large proportion of their feed using pivots (irrigation), helps contain costs (but power becomes a costly input).

Harvey Fresh once had an overseas contract to supply UHT milk, however, it lost the contract and this helped create a glut of fresh milk in WA, driving prices down at the farm gate.

WA Dairy industry was deregulated, resulting in three multinational corporations buying / operating the milk processors; executives / managers drive profit as their main KPI to retain their jobs & the plant’s future; in turn, processors demand lower farm gate prices to increase their margins and profit; the processors are comparatively small in global scale & lack market power to negotiate with the large retailers, and lack capacity or vision to invest in value-adding for export, especially whilst WA produces only 400M litres fresh milk p.a. and not 800M litres p.a. to compete with NZ and other large producing countries; local economy of scale works against investing in value adding.

SR dairy farmers produce around 45,000,000 litres of fresh milk p.a., however, the farms are too far from the processors; there are closer farms willing to ramp up production, truck fewer kilometres, accept lower farm gate prices. Unsealed roads, wet winters, risky heavy truck haulage in SR in winter, makes SR a high risk place to invest in dairy. Tasmania is currently attracting high levels of investment in dairy given cool climate, sealed roads, scope to expand and proximity to east coast markets. INFRASTRUCTURE Power. Beenup substation is connected to Muja (Collie) & Manjimup via 132kv line. A smaller 66kv line connects Busselton to Margaret River (substation) with lower grade feeders to Augusta and surrounding areas. A high grade power line extends east from Beenup to Don Road; beyond Don Road is low grade lines, limited capacity, but could potentially be upgraded, for example, if users requested say 100kva to upsize their operation / farm. As at 2020, there are no definitive plans to upgrade power lines east of Don Rd or to add additional feeders from the Beenup substation. Power capacity &

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distribution across SRR is unlikely to change in the near future unless significant changes arise in demand or usage (e.g. high voltage requirement).

Ideally, SR region needs a new, mini-town with a shop, school, sports club, houses and services to support a small population including workers. Otherwise SRR will continue to suffer from limited housing, limited supply of workers, high cost of logistics / transport / inputs & specialised services. Poor quality roads increase freight cost, increase risk to farmers, and reduces the number of ‘available’ truck contractors.

Ferry from Ellis St foreshore Augusta across to East Augusta will require (1km) road upgrades in East Augusta and Augusta depending on the ferry landing point. The ferry would help create ‘stronger’ linkages between Nannup-Augusta and potentially open up a new through-route to Stewart Rd (and onto Nannup). East Augusta Residents Association are generally opposed to a ferry (e.g. they prefer to use boats; value peace & quiet; enjoy rural lifestyle; additional traffic would spoil local aesthetics & wildlife & nature; road upgrades would be costly to maintain – causing rate increases).

If roads in SR were sealed & improved, the debate would shift to grazing versus horticulture; beef & dairy versus vegetable production; irrigated crops for food or feed; the longer term use of SR land will be critical for employment (e.g. horticultural employs FT & PT; dairy employs FT, beef employs limited staff, forestry employs seasonally); food security may become a priority if climate change, trade embargoes, or markets shutdown (e.g. earthquake, tsunami, cyclone); it might take a crisis for Government to recognise the inherent value of SRR as a productive, year-round agricultural region.

East Augusta has no infrastructure problems; communication + power + roads are generally OK; winter flooding causes unsealed roads to degrade, summer drought causes roads to become corrugated & dusty. There is no fire & rescue truck in East Augusta.

NBN Skymuster satellite network is available where landlines or mobile networks are unavailable; however, Skymuster can be slow, unreliable and prone to dropping out. Users of Skymuster in SRR are often without an alternative. Solution would be more mobile phone towers along the ‘middle’ of SRR – Governor Broome & Fouracres roads – but low population makes it uneconomic.

More housing would bring more workers; chicken & egg scenario; build it & they would come;

WA’s power network is inherently weak at the fringes, for example, the eastern section of Scott River region has limited power lines (distribution) and limited capacity (transformers & sub stations). Much of the region’s road and power network was installed by mining operations, which have mostly ceased & left the region, leaving ‘quality’ infrastructure to service some not all of the farms.

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SRR is unlikely to provide much impetus to Waterloo or Bunbury Port if roads, communication and power continue to hold back investment. However, if AMRCCE’s renewable energy plant goes ahead there will be a re-think on increased cropping & grazing, possible value-adding, and potentially integrated processing (so called closed systems) if power becomes lower cost and roads are open for trade year round. BEEF SRR beef growers should aim to install a mobile abattoir and produce / market premium branded beef for export via Busselton & Perth airports. Selling to SW abattoirs robs SRR farmers of profit – from what is essentially premium quality beef (e.g. Wagyu).

There is no industry group specifically for beef. Local farmers collaborate with Southern Dirt on projects and industry issues. LSWGG also works with local beef producers and is currently exploring an abattoir and value-adding technology. A business plan is being prepared to help plan investment. HORTICULTURE SRR has two ‘large’ scale intensive horticultural farms and several ‘small’ scale niche -hobby farms of varying quality and output. The future of SRR should support-encourage large & small scale farms to co-exist. For example, premium quality product, from high volume large farms, or boutique quality from low volume niche farms, regionally branded to capitalise on the clean, green & safe qualities. Diversification of product grown/farmed in SRR and diversification of product supplied to domestic and export markets will ensure the regional brand is valued broadly across geographic territories.

SRR horticultural growers need sorting / packing / chilling facilities in SRR to market value - added produce domestically and overseas – direct from SRR – without relying on contract wholesalers who invariably focus on domestic markets & lower priced segments (e.g. supermarkets).

SRR could benefit from having a more diversified range of summer & winter crops and increasing its expertise in a broader range of crops & markets; which in turn would attract a wider range of buyers, investors and farmers; increasing the value of SRR farms over the long term. However, high winter rainfall and waterlogging makes perennials unsuited to SRR, hence year round crops are unlikely to emerge until waterlogging or heavy winter rains reduce, for example, due to climate change (e.g. 2030 onwards).

SRR has no large market in close proximity. All produce must be transported to Perth. Roads within SRR are largely unsealed & can be damaging to fresh produce. The distance to market is a long term challenge for SRR. Packing in SRR and distributing via Busselton Airport (on passenger or freight flights) would help overcome one of the region’s disadvantages. Roads need upgrading.

Broccoli production at SRR could increase, however, roads & transport challenges are problematic; broccoli production is unlikely to increase as a result.

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New alternative crops would require the approval of DWER (i.e. water licenses / allocations). DWER is renowned for delays and indecisiveness. Farmers tend to trial at short notice, decide on semi-commercial scale cropping soon after, but permits & licenses can hold back progress.

Activating ‘unused’ agri-quality land should focus on trialling year-round crops in areas where centre pivots can operate (e.g. in summer), ideally making better use of land not affected by waterlogging (in winter); foremost is matching product demand with seasonal crops. One approach to increasing production is to leverage local growers into unused land funded by corporate investors; this would require having water licenses in place, farm land ready to sow, having sales outlets in place, and targeting investors that have a track record in horticulture operations.

SRR is generally frost free due to the flat landscape (i.e. no valleys, no low lying areas), higher moisture content due to the southern ocean adjacent (i.e. making air heavier, denser, less prone to freezing), cool surface air rising to mix with warmer ‘ocean’ air above ground level (i.e. circulating the air reduces the likelihood of frost), and regular cloud cover helping reduce the risk of frost (by keeping temperature up). Frost free is an advantage of SRR (but other growing areas in WA are similar).

Seed potatoes are a significant opportunity for SRR. Coastal growing areas with pivots or irrigation, in summer, can yield high volumes with relatively short rotations; there is strong (rising) demand for seed potatoes in several overseas markets.

Much of SRR is moderate-high suitability for horticulture (e.g. 20,000ha); vast majority of SRR is (moderately) suitable for grazing, however, dairy & beef farmers have been divesting in recent years, which has opened up opportunity for forestry to plant Bluegum.

WA supplies 6% of Australia’s fresh milk but consumes 10% of Australia’s fresh milk supply, making WA a net importer of milk; to increase WA’s milk output, farm land in SRR is highe r cost than elsewhere in WA, which means dairy farms in SRR must generate higher than average returns to give comparable ROI / ROE, which requires significant scale farming – exactly what Chinese investors are often seeking for value-adding – but foreign investment is not well received in WA. This is one of the barriers facing the dairy & farming sector in WA.

FORESTRY Forestry is perceived by some as opportunistic, for example, in buying up large farms sold by families exiting farming (e.g. where younger generations seek work off-farm); also, forestry is not tourism-friendly – it locks up land for 10+ years, restricts access, deprives native flora / fauna, limits visitor experiences, reduces groundwater levels, adds no value to a State’s food supply or a region’s tourism offering.

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Residents within SRR view Bluegum Plantations as low-level employers, with very few residents gaining full time employment from plantations in SRR; residents expect continued growth in plantations to the detriment of local employment opportunities; conversely, if plantations were converted to horticulture, local residents would expect seasonal work harvesting and some full-time positions working on intensive agricultural sites – provided more housing was available to attract more workers. Plantations are comparatively large users of water but are not restricted like farmers who are restricted by water licenses to sustainably manage water resources.

Foresters are ‘keen to see the government work out a way to incorporate short rotation hardwood plantations into any carbon sequestration programs’; this would increase the value of plantations and thereby stimulate further investment in plantations. In return, forest plantations bring water table control, salinity and erosion control; more forestry brings more job opportunities in harvesting, transporting and processing. Federal govt needs a policy to recognise the ‘capture and storage of carbon by hardwood plantations’ or without a policy there remains significant hurdles faced by foresters and investors.

Anecdotal evidence suggests removing bluegum forest from sandy soils (e.g. SRR) and the water table rises; some long term residents in west SRR say water levels have fallen in recent years (e.g. since 2010) – evidenced by fewer seasonal creek flows and fewer local pools in spring – early summer;

Plantation forestry reduces stream and dryland salinity in areas where average annual rainfall is 900mm or less. SRR receives 1000mm p.a. & therefore forestry doesn’t have a genuine ‘helpful’ role in addressing past problems associated with land clearing, salinity, etc. refer to DoW water mngt guidelines for details.

Forestry advocates suggest SRR is best used for beef grazing and forestry; horticulture is best at Myalup & further north closer to market; dairy is only marginally viable and may not be sustainable if strict waste controls are imposed adding to costs; EMERGING CROPS WA is 20+ years behind the world in Hemp R&D. WA does not have the required depth of hemp knowledge & expertise to sustain a large scale intensive hemp industry in WA. 20yrs R&D is required to trial, pilot, niche market & gradually up-scale to establish an intensive hemp sector in WA. Some areas of WA may be better suited to hemp than others. Som e hemp trials are likely to fail. Some hemp markets may become over-supplied (e.g. with imports). Hemp substitutes are well established worldwide (e.g. cotton, wool, silk, angora, jute & flax). Hemp is possibly not the best option for SRR but it could play a pivotal role in developing cultivars, helping build capacity to support downstream processing and build WA’s expertise in hemp.

Hemp in WA is at impasse. Chicken & egg scenario. WA needs more investors and growers to establish a critical mass to support downstream processing; farmers have a reluctance to invest if suitable cultivars are not yet available. Processors & investors will

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remain slow to invest if farmers are not planting progressively larger crops. Small niche farms & micro-scale processing is the ‘likely’ scenario in WA for the medium term unless government policy & resourcing changes significantly. COMMUNITY The Augusta Community Resource Centre (CRC) needs a more sustainable business model. One option is to become a registered training organisation and supply trained / certified workers for SRR’s agricultural sector. A training needs analysis should be undertaken to identify specific training needs across the region and to help determine if the CRC can improve its viability by adding training to its business model (e.g. to supply trained staff to SRR farmers).

SRR requires a mini-town or community hub that provides essential services to residents and possibly provides accommodation for workers (& families). The remoteness of SR is not appealing to workers residing elsewhere in the SW. A mini-town in SRR would attract workers, allow community to gather / socialise, provide a transfer-point for kids going to school, act as a central shop & depot, and provide a place for residents to muster support during times of need. ENVIRONMENT No definitive data on water usage of forestry Vs dairy Vs beef. Long term usage of groundwater by the various users in SRR is unclear. For example, if forestry was 100% of SRR, it’s unclear if the ground water level would fall or whether salinity would rise if forestry land was converted back into horticulture or dairy or beef. This scenario may arise in 20 - 40 yeas time AFTER climate change impacts SRR and food production in WA becomes a strategic priority; and when high rainfall areas such as SRR are in high demand as a highly - valued food producing region.

The Land Conservation District Committee (LCDC) works with farmers / growers on sustainable practices & regenerative farming. Project work is ongoing and varied. Aim is to improve the sustainable use of land and help manage / monitor the ecological condition of SRR.

Feral pigs are a growing problem in SRR. Trapping & shooting is helping but is unlikely to eradicate the feral pig population. The region needs a SW regional approach to reduce pig populations more strategically.

The value of water is expected to continue rising; especially if the impact of climate change brings less rain to areas; places like SRR with 1.0m annual rain would be valued for the availability of water; it is therefore critical that SRR is used wisely to support food production.

Refer to stats in the SW Groundwater allocation plan; provides guidance on water availability in SR and potential to increase output.

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Three critical aspects to manage in SRR: fire, nutrients & R+D.

Some residents in SRR are sceptical of fertiliser / nutrient runoff and afraid of negative impacts on the natural environment; data monitoring is often not made public; visual impacts are not always ‘noticed’ or reported; hard to know if current practices are sustainable. INNOVATION – R&D There is slow progress in diversifying crops-produce within SRR. Examples such as wildflowers, hemp, flax / linseed, etc are at early exploration, trial stage, at best. Industry groups such as Southern Dirt help farmers establish trials / pilot programs, however, there is limited participation across the SRR. R&D is unlikely to drive future growth in SRR. More likely, corporate farming will drive R&D, although a limited presence. RENEWABLE ENERGY Augusta Margaret River Community Clean Energy group (AMRCCE) are focused on proving the viability of a $25-$30M, 10MW wind and biogas renewable energy facility, to be located at Beenup in the Scott River region. The AMRCCE is aiming to identify financial partners and secure the licenses & approvals required to operate the facility; noting that anticipated changes to legislation will enable the facility to sell / distribute power directly to large scale users including communities (& that an upgrade in poles / lines would provide more options to sell). SR farms (e.g. dairy) could get comparatively low cost power, more reliably, and -or the facility could help establish the viability of value-adding facilities in SR (e.g. vegetable, dairy or beef processing). The biogas facility will re-purpose SR dairy waste (effluent) into two streams; filter cake – becomes feed for the biodigestor (energy source); and filter liquid – for re-use as liquid fertiliser (e.g. via pivot irrigators); Wind trend analysis suggests positive NPV; meaning wind turbines can be profitable located along the southern areas of SRR. If SR dairy farms become unsustainable and shut down, the biogas plant could become stranded or left to operate at below capacity. Conversely, making dairy farms more profitable, and possibly expanding herd size & milk production, could provide scope to run the biodigestor at significantly larger scale, bringing lower cost power to SRR and the surrounding area; The biogas/wind renewable energy facility will significantly increase power generation at the ‘fringe’ of the SW grid, which will provide capacity to better manage growth in demand as population and industry grow. TOURISM SRR region is slowly gaining a ‘few’ tourism ventures that could in future support tours, trails, packages, co-operative marketing, etc. Augusta Abalone, Glenarty Road Winery, Leeuwin Lighthouse & niche accommodation operators (e..g small cellar doors, farmstay – campground, produce growers selling packaged product) provide the basis for a small tourism cluster.

One approach for tourism within SRR is ‘exclusivity’, premium experiences, limited visitor numbers. For example, guided (4WD) tours to exclusive areas in SR conservation bushland

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(licensed / approved by DBCA) viewing unique flora / fauna, catered by Glenarty Road Winery, staying in exclusive chalets / eco-cabins in a remote area (or farm). Aim would be to keep SRR ‘wilderness’ as an exclusive experience – rather than mass marketed. Select areas could host higher levels of visitors (e.g. Leeuwin Lighthouse, Black Point, Alexander Bridge, Blackwood River).

Glenarty Rd, Blackwood House Boats, Leeuwin Light house & Jewel Cave are the main tourism elements in / near SRR. East Augusta has around 40 holiday homes, some listed on AirBnB. Alexander Bridge is a popular camping area, but often full at peak holiday times (Dec-Mar). Overflow camping is spreading to State forest, conservation estate and vacant land (i.e. absent owners).

Strip between Glenarty & Nillup store is potentially a good tourism area, for example, for camping, MTB, walks, wildflowers, niche produce, etc. Would require govt to re-assess.

BHP rehabilitated the ‘dredge area’ of Beenup Mine Site into a wetland. Bird populations have flourished. The rehabilitated wetlands could host bird hides, raised walkways, sheltered areas, picnic (BBQ) facilities and short walk trails to enable ‘twitchers’ and day trip visitors to enjoy the site. BHP own the land although unsure if the site is likely to be open to the public or remain a restricted area (e.g. until the rehabilitation process is complete and land tenure reverts back to Govt?).

Private land holdings along the southern shore, east of Augusta, allow ‘locals’ to access gates & beach; however, non-locals occasionally get access across unmanaged private land and have on occasion damaged property (fences, gates, tracks, vegetation); most ‘locals’ say keep it ‘locked up’; mass tourism is likely to cause long term damage to an area that is ‘usable’ for only a few days of the year due to swell, wind, rain, sea state, beach erosion, dangerous shoreline, etc.

Margaret River Busselton Tourism Association is working on linking walk / bike trails across the capes region (e.g. C2C, Wardandi, MTB), to encourage more day & overnight use. This includes a trail hub in Augusta to encourage outdoor adventure activities. New small ventures are expected once the trails are ‘linked’. The C2C is under-funded, poorly maintained, requires a new management approach (e.g. fees, licensing, enterprise, etc). Linking with Wardandi (rail trail, Busselton to Augusta, inland route) could help increase usage and support new enterprise opportunities. A ferry to cross the Blackwood river would increase dispersal of visitors into SR & potentially benefit from the 100,000+ visitors to Cape Leeuwin lighthouse each year. The ferry site in Augusta, for example, at Ellis St, could host an aquatic activity hub with hires / rentals, tours, pop-up trucks & linkages to local trails (walk, canoe, bike, drive).

D’Entrecasteaux NP and Black Point has limited access; 4WD required and has limited routes during the winter-spring (wet, flood) season; attracting mostly adventure visitors & campers (e.g. fishing, surfing & 4WD’ing).

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Augusta ferry. The Ellis St foreshore, if used as a ferry access point, could help re -develop the Augusta Hotel site, which is for sale & has unused land awaiting new, innovative uses (e.g. residential, commercial, tourism).

The last Augusta Adventure Fest was held in Nov 2019; the next event will be in Eagle Bay; the organisers were unable to generate sustained interest in the Augusta format, hence it ceased to exist.

Augusta is the poor cousin to MR in terms of tourism. Occupancies are lower, hospitality is limited, fewer tours & hires, and generally stronger winds affecting outdoor activities. Augusta tourism operators are generally small & micro sized; most face challenges with labour (shortage), regulation-compliance, insurance (costly), seasonality (short) and cyclicality (some years not viable; businesses hibernate).

Augusta tourism’s future may benefit from Augusta Abalone opening a tourism facility; the ‘Augusta Race’ re-emerging & gaining popularity; Augusta Hotel being redeveloped into a focal point for community & visitors; ‘extreme’ outdoor adventure attracting more visitors for longer (e.g. kiteboarding, mountain biking, free diving, sailboarding & estuarine kayak fishing); Wadandi (inland rail) Trail is expected to open in the short-medium term; extreme outdoor experiences in Augusta have ‘boomed’ in recent years & is expected to grow further. SOCIAL / COMMUNITY / MICRO ENTERPRISE AMR Farmers market has an under-supply of eggs, chicken & duck meat, fresh fish (aquaculture), boutique herbs & potatoes. These could be grown & sold by niche ventures in SRR.

Mobile process plant, e.g. abattoir, enabling boutique farmers to slaughter & package onsite and sell direct to end users has scope to create jobs, value-add and attract other new enterprises; abattoir would require a bankable feasibility, permits & licenses, and firom commitment from farmers & investors to proceed; infrastructure is an immediate barrier (e.g. power & water); Beenup Sheds is an ideal location but requires approval / participation by the private owner.

Would require a planned approach to facilitate micro / small enterprises across SRR, for example, guided by LSWGG & Southern Dirt & CCI & LGA’s.

Augusta has a predominantly ‘aged’ population with elderly, retirees and semi-retired people, seeking the quiet life, unaffected by wind, rain and inclement weather. Augusta lacks young families because of the limited employment prospects; lack of skills amongst the younger residents; new ventures in SRR are likely to compete with the townships of Margaret River, Busselton, Dunsborough, etc for skilled & unskilled labour.

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GOVERNMENT & GOVERNANCE SoN & SoAMR could co-fund a full-time position to implement the SR SES, potentially part of a broader role fostering regenerative sustainable agriculture (RAS); on under -utilised agricultural land within SRR; whilst also coordinating SES initiatives; possibly for a 2 -year trial period aimed specifically at 2-3 initiatives (e.g. micro ventures, housing, ferry, road upgrades, communications & renewable energy).

Health Act imposes barriers to small growers / processors investing in new enterprise or plant & equipment to expand output in SRR; may need an EDO / Compliance officer from LGA to help niche ventures address compliance requirements and/or to gain access to markets (i.e. simplify & fast-track).

LGA planning codes can be restrictive for farms & rural properties wanting to enter tourism, hospitality and small-scale enterprise; regulations can prohibit certain activities or impose costs / expenses, regulation – limitations that can affect viability; locals say more flexible planning regimes in SRR could help opportunities get developed and regional growth activated at the farm & household level. Barriers (& lack of information) are viewed as a disincentive for land owners to explore new enterprises.

Southern Dirt is exploring a co-op model to pool growers-suppliers, to establish economies of scale, and use hi-tech processing to capture high value niches (e.g. spray drying to powderise vegies for superfood markets; A gluten free processing - packaging line for flax, quinoa & lupin flour etc). One approach is to establish a concise business concept-plan to attract farmers, who invest in the co-op model (e.g. $20,000 each, 30 farmers, $600,000) and seek dollar-for-dollar grants & funding to establish a niche-scale processing facility for innovative crops-produce-markets.

SRR growers can aim to distribute product via Busselton airport on passenger flights (i.e. 1,000 – 2,000kg consignments packed into AVE’s at Busselton airport). Over time, if volumes are steady & supply is secure, freighters could be used to periodically transport ‘large volumes’ (i.e. 10-20mt of pre-packed produce).

MISCELLANEOUS Training. Anecdotal evidence of a need for training in SRR, however, would require a ‘needs analysis’ to determine training requirements; Community Resource Centre as a registered training organisation has been discussed locally. A small pool of trainees in the SRR may result in limited depth of skill & capacity of new recruits at farm level.

More people have moved into East Augusta since 2016; approximately 60 homes in east Augusta; around 40 are holiday homes (seasonal use – easter, Xmas, new year); 18 permanent residential homes – with up to 6 occupants in each; 70 blocks in total, 10 are unbuilt – natural bush. Bushfire building regulations (BAL) adds approx $20,000 to the cost of a new home in east Augusta; DBCA has impose tougher restrictions on clearing & burning residential land that has deterred some owners from building; most homes in East

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Augusta spend 12months on the market before finding a buyer; most residents use small boats to cross the River, some drive; the Shire repairs unsealed roads quarterly, however, the roads are generally corrugated & rough year round.

SRR must aim to maximise / optimise land value and maximise $$ return per hectare. When farm land values rise, farmers can loan more to invest in their operations, when farm land values fluctuate banks get nervous and call-in loans; In recent years the value of SRR farm land has been fluctuating and farmer’s appetite for loans & investing has been on the decline.

Cows & livestock emit methane (mostly via burps & belching!); need to balance livestock with non-polluting land uses (e.g. horticulture & forestry) – or encourage farmers to feed herds seaweed supplements for example to reduce methane emissions (CSIRO technology).

Smaller farms in SRR with sheep & vegetables are a recent trend; less troubled by water licenses & restrictions, most use small dams and/or operate within water guidelines; no large dams on small farms, hence most rely on bores; however, small farms (100-200ha) struggle to survive financially, often rely on owners working long hours for an average income (e.g. typical of a lifestyle business), or working part-time off-site to support their farm & lifestyle; most of this is in SoAMR portion of SR and this limits the scope to expand commercial output in that part of SRR.

Winter in SRR generally means less vehicle use on farm land due to waterlogging; similarly, poor drainage on some unsealed roads means they are less used in winter; however, dairy farms need milk transported daily making them more prone to poor quality roads in winter; some of the SR vegetable produce is grown year-round and also susceptible to unsealed roads being rain-affected making transport a costly or risky aspect of production.

Logging trucks are seasonal, when harvesting (e.g. in summer) there can be very heavy traffic in SRR, but can otherwise be minimal; Ag lime trucks from Karridale are seasonal, limited in number, but can increase quickly for short periods. High-level seasonal truck traffic impacts road condition and contributes to need for ongoing maintenance.

Groundwater in some areas of SRR is high in iron making the water abrasive, causing damage to pivots, pipes & pumps, adding to cost; some of the less used water allocation is high in iron & solubles which increases maintenance cost; most of the better quality water (e.g. Yarragadee) is fully allocated; more ‘high quality’ water would help farmers recons ider land use, output, investment and expansion; lower rainfall due to climate change could be problematic for SRR if allocations are reduced to supply households, industry and higher priorities; farmers were unlikely to be able to use much of the available (unused) water allocation because of insolubles / maintenance issues and the location being distant from where the water is needed.

SRR needs better communication, roads, labour supply, farm investors / farming activity and less forestry.

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Planning regulations limit sub-dividing; this has discouraged new housing for workers & families; SoN & SoAMR need greater flexibility in planning regulations to allow more housing in areas where labourers are needed, otherwise agri-businesses in SRR will always face a shortage of workers; too often good workers can find work elsewhere without driving 50km each way to work; and good workers can’t find quality housing to rent or that’s affordable – near to SRR; farmers investing in housing for workers means they have less funds to invest in farming and subsequently have to spend more time managing tenants / rentals / properties; SRR was planned in the 1960’s / 1970’s and never had land set aside to house workers (e.g. small housing lots, a workers village, a community for workers) and has always relied on families to run farms. Larger farms (e.g. especially dairy & horticulture) require more staff but they often aren’t available near SRR.

Smaller farm owners could benefit from Economic Development Officers (or similar) helping develop new micro enterprises on small lots, possibly for a 2 year trial, targeting farms / owners who have modest capital available to invest in new facilities / enterprise development – but need support with planning, compliance, administration and mentoring. An enterprise ‘cluster’ could be trialled where farmers / owners share insight & lessons while they develop new enterprises. Augusta CCI could potentially utilise some of its retired ‘business people’ to mentor owners developing new enterprise. Examples include mushrooms, herbs, micro greens, gourmet vegetables, eggs, ducks & chickens (for slaughtering off-site), wild harvest wildflowers (licensed), honey (tea tree / Manuka), hemp (micro scale like Vasse).

Augusta is predominantly for ‘older residents’, retirees, and very limited number of ‘working age’ residents, very few skilled workers, difficult to find staff willing to stay for an extended period, business owners have to compete in attracting staff from Margaret River-Busselton- Dunsborough triangle; usually without success.

A costly but long term river crossing solution – a bridge from Albany Terrace to Pericles Street, at the river mouth – would open up SRR to Augusta, stimulate Augusta as a regional hub, create flow-through traffic from Vasse Hwy / Brockman Hwy, and improve access to eastern side of Blackwood (SR NP); the bridge would be approximately 400m and could cost in the vicinity of $60m - $70M.

58km round-trip East Augusta to Augusta (or approx 29km each way), taking around 30 minutes each way or one hour in total. A ferry across the Blackwood could reduce this to 20 minutes.

Ocean Grown Abalone were planning a new hatchery at Swan Lake, Southern Shores; Recently decided to invest in Esperance & South Australia; land prices were too high, labour was scarce, infrastructure was limited and better incentives elsewhere.

Local suggest Govt should allow subdividing (some) larger farms and smaller hobby farms into rural lots for residential housing within SRR; trade-off should be the provision of

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easements, communal power systems (solar, wind, batteries) & workable approaches to reducing fire risk (e.g. larger clearances around houses, wider fire breaks, sprinkler systems, communal water & pump facilities), and provide scope for ‘small houses’, transportable houses, modular houses and innovative concepts that improve appeal to families, workers & business owners.

SRR farm owners have in recent years sought to retire or scale back their operations; so me have no children wanting to take over the farm; land is leased to plantations for an annuity or in some cases land is sold to plantations; leasing to plantations is usually a 10 year term.

Establishing a Co-Op in SRR would require leadership and capital; a facilitator – manager would be required to drive the process from concept to commercialisation.

LGA (e.g. Nannup) should impose limits on how much of SRR’s “priority agricultural land” can be converted to forestry; and possibly set a time limit on how many harvests can be taken from each plot, thereby ensuring conversion back to horticulture, grazing or dairy in the medium-long term.

Farmers generally stick to what they know; low risk; there’s limited dialogue between farmers and often near-zero dialogue on potential new crops, alternative approaches; it would take a re-think of how farmers meet, interact, share insights, knowledge etc for SRR to become collaborative at farm level; R&D across SRR is comparatively low and not a key feature of farming in SR.

One of the barriers to establishing Hemp in SRR is the poor roads. Multiple farms would need to plant 10-20ha of hemp (for seed) and the harvest would need to be transported back to a central processing site. Poor roads means expensive or unreliable trucking hence a reluctance to plant Hemp if costs & risks are high to begin with. However, with sealed roads across SRR, ideally connecting eastern areas with western areas, a structured proposal to grow say 500ha could provide the basis to establish a pilot processing facility within central SRR with a view to expand cropping as sales and capacity grows. Sealed roads would bring other benefits to tourism, community, emergency services (fire), transport and services. Investment in farms and capacity should follow.

Lower Blackwood Land Conservation District Committee are ‘closed loop sustainable’ and regenerative sustainable agriculture focused; already working towards RSA practices across SRR; would benefit more if funded to employ an RSA expert to work with local farmers.

Participants in Phone Consultations include:

Esther Jones, Western Diary Laura Stocker, WA Farmers, Dairy Brian Piesse, Western Dairy

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Kate Lombardo, Margaret River Farmers Markets Jo Wren, Lower Blackwood Land Conservation District Committee Brendan Kelly, Department of Water & Environmental Regulation Georgina Thiele, East Augusta Residents Association Nigel Jenkins, Nillup Store Ian Williams, Augusta Margaret River Clean Community Energy Steve Harrison, Margaret River & Busselton Tourism Association Andrea Lindsay, Augusta Chamber of Commerce & Industry Jim Challis, Augusta Chamber of Commerce & Industry Peter Evans, Western Dairy Barbara Dunnet, Lower South West Growers Group Steve Pickering, Bunbury Fibres Ian Guthridge, Department of Primary Industry & Regional Development Tilwin Westrup, Department of Primary Industry & Regional Development Neil Guise, Department of Primary Industry & Regional Development Dan Parnell, Western Diary, Technical Tracey Hodgkins, Southern Dirt Claire Forward, Department of Biodiversity, Conservation & Attractions Kath Lynch, Department of Water & Environmental Regulation Pauline McLeod, Shire of Augusta Margaret River Matt Lewis, South West Development Commission Jon Berry, Department of Primary Industry & Regional Development Andrew Weinert, Agribusiness adviser, dairy specialist Other stakeholders (10+) requested anonymity.

WORKSHOP CONSULTATIONS

FORUM FINDINGS 26th February 2020. Scott River Fire Shed 27th February 2020. Glenarty Road Winery.

Attendance: Barbara Dunnet, John Dunnet, Tim Prosser, Ross Woodhouse, Kristy Thompson, Wayne Challis, Ian Greenwood, Gary & Julie Buller, Kim Dunnet, Jasper Grugeon & Peter Backshall (Marketrade, facilitator).

PREAMBLE Email invitations were sent in advance to 30+ Scott River (SR) growers, farmers & employers. Two forums were held, one at the SR Fire Shed and one at Glenarty Road Winery. Anonymity was assured. The forums were ‘informal, round table’ discussions focusing on challenges, infrastructure, opportunities, climate change, environment and open topics

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(miscellaneous). Primary aim of the forums was to identify ‘what it would take for the SRR to attract investment, expand output, grow employment, be truly sustainable, and to achieve its full economic, social & environmental potential’. This summary presents key issues raised by participants during the forums, grouped into sub-headings.

CHALLENGES Clearing native bush on privately owned rural land is difficult – especially south of Milyeannup Coast rd; requires applications & approvals from DBCA (nature), DWER (water & ecology), DPIRD (livestock) & Shire (zoning, planning, environment). Applicant pays costs (approx. $1000). Can take 2-3 years or more. Land owner’s expectation is that approval is unlikely to be given. The amount of cleared ‘usable’ farm land within SRR is not expected to change significantly in the medium term. Clearing native bush is generally not an option to increase farm output (because of the difficulty). Subsequently, the focus is using existing cleared land more productively given the available water, which is in limited supply .

There are numerous mobile phone black spots across SRR and poor communications are a deterrent for families to live there. Children need wi-fi / mobile networks for education; regional (rural) kids rely on mobile phone networks to communicate with peers / friends; limited access to the internet deprives families of online services such as entertainment, education & shopping; poor reception means families are often unable to use mobile phone networks; some families will not re-locate if they can’t stay in touch with distant families.

Winter waterlogging creates soggy / boggy farm land that impedes machinery, affecting winter cropping, hence potato growing is most productive during the dry-summer season (Jan-Apr) when the land is firmer.

SRR is ideal for dairy. Flat land, abundant water, cool climate & excellent crop / fodder yields; making it ideal for dairy farming. However, the economics of dairy farming are unfavourable whilst processors pay low prices, hence marginal dairies in SRR are being phased out (& forestry is taking up grazing / crop paddocks).

Increases in power costs are threatening the viability of SR irrigators; summer fodder crops are highly productive using pivots but power costs are rising, thus reducing growers margins. Solar & wind powered pumps during summer is an alternative option, for example, if irrigating around midday when sunlight is abundant. Investing in renewables should be a more popular option but farmers have been slow to invest (i.e. largely because of poor infrastructure since the 1990’s and no likelihood of improvement in the short-medium term).

Worst case scenario for SR beef growers is a complete shut-down of live shipping. WA abattoirs have a fixed ‘slaughtering’ capacity. Without live shipping there would be a glut of beef overnight, prices would fall, saleyard sales would cease, alternative channels would be

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sought (e.g. cattle trucked to east coast abattoirs), farmers margins would fall dramatically, herd sizes would diminish and long term output would decline. In the USA, boutique beef farmers have moved away supplying large abattoirs by investing in their own boutique abattoirs (e.g. mobile & modular), often in collaboration with neighbouring farmers.

Unsealed roads in SR jeopardise value-adding enterprises. For example, processed & packaged beef transported along unsealed roads would be susceptible to bruising and subsequent discounting. Vegetable growers have suffered similar in the past (e.g. Sumich). Poor roads are a disincentive to invest in value-adding within SRR. One horticultural grower has established packing sheds at Yarloop to avoid problems with damaged produce.

SR has a shortage of skilled and unskilled workers. Horticultural growers require permanent & casual staff for picking vegetables; dairy farms require permanent staff for dairy operations (twice daily); beef farms employ minimal staff, mostly sub contractors (e.g. trades, transport, agronomists, veterinarians, etc). However, SR has very limited (no) housing for workers. Most staff have to drive from MR, Nannup, Augusta or surrounding regions. There is very limited housing close to SR (i.e. very few rentals). Ideal solution is a workers village, either in SR or Augusta, with a mixture of housing options for single workers, couples, families and groups during peak employment periods. A ferry across the Blackwood would allow workers to live in Augusta and travel to SR via a direct route.

SR’s coastal land is highly productive for horticulture; broccoli and seed potatoes grow very well on coastal sands (i.e. south of Milyeannup Coast Rd); there’s scope to expand production on coastal sands but unsealed roads make it difficult to expand existing farms or attract new operators (e.g. to lease land & grow crops). For example, Roberts Rd between Scott River rd and Milyeannup Coast Rd is a sandy, single lane ‘track’ designated as ‘4WD Only’, which hampers the transport of supplies and produce in that area. Very few truck operators will drive the route, especially in winter when it can be underwater.

SR farms have invested in water infrastructure (e.g. bores, pumps, reticulation piping, pivots, filters, etc). Farms pay for repair & maintenance of bores, pumps, dams and reticulation. Other regions have govt or co-op funded water available and farmers pay for an allocation & govt pays for repair & maintenance of infrastructure. Farmers in SR have to allocate some of their time to R&M of water infrastructure – rather than focusing on growing, harvesting and marketing.

OPPORTUNITIES Lower South West Growers Group (LSWGG) is investigating (spray) drying technology that converts meat / vegetable / dairy into powder with extended shelf life while retaining nutritional qualities. CSIRO has a pilot plant based on similar technology (which can be rented / leased for pilot study purposes).

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SRR could benefit from promoting investment opportunities to large investment organisations (e.g. VC firms, agri-investor firms, sovereign funds, etc); farmers leasing land, financiers investing in technology & infrastructure / facilities, farmers managing farm operations, a partnership approach on large parcels of land.

SRR dairy farmers would support an unorthodox / unconventional model to process & export milk, especially if capital / finance was available; rather than continue selling to local processors at reduced margins. For example, a closed loop dairy system is being explored north of Perth (dairy waste generating power & fertiliser, milk processed into powder for export,

SRR has strong potential to leverage ‘clean, green safe’ food qualities; southern ocean trade winds are disease free; abundance of water & cool growing climate enables premium quality production; regional branding (e.g. Scott River) would help achieve premium value positioning in the market.

Western portion of SRR, around Courtenay / Glenarty / Fisher roads, is mostly 50ha – 100ha farms, which could benefit from operating small scale, high value ventures such as aquaponics, hydroponics, chicken caravans, mushroom farming, microgreens, herb farming and boutique vegetables; clean, green, safe & premium quality (i.e. organic or biodynamic); marketed as regional SR produce. Challenge is capital / finance / investment as many of the properties are owned by employees, hobbyists & lifestyle farmers uninterested in commercial farming ventures; these properties are within SoAMR.

Beef. Growing beef output is possible across SRR. Developing an abattoir in SRR is being investigated (i.e. mobile & micro). Farmers are best at farming – not marketing or operating an abattoir. The abattoir would require marketers & managers to operate; the abattoir should also service farmers outside SRR to ensure a steady supply of animals for the abattoir & customers; LSWGG & Southern Dirt could work with SRR farmers to develop the business case and business plan, pool finance / investment, secure licenses & approvals and possibly access govt funding (e.g. DPIRD). Requires power, water, labour, suitable site & easy access.

SR beef growers are investigating a mobile abattoir to control quality from paddock to plate; aim is to improve animal welfare (no trucking), process on-farm (minimal handling), provide full traceability, leverage SR’s free range grass-fed qualities (PCAS), leverage provenance – SR branded as a clean, green & safe source; USA extensively use mobile abattoirs; an east coast farmer group (Provenir) recently commissioned a mobile abattoir; Provenir (Vic.) pre- sold meat online via a crowd-funding program to help fund the abattoir; multiple farms in the Provenir alliance ensure there are 10-12 head of cattle per day (i.e. around 3,500 p.a.); a mobile abattoir allows nearby farms to access slaughter facilities without transporting

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cattle – provided there is a suitable supply of power, water & systems-facilities to handle / manage the by-products (e.g. hides, blood, bones, offal).

A SR abattoir would require managers / marketers to take the processed beef from the farm to the marketplace; or preferably use online sales channels to pre-sell the packaged beef, using contract transporters to deliver across the SW (e.g. to restaurants, farms, households, butchers, shops); premium quality beef could also be air freighted via Busselton Airport interstate or overseas.

SRR is a large area, well suited to intensive agriculture, especially if SRR product is branded, traceable & premium quality; major focus should remain on intensive agri-business, ideally value-adding, target marketing branded produce, and establishing multiple markets to diversify risk, increase demand, achieve premium prices. Problem is no strategy and no centrally coordinated body to drive growth.

Hemp could grow on SRR black soils, peet soils, which are usually less acidic (5-7pH); an ideal summer crop similar to millet, sudex, sorghum, maize, etc that grow well in SRR over summer. Hemp requires LARGE volumes to be profitable; SRR doesn’t have the roads or farmers to support hemp; instead bluegums are gradually taking over the land.

SRR is effectively future proofed. Less rain, more sun, higher temperatures, more evaporation, less groundwater, less waterlogging, creating more ‘usable’ land to graze and grow, using more land will increase output, leading to SR farm land being higher valued. Climate change will raise the profile of SRR. Expectation is climate change will reduce rainfall by up to 30% from 900mm of rain to 600mm annually, which will be higher than most other intensive agricultural areas; sadly roads, telecommunication, labour, water and accommodation deter farmers from investing in long term opportunities.

Tourism. SR offers biodiversity, fishing, coastal experiences and 4WD’ing. However, poor quality roads deter RV’s, caravans, sightsee’ers and day trippers. Improving roads would increase risk of damage to biodiversity unless facilities / amenities were provided to accommodate overnight stays (i.e. on smaller farm properties, upon crown land, in conservation estate – NP, etc). SR farms could provide amenities / facilities / services suited to tourists & visitors; ideally farms adopt ONE specific tourism activity-experience; multiple farms provide visitors to SR with a range of activities-experiences; SR gets dispersal of visitors as they travel across the region to experience the different offerings; popular activities-experiences include mountain biking, fishing, flora & fauna appreciation, horse trails, walking trails, food & wine, wellness / health, canoeing / kayaking, camping (self - contained) & 4WD’ing. Farms would adopt an activity-experience that suits their property. Alternatively, develop tourism well away from SR’s intensive agriculture areas, preserving biosecurity, and keeping visitors in isolated tourism nodes (Jangardup, Donnelly River, Black Point, Jasper Lake, etc).

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Aquaculture could be established along SR’s coastal strip; pumping seawater into tanks; farming demersals (fish), abalone, prawns or lobster; power would be the main operating cost & hence lower cost renewable power would be required to be competitive; unsealed roads however, are a deterrent as is the lack of housing for staff & limited staff in the region; Augusta’s abalone venture recently given up developing facilities near Augusta and instead bought land in Esperance to expand its abalone processing capacity.

INFRASTRUCTURE SRR could aim to develop 12-15GL surface dam(s) southeast of Brockman Hwy & Chester Rd (i.e. near semi-permanent creeks within state forest) and use gravity & solar/wind power to pipe-pump water to individual properties across the region; this would reduce the use of bores / groundwater, redistribute runoff from relatively unused areas of SRR, increase rain catchment capacity, and provide longer term assurance of water resources to investors & farmers; the dam could ‘trigger’ additional dairy herds, avocado crops, or high-value fruit & vegetable, and potentially provide the scale to support value-adding. Establishing a dam(s), redistributing water via a pipeline to irrigators, especially in summer, would help increase cropping, yield and sustainability. Capturing rain & redirecting minor creek flows into dam(s), would provide SR with better access to water in summer (e.g. storing surface water; reducing reliance on aquifers), reduce waterlogging, increase the availability of arable land.

Install an omni-directional phone tower near the intersection of Governor Broome Rd & Milyeanup Coast Rd; distributing 4G & 5G across the SRR; thus overcoming the 10+ known black spots that restrict farms from using wi-fi / cloud based technology on the farm or in their homes (& discourages workers from living in SRR due to no/poor phone networks).

Invest $40+M to seal the 73km of ‘unsealed’ roads across SRR; this will enable year-round access to farm land / properties, improve access to under-utilised land, provide more safer roads (e.g. for itinerant workers, unskilled drivers, emergency services, etc), encourage greater investment / use of the region’s agricultural lands.

Power – electricity. SRR has connection to the SW grid at Beenup; supported by a 132kV line, sub-station + multiple transformers; however, the grid within SRR is reportedly at 110% capacity; if true, it needs de-bottlenecking, for example, by adding additional poles / lines to distribute higher volumes of power further east beyond Don Rd to Vasse Hwy; the proposed AMRCCE 10MW renewable power plant is looking to distribute/ sell power to large users across the SW; the current grid within SRR may limit options to distribute & sell renewable power in the medium term (& possibly stall investment in renewable energy on farms).

Ferry across the Blackwood, for example, from Point Irwin to Augusta Yacht Club, could be cable driven like Molloy Island, man-driven using local skippers (e.g. Augusta Abalone staff),

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or automated-robotic; some east coast ferrys are govt-funded & free to use; would open up SRR, help with accessing staff / workers, enable ‘flow through’ traffic, enhance tourism opportunities, provide alternate escape route in the event of large scale fire, etc. Ferry landing sites at either side of the Blackwood require upgraded roads, mooring – landing system and parking / rest area. Preliminary indications of capital costs: 16m x 8m aluminium ferry, 2 x outboard engines, 18mt carrying capacity (i.e. 6 cars), $600,000. Marginally higher cost ($0.9M) for a 16m x 8m cable-driven ferry, dual chains, wind/solar/battery/electric powered chain winch. Higher cost ($1.4M) for an ‘unmanned’ automated wind/solar/battery powered chain-driven ferry including landing/docking infrastructure. Point Irwin, East Augusta, was surveyed in the 1980’s/90’s as a possible site for a bridge; could be re-purposed as a ferry site.

SRR would benefit from a workers village, for example, capable of housing 40-50 dairy workers and 20-30 horticulture workers, and families, with support services within the village (shops, supplies, social amenities, rec centre, bar). Alternatively, the workers village could be located in Augusta (e.g. if a barge was installed) or in the Kudardup / Courtenay area.

Most SRR residents (e.g. farmers, growers) socialise outside the region, for example, in MR, Nannup or regional facilities (e.g. Glenarty Rd Winery); the SRR needs a multi-purpose facility combining a sports club, rec centre, bar, community hall, meeting place, family services centre, trading depot & short stay / RV facility. Farmers felt they rarely get to ‘chat’ with fellow farmers, socially or commercially, largely because ‘no phone signal’ and no facility to meet that provides a social – community purpose. Farmers commented ‘this has always been the problem with Scott River –you simply can’t phone your neighbour’.

Roads. One approach is to seal Scott River Rd & Woodarburrup Rd into a ‘Highway’, extending from Augusta to Donnelly River, linking into ‘around Australia on Hwy 1’, funded by the Federal Government. This would open up the entire southern coast of WA, increase visitor traffic, increase access into SRR, and greatly enhance the appeal of SRR’s southern blocks for tourism, horticulture, beef and boutique farming ventures.

CLIMATE CHANGE Carbon credits apply to 30+yr old trees, not Bluegum plantations that are harvested every 10yrs; SRR will not benefit from a carbon trading scheme, for example, if Bluegum plantations dominate the landscape.

Climate change is expected to increase temperatures, reduce rainfall, increase evaporation, decrease runoff and increase days of sunshine; SRR will benefit from climate change. Waterlogging will reduce with climate change. More land will become accessible, usable & arable with climate change. Summer crops will have longer to grow. Winter crops can be

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introduced that cope with moderate-high rainfall and an increase in sunshine. More water will be required because most of the allocation is already taken / used.

Climate change – and the ever increasing Bluegum plantations in SRR – is steadily reducing the extent of waterlogging. Less waterlogging is expected to lead to an increase in ‘cleared, under-utilised land’ as a result. Agricultural output could increase – if some of the previous waterlogged land became ‘drier’ and used for grazing, crops or horticulture. Question is whether forestry will continue to increase the plantation ‘footprint’ & how this might impact on groundwater levels & agricultural output across SRR. The science is unclear, apparently.

GOVERNANCE Farmers say SoAMR has limited knowledge & expertise on water for intensive agriculture; SoAMR staff generally default to DWER; SoAMR can impose strong controls on water resources, slowing progress, often from being too reliant on DWER; the SoAMR is usually copying DWER’s position / stance, rather than having its own position on water – based on data/facts/knowledge specific to the land or the farms in question. Farmers have the data not SoAMR.

Bluegum plantations are taking up farm land where beef, dairy and horticulture once existed. If left unchecked, SRR will become predominantly bluegum plantations. WA will lose food production from a ‘significant’ agricultural area (e.g. beef & dairy output is declining across SRR). Shires & WAPC need to impose limits on plantation land use within town planning schemes and/or introduce stricter monitoring of water levels (e.g. surface, groundwater & land use demands). Alternatively DPIRD should limit Bluegums to areas with sub-optimal (poor) quality soil where the groundwater level is less prone to long term risk.

ENVIRONMENT SR famers / growers / owners aim to be ‘environmental custodians’ managing soil, water and land use to sustain ecological health of their property and the SRR; for example, managing (minimising) nutrient runoff from pesticides, fertilisers & soil additives.

SRR soils are naturally acidic, pH 3.5 - 4.0; adding ag-lime or dolomite reduces acidity to pH 5.0-5.5. Ag-lime is available from Redgate or Boranup-Hamelin, more recently large volumes of local ag-lime are being trucked to the Wheatbelt (i.e. concerning local farmers). SRR soil is high in magnesium (mg), hence dolomite is added; in comparison, the Wheatbelt is low in mg. SRR soil is high in Al & Fe, which acidifies the soil, hence dolomite works well in SRR. Ag-lime and dolomite is readily available for farmers in SRR but unsure of the long term supply from local sources.

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Water availability is critical to investors; low availability of water can deter investors; water availability in SRR is nearing ‘fully allocated’. DWER has data on SRR’s water availability & possible future allocations.

SRR is generally windy, year-round, fuelling high wind evaporation, for example, evaporation is high in August even though rainfall is also high. Warming due to climate change is expected to increase evaporation and contribute to a ‘drier’ landscape especially during summer-autumn.

Bore depths in SRR range from 20-40m, relatively shallow, but strictly controlled by DWER; however, the science of water resources is ‘inexact’, not precise, and DWER will err on caution, delays and procrastination. Other regions e.g. Harvey & Ord River have govt-funded irrigation systems; whereas SRR relies on farmers / growers investing in water infrastructure and managing land use (crops & grazing) to optimise profit.

Collie hinterland removed Bluegum & pine plantations due to salinity & runoff problems; plantations in SR are increasing and making the summer land drier; long term, as climate change continues, best option is to reduce plantations, use cleared land for food rather than timber. For example, SR seed potatoes get high prices because they are disease free, high quality and clean-green, unlike other regions in Australia where biosecurity & diseases are problematic, SR benefits from southern ocean proximity.

MISCELLANEOUS Southern Forest Irrigation Scheme, Manjimup-Pemberton area, is developing a 15GL reservoir on Record Brook (i.e. sourcing some of the water from Donnelly River), with 250km pipeline distribution network to irrigators who purchased a water entitlement, water co - sourced from the Donnelly River, owned and operated by the Southern Forests Irrigation Co - operative, scheme water users are members of the Co-op; $80 million scheme, $19 million State government, $10 million local growers, $40 million Federal government’s National Water Infrastructure Fund. Similar could / should be established in SRR.

Travellers / tourists in RV’s have 5-10days supplies on board. Not all towns benefit from RV spending in local towns. Sealed roads in SRR would encourage overnight stays – if options were available (e.g. nature based park, RV park, campground, BnB, etc). Extending their stay in SRR would help ensure further spend in local towns. Many RV’s avoid unsealed roads & hence SRR is not one of their travel stopovers.

Five beef farmers in SR operate the ‘pasturefed cattle assurance system’ (PCAS), which enables farmers to prove claims relating to pasturefed or grassfed production methods. PCAS monitors on-farm feed approaches, traceability, pre-slaughter handling, and growth hormone / antibiotic free practices, that influence eating quality / customer preferences.

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Grass fed beef generally sells for less than grain fed beef, however, PCAS helps provide assurance of quality to reduce the price difference.

Corporate farms in SR, for example, Lactanz’s four dairy farms, results in fewer families living in the region. Corporate farms invariably employ managers who sub-contract workers from across the region – or share contractors across multiple sites.

END OF WORKSHOP FINDINGS ------

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SSTTRRAATTEEGGIICC AANNAALLYYSSIISS SOCIO-ECONOMIC PROFILE

SCOTT RIVER REGION – SUMMARY (ABS 2016) No. People (residents): 419 Male: 51% (168) Female: 49% (152) Median Age: 46yrs No. Families: 138 No. Children per family (with children): 1.7 No. Private dwellings: 245 Average No. people per household: 1.7 Median weekly household income: $953 Median monthly mortgage repayments: $1,515 Average No. motor vehicles per dwelling: 2.1

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EAST AUGUSTA 2016 – QUICKSTATS (ABS) SCOTT RIVER 2016 – QUICKSTATS (ABS) SCOTT RIVER EAST 2016 – QUICKSTATS

People 27 People 55 (ABS)

Male 53.3% Male 52.5% People 17

Female 46.7% Female 47.5% Male 64.7%

Median age 53 Median age 30 Female 35.3%

Families 5 Families 11 Median age 37

Average children per family Average children per family Families 4 for families with children 1 for families with children 2.4 Average children per family for all families 0.6 for all families 1 for families with children 2

All private dwellings 45 All private dwellings 23 for all families 0.7

Average people per household 2 Average people per household 3.6 All private dwellings 12

Median weekly household income $762 Median weekly household income $2,124 Average people per household 2

Median monthly mortgage repayments Median monthly mortgage repayments Median weekly household income $2,250

$769 $0 Median monthly mortgage repayments

Median weekly rent $0 Median weekly rent $0 $0

Average motor vehicles per dwelling 2.4 Average motor vehicles per dwelling 1.9 Median weekly rent $0

Average motor vehicles per dwelling 2

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LAKE JASPER 2016 – QUICKSTATS (ABS) COURTENAY 2016 – QUICKSTATS (ABS) People 11 People 50 Male 50% Male 49% Female 50% Female 51% Median age 44 Median age 39 Families 0 Families 9 Average children per family Average children per family for families with children 0 for families with children 1 for all families 0 for all families 0.2 All private dwellings 3 All private dwellings 21 Average people per household 0 Average people per household 2.5 Median weekly household income $0 Median weekly household income $1,312 Median monthly mortgage repayments Median monthly mortgage repayments $0 $1,600 Median weekly rent $0 Median weekly rent $185 Average motor vehicles per dwelling 0 Average motor vehicles per dwelling 1.9

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The suburbs of Peerabeelup, Karridale and Kudardup (shown below) are NOT within the study area defined by the project brief. Their inclusion is to highlight the diversity of population densities of suburbs neighbouring the Scott River region. For example, Karridale and Kudardup are potentially sources of staff / labour for the Scott River region or could benefit from the development of enterprises / commercial services required as output in the Scott River region expands.

PEERABEELUP 2016 – QUICKSTATS (ABS) KUDARDUP 2016 – QUICKSTATS (ABS) KARRIDALE 2016 – QUICKSTATS (ABS) People 9 People 99 People 277 Male 50% Male 47.9% Male 47.5% Female 50% Female 52.1% Female 52.5% Median age 66 Median age 47 Median age 45 Families 3 Families 33 Families 69 Average children per family Average children per family Average children per family for families with children 0 for families with children 1.3 for families with children 2.2 for all families 0 for all families 0.3 for all families 0.7 All private dwellings 9 All private dwellings 62 All private dwellings 153 Average people per household 2 Average people per household 2.2 Average people per household 2.3 Median weekly household income $824 Median weekly household income $928 Median weekly household income $1,125 Median monthly mortgage repayments $0 Median monthly mortgage repayments $1,950 Median monthly mortgage repayments $1,733 Median weekly rent $0 Median weekly rent $150 Median weekly rent $209 Average motor vehicles per dwelling 2 Average motor vehicles per dwelling 2.6 Average motor vehicles per dwelling 2.2

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LAND USE

Employment & Land Use In Scott River Region

LEVEL OF EMPLOYMENT ACTIVITY STATUS WITHIN SRR GENERATED Dairy Moderate-high (FT) 8 large farms in SRR; 4 corporate owned, 4 privately owned; some conversion to forestry. Horticulture Moderate (seasonal) 2 large farms; strong scope to expand; roads hinder expansion. Sheep Low-Moderate 1 large producer; some small producers. Beef Low 5 large farms; conversion to forestry is gaining pace. Forestry Low (seasonal) 3 forestry operators; own & lease land in SRR; steadily increasing plantation acreage in Scott River.

Implication: dairy & horticulture are the largest employers and should be encouraged to maximise economic impact at a local & regional level; dairy is hamstrung by industry economics & WA’s steady decline of dairy farms (i.e. 400+ farms in 1990 to 140 farms in 2020), Scott River dairy farms are vulnerable and may decline to 4 corporate-owned farms by 2030; horticulture has strong opportunities in domestic & overseas markets, however, unsealed roads within Scott River discourage expansion of crops & output (i.e. increases risk of damage to produce, reduces profit margins, affects farm viability); beef is a low-level employer, however, an abattoir within Scott River would boost value of output, employment levels and regional profile; forestry harvests Bluegum plantations every ten years, periodic thinning & plantation management employs mostly contractors from outside the region, whilst woodchips boost export sales and bring land leasing / sale income to local land owners that can foster local re-investment or expenditure.

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MISCELLANEOUS EXTRACTS

From Reports, Phone Discussions and Online Searches during the Project.

Social barriers to participate in society can include low income, unemployment, poor health, low educational levels, ethnic minority status, age and poor mobility. Improvement of rural roads that enable rural residents to more readily / easily access services or increase their social interaction / engagement by reducing travel times should reduce the incidence of social exclusion brought about by the tyranny of distance. In an urban setting, a study estimated that individuals were willing to pay $19.30 for an additional trip so that they could engage in more social activities and overcome social exclusion. Longer travel distances in rural areas would support individuals willing to pay a higher value (e.g. $25-$35 or more per trip, for example).

The sealing of previously unsealed roads allows producers to increase their revenue from sales; gives increased reliability of farm-gate access to take advantage of just-in-time delivery and potential price premium; however, a data gathering exercise is required regarding the number of farms potentially affected by road closures, the volume of product potentially affected, and the price premiums involved.

The climate is Mediterranean with a short-cool summer and an extended cold-wet winter with rainfall of 1,000 mm to 1,400 mm annually, evaporation of around 1,100 mm, and 160 to 260 days of rainfall a year, mostly during winter (source: Augusta-Walpole Coastal Strategy, WA Planning Commission, July 2009, p. 42).

Demographics. the ageing of the population, increasing number of deaths, (i.e. the mortality of ageing ‘boomers’), declining number of births, and the ‘sea change’ relocation to coastal areas is expected to hold country LGA populations at low growth. the Shire of Augusta-Margaret River is expected to support relatively high numbers of families with dependent children due to the high proportion of 29-49 years & children below the age of 15. The presence of quality post- secondary educational facilities in SAMR will help reduce the number of young people leaving the region in search of higher education. Augusta & Nannup are popular locations for retirees & this will require aged care facilities in future. For people aged 15-24, local educational and employment opportunities will be important to retaining young people in the area.

In respect to tourism, the SRR offers a variety of experiences, both accessible and affordable, including secluded and scenic nature-based experiences as well as food-wine, adventure, culture, heritage and recreation. The SAMR has ‘highly developed’ tourism collateral enabling first-time & repeat visitors to enjoy personalised itineraries suiting a wide variety of visitor types. The recently completed AMR Cultural Centre is expected to increase the corporate- business segment with conferences/events/seminars helping to grow mid-week patronage across the region.

Popular attractions include nature-based activities such as walking in national parks, surfing, swimming, fishing, mountain biking, coastal hiking, cave visit, cultural activities such as viewing

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galleries & artist studios, art/craft workshops, festivals & performances, hospitality experiences such as tastings, winery / brewery tours, gourmet dining & cafes, culinary courses and private chef experiences, heritage experiences such as visiting national trust sites, museums & historical collections, heritage trails and Aboriginal tours & workshops.

Acid sulfate soils have been known to exist in areas where the pH of the soil or water is less than 4 (source: WAPC Acid Sulphate Soils. Planning Guidelines. 2008, p.16).

The main impacts of acid sulfate soils include: • adverse changes to soils and water quality; • deterioration of ecosystems associated with soils, • loss of groundwater and surface water resources used for irrigation; • reduction in opportunities for agriculture and aquaculture; • human health concerns from arsenic contamination of groundwater; • corrosion of engineering works and infrastructure such as bridges, culverts, • floodgates, weirs, drainage pipes and sewerage lines; • costs in minimising impacts and rehabilitating disturbed areas.

The presence of acid sulfate soils can be a critical issue that must be taken into account in planning decision making. (source: WAPC Acid Sulphate Soils. Planning Guidelines. 2008, p.17). Development or activities that may disturb acid sulphate soils include: dewatering and drainage; disturbance to wetlands; lakes and waterways; infrastructure projects such as bridges, port facilities, flood gates, dams, dredging, railways and roads; drainage which lowers the water table; and flood mitigation works including construction of levees.

Horticulture includes the ‘small-scale’ cultivation of fruits, vegetables, flowers, ornamental plants and turf (production). Horticulture is a major land use on the Scott coastal plain and has been recognised in the State Planning Strategy as an agricultural area of state and regional significance. Known limitations include waterlogging and wind erosion, however, around 5,000 ha are suitable for summer production, for example, vegetables have been a major crop grown on pivot irrigation. Similarly, seed potatoes operations in the Scott coastal plain are the largest in the state. (source: Augusta-Walpole Coastal Strategy, WA Planning Commission, July 2009, p. 90).

Agriculture is the ‘large-scale’ cultivation of soil, producing crops, and raising livestock. Agriculture land uses are of high significance to the (SR) region and areas important for agricultural production will be protected from encroachment. Nannup has emerged in recent years as a centre for cut flowers. Grain crops are considered likely to expand, for example, new varieties as well as crops such as hemp. Traditionally a cool climate agricultural area used for summer grazing. The Shire of Nannup is home to major dairying enterprises with (possibly) seven major dairies in the area, including the four largest in the state. Plantation forestry is another form of agriculture in the region. Plantations are currently a very significant land use on the Scott coastal plain. The Scott River area contains 30 per cent of the south-west blue gum plantations. (source: Augusta-Walpole Coastal Strategy, WA Planning Commission, July 2009, p.

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90-92). Careful planning is required when establishing plantations due to potential impacts on water use, water balance, acid sulfate soils and soil health.

The cost of construction and maintenance of bridges is considerable and there are several bridges in the (SR) study area that have passed their life span and remain in possibly unsafe condition (WAPC, Augusta-Walpole Coastal Strategy, p. 100).

The main power supply for the Scott River region is from Western Power's Beenup substation (at Payne & Scott River Road), which was established for the now closed Beenup mine, with one transformer, one feeder circuit, and supplied via a 132 kV transmission line. However with an outage an alternate supply must come from Western Power's Margaret River substation, which is limited due to the (40km) distance from the Scott River area.The main load for the Scott River power network is the Jangardup mine, 45 km to the east of Beenup substation. Most of the other customers connected are primary producers using the network to power pivot irrigation systems and farmhouses. (WAPC, Augusta-Walpole Coastal Strategy, p. 106)

Water supply in the study area is the responsibility of individual landholders, especially those outside gazetted urban areas. Residents in East Augusta and Scott coastal plain provide their own water from shallow groundwater, surface water or rainwater capture (WAPC, 2009).

Mobile phone coverage and data services in the study area is not satisfactory, according to residents. Upgrades to telecommunications infrastructure may be restricted by issues relating to landscape impacts. The recommendations (2009) was that telecommunications should be upgraded generally, but specifically to facilitate emergency services response (WAPC, 2009).

The Lagoon, located between White Point and Milyeannup, is a sandy basin protected by a reef line extending approximately 50m offshore and running parallel to the coast for several hundred metres, with depths up to four metres. It is used for swimming, fishing and anchorage of small- medium sized boats during favourable conditions. It is recommended that 2WD access be provided via lot 2, and development be permitted only if it does not adversely affect landscape and conservation values. (WAPC, Augusta-Walpole Coastal Strategy, p. 123).

Subdivision in the study area is currently constrained by the lack of management of unallocated Crown land that abuts the coast. In respect to subdivision of land, “Until such time that management of unallocated Crown land is determined, the scheme provisions in section 6.6 of this strategy cannot be adopted and, therefore, the WAPC may continue to refuse subdivision. (WAPC, Augusta-Walpole Coastal Strategy, p. 125). Subdivision will be supported only when it clearly will not compromise the highly valued environmental and landscape qualities of the Augusta-Walpole coastline.

Zoning. The Augusta-Walpole Coastal Strategy confirms past planning documents in delineating areas of high agricultural value from those that are more appropriately zoned for conservation, and recommends land be zoned appropriately as either agriculture / priority agriculture or rural conservation (or similar). (WAPC, Augusta-Walpole Coastal Strategy, p. 127)

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Constraints to SRR reaching its agricultural potential – and that may be of greater concern during 2020-2030 – include (DAFWA, 2001): Structural constraints: • Growers do not have access to three-phase power supply. • Poor condition of road network. • Limited availability of gravel for construction of roads and farm access. • Prescribed assessment and approval processes established through the Strategy for a Sustainable Future. • Lack of agricultural workforce means focus will be on crops and other agricultural activity with high mechanisation requirement. Agronomic constraints: • Lack of experience in growing horticultural crops other than potatoes. • Necessary to test the practical suitability of other horticultural crops. • Waterlogging is a significant constraint in some parts of the SCP. Use of large centre pivot irrigation systems may not enable suitable siting to avoid waterlogged areas. Growers could consider semi-permanent irrigation systems sited on soils that are not affected by high water tables. • Crops and varieties with shorter growing seasons may provide better returns from irrigation sites. • Need to overcome weed, disease and pest issues as they arise on individual properties and in the region. • Need to ensure a reliable source of affordable ‘A’ grade Agricultural Lime for the region. • Need to ensure a reliable source of affordable gravel resources for the region. • Need to manage for price and marketing variances. Environmental constraints: • Need to adopt best practice techniques to minimise the off-site effects of horticulture. • The location of larger streamlines (4th and 5th order streams) which cannot practically be re-directed due to their flow volumes may constrain siting and design of irrigation areas. • Use of buffers setbacks around streams and setbacks from other environmental features to prevent nutrients leaching into waterways. • Protection of remnant vegetation. • Availability of land with suitable soils and depth to summer watertable. (Source: Scott Coastal Plain. A Strategy for a Sustainable Future. DAFWA, 2001, p.41)

One of WA’s biggest dairy farms (at Scott River) is expected to cease milk production in 2020, with the property selling (possibly) to a blue gum plantation operator. Some of the landowner’s separate properties may be converted to avocado and beef production, with around 20% of the landholding to be retained for dairy production. The farmer produced 20 million litres of milk a year, or 6 per cent of WA’s production, but is now selling 4000 hectares over 13 properties, including a $1.3 million milking shed. Even with an extra 2.5¢ a litre for farm gate milk, the dairy

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farmer said he was struggling to break even because of low farm gate prices and a string of dry seasons meaning big feed bills. The land is in demand, but milk production is not an attractive option, and as farmers exit the industry fresh milk is likely to become a niche product. From July 2018 to March 2019, WA milk production was down 2.6 per cent from a year earlier, according to Dairy Australia. (Source: https://thewest.com.au/business/agriculture/was-biggest-dairy-farm-set-to-end-milk-production-ng-b881197129z )

In June 2016, European investors acquired Western Australia's largest dairy producer Lactanz Dairies, at Scott River, supplying Harvey Fresh with 15-20 million litres of milk per year from 4,500 cows. The neighbouring property (referred to above) had 3,200 cows & producing around 18 million litres of milk per year. (source: https://www.abc.net.au/news/rural/2016-06-14/lactanz-dairy-sold- european-investor/7509622 )

The Scott Coastal Plain is a low-lying, swampy plain featuring windswept dunes along the lower, southern edge having mostly sandy beaches punctuated by rivers and estuaries. In the west, much of the flat swampy plain has been cleared for agriculture. Natural vegetation consists of eucalypts, peppermints and wattles with heath and sedge in the lower areas. Soils are sandy, generally deep dry sands with waterlogged sandy soils near the Scott River, and some known deposits of titanium minerals. (Source: Warren-Blackwood Rural Strategy, WAPC, August 2004, p.13).

SCP comprises 107,000ha, of this about 57,400 ha is State forests, national parks, nature reserves and other reserves, with around 49,600 ha of private farmland. Private land holdings on the SCP are typically larger than other parts of the South West (e.g. 600 ha ~ 1200 ha, some 150 ha; majority family owned, some with two or more lots forming the farming enterprise) (Source: Scott Coastal Plain. A Strategy for a Sustainable Future. DAFWA, 2001, p.75).

In respect to acid sulphate soils: “A sulphuric acid groundwater plume now exists beneath the former Beenup mine. The acid plume is an environmental time bomb as it is migrating towards the Scott River. The Beenup Minesite Audit Report Vol 1, February 2002, acknowledges that the plume "will one day reach the Scott River, within the Scott National Park". (Source: D’Entrecasteaux Coalition Information Package on Lake Jasper Mining Application. Oct 2018 )

The 70km of ocean frontage from Hardy Inlet to Donnelly River is exposed to winter storms and strong sea-breezes, often causing ‘extreme’ exposure to the elements. A majority of the coastline is vacant crown land, some private freehold and a small portion of NP. Opportunities for tourist, recreation and lifestyle development are tempered by major issues including vesting of vacant Crown land, coastal management, foreshore access, road construction and services and infrastructure.

Road usage in the SRR is dominated by forestry (logs), dairy (tankers), horticulture (e.g. potatoes, fertiliser, lime, gypsum) and beef / sheep.

Three-phase power supply is advantageous to agri-operators (e.g. to run bores, pivots & processing) and could be achieved by extending a 22kv line eastwards from Beenup substation

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(a 132kv line) at a cost of $1-$2M. Power supply to the Jangardup Mine was extended to allow farmers to access three-phase power.

Communications. Central and western sections of SCP are connected to Telstra cable, but eastern sections rely on radio or satellite connections. Mobile telephone coverage is limited and the local community has requested improved telecommunications (e.g. to service farms, run plant, access data, communicate with family, emergencies, schooling, etc).

For use of commercial and civic facilities, residents in the central and eastern sections of SCP generally use Nannup and those in the western end tend to prefer Augusta or Margaret River. Manjimup is the processing and servicing centre for the horticultural and timber industries. Remoteness and the lack of services and facilities are a community concern and is one of their main interests; residents have sought a general store, tavern/bottle shop, sporting facility, community hall/social meeting area, rural supplies and product handling/storage unit. Could establish a community co-op at Beenup modelled on that at Northcliffe.

In both Town Planning Schemes of the Shire of Augusta-Margaret River and the Shire of Nannup, much of the privately owned land is zoned 'Rural', and allows for a wide range of uses at the discretion of the Council. Residential is generally not one of the allowed uses – with the exception of accommodation for the land owner / farmer.

One of the economic advantages of the SCP for extensive irrigated horticulture is the large lot sizes, relatively low land values and year round supply of water. To protect that advantage, there is a clear presumption against any subdivision of land (WAPC, 2009).

Some of the private land near the coast (western section of SCP) is underlain with limestone or lime sand, a resource that is likely to become more valuable with time, and authorities should plan for future access to these areas (WACP, 2009).

If (industry / economic) development is on the SCP, then one or two small town sites may be required, in the western part adjacent to Milyeannup Coast Road south of the Scott River; in the eastern sector along Black Point Road on vacant Crown land or an excision from State forest; need for a new town is dependent upon future industry development and the need for infrastructure, roads, power, amenities and the opportunity to redress the lack of community services and facilities in the area. (Source: Scott Coastal Plain. A Strategy for a Sustainable Future. DAFWA, p.87).

Residential accommodation demand needs investigating. Including rental stock, short term stock and properties to purchase. Areas of prolonged high demand may indicate a potential future town-site option and then power, water, communication and sewerage would need investigation. Areas of prolonged low demand may indicate a non-suitable area for a future town and then under-utilised infrastructure needs to be ascertained and addressed.

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In respect to monitoring & reporting on the 2001 Sustainable Strategy, the Water & Rivers Commission was to report on water quality and health of waterway systems each year. Department of Agriculture was to coordinate a comprehensive report card every three years. (p.97). Catchment groups, grower groups & community eco-enviro groups are likely to be monitoring aspects of SCP that can be accessed to monitor the SR sustainable economic strategy (i.e. existing monitoring can be used to report on future performance – but it will require collation–synthesis and reporting).

Case Study: Mariposa is a cooperative grocery store in West Philadelphia with over 2,400 member-owners. Over 150 members participate in the store’s Working Owner program, which offers a 10 percent discount to members who work in the store at least 3 hours once every 4 weeks. The co-op provides a 10 percent discount to low-income members. To expand co-op ownership, the co-op has an Owner Fund that subsidizes $100 of its $200 equity requirement.

Core assets (i.e. strengths of the lower Blackwood) include:

• High rainfall, but seldom floods • Warm and mild temperatures with few if any frosts • Comparatively long growing season • Good mix of soils • Healthy river systems • Healthy, diverse bush & forests • Pristine coast and ocean

On a social – community dimension, the report noted (p.12) the region once had comparatively strong social institutions (e.g. church, sports groups, CWA, local schools), however, the rise of automated dairies, bluegum plantations and social media / TV contributed to areas of decline in the “sense of belonging & connection to communities” (e.g. Augusta has retained a strong sense of community via many groups & social participation).

Regenerative and environmental farmers (in SR) are encouraging wider adoption of biological farming and reduced use of chemicals (i.e. fertilisers) to improve waterway health. The Scott River Coastal Strategy allows owners of coastal land to subdivide large plots into 40-80ha lots, however, very few owners have subdivided as it requires conceding 150m of coastal land to DBCA and providing public coastal access. “A modern efficient red meat precinct (abattoir & sale yard) has been proposed to support local sales and the processing of beef & lamb; dairy farmers are considering a cooperatively run local cheese factory to use the surplus spring milk to sell in WA” (p.25). Source: Towards a Sustainable Lower Blackwood. A Whole of Region Perspective. 2018

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Demand for food in emerging markets, especially across Asia, is expected to continue rising because of population and income growth, bringing higher demand for processed foods, more calories and protein as they adopt ‘first world diets’. Value-adding to Australia’s clean, green & fresh produce is required to ensure local region’s enjoy maximum benefit. However, consumer behaviour and preferences change fast and so too agri-tech developments can lead to changes in regulations, standards and market entry requirements leaving investors to mitigate risks in a fast-changing world.

Dairy. Flat land. Abundant groundwater supply. High rainfall (1,000mm p.a.). Cool climate. Large farm size (1000+ ha). Highly suited to centre pivot irrigation (high level of feed output). High quality modern operational infrastructure (automation, innovation). Quality structural improvements (fencing, sheds, roads, backup-renewable power supply, housing, dams). This ideal scenario is what the SRR must aim for. However, public infrastructure must improve to ensure growers invest in SRR to remain viable, profitable.

Dairy farmers in SR receive around $0.48-$0.52 / litre. Profitability is low. Value-adding e.g. spray drying could change their focus to higher value foods, away from fresh milk & rigid pricing / distribution. Will take a strong, concerted effort to bring about the required change e.g. investing in spray-drying technology, setting up a process facility, establishing sales – distribution, becoming certified / assured / approved, getting staff, etc....

Food security has not greatly influenced the development of Western Australia’s food industry. This may be about to change given coronavirus (& fear of pandemics), fires cutting off Eyre Hwy, countries closing borders, international trade disputes, a rise in trade restrictions, and unexpected closure of trade hubs (ports, airports) due to storms & natural disasters. Western Australia may have to re-think the use of agricultural land, especially high-quality agricultural land (e.g. high rainfall, abundant water supply, fertile soil, productive climate, relatively close to markets, skilled labour in proximity) and choose to produce food rather than plantations for trees-timber-paper. SR could / should be a larger producer of food – as sanctioned by planning regulations - given that SR is deemed a ‘priority’ agricultural area.

Dairy in WA: An Overview In 2019, WA dairy farmers were paid an average of 50.2 cents per litre (compared to the five- year average of 50.4 cents per litre). Australian Dairy Farmers (ADF) report that WA dairy farmers were being paid up to 20 cents per litre less than farmers in parts of New South Wales and Queensland (i.e. who receive an average farmgate price of 64 cents and 70 cents, respectively). ADF suggests ‘the difference is that the WA market doesn't have the flexibility like other dairy regions. WA's dairy industry lacks a significant dairy manufacturing sector, and the three major processors (Brownes, Lion Drink & Dairy, and Harvey Fresh) rely heavily on major supermarkets’. The imbalance of buyer-supplier power distorts WA’s farm gate price. The State Government is encouraging Western Dairy to help farmers reduce production costs. Some WA dairies have a cost of production 10-20 per cent less than other producers, and it doesn't

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depend on scale or extent of irrigated cropping, suggesting that operating efficiencies vary across the industry.

In respect to process options for SR’s dairy farms. Based on 100-110M litres fresh milk p.a., this equates to 100m3/day Milk Powder - depending on milk type and composition. For a generic milk powder manufacturing plant the capital cost would be AUD10-20M, including all milk processing from tanker unloading to packing, but excluding the building and civil works, site development and utilities. For a specialised nutritional powder plant the capital cost would be AUD20-30M for a similar sized plant but around significantly less than 100m3/day milk would be processed as these products are highly formulated. However, there are not many plants this size except for R&D or product development purposes. The cost per tonne of powder is prohibitively high unless a very high value product is being made. Therefore, milk powder is not likely to be suited at SRR and instead alternative milk/cream/cheese products may be better suited - provided markets are available. To this end, establishing strong ties to buyers would be critical before investing in plant to make milk/cream/cheese products at SR. The problem is WA’s domestic market is largely controlled by the two large supermarkets (i.e. not likely to change) and export markets would be dependent on air or sea freight, which are very competitive markets and WA exports are generally not cost-effective by sea or air because of the limited competition within distribution channels.

Dairy Market Trends Obviously a key issue is finding a market for the product first. China in particular are clamping down on smaller brands – so finding a partner to market and sell the products is usually key. Overseas markets can be extremely competitive and highly vulnerable to trade restrictions, making them risky and volatile in the short-medium term (e.g. exchange fluctuations, quarantine controls, natural disasters, trade disputes & government intervention).

Below are some of the current trends (i.e. opportunities & high growth areas) within the global dairy industry:

• Natural Products - based on Grass fed, Organic Milk and GM Free • Non-Allergenic Products • Non-cow’s milk – goat, sheep, camel • Reduced lactose or lactose free • A2 Milk • Bioactive Products • IMF with closer replication of human milk (IMF - infant milk formula) • UHT Milk especially milk retaining a “fresh” taste • UHT cream • A resurgence in Butter and AMF (anhydrous milk fat) • Frozen milk & cream concentrate • Native Whey (IMF ingredient) • Mozzarella style Pizza Cheese • Drinking Yoghurts & other fermented drink products

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• Toddler Milk with Innovative Packaging • Adult and Old Age Nutritional Powders • Liquid Ready-To-Drink IMF • IMF and IMF ingredients with Lower Bacterial Limits

Augusta Chamber of Commerce & Industry could be pivotal in driving the growth of micro enterprises in Scott River. For example, by establishing a community-base cooperative or enterprise to commercialise small-scale egg farm, mushroom farm, hydroponics, aquaponics, microgreens, herb farming, venture or niche foods demanded by local hospitality and retail industry. Employing local residents, leasing small sub-plots of Scott River land, utilising innovative technology / plant, scaling up or diversifying as profit is achieved, servicing local markets and/or distributing to Bunbury or Perth. Aim is to use under-utilised land, employ local residents, and supply fresh produce that is currently imported into the region (e.g. from Perth or interstate).

Consultation ‘linkage’ suggestions:

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Ag-tech. Ag-tech is using apps on smart devices to monitor farm operations; using drones to gather images or view farm conditions; using networks to access cloud based storage or processing systems (e.g. algorithms, AI or SAAS); analysing farm data trends or responses to ‘live’ circumstances; accessing satellite services for imaging or farm analysis; facilitating automated or assisted operation of tractors & machinery (e.g. auto-driving, autonomous vehicles); operating multiple devices & machines through the ‘internet of things’ IoT; Ag-tech relies on digital technologies, often mobile phone networks, or (self-installed) local area networks, to supply data and information across farms and neighbouring properties.

Socio-Economic Profile. Scott River Region

SCOTT RIVER Avg No. Avg. No. Median Median REGION. ABS STATE Avg. No. Median Motor Median No. No. Private People Weekly Monthly SUBURB No. People Male % Female % Children Weekly Vehicles Age Families Dwellings per Household Mortgage CLASSIFICATION. per Family Rent per Household Income Repayments QUICKSTATS. 2016 Household East Augusta 27 53% 47% 53 5 1 45 2 $762 $769 $0 2.4 Kudardup 99 48% 52% 47 33 1.3 62 2.2 $928 $1,950 $150 2.6 Karridale 277 48% 52% 45 69 2.2 153 2.3 $1,125 $1,733 $209 2.2 Courtenay 50 49% 51% 39 9 1 21 2.5 $1,312 $1,600 $185 1.9 Scott River 55 53% 47% 30 11 2.4 23 3.6 $2,124 $0 $0 1.9 Scott River East 17 65% 35% 37 4 2 12 2 $2,250 $0 $0 2.0 Lake Jasper 11 50% 50% 44 0 0 4 2.7 $1,219 $0 $0 1.8 Peerabeelup 9 50% 50% 66 3 0 9 2 $824 $0 $0 2.0 TOTAL 545 50% 50% 45 134 1.2 329 2.3 $1,172 $1,667 $185 2.0

Due to the relatively small size of the Scott River region, industry and/or output data at the suburb level (SSC) or at an amalgamated level is not available from the ABS due to privacy and confidential reasons, in accordance with the Census and Statistics Act 1905.

Australia’s energy sector is expected to transition towards a predominantly clean, renewable base load with gas as a preferred, interim energy source. The anticipated decades-long transition will require a range of new technologies including high levels of storage, long distance transmission, better energy efficiency and dispersed generation including hydro, solar, wind, biomass, hydrogen, geothermal and ocean energy. Making it smarter, more secure, and better integrated across regions.

“There is insufficient monitoring information available on the Scott River and Hardy Inlet to determine the linkages between land management practices, water quality and river ecology”. Source: Scott coastal plain a strategy for a sustainable future. Department of Agriculture and Food, Western Australia, 2001, p. 9

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SCP Strategy 2001 notes a “lack of agricultural workforce means the focus will be on crops and other agricultural activity with high mechanisation requirement”. However, modern mechanisation can include ‘communication-reliant’ technology and the SCP has ‘blackspots’ and sub-standard communication that limits mechanisation (2001).

Groundwater & salinity levels. Groundwater trends and salinity levels in the Scott Coastal Plain are not monitored according to DAFWA (2014). However, there is a ‘low’ likelihood of future salinity (i.e. very low risk of salinity & an ‘insignificant’ consequence of future salinity (source3), “most of the hydrozone is forested or recently cleared and there are no large areas of salinity, hence DAFWA does not monitor groundwater levels. The hydrozone is probably close to hydrological equilibrium; therefore, the salinity risk is very low because salinity is unlikely to expand with insignificant consequences. Salinity associated with private irrigation systems has not been Assessed”. However, an earlier review of groundwater levels by Golder Associates (2008) reported “falling groundwater trends under two-thirds of the Scott Coastal Plain” noting that groundwater levels were affected by abstraction (e.g. bores, irrigation) (p.122).

Social resilience4: What is social resilience? Resilient communities that function well under stress, that are successful adaptors, have self-reliance / self sufficiency, and have social capacity to respond & sustain. How is it achieved? • Create an environment for social connectedness, a culture of mutual help. • Address the capacity & adequacy of critical infrastructure systems (e.g. communication, roads, power, housing, water supply, transportation). • Strengthen the voice and capacity of stakeholders. • Foster flexibility and adaptability through closer community engagement. • Having access to good information and communication networks (e.g. in times of difficulty). • Enabling local capacity for development by nurturing the ability to learn, adapt & sustain.

What’s required to foster social resilience? • Social networks & support. • Positive outlook. • Learning. • Early experiences. • Environment & lifestyle. • Infrastructure & support services. • Sense of purpose.

3 Groundwater trend analysis and salinity risk assessment for the south-west agricultural region of Western Australia, 2007–12. Department of Agriculture and Food, WA. 2014. Report 388. P. 113 4 Social Resilience is the ability of groups or communities to cope with external stresses and disturbances as a result of social, political and environmental change. Resilience is the capacity of an individual or community to cope with stress, overcome adversity or adapt positively to change.

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• Diverse & innovative economy. • Embracing differences. • Beliefs. • Leadership. The aim is to ‘build more resilient communities .... by building capacity, increasing collaboration and fostering connections’. This approached is often used by SES & RFS services across Australia in fostering resilience. The report Building Resilience in Rural Communities (The University of Queensland and University of Southern Queensland, 2008) offers a range of practical initiatives for each of the above elements, that could form part of ‘social resilience’ program across the SRR.

Tourism. Both the Bibbulmun Track and the Munda Biddi trail pass to the east of SRR (i.e. east of & near to the Vasse Hwy); neither provide any great potential to leverage patrons, to grow visitation, or to stimulate new enterprises. Conversely, an eco camp in D’Entrecasteaux NP could host MBT visitors, or offer a campground / nature-based tourism area (e.g. at Quannup) that hosted Aboriginal experiences, enabled beach activities, easy access to Lake Jasper & Donnelly River, ‘soft’ MBT experiences, hires (bikes & canoes), and maybe areas for extended stay (e.g. to volunteer for eco – enviro rehabilitation programs such as weed control, flora planting, fencing, fire breaks, controlled burns, etc).

Ferry Demand / Usage: Recorded visitation for the 12 month period ending 30th June 2019 (Source: MRBTA): • Cape Leeuwin Lighthouse Precinct 115,044 visitors • Jewel Cave 60,895 visitors A ferry across the Blackwood River would be expected to attract patronage / usage by ‘some’ of these visitors. For example, annual ferry revenue from tourists could potentially be in the range of:

% of Visitors & No. Cars If paying If paying If paying using a ferry* $10/car $15/car $20/car 3% (i.e. 1,725 p.a.) $17,250 $25,875 $34,500 5% (i.e. 2,875 p.a.) $28,750 $43,125 $57,500 10% (i.e. 5,750 p.a.) $57,500 $86,250 $115,000 15% (i.e. 8,628 p.a.) $86,280 $129,420 $172,560 20% (i.e. 11,504 p.a.) $115,040 $172,560 $230,080 *Assumption: 2.0 visitors per car

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Agtech. “Leading multinationals such as Cisco have partnered with, and invested in, Australia to realise the opportunities new technologies offer the agriculture and food sectors. Agriculture 4.0 technologies developed in Australia will support the global agricultural sector to be more profitable, efficient, safe and environmentally friendly. These technologies include biotechnology, smart farming, ‘precision for decision’ agriculture, robotics, sensing technology, Internet of Things (IoT) connectivity, biosecurity and food quality surveillance. Australia is an environment that is primed and ready for the next phase of agriculture innovation, which is agtech.”

“More rapid and focused development and adoption of technology – including digital innovations – by farm businesses and supply chain participants will be critical to maintain Australia’s competitive advantage in food and fibre markets and to deliver on consumer demands. Development and adoption of new technologies will also be central to achieving the NFF’s vision of a $100 billion agriculture sector by 2030.”

“Agtech Applications include water management and maintenance alerts, remote monitoring and management of livestock, crops and soil, precision chemical and fertilizer application, objective measurement and traceability. These applications assist farmers to make better decisions and to realise efficiencies – for example, by more efficiently managing stock, applying inputs, monitoring watering points and managing irrigation. They also assist with demonstrating – and improving – regulatory compliance.” Source: NFF submission to Senate inquiry into financial & regulatory technology, 2018.

“AgTech will be assisting managing scarce resources (water), minimising inputs (fertiliser and chemicals), increasing production diversity, and reducing the environmental impacts of agricultural production”. Source: Emerging agricultural technologies: Consumer perceptions around emerging agtech. Agrifutures Aug. 2018. P 34

Climate Change. Rainfall. At 2015, the mean annual rainfall for South West WA was 729ml (i.e. averages ranging from 347ml to 1198ml). Future rainfall projections are variable (uncertain). By 2085, average rainfall is projected to decrease by 194ml to 535ml. Between 2015 and 2085, all models predict a decrease in rainfall of between 340ml and 101ml. Temperature. Australia is expected to experience warming. At 2015, the mean annual temperature for South West WA was 16.1°C (i.e. averages ranging from 14.9°C to 18.4°C). By 2085, temperature is projected to increase by 2.7°C to 18.9°C. Source: Projected Climate Change Impacts For SWCC – for South West Catchment Council Inc. by Ecotones & Associates, 2015, pp3-5

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Black spots

https://nationalmap.gov.au/#share=s-qmYEiDx3gp6CmV9gfGZRxw4aqmV

8 known blackspot locations within SRR; 8 blackspot locations along the ‘boundary’ of SRR; total 16 blackspot locations to address. Possible funding via the Mobile Black Spot Program. Funding rounds 5 & 6 are options.

A light aircraft runway, 1600m x 45m, gravel surface, is being built on private land, by farmers & foresters, midway along Governor Broome Road, southern side, aiming to install a bore (into Yarragadee) to enable fire fighting aircraft to access water for local fires;

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Infrastructure. Ball park guestimate is 100kW – 200kW wind turbines would be well suited @ 60% yield to power pivots across neighbouring farms in SR; ideally reticulating power underground between farms; alternatively, there are 600+ biodigesters operating in USA & many are ‘farm- specific’, small scale, and could be used at farms in SR.

“The Scott River drains the majority of the Scott Coastal Plain into the Hardy Inlet at its confluence with the Blackwood River, and dries into a series of disconnected riverine pools over summer and provides a diversity of habitats for flora and fauna. The Scott Coastal Plain has a complex system of wetlands that include sumplands, damplands, permanent lakes, seasonal/intermittent ponds, marshes, swamps and floodplains. The wetlands are highly variable and change rapidly across the landscape because of subtle topographical differences and the influence of ephemeral hydrology. The result is an array of diverse habitats, numerous vegetation types and high species diversity with many endemic species.” The Scott Coastal Plain includes nationally significant wetland in the Gingilup-Jasper wetland system - proposed candidate for nomination under the Ramsar Convention on Wetlands. On the Scott Coastal Plain, groundwater influences the hydrological regimes of wetlands, rivers and permanently wet tributaries, especially in winter when groundwater levels rise and inundate surface areas. This in turn influences the occurrence of waterbirds, mammals, frogs and endemic fish species, some of which are of conservation significance. For example, a high concentration of priority flora occurs in Scott National Park, which contains 39 species. A rich mosaic of wetland and dune vegetation, combined with areas of forest and woodland, dominate the Scott Coastal Plain, noted for its unusual diversity. Low topography and shallow watertables around the Scott River has led to its identification as an area at high risk from dryland salinity. Nutrient enrichment in the Scott river catchment has the potential to cause eutrophication of wetland areas on the Scott Coastal Plain, including Gingilup Swamps. Nutrient (ammonia, nitrogen and phosphorous) concentrations in the Scott River are particularly elevated, and occasionally produce blue-green algae blooms. Feral pigs are a problem in the Scott Coastal Plain, they can be destructive, damage vegetation, can foul watercourses, disturb nesting sites, remove food, and subsequently feral pigs are managed (by DBCA) through monitoring, baiting and trapping programs. source: Leeuwin Naturaliste Management Plan 2015, DAW, p20-36.

Badgingarra Dairy WA Dairy and Energy (WADE) plans to build a $1.2B, 24,000 head dairy south of Badgingarra, producing 30,000 tonnes of powdered milk (infant formula) per annum, 100% exported to China as premium grade product; creating up to 480 ongoing jobs, using 10 gigalitres of water annually (from groundwater sources), using dairy effluent to generate power, phased over a three to four year period; using a free stall system, cows will have access to large barns with food, water, shelter and bedding, and outside the barn they will have access to irrigated pivot areas (fodder, feed); Badgingarra was chosen because the climate is suitable for cows, the availability of water, the Brand

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Highway, the Bunbury Dampier gas pipeline and high-voltage power; the project will be managed by WA Dairy & Energy (WADE), backed by Tsing Capital Australia (Chinese financier). Source: https://www.abc.net.au/news/2020-03-09/effluent-powered-dairy-proposed-to-target- baby-formula-market/12034690

Campground. If a free-camping facility was established in close proximity to SR farms, and campers were allowed to stay for up to 48 days, campers may become farm workers. For example, if jobs were posted at the campground. Same for an RV facility. Would a farmer establish a nature based campground to host workers for their farm & other farms?

The DairySAT program identifies nine key areas of management5:

• Effluent Management • Irrigation Management • Nutrient Management • Soil Management • Chemical Management • Farm Waste Management • Pest & Weed Management • Biodiversity Management • Air & Energy Management

During forums growers outlined ‘responsible management practices’ were in place, some more effective than others, and that on the whole, the SRR was ‘reasonably well managed’ at the farm level. Farmers were often comparing outcomes and practices in order to improve farm management and output.

The arguments in support of a ferry to cross the Blackwood River:

1. Addresses social inclusion by making access to the Augusta town site affordable in time, more cost effective, & less driving (lower risk). 2. Enables greater access for the SRR to tradespersons in Augusta. 3. It would enable SRR’s current and future workforce to live in Augusta, educate their children and enjoy the benefits of town living. 4. Addresses the issue of safety. For example, April 2020, a Feral Animal Field Officer was attacked by bees in the Scott River region and had to be rushed (an extra 50km) to hospital via ambulance.

5 Model For Community Self Management Of Water Options Development. For Scott River Water User Group. By Syrix Environmental. February 2009. P.10

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5. Access for people in Scott River and East Augusta in times of emergency. For example, the Milyeannup Fires (2011), and the recent Augusta Fires, where residents could not get out of East Augusta because the only roads in were under attack from bushfire. 6. Sustainability of the local economy of Augusta would benefit with more business from Scott River residents. 7. Locating the ferry north of the East Augusta residential area would minimise impact on local residents & provide an overall easier access.

Rationale for establishing a micro abattoir in SRR.

• Meat processing is dominated by large scale operators seeking lowest cost inputs (e.g. low returns to farmers). • Farmers raising quality cattle are unable to gain the full value available from delivering ‘farm to fork’ integrated service. • Branded meat products are dominated by large processors sourcing from various farms, regions & production regimes. Often poor consistency (i.e. consumer buying decisions are relegated to price, appearance & availability – rather than provenance, quality & value).

At present, farmers cannot fully capitalize on their product’s value through branding or by value adding (i.e. downstream processors & retailers control the marketing & branding of locally produced beef).

Small business start-ups can be financed via:

• Initial start-up capital from personal savings • Loan capital from mortgaging a house or property • Soft loans from family members and friends • Loan finance from a Bank (i.e. personal, business, secured, unsecured) • Business overdraft facility • Angel investors (debt-equity option, convertible loan, term loan, shares) • Advanced sale to a dedicated buyer (e.g. cash in advance for product to be delivered over a set period) • Government grants & business loans ($ for $) • Delayed payment of major suppliers (until cash flow begins) • Factoring buyer or supplier invoices (i.e. specialist trade finance) • Long term sales contract secured against a term loan • Extended (agreed delayed) payment of suppliers • Many start-ups use a combination of the above during years 1-4

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Sale & distribution options for a farm based business.

• Sell unprocessed product to a downstream processor (no value add) • Partner with a niche-scale processor, supply on equity-share basis • Downstream process, producing niche or mainstream products • Sell branded product to retailers (e.g. IGA, Farmer Jacks, specialist retailers) • Sell branded product to wholesalers (e.g. Costco, Metcash, Basfoods) • Sell branded product to intermediate users (restaurants & hotels) • Sell customised product to overseas buyers (bulk, batch, spot) • Sell branded product online & delivered to end users (consumers)

569 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 APRIL 2021

11.2 Sustainable Development and Infrastructure

11.2.5 SUSTAINABLE ECONOMy STRATEGY

Attachment 1 – Sustainable Economy Strategy

Attachment 2- Background to Sustainable Economy Strategy

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Sustainable Economy Strategy 2021-2025

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Acknowledgement of Country The Shire of Augusta Margaret River would like to acknowledge that we are on Wadandi and Pibelmen country whose ancestors and their descendants are the traditional owners of this country. We acknowledge that they have been custodians for many centuries and continue to perform age old ceremonies of celebration, initiation and renewal. We acknowledge their living culture and their unique role in the life of this region. It is the Shire’s sincere hope that Aboriginal Australians share fairly and equitably in the future development of the Shire’s economy.

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Contents

Introduction 4 Purpose of the strategy 4 How this report was developed 4 What’s in this report? 5 Discussion: Economic development 6 Discussion: Why “sustainable” economy? 7 Augusta Margaret River snapshot 12 Vision 16 Sustainable Economy Goals 16 What is meant by Circular Economy? 17 Goal 1: Healthy ecosystems 18 Goal 2: Fair and inclusive economy 20 Goal 3: Vibrant townsites 21 Goal 4: Economic resilience 22 Goal 5: Successful livelihoods 23 Goal 6: Local ownership 24 How to read the Strategies 27 Sustainable Economy Strategies in detail 29 Alignment 43 References 46

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Introduction

Purpose of the strategy A sustainable economy is about living This strategy will seek to provide a lens well while consuming less resources through which the whole community can and generating less waste – a circular consider the local economy and its future economy with fair distribution. – a framework based on sustainability. Governments around the world are The intent of the strategy is to outline a recognising the need for a more diverse set of goals to guide economic sophisticated approach towards economic development into the future, to provide key development – one that recognises strategies for moving towards these goals, humankind’s impact on natural and to identify and prioritise key signature ecosystems and puts wellbeing projects the Shire can undertake to conspicuously at the forefront of any strengthen sustainability of local industries economic development objectives. and improve on circular economy performance.

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How this report was developed A range of community consultation, expert advice, and research lies behind the Sustainable Economy Strategy, including:

• Council articulated a vision for the future economy of the shire.

• Business Survey 2019 engaging with 5% of businesses within the Shire – see report attached as an appendix in Background to the Sustainable Economy Strategy.

• Input and feedback from the Sustainable Economy Reference Group, Sustainability Reference Group, and Community Health Network

• Consultation with businesses and business organisations

• Ongoing guidance from economist and practitioner, Michael Shuman, with a focus on local economic development

• Advice from Professor Robert Costanza, leading author on Ecological Economics; Dr. Stuart Whitten, Leading Economist for CSIRO; Professor Mike Salvaris, Chairman of the Australian National Development Index

What’s in this report?

• Section One: Background into economic development, sustainability, and the local economy

• Section Two: Focus on sustainable economy vision and goals – where we are going • Section Three: Focus on the strategies and actions to transition towards a more sustainable local economy

• Section Four: Alignment with other plans at an international, national, state, and local level

For more background analysis Further detail can be found in the separate background paper: Background to the Sustainable Economy Strategy.

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Background

Discussion: Economic development What is economic development? The World Bank defines economic development as processes of building up “the economic capacity of an area in order to improve quality of life” [1] . Improving quality of life does not necessarily require more economic activity, but all economic activity should be judged according to its ability to improve quality of life. Economic capacity may refer to:

• availability of capital such as machinery, warehouses, and finance • availability of knowledge, such as how to produce a good more efficiently • workforce capacity • density of networks of information flows, reciprocity, and collaboration • enabling policy environment • access to markets

Local Government’s role in economic development Local Government is not only a direct employer, but also procures significant services from contractors in managing its assets, directly injecting cash locally. In addition, normal activities and decisions of Local Government influence the local economy and business environment [1]. By developing an understanding of this and a positive and enabling culture of support for local businesses and community members, Local Government can contribute positively to economic outcomes.

Further contribution to the local economy can also come in the form of:

• policy to safeguard the environmental and social basis for long-term economic health • support for events and local markets • provision of services, such as waste management and library services • planning for vibrant and liveable communities • development of enabling infrastructure and policies • provision of information, training, and networking opportunities • encouraging localism in purchasing decisions • regular business engagement • support for business awards • providing grants, or submitting grants on behalf of the region

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Economic development since COVID-19 The COVID-19 pandemic has highlighted the importance of resilience – the ability to withstand and bounce back from adverse situations. Such adversity may be in the form of mild shocks, enduring crises such as pandemics or climate change, and major disruptions such as natural disasters. It is important that any efforts to rebuild the economy from COVID-19 do not exacerbate other problems, such as environmental damage or inequality.

There is an increasing awareness of the need to “build back better” – that is, use this time of economic recovery to invest in industries and jobs that will support a stable climate, regenerating ecosystems, and fair community. This undertaking is captured in the examples later in this document in the section on Alignment with broader sustainable economy plans.

Other stakeholders While Local Government can have significant influence on local economic outcomes, the job of transitioning to a more sustainable economy belongs to everybody. Both State and Federal Government are better resourced to tackle some of the big challenges we face, and the role of the Shire will sometimes be simply to advocate to these authorities for support. For example, both public transport and social housing are the domain of State Government.

State agencies that have an influence on the shire’s local economy include South West Development Commission, Department of Primary Industries and Regional Development, and Tourism WA. Regional and local industry bodies also play a role, such as Margaret River Busselton Tourism Association, Australia’s South West, Margaret River Wine Association, and local business chambers.

Likewise, local institutions and community groups with a focus on preserving environmental assets, looking after disadvantaged community members, or offering training and education play a key role in the local economy. Finally, businesses, producers, artists, and performers themselves play a key role in the health of the local economy.

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Discussion: Why “sustainable” economy? An economic paradox The purpose of the economy is to provide affluence; and by destabilising us with the goods and services we need to environmental trends such as falling water live a life of well-being. Our economy has tables, expanding deserts, growing given many of us extraordinary wealth – urbanisation, growth of atmospheric CO2 comfortable transport, warm housing, concentrations, and increasing ample electricity and appliances, abundant temperatures (see below). These trends food, and an endless array of threaten not only our sense of well-being, entertainment. The cost of this economic but the ability of natural systems to growth, however, has been an support human life in the future. increasingly threatening sustainability It may be hard to see the local relevance crisis that suggests some serious flaws in of such big issues, but even locally we the way our economy is operating. have sustainability challenges that are a This is indicated by extreme microcosm of the bigger picture. Rather concentrations of wealth coupled with than seeing environmental and social extreme poverty and famine; by wellbeing as factors to be weighed against unprecedented losses of plant and animal economic goals, they need to be species; by social issues such as crime, conspicuously at the core of our economic mental illness, suicide, and diseases of goals.

The “exponential graph” shapes below show an unsustainable trend, and can be seen across a variety of themes, from global warming and economic growth (as shown below) to population, species loss, ocean acidification, fertiliser consumption, and tropical forest loss.

Total Trillion 2009 U.S. Dollars 80

0 1950 1960 1970 1980 1990 2000 2010

Figure 2: Global Mean Estimates based on land and ocean data Figure 1: Gross World Product 8(NASA) Natural Connected Prosperous

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The role of ecosystems in our economy Our economy rests squarely upon ecological services, including crop pollination, soil creation, climate regulation, water purification, disease and pest regulation, erosion regulation, and nutrient cycling. These ecological services are threatened by humankind’s increasing demand for natural resources. Economists have estimated the value of these ecological services to be $125 trillion per year [2]! There is no substitute for these services.

Figure 3: Ecological services, cited in the Living Planet Report 2018 [3]

An integrated economics A sustainable economy requires recognition that all economic activity is embedded within the natural world, and cannot extend beyond the constraints set by nature – there exist non- negotiable environmental boundaries. A sustainable economy is about living well while consuming less resources and generating less waste – a circular economy with fair distribution. This is eminently achievable unless we define living well as consuming more stuff. A sustainable economy also requires recognition that economic activity is essentially a social function – the economy is embedded within society – and the economy’s purpose is to serve society. Therefore, a sustainable economy ought to improve social outcomes as a core objective. The measures by which we determine whether the economy is succeeding or not in improving wellbeing need to be far more meaningful and thorough than GDP.

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Council recognises that all life has intrinsic value, is interconnected and that biodiversity and ecological integrity are part of irreplaceable life support systems and are the foundation for our region’s lifestyles and economy.

Augusta Margaret River Overarching Sustainability Policy 2018

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Augusta Margaret River snapshot

The Augusta Margaret River region is The region has its economic roots in regarded by many as a uniquely beautiful Aboriginal land management, and then and inspiring part of the world, with a dairy and logging, which later diversified to reputation for being clean and green. The agriculture, viticulture, wine-making, and suite of rural industries is set against a then a burgeoning tourism industry. On backdrop of limestone cliffs, underground the back of the first commercial grape cave systems, temperate forests, rugged vines being planted in 1967 by Tom beaches, ancient granitic gneiss Cullity, of Vasse Felix, the region has seen formations, fragrant coastal heathlands, high growth in both residents (Figure 4) and verdant farmland. and visitors. This growth has, in turn, spurred the construction industry and related trades.

Figure 4: Population growth in the Shire

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GRP of The Gross Regional Product (GRP) of the shire was $915 million in 2017- $915 million 2018, meaning that the local economy created an additional $915 million of products and services after taking into account costs of production.

The 2,009 businesses* within the shire operate across a range of different industries, and employ 7,349 people. This employment capacity falls short of 2,009 the number of local residents who are employed – currently 8,431 – meaning businesses that some local residents need to travel out of the shire for employment. This is summarised by the jobs-to-workers ratio, which sits at 0.87, though this ratio varies significantly from industry to industry.

Typical of Western Australia, the shire has a large number of small businesses – 88% having four or less employees, and a further 10% having 98% are between 5 and 19 employees. Studies have demonstrated the employment small creation from small business is much higher than large business per given businesses amount of business spend [4]. At the same time, a variety of scales is important in the business sector, where certain industries such as manufacturing and mining – those that require significant capital investment – favour larger businesses [5].

There is a high labour force participation rate, with only 3.2% unemployed High compared to 6.2% for Western Australia. This reflects a high degree of part- workforce time and casual employment, which can be challenging for residents seeking participation security of income.

As a percentage of employment, the Shire of Augusta Margaret River is the 25th most tourism-dependent Local Government Area in Australia (out of Tourism 537), This leads to challenges from seasonality of tourism, and in cases of reliance shocks to the tourism industry such as COVID-19.

Agricultural The shire has a significantly higher concentration of wine and agricultural region industry than the national average, and most of this product leaves the region as domestic and international sales.

* This strategy draws heavily from data supplied by ID Profile, based on NIERS and ABS data, which puts the focus on businesses that are registered for GST. As such, many of the smaller businesses within the Shire with turnovers less than $75,000 per year are not captured in the analysis.

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EMPLOYMENT BY INDUSTRY

Manufacturing Agriculture Accommodation & Food Retail Construction Health Care Creative Education & Training Other

Manufacturing 11% Other 21%

Agriculture 15%

Education & Training 8%

Creative 4% Accommodation & Food 14% Health Care 7%

Construction Retail 10% 10%

The main industry sectors are listed below, and further detail is available in the Background to the Sustainable Economy Strategy paper:

• Manufacturing: predominantly comprising wine production, but with a growing food product industry and some steel fabrication, this sector accounts for 11% of jobs in the shire. Challenges include competing in the premium products market, accessing capital to scale up and reduce operating costs, and geographic isolation and consequent distribution challenges. Opportunities include the potential for greater food sector collaboration, such as a food hub – a collaborative value-adding, marketing and distribution initiative.

• Agriculture: including dairy, beef, sheep, horticulture, grapes, nuts, avocadoes, olives, and some fishing and aquaculture. This sector accounts for more than 15% of the Shire, more than any other sector. Challenges include rising costs of consumable inputs and machinery, costs of haulage and road infrastructure, degrading soils and decreasing rainfall. Opportunities for the sector include greater adoption of “regenerative farming” practices, micro-abattoirs and onsite processing/value-adding, and an increased focus on certified organic produce.

• Accommodation and Food: strongly dependent upon tourism, these sectors account for nearly 14% of local jobs. COVID-19 has been damaging to tourism- dependent businesses within the shire, and recovery to previous visitation numbers may take some time. Outside of COVID-19, additional challenges include seasonality of visitation, and high overheads for running physical premises in townsite centres, particularly Margaret River. Opportunities include attraction of

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business events to the Margaret River HEART, greater focus on accessible tourism for people with a disability, and ECO Destination Certification.

• Retail: accounting for 10% of local employment, the retail sector relies heavily on visitor spend. Challenges include the COVID-19 travel restrictions, a wider economic downturn prior to the pandemic, low profit margins of store-based retail, and increasing online shopping habits. Opportunities include adoption of e-commerce platforms, and potentially a single consolidated online marketplace.

• Construction: generating nearly 10% of local jobs, the construction industry is a highly competitive sector reliant on growth of residential and visitor population. There is opportunity to build local industries along the supply chain, such as door and window manufacture. Wider sustainability opportunities include increasing density of existing residential areas, designing dwellings to be producers of energy, water, and food, and improving reuse of waste streams.

• Education and training: accounting for over 8% of employment within the Shire, this sector includes Preschool and School Education (6.5%), Adult, Community and Other Education (1.1%), and a small amount of Tertiary Education (0.6%).

Further analysis is undertaken of these smaller industry sectors that will potentially play a bigger role in the Shire’s future economy.

• Creative industries: including cultural production, such as music, film, and art, and creative services, such as architecture and design, and software and digital content. Challenges include isolation from metropolitan centres of cultural activity, and lack of trained young talent to fill expanding work demands. This sector could benefit from joint-venture arrangements to successfully win tenders beyond the scope of any single creative operator in the shire.

• Health care industries: a smaller sector in the shire, accounting for 7% of employment, but likely to fulfil an increasingly important portion of the local economy.

• Other: comprising a significant number of local jobs, the “other” category comprises industries that each account for less than 4.5% of employment including:

o Rental, Hiring and Real Estate Services

o Transport, Postal and Warehousing

o Wholesale Trade

o Public Administration and Safety

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Our direction

Vision The local community is supported by livelihoods and enterprises that are sustainable, climate-resilient, diverse, and locally-owned in a circular economy, a regenerative and improving environment, and a just community that upholds the rights of everyone.

Sustainable Economy Goals The following goals support the foundations for long-term health of the local economy. We all have a role to play in achieving these goals within the community.

1. Healthy 2. Fair and 3. Vibrant ecosystems inclusive townsites economy

4. Economic 5. Successful 6. Local resilience livelihoods ownership

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What is meant by Circular Economy?

A circular economy models production and consumption on natural processes, emulating nature’s approach to:

• Waste – there is no such thing, all waste is a resource, and materials and products are kept cycling within the economy!

• Inputs – water and materials are only used at a rate at which they can be replenished

• Energy – all energy comes from current sunlight, either directly as solar energy and primary production, or indirectly as wind, wave, and secondary

production such as livestock

This way of operating is very different to the linear economy we are used to, which is essentially a “take, make, dispose” model, converting natural resources into products, which are then used, and subsequently disposed of. Because a circular economy focuses on designing products in a way that at the end of their life they can be re-used or recycled, it avoids the need for additional natural resources and the creation of enduring waste. This can result in the triple benefit of reduced environmental impacts, lowered business operating costs, and generation of new industries.

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Sustainable Economy goals in detail

Goal 1: Healthy ecosystems The shire’s economic base is directly Further pressures on our agricultural linked to the region’s ecological health, industries come from declining rainfall and and any economic development approach stream flow. Since the early 1970s the needs to ensure the health of the local south-west has experienced a winter natural environment is at the centre. Not rainfall decline of 20% [6]. Projections for only is there the obvious benefit the 2050 suggest serious implications for the natural surroundings bring to the region’s agricultural and viticultural industries [7]. tourism offering, but more fundamentally The long-term health of our economy is there is an inescapable interrelationship intrinsically linked to the health of our between local industries and the environment. environment they are embedded in.

Goal indicators Shire influence

Percentage of energy generated from Shire’s electricity consumption, awareness renewable sources in the community of benefits and opportunities

Waterway health Riparian plantings, organisational capacity for regenerative agriculture training Developer’s awareness of Recycled Water Water efficiency Scheme Percentage of waste diversion from landfill Infrastructure and education to divert waste

Hectares of native vegetation Land use planning to limit development in vegetated areas, revegetation

Hectares of land under active Management of Shire reserves, funding for management conservation organisations

No. of flora and fauna under threat Land use planning to limit development in sensitive areas, support for Owl Friendly initiatives

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The decline in Marri tree blossom leads to fruit damage in vineyards from birds seeking alternative food sources. The environmental problem of Marri Canker disease and Shoot Blight creates serious economic concerns.

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Goal 2: Fair and inclusive economy

Economic development approaches need discrepancy between income and to ensure that all members of the expenses is a challenge for the Shire, and community can build their capacity for may not be solved by relying solely on quality work, training, and economic increases in labour productivity to deliver wellbeing. Affordable housing, a living wage growth. wage, employment of marginalised The Shire can play a role in encouraging community members, meaningful investment in renewable energy, employment, and opportunity to own encouraging social housing, advocating capital are all important aspects of a for employment of marginalised people, sustainable economy. and facilitating local investment Lower incomes than surrounding Shires, opportunities that build local ownership of coupled with high housing costs have assets. resulted in the Shire suffering from

“severely unaffordable housing” [8]. The

Goal indicators Shire influence

Median per capita income Small Business Friendly environment

Percentage of households experiencing Opportunity for housing diversity through mortgage stress planning processes Diversity of post-secondary educational Collaboration with South Regional TAFE courses Childcare availability Outside School Hours childcare services, efforts to attract additional childcare

Unemployment rate Entrepreneurial environment for new industries to thrive

Volunteerism Capacity of local non-profit groups, recognition of volunteers

Relative income poverty Opportunities for talent development and traineeships

Geographic equity Place-based community engagement to understand needs specific to different townsites

Tackling Disadvantage and Inequality: “Supporting community and celebrating diversity through social inclusion and cultivation of nascent abilities, enhancing economic wellbeing, resilience and self- sufficiency.” Outcome Statement from Tackling Disadvantage and Inequality through the Economic Development Strategy: A Report to the AMR Shire [42] 19 Natural Connected Prosperous

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Goal 3: Vibrant townsites

Economic development should further community, and new ideas. Factors enhance, rather than detract from, include such things as accessibility, ease vibrancy of civic centres and public of transport, street life, nightlife, spaces. While it’s a hard thing to define, cleanliness, sense of safety, uniqueness, vibrant town sites are places where people diversity of shops and experiences, built want to come together, to mingle, form, art, and integration with the natural celebrate, and share experiences. Vibrant environment. town sites foster social capital, sense of

Goal indicators Shire influence

Attendance at events Diversity of events, accessibility, local relevance

Crime rates Urban environment that encourages safety, community cohesion Satisfaction with pedestrian and cycle Condition and connectivity of trails trails Satisfaction with playgrounds, parks and Condition and accessibility of public open reserves space

Area of public open space Developer’s approach to public open space

Community enjoyment of public art Quality and diversity of art commissioned by Shire, maintenance of art

Length of time on Main Streets Presence of al fresco dining, public art and other activations, free WiFi

Main Streets commercial occupancy rates Communication with traders, Small Business Friendly environment

“A good city is like a good party – people stay longer than really necessary because they are enjoying themselves.” - Jan Gehl

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Goal 4: Economic resilience

Significant changes locally and globally energy generation, infrastructure and create challenges for the health and transport systems. resilience of the local industry base. Just like in an ecosystem, diversity is key Broad trends, such as consumer shift to to resilience when subject to broader experiences over products, can radically shocks. Diversity of industry creates a change economies over time, and sudden large variety of employment opportunities shocks, such as an oil crisis, pandemic or to suit the range of qualifications, skills, fluctuating commodity prices, can change and natural propensity of residents. economies very quickly. Resilience is the Diversity also creates a more interesting ability to withstand, absorb, or bounce and engaging place to live in. back from shocks and adapt to changes. Examining where economic leakages are In a carbon-constrained future with greater occurring through existing imports can climatic volatility, and within the help identify opportunities for new local ecologically defined limits to scale of the industries, which can mature to provide economy, it is suggested that the significant local employment, and greater community works towards resilience of self-sufficiency in services and other living wages, food production systems, industries. ecological services, social cohesion,

Goal indicators Shire influence

Amount of money spent on imports Awareness of Buy Local message, local business success in quoting for Shire contracts and tenders Housing affordability Diversity of housing types, State Government awareness of need, identification of Shire-owned land Diversity of industry Small Business Friendly Environment

Percentage of local renewable energy Investment in solar pv at Shire buildings, generation education in the community, capacity of local non-profits to deliver services

Community engagement Capacity of non-profit groups and halls committees, presence of events, direct engagement for Shire projects

Road quality Maintenance and grading (Shire roads), advocate for road improvements (non- Shire roads)

Non-motorised transport options Network of trails, active transport options in commercial developments, bike racks in public locations

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Goal 5: Successful livelihoods

Having access to livelihood opportunities prerequisite for success. is a key factor in economic wellbeing. Entrepreneurship can entail bringing new These opportunities rest on the ability for solutions to old problems, in the process businesses and other employing creating new value, greater efficiencies, organisations to start up and succeed, and business and job opportunities. which in turn rests upon a supportive Choice of livelihood also requires a environment to nurture ideas and bring reasonable diversity of industry to best suit people together. Together these are core the specific talents and interests of parts of entrepreneurship. community members. In turn, community In a rapidly changing world, particularly a members need opportunities to develop world facing very disruptive social and their unique talents in order to continue environmental challenges, creative growing and developing over their lives. thinking and innovative solutions are a

Goal indicators Shire influence

Number of new businesses vs business Entrepreneurial environment for new closures industries to thrive

Tourist visitor spend and length of stay Condition of built and environmental assets, partnerships with MRBTA Number of functions bringing businesses Number and success of functions, together provision of venues Number of business start ups that have Entrepreneurial environment for new lasted five years industries to thrive

Jobs to workers ratio Talent development opportunities, Small Business Friendly approach

% of residents over 15 years age with a Promotion of educational opportunities and Vocational qualification, Diploma, or talent development, collaboration with Degree South Regional TAFE

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Goal 6: Local ownership

Economic development that increases sense of place, celebrating its local ownership of businesses, capital, uniqueness and diversity. These and energy infrastructure yields significant small, locally-rooted businesses benefits to the community, including: tend to serve local markets and thus want to position themselves • Locally-owned Higher multipliers: as centrally as possible, occupying businesses generally contribute small spaces in mixed land use more to the economic multiplier, town centres, which has a positive with spending circulating many impact on the sustainability of town times in the local economy before design. leaking out. • Better social impacts: Small and • being anchored in More reliable: local economic activity tends to the community, locally-owned also be accompanied by businesses tend to produce wealth meaningful social exchanges, and for many years without being local-business economies drawn into the temptation to shift encourage entrepreneurialism and operations elsewhere to increase civic culture more than their the rate of return. absentee-owned counterparts. • More dynamic: A community Local businesses give back to the made up of smaller, locally-owned community in which they are businesses tends to have a distinct nested.

Goal indicators Shire influence

Number of locally owned small businesses Entrepreneurial environment, promotion of Buy Local messages, promotion of local capital raising opportunities

Number of locally owned cooperatives Awareness and capacity building around cooperatives Number of locally-run non-profits Funding opportunities for local non-profits Percentage of jobs in locally owned Entrepreneurial environment for new entities industries to thrive

Amount of dividend and interest payments Awareness of local investment and that leak from the Shire banking opportunities, Shire’s Investment Policy

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Moving towards our goals

Together we are making steps towards a sustainable, resilient, and equitable economy…

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Strategy summary

To reach these sustainable economy goals the Shire’s role falls under three broad areas of action:

Make the economy work for people Strategy 1: Entrepreneurial environment Foster an enabling environment for creative ideas to flourish, for networking to be successful, and for new sustainable businesses to emerge.

Strategy 2: Place-making Ensure public places are attractive, interesting, safe, and nurture community interaction.

Strategy 3: Talent development Grow opportunities for all community members to develop their knowledge, skills and experience.

Invest in a sustainable future

Strategy 4: Sustainable tourism and events Ensure a diversity of events and experiences that meet the cultural and entertainment needs of residents and visitors without harming the natural environment.

Strategy 5: Local and regenerative investment Drive investment into the most regenerative initiatives possible, with a strong focus on local capital benefiting the local community.

Strategy 6: Infrastructure for a sustainable economy Maintain and build infrastructure to support economic resilience and opportunities for diverse, sustainable livelihoods.

Operate within environmental boundaries

Strategy 7: Circular economy Support and model best-practice approaches to waste elimination, resource recovery, renewable energy, and replenishable resource consumption rates.

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How to read the Strategies These strategies focus on tangible actions the Shire can undertake within its current financial and staffing budgets. The desire for clear action on improving the resilience and sustainability of our local economy needs to be tempered by the realities of budgetary constraints.

Strategy name Strategy description

Rational

History of recent Shire efforts

Action area

Funding source

Action

Funding for projects falls within the existing budget allocations for each business area assigned as the project lead, unless shown to require additional budget allocation or grant funding:  = falls within existing budget  = grant or external funding

 = requires additional Shire budget

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Sustainable Economy Strategies in detail

Strategy 1: Entrepreneurial environment Foster an enabling environment for creative ideas to flourish, for networking to be successful, and for new sustainable businesses to emerge.

Supporting the ability for local businesses encouraging a successful entrepreneurial to start up and succeed is an important ecosystem. task in helping secure a vibrant local This environment is defined by numerous economy. Significant changes locally and factors, such as the presence of incubator globally create challenges for the local hubs, industry clusters, opportunities for industry base, and these challenges need collaboration and information sharing, to be met with creativity, adaptation, and access to finance, capacity building and new thinking. Fostering an environment training, and more. Entrepreneurialism is that allows this creativity to flourish and one of the foundations for economic supports the passionate drive behind local resilience – that is the ability to bounce business ideas is a big part of back from shocks and adapt to changes.

What the Shire has been doing… • Sourced expertise: Employed a Sustainable Economy Officer; created a Sustainable Economy Reference Group to gain input from key business bodies and sustainability organisations;

• Supported local business: Created a business webpage with advice and information for local businesses; signed the Small Business Friendly Charter; run capacity-building workshops for local businesses;

• Local procurement: simplified procurement processes to encourage local business participation; implemented a Regional Price Preference on tenders to encourage local business success in winning tenders; run a training session for local businesses on winning tenders;

• Funded: provided financial and in-kind support for events in the region; provided sponsorship for the Business Awards; provided Economic Stimulus funding;

• Collaborated and listened: worked closely with Main Street Traders to reduce construction impact of the Main Street Redevelopment; facilitated quarterly Industry Leaders Group meetings; collaborated with numerous organisations for local economic outcomes, including Margaret River Chamber of Commerce and Industry, Rotary Margaret River, Augusta Chamber of Commerce, Cowaramup Business Association, and Margaret River Regional Producers Association.

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Going forwards…

Action Funding Implementation Lead

1.1 Support access to commercial real estate

1.1.1 Help promote creative hubs, maker  Ongoing Sustainable spaces, and co-working spaces within the Economy shire

1.2 Support cooperation amongst businesses and peak organisations 1.2.1 Support and hold regular networking opportunities for businesses and business Sustainable organisations, including regular meetings with Economy, CEO, Ongoing the Sustainable Economy Reference Group,  Community the Liquor Forum Group, and the Industry Planning and Leaders Group Development

1.2.2 Explore interest within Light Industrial  2024-2025 Sustainable Areas for occasional networking opportunities Economy to build collaboration and knowledge sharing

1.3 Foster broader discussion and innovation in sustainable business

1.3.1 Participate in and promote a Sustainable Industries Cluster for innovative businesses,  2021-2022 Sustainable local business chambers, and community Economy members for innovation in circular economy

1.3.2 Continue to host sustainable business  Ongoing Sustainable networking events increasing awareness of Economy

sustainability and climate change issues and showcasing local solutions and ideas

1.3.3 Facilitate sector-specific workshops to identify the barriers and opportunities for businesses in raising capital, expanding scale,  2024-2025 Sustainable accessing markets, import-substitution for Economy inputs, long-term skills and labour needs, improving sustainability outcomes, and remaining resilient in the context of future challenges including Climate Change

Potential future projects:

• Identify opportunities to pair up landholders with landless farmers, such as the Food Resource Next Door Co-Op in Mildura dependent

• Explore with the local Business Chambers opportunities for developing a local producers business fair to highlight local opportunities and business-to-business procurement

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STRATEGY 2: Place-making Ensure public places are attractive, interesting, safe, and nurture community interaction.

Place-making is about managing public 2) Vibrancy of public places to make spaces to add vibrancy and attract people, them more “sticky”, encouraging participation, and healthy social people to linger and potentially exchanges. By working on the built form, become customers. or activation through events and activities, With investment and people more mobile place-making improves: than ever before, fostering sense of place, 1) Liveability of the community, in and helping articulate each locality’s self- turn helping retain and attract identity, is an important economic talented workers, creatives, and development strategy. innovators.

What the Shire has been doing… • Invested in spaces: Maintained and improved public parks; redeveloped Margaret River’s main street to include a more pedestrian-friendly environment, more street furniture, and a “festival precinct” to maximise opportunities for community celebrations; undertaken landscape improvements on Augusta’s main street; upgraded the youth precinct with a world-class skate park, youth space, playground, and café;

• Encouraged art: implemented public art plinths in key public spaces; developed a Creative Blueprint to guide ongoing cultural and arts efforts in the Shire; required larger developments to either commit some public art or contribute to the Shire’s public art fund; begun a process of simplifying processes to encourage al fresco dining and vibrancy on Margaret River’s main street; and reviewed the Local Planning Strategy to encourage urban form that is conducive to people, sustainability, and community.

• Funded: provided ongoing grants for community and youth events;

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Going forwards…

Action Funding Implementation Lead

2.1 Increase presence of art and activations in town centres to foster sense of place and local interest

2.1.1 Create concept plan and develop a Margaret  2021-2022 Sustainable River town centre art trail Economy,  Community Planning and Development 2.1.2 Implement the Creative Culture 2020-25 plan  Ongoing Community and administer public art via the Public Art Policy. Planning & Development 2.1.3 Develop defined busking areas in town  2021-2022 Events & centres with simple permit process Permits

2.2 Improve navigability and accessibility of public places 2.2.1 Implement a way-finding program for  2021-2022 Assets Services Margraret River to provide orientation and interpretation for visitors

2.2.2 Complete and implement Margaret River  2021-2030 Asset Services Precinct Plan, to improve connectivity between the river and the townsite, and improve amenity  around the river

2.2.3 Redevelop playgrounds within neighbourhood  Ongoing Asset Services and district level parks, as required, with a strong

focus on sense of place and access for all

2.2.4 Foster active transport through systemic upgrade  Ongoing Asset Services and extension of townsite pathways

2.3 Partner with the communtiy

2.3.1 Support community groups to develop and deliver inclusive and participatory programs and  Ongoing Community events Planning & Development, 2.3.2 Facilitate activation of the Margaret River Ongoing Community Youth Precinct through recreational, social support  Planning & and commercial partnerships Development

2.3.3 Support community-driven place-making  Ongoing Senior efforts within the various towns, villages and Leadership communities across the shire  Team

Potential future projects:

• Support SWDC’s South West Music Strategy and initiatives coming from the Live Resource Music Office that encourage engagement between venues and local musicians dependent

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STRATEGY 3: Talent development Grow opportunities for all community members to develop their knowledge, skills and experience.

A successful, adaptive, and sustainable The ability to develop one’s talent, and the local economy requires a talented ability to apply that knowledge or skill, is workforce and highly capable business an important contributor to personal well- people. Education and training has being, and should be accessible in an economic benefits for the individual, equitable way. Ensuring talent leading to improved earnings capacity. An development is accessible to all members educated workforce also benefits of the community will help maximise the businesses, who have a growing demand Shire’s productive potential. for higher education, forming a significant factor in decisions around places to invest [9].

What the Shire has been doing… • Employment: Created two internship positions, in Community Development and Parks & Gardens; employed an apprentice mechanic; fostered greater participation of female Councillors and staff into leadership positions;

• Capacity building: supported libraries and other community spaces for learning and knowledge-sharing; run educational and capacity-building events for youth, community members, community groups, and local businesses;

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Going forwards…

Action Funding Implementation Lead

3.1 Identify, facilitate and fund opportunities to build the knowledge and skill base of community members

3.1.1 Support regenerative agriculture 2022-2023 Sustainable workshops and capacity building, including Economy exploration of developing at South Regional  TAFE a Certificate III in Regenerative Agriculture, and opportunities for training in organic farm management

3.1.2 Continue to support delivery of capacity- Ongoing Sustainable building workshops for local businesses within  Economy the Shire as opportunities arise

3.1.3 Support libraries and other spaces as Ongoing Library Services community hubs and centres of information,  learning, creativity and innovation

3.1.4 Work with South Regional TAFE, industry 2023-24 Sustainable leaders, and sustainability experts to deliver a Economy,

Sustainable Jobs Expo to showcase  Community opportunities in the rapidly growing circular Planning and Development economy

3.1.5 Support mentoring for school leavers to Ongoing Sustainable Economy, guide business acumen and skills  Community Development 3.2 Ensure opportunities for work experience and employment of diverse community members

3.2.1 Continue to provide flexible work arrangements to remove barriers to participation  Ongoing CEO as a Councillor and/or enable participation of all demographics as Councillors and staff

3.2.2 Promote awareness of the opportunities Ongoing Community and advantages that derive from employment of Development  people with disabilities within the business community

3.2.3 Enable accessibility to childcare services  Ongoing Outside School that will support families and early years Hours Care development

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STRATEGY 4: Sustainable tourism and events Ensure a diversity of events and experiences that meet the cultural and entertainment needs of residents and visitors without harming the natural environment.

The AMR Shire is the 25th most tourism- potential for relatively low-impact industry. dependent local government area in In addition, inclusive and accessible Australia for its employment. Tourism tourism delivers a win-win for the local underpins many of the other industries in economy and visitors who may generally the region, and we need to ensure tourist experience exclusion. Increasing winter visitation and activities are compatible with visitation is a means to even out the the ecological and social needs of our seasonality of tourism-related industries, community. In particular, ecotourism, agri- relieving stresses on cash flow and tourism, and wine tourism have the employment satisfaction.

What the Shire has been doing… • Funded: Provided significant annual funding for events; provided significant annual funding for conservation and environmental management to preserve the natural assets of the region;

• Guided: Developed a Sustainable Events Strategy that focuses on community involvement, environmental sustainability, and simple approvals processes; developed a sustainability information sheet for events;

• Invested: Upgraded the Cultural Centre into the new HEART, including a $150,000 Culture & Arts Grants program; made improvements on accessibility of public spaces; created an extensive network of trails for active, healthy lifestyles and nature-based activities.

Going forwards…

Action Funding Implementation Lead

4.1 Manage the impact of tourism on the region to enhance environmental and social outcomes 4.1.1 Work with MRBTA and other stakeholders Sustainable towards ECO Destination Certification for the Economy,  2021-2025 Margaret River Region, growing and protecting Planning and the region’s environment and brand name Development Services 4.1.2 Develop a Sustainable Tourism Action Plan in conjunction with key stakeholders to identify  2022-2023 Sustainable key actions for improving the impact of visitors on Economy the local community, economy and environment

4.1.3 Develop implementation plan for Communicaitons, Sustainable Events Strategy Environmental  2021-2022 Health, Sustainable Economy

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4.1.4 Work with accommodation sector, 2024-2025 Sustainable community organisations and MRBTA to explore  Economy, Wild Nights – an environmental donation program Finance Services

4.1.5 Undertake assessment and improvement of sustainability performance of Shire’s holiday parks  2021-2022 Caravan Parks and camping grounds towards ECO Certification

4.2 Stimulate development of sustainable tourism product and events 4.2.1 Work with local industry to explore  2022-2023 Sustainable opportunity for a Regenerative Agriculture Economy, Conference at Margaret River HEART  HEART

4.2.2 Support strategic partnerships and  Ongoing HEART, promotion of a full and interesting program of Sustainable events at the Margaret River HEART Economy

4.2.3 Provide grant funding for major events that Annual Events, provide a window into our community and showcase  Marketing, Sustainable the Shire to state, national and international audiences Economy

4.2.4 Provide grant funding to offset venue hire  Annual HEART costs for events and activities hosted at Margaret River HEART

4.2.6 Continue improving accessibility of public  Ongoing Infrastructure, places and ensuring accessibility compliance of Planning and new private developments Development

4.2.7 Support awareness-raising and training Ongoing Community around accessible tourism opportunities  Development, Infrastructure,

Sustainable Economy 4.2.8 Support the development of RV Friendly parking bays and infrastructure towards adoption  2021-2025 Asset Services of the “Community Welcomes Recreational Vehicle” brand

4.2.9 Advocate for external funding towards Ongoing Asset Services implementation of Leeuwin Naturaliste 2050 Cycling  Strategy, and Regional Trails Strategy once finalised

Potential future projects:

• Explore feasibility for a local carbon offset program for visitors to the region

• Undertake feasibility study of an Agri-tourism trail, helping diversify agricultural Resource incomes and create connectivity with the farming community dependent

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STRATEGY 5: Local and regenerative investment Drive investment into the most regenerative initiatives possible, with a strong focus on local capital benefiting the local community.

Investment is a relationship between the This complements the common economic present and the future, forgoing spending development approach that seeks to make money now to create more value in the the region more attractive for outside future. By guiding investment towards investment. This approach can deliver productive and regenerative initiatives we both positive and negative outcomes for help build a sustainable future for the the community, depending on the region. By leveraging the existing strategies employed to make region more investment potential of local community investment attractive. For example, members – whose investment portfolios regions might compete with each other in are usually heavily swayed towards a “race to the bottom” to relax distant, publicly-traded corporations – we environmental and labour regulations so can help stimulate local production. In as to deliver a more attractive return on connecting local investors with local investment. Regenerative investment investment opportunities this capital can seeks to ensure that all investment is be put to work in stimulating locally- building greater social, environmental, and productive enterprises, or allowing local economic wellbeing rather than trading off businesses to scale up or take the next big short-term benefit in one area to the step in their business development. detriment of the others.

What the Shire has been doing… • Procurement: Implemented a Regional Price Preference to increase number of local contractors winning tenders;

• Investment: Invested significant amounts of reserve money into the local Bendigo Bank;

• Awareness-raising: Implemented the Local-Is-More campaign to encourage the community to support local producers and businesses;

Going forwards…

Action Funding Implementation Lead

5.1 Shift greater proportion of spend to local suppliers

5.1.1 Ongoing support for the Local-Is-More  Ongoing Sustainable “choose local” campaign Economy

5.1.2 Ensure Shire purchasing policies and procedures are equitable and effective,  enabling local businesses to provide Ongoing Finance contract services for the Shire Services

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5.1.3 Encourage local food consumption 2023-2024 Sustainable opportunities, such as in school and hospital  Economy, kitchens Environmental Health 5.2 Maximise investment in regenerative portfolios

5.2.1 Work with SWDC to support the 2022-2023 Sustainable development of a place-based Impact  Economy Investment prospectus for the shire

5.2.2 Explore options for divestment of Shire’s 2021-2022 Finance investment portfolio from unsustainable industries, Services,  and consider sustainability criteria in the next Sustainable review of CCSP5: Investments Policy Economy, Council

5.2.3 Host a responsible investment seminar, for 2022-2023 Sustainable residents and businesses on ethical Self-Managed Economy  Super Funds, ethical portfolio investment, and local investment opportunities

5.2.4 Deliver grants program to support capacity of Annual Planning and community groups to deliver valuable social and Development environmental services (Organisation Operating Services,  Community Grants, Community Development Grants, Planing and Community Events Grants, Community Halls Development Grants)

5.2.5 Ongoing investment in the region’s Annual Planning and environmental assets through the Development  Environmental Management Fund and Services Environmental Stewardship Grants

5.3 Support local business efforts to attract investment

5.3.1 Support local Chambers and associations to support programs that enable businesses to 2024-2025 Sustainable become investment ready and understand the  Economy opportunities of obtaining capital through crowdfunding platforms to leverage grassroots investment

Potential future projects:

• Set up a live listing of local crowdfunding and investment opportunities through Local- Is-More website Resource • Explore local capital raising initiatives such as local investment opportunity networks, dependent a local stock exchange, crowdfunding for equity, local bond release, and Angel investment

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STRATEGY 6: Infrastructure for a sustainable economy Maintain and build infrastructure to support economic resilience and opportunities for diverse, sustainable livelihoods.

Infrastructure forms part of the physical asset also include digital infrastructure. The types of base that underpins the smooth running of the infrastructure developed heavily influence the sort economy. Physical infrastructure includes things of economic activity that can take place in a like roads and freight assets, energy distribution, region, and have a profound impact on how this and irrigation channels – assets that directly activity affects the social and environmental fabric support the productivity of the economy. It can of the region.

What the Shire has been doing… • “Soft” transport infrastructure: Continued the Wadandi Track extension, providing a soft adventure ecotourism trail as well as a non-motorised transit option between Witchcliffe, Margaret River, and Cowaramup; continued developing the trail between Dead Finish and Cape Leeuwin Lighthouse; incorporated a cycle path into the design of the Margaret River main street redevelopment to encourage non-motorised modes of transport in a safe manner;

• Road improvements: driven the Perimeter Road project to remove heavy vehicles from the centre of Margaret River and pave the way for the Main Street upgrade; maintained roads owned by the Shire.

• Wayfinding: implemented signage in Cowaramup to assist visitor wayfinding to the Wadandi Track;

• Digital infrastructure: contributed to the Main Street Wi-Fi;

• Energy infrastructure: Installed 464 kwh Tesla battery at the Margaret River Recreation Centre; solar PV installations on Shire buildings;

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Going forwards…

Action Funding Implementation Lead

6.1 Develop / advocate for infrastructure for reduced transport emissions

6.1.1 Maintain walking and cycling trails and  improve connectivity Ongoing Asset Services

6.1.2 Progressivley transition away from fossil fuel-dependent vehicles within the Shire fleet Infrastructure,  2021-2022 by implementing relevant actions from the Fleet Manager Climate Action Plan

6.1.3 Advocate for improved public transport  services with a focus on low carbon Ongoing Councillors technologies

6.2 Develop / advocate for infrastructure to improve business efficiency

6.2.1 Participate in steering group to explore  infrastructure investments in line with the  Ongoing Sustainable Scott River Sustainable Economy Strategy Economy

6.2.2 Partner with MRRPA, Lower South West Growers Group, Lower Blackwood 2023-2024 Sustainable Landcare, ECU, State Government and other  Economy, CEO stakeholders to explore feasibility of a “food hub” focused on value-adding, and collective marketing and distribution

6.3 Develop / advocate for infrastructure for economic resilience

6.3.1 Continue to advocate for the provision of social housing within the shire  Ongoing Planning and Development 6.3.2 Ensure strategic planning frameworks encourage a diversity of housing stock and  Ongoing Planning and foster affordable housing Development

6.3.3 Continue to encourage developers to Ongoing Planning and utilise the Margaret River Recycled Water  Development Scheme Services

6.3.4 Continue to support efforts to attract or Ongoing Corporate and develop childcare facilities within the Shire  Community Services

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STRATEGY 7: Circular economy Support and model best-practice approaches to waste elimination, resource recovery, renewable energy, and replenishable resource consumption rates.

Circular economic practices design production actively support the regeneration of to minimise (or eliminate) waste, and seek to ecosystems, and transition to the most use resources and inputs at a sustainable and sustainable resources and energy sources replenishable rate. As highlighted in the possible. Climate change is a major risk factor Discussion: Why “Sustainable” Economy in our communities and economies, and section, unreasonable demands on natural circular economy practices are a direct way to resources – whether it be timber, oil, coal, or mitigate against these effects. groundwater – destabilise essential services The Shire can show leadership in this regard, and we require for our wellbeing. help create an environment that supports With a growing population, both globally and in community and businesses to also be leaders in the Shire, it is important that we model and sustainability. promote efficiency of natural resource use,

What the Shire has been doing… • Education & awareness-raising: Held a Climate Action Summit in 2019, with 130 community members and experts driving an action plan to reduce emissions; funded and provided Living Smart and other behaviour change programs; funded workshops in Regenerative Agriculture, which holds a huge potential to capture carbon;

• Green energy: Installed 105kW Photovoltaic Panels on Shire buildings; annually offset 550 tonnes CO2; shifted to hybrid vehicles for new purchases in fleet; retrofitted Shire buildings to be more energy efficient; reduced 31% Shire emissions below 2007 levels as at 18/19;

• Policy changes: reviewed the Town Planning Strategy to encourage urban infill, reducing travel distances; updated the Mobile Food Business Policy to encompass a presumption against single-use plastic in the future; endorsed a Sustainable Events Strategy that will seek to incentivise mainstreaming of sustainability across events within the Shire;

• Resource recovery: implemented a Food Organics Garden Organics (FOGO) bin system to divert methane-generating organics from landfill and turn them into compost; implemented a mandatory recycling service; provide free green waste disposal and free garden mulch; implemented a greywater reticulation network that allows reuse of treated waste water to irrigate areas of public open space; and created drop-off points for recovery of mobile phones, batteries, bottle caps, printer cartridges, light bulbs, and waste oil.

• Waste reduction: installed water bottle refill stations in key locations; provided a mobile water refill station for events, discouraging single use plastic water bottles; supported the “wash against waste” trailer;

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Going forwards…

Action Funding Implementation Lead

7.1 Support capacity building of industry for circular economy outcomes

7.1.1 Implement circular economy grants program for assisting business investment in  Sustainable Annual new practices, new equipment, adoption of Economy sustainable behaviours

7.1.2 Contribute to development of Margaret Ongoing Sustainable River Wine Association’s sustainability action Economy  plan, to safeguard the region as Australia's premier wine region

7.1.3 Encourage businesses to undertake Ongoing Waste Services, sustainable business training, auditing and Planning and certification  Development Services, Sustainable Economy 7.1.4 Explore feasibility of bulk milk supply for 2024-2025 Sustainable Economy, Waste cafes to reduce packaging  Services, Environmental Health 7.2 Support the circular economy through the reuse and redistribution of goods

7.2.1 Promote the Shire Tip Shop as an opportunity for waste to be reused or  Ongoing Waste Services repurposed

7.2.2 Davis Road Recycling and Waste Management Facility redeveloped with a focus  2021-2026 Waste Services on increasing resource recovery and minimising waste sent to landfill

7.3 Ensure Shire operations support circular economy outcomes

7.3.1 Implement Climate Action Plan  Ongoing Executive Leadership Team 7.3.2 Expand locations of drinking 2021-2025 Asset Services fountains/water refill stations in public places 

Potential future projects:

• Explore platforms for identifying “industrial ecology” partnerships, where one Resource industry’s waste can become an input for another industry, e.g. CSIRO’s dependent ASPIRE program

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Alignment

The Shire of Augusta Margaret River is not alone in pursuing a more sustainable way of undertaking our economies. We are joining a global movement seeking to transition to a more sustainable economy. The aspiration for a prosperous economy that enhances social and environmental integrity is mirrored in reports, strategies and plans at the international, national, state, and local level.

Shire of Augusta Margaret River Plans Community Strategic Plan 2036 The Shire’s own Community Strategic Plan outlines a 20-year vision for the Shire, and is informed by significant community consultation. The five goals of the Community Strategic Plan are consistent with the goals of this Sustainable Economy Strategy.

CSP Key Result Areas Sustainable Economy Strategy Goals Valuing, protecting and enhancing the natural Healthy ecosystems environment

Welcoming, inclusive and healthy Broad and inclusive wellbeing communities

Ensuring sustainable development Broad and inclusive wellbeing

Economic resilience Vibrant and diverse economy Successful livelihoods

Effective leadership and governance Local ownership

Overarching Sustainability Policy The Sustainability Policy adopted by Council sets governing principles in place that demonstrates the Shire’s understanding of, commitment to, and leadership in sustainability. The four key principles are to:

1. Demonstrate a commitment to the protection and enhancement of the unique natural environment and biodiversity of the region. 2. Demonstrate a commitment to minimising the effects of climate change and to sustainable resource use. 3. Demonstrate a commitment to social and cultural sustainability. 4. Demonstrate a commitment to sustainable economic development.

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Western Australian Plans Government of Western Australia: Green Jobs Plan The Green Jobs Plan is focused on providing employment opportunities for people in the regions whose jobs have been affected by COVID-19, providing training and employment in conservation initiatives.

Bankwest Curtin Economics Centre: Green shoots, opportunities to grow a sustainable WA economy The recently released report from Bankwest Curtin Economics Centre, Green Shoots: Opportunities to grow a sustainable WA economy, advocates a “green diversification” strategy with the potential to create 55,000 additional jobs. 49,000 of these would be in regional areas. The report highlights economic opportunities across waste recapture, water efficiency, smarter buildings, and a bolder approach to renewable energy.

Clean State: A Clean State Plan for WA Jobs Opportunity to create 204,215 clean jobs is demonstrated in the Clean State plan for WA Jobs, which makes the point that for every million dollars’ worth of investment far more jobs are created in low-carbon industries than fossil-fuel based areas.

National Plans Climate Council: Clean Jobs Plan The Clean Jobs Plan focuses on occupations and regions hardest hit by COVID-19, and outlines how “76,000 new jobs for Australians can help rebuild our economy now and tackle climate change”. Beyond Zero Emissions: The Million Jobs Plan The Million Jobs Plan, published in June 2020, reiterates the opportunity to reboot Australia’s economy following COVID-19 through prioritising investment in clean, low-carbon technologies. The plan identifies the need for both Government and private investment, speaking to growing appetite amongst institutional investors to fund low-carbon projects.

International Plans United Nations: Sustainable Development Goals The 17 Sustainable Development Goals are at the heart of the United Nations’ 2030 Agenda for Sustainable Development [10], and have a strong focus on wellbeing, equality, clean energy, responsible consumption and production, climate action and ecological health.

C40 Cities: Mayor’s Agenda for a Green and Just Recovery C40 is a network of 97 of the world’s greatest cities committed to addressing climate change – cities like Sydney, Melbourne, Seoul, Beijing, London and New York. The C40 Mayor’s Agenda for a Green and Just Recovery sets out the collective vision of mayors for investing in a sustainable, resilient, equitable recovery not only to address the immediate COVID-19 pandemic, but to ensure preparedness for future shocks.

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Related Shire Plans and Policies

Environment Environmental Elements of Sustainability Strategy (2016) Climate Action Plan Overarching Sustainability Policy (2018)

Economy Sustainable Events Strategy (2019) Local Planning Strategy

Community Strengthening Community Capacity Plan (2020-2025) Affordable Housing Strategy (2015) Creative Culture Plan (2020-2025) Public Health Plan (2020-2024) Access and Inclusion Plan (2018-2022) Strengthening Youth Plan (2018-2022)

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[36] Australian Bureau of Statistics, “6523.0 Household Income and Wealth, Australia, 2015-16,” 2018. [Online]. Available: https://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6523.02015- 16?OpenDocument. [Accessed 4 6 2020].

[37] Rural Bank, “Australian Farmland Values,” Rural Bank, 2019.

[38] United Nations General Assembly, “Resolution 73/284: United Nations Decade on Ecosystem Restoration (2021-2030),” 1 3 2019. [Online]. Available: https://undocs.org/A/RES/73/284. [Accessed 9 12 2020].

[39] Clean State, “Clean State Jobs Plan,” [Online]. Available: https://www.cleanstate.org.au/jobs-plan. [Accessed 10 12 2020].

[40] Alpha Beta, “Clean Jobs Plan,” Climate Council, 2020.

[41] D. Wood, J. Daley and C. Chivers, “A crisis of trust: The rise of protest politics in Australia,” Grattan Institute, 2018.

[42] G. Burke and L. Stocker, “Tacking Disadvantage and Inequality Through the Economic Development Strategy,” Shire of Augusta Margaret River, 2018.

[43] W. Steffen, “Compound Costs: How Climate Change is Damaging Australia's Economy,” Climate Council of Australia, 2019.

[44] S. C. H. L. A. Hajkowicz, “Our future world: Global megatrends that will change the way we live,” CSIRO, 2012.

[45] M. Unger and I. Emmer, “Carbon Market Incentives to Conserve, Restore and Enhance Soil Carbon,” The Nature Conservancy, 2018.

47 Natural Connected Prosperous

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Background to the Sustainable Economy Strategy

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Introduction

The Shire of Augusta Margaret River’s Sustainable Economy Strategy serves as a guiding strategy and action plan to move towards a more sustainable economy. The vision of the strategy is:

The local community is supported by livelihoods and enterprises that are sustainable, climate-resilient, diverse, and locally-owned in a circular economy, a regenerative and improving environment, and a just community that upholds the rights of everyone.

Background research can be found in this document, whereas the strategy itself is a separate document titled Sustainable Economy Strategy 2021-2025. The need for sustainability to be embedded as a core principle of the Shire’s economic development strategy reflects the strong focus the community has consistently placed on environmental and social wellbeing. This is reflected in the Community Strategy Plan 2036, under:

• Key Result Area 1: Valuing, protecting and enhancing the natural environment • Key Result Area 2: Welcoming, inclusive and healthy communities • Key Result Area 4: Vibrant and diverse economy. Author Paul Hawken, says that sustainability is about stabilising the “currently disruptive relationship between earth’s two most complex systems – human culture and the living world” (1). Nowhere is this more pronounced than in our economies.

The disruptive impact of the COVID-19 pandemic and ensuing lockdowns has prompted many people to consider other potential disruptions, such as climate change, and has served to strengthen a global resolve to “build back better”. This sentiment is reflected around the world, from the Mayors of the world’s major cities signing the C40 Mayor’s Agenda for a Green and Just Recovery (2), to “wellbeing economy” frameworks in New Zealand, Scotland, and Wales.

What’s in this report?

• Section One: Background into the local community • Section Two: Focus on the local economy – diversity, sustainability, leakage and an industry breakdown

• Section Three: SWOT analysis of the six key goal areas of the strategy and where our community and economy lie

• Section Four: Brief look at some broader megatrends that may affect our local economy over time

• Section Five: Appendix with the Shire’s Business Survey 2019

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How we got here…

A range of community consultation, expert advice, and research lies behind the Sustainable Economy Strategy. This is to ensure that the informing analysis and strategies presented are locally-relevant, and best-practice in the emerging understanding of an economics for sustainability. Informing documents The strategy has been informed by local consultation as well as desktop research. The full list of references to external documents can be found at the end of this background paper, and at the end of the Sustainable Economy Strategy itself. The following Shire of Augusta Margaret River strategies and research documents have informed the development of this strategy: • The Shire’s previous draft Economic Development Strategy • The “Tackling Disadvantage and Inequality through the Economic Development Strategy”, commissioned by the Shire • The Community Strategic Plan 2036, which is the guiding 20 year plan for the Shire undertaken in consultation with the community • Shire plans such as the Access and Inclusion Plan (2018-22), Strengthening Youth Plan (2018-22), Creative Culture Plan (2020-25), and Draft Local Planning Strategy (2036)

Consultation and input Input into the Sustainable Economy Strategy includes consultation undertaken previously in an early iteration of the Shire’s “Economic Development Strategy”. This included feedback from two Shire-run Food and Agricultural Summits, a workshop held at the Margaret River Education Centre in conjunction with Curtin University, industry focus groups, and public submissions on the draft strategy. This early work has been complemented by: • A local Business Survey in 2019 (report attached as an appendix) receiving responses from roughly 5% of businesses within the shire • Input and feedback from the Sustainable Economy Reference Group • Consultation with businesses and peak organisations, both as part of the Sustainable Economy business unit’s ongoing engagement with businesses and as a targeted engagement to inform analysis of industry sectors • Feedback from Community Health Network and the Shire’s Sustainability Reference Group • Ongoing guidance from economist and practitioner, Michael Shuman, with a focus on local economic development. This included a number of Skype meetings and detailed feedback on contents of the strategy. • Input from Professor Robert Costanza, leading author on Ecological Economics; Dr. Stuart Whitten, Leading Economist for CSIRO; Professor Mike Salvaris, Chairman of the Australian National Development Index

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The Augusta Margaret River Community

Brief History The Shire of Augusta Margaret River has had human occupation for at least 47,000 years, traditionally occupied by the Wadandi Pibulmen people. European settlers formed the township of Augusta in 1830, and it wasn’t until 1910 that the Margaret River townsite was declared. In the late 1800s and early 1900s a good deal of the economy rested on the timber industry, cutting Jarrah and Karri logs for sale to England, South Africa, and South Australia. By 1913 three of the region’s timber mills had closed for lack of viable saw logs due to overlogging. Development of a butter factory in the 1930s supported the emerging dairy industry, and the first plantation of pines allowed a transition to sustainable sources of timber. The 1950s saw increases in tourism, with the incorporation of the Augusta Margaret River tourist bureau, and the opening of Jewel Cave to the public. The late 1960s saw the first commercial grape vines planted, on the back of research by Dr John Gladstones who saw similarities with the Bordeaux region in France. Increasing recognition of the region’s wine potential, world-class surf breaks, and natural beauty saw large increases in new residents and visitors from the 1970s through to today. The Shire population has grown from 3,054 people in 1976, to 16,172 in 2019. This population is spread across the following townsites:

Figure 1: Population of settlements within the Shire

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Demographics The shire is an attractive place to live due to its rural location, natural environment, high amenity and diverse economy. Population growth rates vary across townsites, with Cowaramup having more than quadrupled since 2001 while Augusta’s population has remained fairly stable. Likewise, the demographics of each townsite vary somewhat, including age, family structure, and occupancy rates.

The age of the population is very disparate between Augusta, where the average age is 53 years, and Margaret River, where the average age is 36 years. The Shire as a whole has a much higher rate of volunteerism than the rest of Australia, but the age difference between Augusta and Margaret River might explain the local differences in the volunteerism rates, which are 38% and 30% respectively.

According to 2016 Census data, Cowaramup had the highest rate of households defined as “Couple families with children” at 35% of households, compared to 30% in Margaret River and 14% in Augusta. Lone person households were highest in Augusta, at 31%, droppoing to 19% in Margaret River and 17% in Cowaramup.

Most people in the shire were born in Australia (71.7%) but a significant 17.8% reported during the 2016 Census that they were born overseas. The birthplace of these more than 3,000 residents is overwhelmingly the United Kingdom (1,249 people), followed by New Zealand, South Africa, Germany, and the Philippines.

Workforce participation There is a high labour force participation rate, with only 3.2% unemployed compared to 6.2% for Western Australia. This reflects a high degree of part-time and casual employment, which in turn may reflect the higher proportion of families with young children compared with W.A (3) or may reflect underemployment – that is working fewer hours than desired or working in employment below qualifications. Unemployment and underemployment lead to a loss of economic potential.

Lack of affordable childcare has been raised as an obstacle for parents who would like greater participation in the workforce (4), and opportunities to expand childcare options should be considered.

In 2016, 401 people (or 2.8% of the population) in the Shire of Augusta-Margaret River reported needing help in their day-to-day lives due to disability. Additionally, there are a large number of people in the community who have a disability but do not require assistance with their daily activities and are therefore not captured in the census data. It can be challenging for people with disability to gain employment, and the Shire can help raise awareness about the benefits of employing such people, including the Government subsidies available and support from local employment agency Forrest Personnel.

Education and youth Throughout the whole Shire there is a significantly smaller number of residents between the age of 15 and 34 than in Perth – the population pyramid (Figure 1) shows an inverse relationship. While young people may leave regional areas for experiential reasons, it may also confirm perceptions of lacking educational and career opportunities (3), and a need to consider initiatives to support capacity building for youth.

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The South Regional TAFE currently runs a range of courses but diversity of offerings at the Margaret River campus is limited by the shire’s population and therefore demand. A number of certificate and diploma level courses are currently (as of 2021) being offered in Margaret River at half-price as part of the Lower fees, local skills program. These include:

• Certificate III in Commercial Cookery • Certificate III in Hospitality • Certificate IV in Business • Diploma in Early Childhood Education and Family Day Care • Certificate IV in Digital Media Technology • Certificate IV in Horticulture • Certificate III in Education Support In addition, short courses are run throughout the semester to provide qualifications and training for employment requirements, including forklift and chainsaw tickets, barista training, and responsible service of alcohol.

Population for AMR 2016 Population for Perth 2016

85+ 85+ 80-84 80-84 75-79 75-79 70-74 70-74 65-69 65-69 60-64 60-64 55-59 55-59 50-54 50-54 45-49 45-49 40-44 40-44 35-39 35-39 30-34 30-34 25-29 25-29 20-24 20-24 15-19 15-19 10-14 10-14 5-9 5-9 0-4 0-4 6.00 4.00 2.00 0.00 2.00 4.00 6.00 5.00 3.00 1.00 1.00 3.00 5.00 Percentage of Male and Females Percentage of Males and Females %Female %Male %Female %Male

Figure 2: Age demographic comparison between AMR Shire and Perth

Income and housing affordability Lower incomes than surrounding LGAs, coupled with high housing costs have resulted in the Shire suffering from severely unaffordable housing. → See the Augusta Margaret River Shire’s Affordable Housing Strategy for more information.

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The median income in the Shire is just under $36,000, compared to $38,000 for the Shire of Nannup, $41,000 for the City of Busselton, $47,000 for the City of Bunbury, and nearly $54,000 for Perth. This raises concerns for housing affordability, which can be measured by comparing the median income of an area with the median house cost.

Using this price to income ratio, known as the “median multiple”, it has been demonstrated that the Shire suffers from severely unaffordable housing. The median multiple, as advocated by the World Bank and United Nations, states that a multiple of 5.1 or above is “Severely Unaffordable” – the Augusta Margaret River Shire’s median multiple is 8.4 (5).

Housing Affordability Ratings (median house price / median income) RATING MEDIAN MULTIPLE Affordable <3.0

Moderately Unaffordable 3.1 to 4.0

Seriously Unaffordable 4.1 to 5.0

Severely Unaffordable >5.1

Figure 3: Housing affodability ratings Another way to assess affordability of housing is to look at mortgage stress, or rental stress – that is the percentage of lower income families (in the bottom 40%) who spend more than 30% of their income on mortgage or rent respectively. In the Shire of Augusta Margaret River 14.7% of low income families are under mortgage stress, and 30.5% of low income families who are renting are under rental stress (6).

There are a number of factors that contribute to housing affordability, as discussed in the Shire’s Affordable Housing Strategy, and while social housing is in the State Government’s remit, the Shire is exploring ways to support housing affordability. These include:

• A target for 40% of new homes to be within a 5-minute ride of the town/village and local centres, partly through infill, as opposed to rely solely on the continued outward expansion of the town;

• Development of specific provisions that encourage small housing within backyards of properties close to town. The approach varies the more rigid nature of the Residential Design Codes and will be more flexible for small house/lot development (see attached flyer);

• Legitimising Tiny Homes though the planning system and allowing for their use in the Shire;

• Removing servicing constraints which are currently an impediment to urban infill though alternative drainage approaches which place greater emphasis on reuse of stormwater and water sensitive urban design principles;

• Using the ‘sliding scale’ of sustainable building standards to incentive smaller builds.

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Disparity of advantage across townsites While the Shire as a whole has a relatively low level of disadvantage, there are pockets where disadvantage is greater than the national average. We can contrast areas within the Shire using the SEIFA index, a measure of disadvantage based on a number of Census factors such as unemployment, education levels, low income etc, Whereas the Margaret River townsite scores higher on the index than 63% or Australian suburbs and localities, Augusta only scores higher than 24%.

The Shire’s recent shift towards a greater emphasis on townsite-specific engagement may assist in finding locally-appropriate solutions to this relative disadvantage.

Mobility Being a regional area, transport for both people and goods tends to be spread over large distances and with very little public transport availability. Public transport both within and between the shire’s towns is limited with the only public transport available provided by two bus services: TransWA Coaches and South West Coachlines. These service providers deliver limited long-distance coach services. A taxi service is available within Margaret River and Augusta, but at this stage does not offer wheelchair accessible taxis.

Lack of local public transport options is a consistent challenge identified in community consultation – particularly as it relates to disadvantaged groups such as youth and seniors. For example, public transport has been identified in the Shire’s Access and Inclusion Plan to facilitate greater independence in accessing services, events and consultations. Likewise, the Strengthening Youth Plan highlights the need for public transport to allow youth in remoter areas of the shire to access the main town sites and youth related infrastructure. The Tackling Disadvantage and Inequality through the Economic Development Strategy report commissioned by the Shire, lists lack of public transport as a compounding factor in disadvantage, and highlights the challenges for youth in accessing places of employment.

As identified in the Shire’s recent Local Planning Strategy Review, the lack of a critical mass of demand is an impediment to the market delivering a local public bus system. This is typical in regional areas that lack population densities to make public transport viable. The Shire’s planning framework can encourage development compatible with public transport and non-motorised transport outcomes, allowing for urban infill to increase town centre densities, and working with new developments to ensure a strategic approach to new paths that connect with the existing path network. There may be a role for the Shire in advocating for State Government to fund increased public transport services, but with the population threshold required to justify a traditional public transport service unlikely to be reached, more cost-effective local alternatives should be investigated, such as demand response transport.

Another challenge common in rural areas is the having a lengthy road network to maintain, coupled with a small rates base to fund road maintenance. Responsibility for the road network is shared between Main Roads WA and the Shire of Augusta Margaret River, depending on the road. Gravel roads are cheaper to build and maintain than sealed roads but require regular grading and maintenance to achieve an acceptable standard. The Shire has three graders in constant rotation but still there are sections of road, particularly in farming areas, that receive regular complaints. The Shire receives funding from the state and federal governments to maintain and improve road condition.

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Augusta Margaret River’s Economy

Industry concentration and diversity Location Quotient is a tool to measure the comparative concentration of certain industries in an area against the national average. The Australian industry concentration is given a value of 1, and anything below 1 signifies a lower concentration, while anything above 1 signifies a greater concentration. This can indicate certain natural strengths or competitive advantages. A lower concentration can suggest an opportunity to develop new industries, developing greater self-reliance instead of reliance on imports or outside services.

AMR Shire Employment Quotient by sector (2019/20)

Other Services

Arts and Recreation Services

Health Care and Social Assistance

Education and Training

Public Administration and Safety

Administrative and Support Services

Professional, Scientific and Technical Services

Rental, Hiring and Real Estate Services

Financial and Insurance Services

Information Media and Telecommunications

Transport, Postal and Warehousing

Accommodation and Food Services

Retail Trade

Wholesale Trade

Construction

Electricity, Gas, Water and Waste Services

Manufacturing

Mining

Agriculture, Forestry and Fishing

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Figure 4: Concentration of industry sectors within the Shire

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REMPLAN offers a metric to determine the relative diversity of the local economy, and their data places the Shire of Augusta Margaret River as the 117th most diverse LGA economy (of 543 measured in Australia) (7).

REMPLAN Economic Diversity Index

Shire of Augusta Margaret River

Less diverse More diverse

Figure 5: Diversity of Augusta Margaret River's economy

Innovation and collaboration

Innovation is a challenging thing to measure. It is problematic to measure just the number of start-ups, as whether or not they succeed is critical. Likewise, looking at business success – for example, the number of businesses who have remained solvent for more than five years – does not tell a story of how innovative they are. And looking at whether diversity of industry is growing or shrinking might tell a story about increased innovation for the region, but not necessarily within the businesses themselves. An observational approach would suggest that the Shire of Augusta Margaret River has a culture and infrastructure supportive of innovation. Some examples: 1. The Margaret River Farmers’ Market regularly sees new value-add businesses join, and some of these are extremely unique, such as vegan cashew cheese, hemp milk, and sparkling, hopped cold-brewed coffee. The markets themselves embraced a new direction during the COVID-19 pandemic to temporarily shift their sales channel online.

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2. Augusta’s seafood offering, enhanced by the development of the Augusta Boat Harbour, has matured in recent years. Ocean Grown Abalone has been successful in developing artificial reefs (known as “abitats”) for growing commercial quantities of abalone. Another company, Magic Abalone, has undertaken significant value-adding processes to their wild-caught abalone, and has partnered with local commercial fishers to bring fresh-caught seafood into a single retail space. 3. Collaboration between local non-profit Augusta Margaret River Clean Community Energy and farmers in the Scott River Region led to trials of the “Z-filter”, developed in WA, to improve management of dairy effluent. Shire funding supported the project, which led to a local farmer purchasing the Z-filter after it was shown to remove phosphorous and nitrogen from dairy effluent and create a solid fertiliser cake for paddocks. 4. During the height of COVID-19 challenges in the shire, Margaret River Distillery used their distilling skills to begin producing hand sanitiser. Innovation is supported by the sharing of knowledge and ideas, fostered through networking, conversations, and collaboration. The Shire can play a role by facilitating networking events and providing venues for informal and formal exchanges to take place. In 2019 the Shire surveyed local businesses and asked, among other questions, “How well do you feel you collaborate with other local businesses?”. Results were spread on a scale of 1 to 5, ranging from the lowest level of subjective collaboration (What on earth could they have to offer me?!) to the highest level of collaboration (We work together all the time). Results indicate there is room for improvement in local collaboration, though one obstacle is the reported sense of being cautious of fraternising with the competition. Those businesses who collaborate well report that the benefits of sharing information and resources outweigh any disadvantages. This is backed up by the literature that speaks to the benefits of collaboration as well as “co-opetition”, a combination of the words “cooperation” and “competition”.

Business collaboration in the shire 1 (What on earth could they have to offer me?!)

Less collaborative Less 3 (We occasionally

catch up)

collaborative

More 5 (We work together all the time)

Figure 6: Survey results for the question "How well do you feel you collaborate with other 11 local businesses?"

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The proliferation of co-working spaces, shared making spaces, and opportunities for “hot desking” where a desk can be rented for short periods of time in a larger office complex can help further collaboration.

Business sustainability

The Shire’s 2019 Business Survey (see appendix) gave some preliminary insights into uptake by local businesses of various environmentally-friendly behaviours, but insights were broad and behaviour varied across industries. It is clear that sustainability challenges and opportunities need to be explored in a sector-specific way. The work that the Margaret River Wine Association has recently begun undertaking, with financial support from the Shire of Augusta Margaret River, in looking at the sustainability opportunities for the wine industry is a prime example of an industry sector undertaking this well. The Shire can support business awareness and uptake of more environmentally practices in a number of ways. In particular by: • providing capacity-building for businesses through networking and expertise – for example, through a regular “sustainable business” forum to increase awareness of sustainability and climate change issues and showcase local solutions and ideas;

• facilitating recognition of businesses leaders through an audit and award process, similar to the “We are greening our business” initiative in the City of Darebin, Victoria. This is discussed further in the appendix. The importance of sustainability for the region’s reputation and for protection of the fragile environment is a key concern for the Sustainable Economy Strategy, which looks for opportunity for the shire to be a leader and hub of excellence in sustainability. The Sustainable Economy Strategy is consistent with calls from around the world in response to COVID-19 to “Build back better”. Sustainability in business also means running a viable operation – one that is profitable and ensures business owners have a reasonable quality of life. Consultation with trainers and experts in the region suggests that small business owners would benefit from training in key business management skills including basic financial record keeping. This is consistent with the Reserve Bank of Australia’s research that shows a low level of financial capability small businesses in Australia. Their research shows that up to 45% do not use accountancy software to keep up-to-date and accurate financial records. This is the sort of evidence businesses are required to produce when applying for finance (8). Many small businesses find it difficult to access finance to take the next step in their business development. According to the RBA, one in five small businesses finds it challenging to access finance, and where they can access finance interest rates on small business loans are relatively high, and small businesses often need to use personal collateral as security against a loan. The result is that entrepreneurs often delay expansion until it can be funded from retained profits, or resort to using personal credit cards and other products to fund their start-ups.

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Manufacturing Snapshot Within the manufacturing category, the vast majority of employment is in food and beverage manufacture, inclusive of wine production and cottage industries. The 150 wine producers in the Margaret River Wine Region are spread across the Shire of Augusta Margaret River and the City of Busselton. The value of wine exports from the Margaret River Wine Region has remained relatively steady over recent years, growing from $23.8 million (in 2012) to $31.7 million in 2020. The exact proportion of this that is attributable to Margaret River businesses is unable to be determined due to the spread of wine producers of the two LGAs. These figures relate to international sales, which only account for 10% of the wine produced locally, with the majority sold domestically. Local manufacturing also includes spirits, non-alcoholic beverages, dips and condiments, food products, furniture and other woodworks, and primary metal and metal products.

Challenges Many of these food and beverage manufacturers are small producers who sell primarily to local markets. Some of these small producers could be considered “hobby” businesses, whose transition into commercial viability for a fulltime livelihood requires increasing scale and either capturing more local market share or selling to bigger markets. The opportunities and barriers to increasing scale need to be carefully explored to support these fledgling businesses. Barriers include: • access to financial capital, • access to knowledge, • sufficient confidence and business acumen to scale up, and • lack of distribution networks. Further sustainability challenges include: • exporting produce in a carbon-constrained manner, • wrapping produce in biodegradable packaging, • supporting creativity and innovation from young people and other community members lacking access to finance, and • environmental consequences of manufacturing processes.

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Opportunities Opportunities include:

• Widespread interest in development of a food hub, including DPIRD’s WA Food and Beverage Network, Edith Cowan University, and local producers • Existing incubator hubs for manufacturing such as the Margaret River Farmers Markets, artisan collectives • High quantity of primary produce currently exported without value adding (9) Key opportunities for value-added produce from agriculture in the south-west region, as identified by a thorough Department of Food and Agriculture study (9), are:

• Organic/biodynamic Beef • Wagyu Beef • Premium Soft Drinks • Cheeses • Alcoholic Spirits • Dips/Spreads • Breakfast Muesli/Cereals • Healthy Snacking • Cider • Meat Snacks • Olives/Marinated Vegetables • Fermented Foods • Cooked/Smoked/Marinated Seafood

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Agriculture Snapshot Most agricultural employment in the Shire is within vineyards, dairy, beef, sheep, fruit and tree nuts, eggs, and a small amount of fishing and aquaculture. Horticulture occurs on a number of scales, from small, organic producers aimed at local markets to large, centre-pivot farms in the Scott River region selling internationally. In the wine industry, the Margaret River Wine Region has 287 growers, and 150 wine producers. There is a growing number of vineyards and wineries converting to organic and biodynamic practices – five certified, ten in the process of becoming certified, and numerous others using these practices but lacking certification. Significant amounts of agricultural produce are exported, accounting for 31% of the region’s exports. In addition, wine exports account for a further 24% of the region’s exports, with most going to the East coast and to Perth, and 10% going overseas. Challenges A number of challenges to farming and food security in Western Australia have been identified, including climate change, land use change, water availability, soil acidity and salinity, and land degradation and desertification (10).

Figure 7: Soil acidity, Report Card on Sustainable Natural Resource Use in Agriculture (8) Western Australian soils tend to have low Soil Organic Carbon levels by global standards, and south-west soils are generally very acidic and deteriorating, acting as a major constraint to agricultural productivity (11). Soil Organic Carbon contributes to the soil’s ability to retain moisture (12), which in the context of declining rainfall in the south-west is an extremely important role. Various farming practices broadly summed up as “regenerative agriculture”, have been shown to improve soil structure, soil biology, and Soil Organic Carbon, having a

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positive effect on the long-term productivity of the land. Farmers wanting to shift from extractive to regenerative practices often voice concern about the transition across the “valley of death” – the period of time between implementing costly changes to land practices and the return on investment in yields. Further challenges for farmers include:

• High cost of farm inputs – between 2013 and 2018 the cost of consumable inputs rose 5.7% and the cost of agricultural machinery rose by 13.4% (13); • A reliable source of affordable A grade Agricultural Lime (14); • Access to markets, including costs of haulage and quality of road infrastructure; • Lack of telecommunications infrastructure to fully utilise latest agricultural technology • Highly competitive globalised environment, which can drive further consolidation of farms and cost-cutting, to the detriment of sustainability; • Managing fertiliser regimes to avoid negative impact on surrounding wetlands and river systems (14); • Water repellence – the resistance of soils to wetting – is a significant land management issue in the south-west, with an estimated $251 million annual opportunity cost in lost agricultural production. The high cost of agricultural land in the south-west (15) is another challenging factor for farmers, discouraging young people from entering the profession and placing large debt burdens and overheads on farmers in the region.

Western Australian Median price per hectare agricultural area

Northern $1,194

Eastern $705

Central $2,607

South West $8,772

South Coast $3,236 Figure 8: Agricultural land price per hectare (2019)

In addition to the very tangible, resource-related challenges in this industry, farmers within the community have expressed a sense of exclusion, isolation, and lack of recognition (16). They do not feel valued as members of the community, and that they have been written out of the narrative of the area with the emphasis on wine and tourism (4). Opportunities There is an opportunity to celebrate farming in the community, recognising the pivotal role that food producers play. Raising the profile of agriculture may serve to not only to demonstrate to the farming community that their value is seen, but inspire young people to consider future training and employment in this industry. A training opportunity previously identified was development of a Certificate III in Agriculture to capture school leavers from both Margaret River and Manjimup (13). Extending this idea to the development of a Certificate in

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Regenerative Agriculture could see the Shire become a hub of excellence in this rapidly emerging field, and draw upon the strengths of numerous local farmers and farming groups who are pioneering these practices locally. Additionally, such a certificate could be complemented by existing non-traditional training opportunities within the shire such as Permaculture Design Certificates (Fair Harvest Permaculture), hands-on vocational courses (Agtalent, Ag Inspirations), and more. The worldwide market for organic products has grown 400% between 1999 and 2016 (17), and there is huge potential for production of both organic and premium food products in Western Australia (9). The number of certified organic food operations in Australia continues to grow every year, and it is estimated that about 10% of all of Australia’s agricultural land is now under organic management (17). The five main export markets for Australian organic produce are USA, China, South Korea, Japan, and Singapore. With close proximity to Western Australia, these Asian markets are growing opportunities for local produce. Related to organic farming, Biological and Regenerative farming practices can yield benefits to the long-term sustainability of agricultural land, surrounding ecosystems, and quality of produce. These practices have been shown to increase existing bioavalability of calcium and phosphorous in the soil, reducing input costs and building Soil Organic Carbon (SOC). Managing for soil health is one of the tools for resilience to climate change (11). The carbon sequestration potential for agricultural soils is huge – it has been estimated that increasing soil organic carbon by 0.4% per year on all farmland around the globe would reduce net human-related carbon emissions to zero (18). With Australia including soil carbon in the Emissions Reduction Fund, there is an opportunity for farmers to earn Carbon Credits for embracing practices that build soil carbon (19), potentially helping financially buffer the transition into these practices. Further climate change adaptation options include diversification of crops (which can also yield benefits to productivity and soil health), managing for biodiversity to maintain ecological function, and looking for additional on and off-farm income (11). Diversifying farm income, such as through an agri-tourism venture, can be one way farmers tackle the challenges of repayments on high mortgages, The high cost of agricultural land within the shire also presents an obstacle for young people beginning farming careers, and there may be opportunity in pairing up landholders with landless farmers, such as the Food Next Door Co- Op in Mildura. Widespread interest in a “Food Hub” model presents another opportunity, with a cluster approach to value-adding, shared marketing strength, and consolidated distribution efforts. This is also reflected in the priorities of the latest South West Development Commission Strategic Plan (2021-2023), which suggests a food and wine innovation processing hub in the south west.

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Tourism Snapshot The strong concentration in accommodation and food services is indicative of the central role of tourism in the local economy. Under the administrative and support services category, almost a quarter of employment is in tour operations, and almost half is in building cleaning, gardening and pest control. It is likely, therefore, that this category of employment is also extremely reliant upon tourism and accommodation. In terms of employment make up, the shire is the 25th most tourism-dependent Local Government Area out of Australia’s 537 such areas.

Based on data from 2016, 2017, and 2018 overnight visitors to the Shire comprise mainly intrastate visitors (73%), with a comparable number of visitors coming from interstate (14%) and international (13%) destinations (20). Examining the market profiles for the top five international visitors to the south-west (UK, Singapore, Malaysia, USA, and New Zealand) amongst the highest-ranking features sought in a destination are:

• World-class nature and wildlife;

• Good food, wine, local cuisine and produce; and

• World class coastline, beaches and marine wildlife (21).

The Margaret River Region’s tourism offering rests heavily upon heavily upon these assets.

Challenges Tourism is vital for the region’s economy, but increasing numbers place pressure on Shire services and infrastructure, such as waste, water, and roads, and have an impact on the environmental and social values of the community. In this light, it could be suggested that the trajectory of increasing growth in visitor numbers may some day lead to “overtourism”.

Tourism-dependent businesses rely upon a certain level of Visitors to Margaret River Region visitation, but despite official 1,700,000 tourism figures reflecting a 1,600,000 significant increase in visitation to the Margaret River Region 1,500,000 since the 2017 drop, it is 1,400,000 uncertain how much this has 1,300,000 correlated to increased visitor YE Mar-15 YE Dec-16 YE Dec-17 YE Dec-18 spend. Total Overnight Visitors

Figure 9: Growth in visitor numbers In the Shire’s 2019 Business Survey, 57% of businesses reported that more than half of their income relied upon visitors, and of these businesses half reported that more than three quarters of their income relied upon visitors. This highlights the challenges for cash flows for many of our businesses over the quiet winter months and suggests that strategies to either increase winter visitation or reduce overheads during this time of year could greatly benefit the business community. Seasonality was also identified as a major challenge for attracting and retaining staff, with the inability to provide consistent hours unattractive for potential employees.

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A major challenge for the industry has been the inability to attract interstate and international visitation due to COVID-19 hard borders. Once lockdowns within Western Australia were repealed, some tourism operators did very well, but other operators whose product is aimed primarily at international markets continue to struggle despite the number of intrastate visitors. There is concern that once government support finishes up in March 2021 a number of these businesses will face permanent closure, which leads to a reduced capacity in the future when international travel resumes. The pandemic also seems to have highlighted the broader sustainability challenges of climate change and species extinction, with research indicating a continued trend in the demand from travellers for sustainable destinations. Data from Booking.com prior to the pandemic showed that 53% of U.S. travellers surveyed said they were determined to make sustainable choices when travelling in the future, and 96% of Indians surveyed agreed that sustainable travel was important to them. The phenomenon of “flight shaming”, a movement that began in Sweden focused on giving up air travel for the sake of the climate (22), shows that the environmental concerns around travel can’t be dismissed.

Opportunities The Margaret River Region is in an enviable position of having a diverse range of tourism offerings, a healthy natural environment, and a reputation for being clean and green. To further solidify and protect the green credentials of the region, and bolster opportunities for wider marketing, there is an opportunity to follow in Port Douglas’s lead and become an certified ECO Destination. The process of undertaking accreditation would help identify threats and risks posed by tourism and strengthen the region’s self identity as an ecotourism and sustainable wine tourism destination. Another drawcard for visitors is the diversity of events within the shire. These include: • Creative opportunities, such as Open Studios, Emergence, and Strings Attached Festival • Sports events such as the Surf Pro and Ultra Marathon • Cultural experiences such as Bunuru Festival • Food experiences such as Gourmet Escape and the upcoming inaugural Fine Vines Festival It is important the Shire continues to support major events that showcase the region to state, national and international audiences, while working to improve the sustainability performance of these events. There are also a number of currently under-represented visitor markets that could yield increased visitation if desirable, and commencement of Jetstar flights into the Busselton- Margaret River Airport facilitates greater tourist access to the region. These include business visitors, people with disability, and international students. The newly launched Hub of Entertainment, Arts and Regional Tourism (Margaret River HEART) creates expanded opportunities for Business Events, which are central to the business case for the venue. Attracting Business Events, which include conferences and meetings, will be further explored in partnership with other regional stakeholders. One opportunity is to partner on delivering a Regenerative Agriculture Conference at the Margaret River HEART. This theme is highly compatible with developments in the local farming industry and initial conversation with Perth NRM, who organised the sell-out previous conference at the Optus Stadium in Perth, showed strong support for the idea.

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A large number of Australians with a disability find travel very difficult due to poor accessibility and support, and with an ageing population this number is set to grow. By working to reduce the barriers for people with a disability in travelling to the region, there is an opportunity to capture some of the estimated 3.4 million travellers who either have a disability, or travel as a family member or carer with someone with a disability. Improving accessibility and awareness of accessibility is the responsibility of industry and the Shire. The Shire can also support accessible tourism offerings by investing in playground refurbishments in district and neighbourhood level parks that are access for all. Currently the South Regional TAFE in Margaret River has a number of international students, mainly studying hospitality and wine making. This presents a tourism opportunity, with increased chances of family and friends of students visiting the region, and a long-term loyalty to the region engendered. The greatest limitation on international students at the TAFE is affordable student housing. A challenge for all tourism destinations is the increased strain on services and the natural environment, with no commensurate ability to draw funds from visitors to help pay for these costs. One opportunity could be to implement an opt-in, voluntary donation scheme whereby accommodation providers give $1 per bed stay per night into an environmental fund, and in turn gain recognition for their contribution. Such a small amount could be incorporated into the price of the room without making participating businesses uncompetitive, yet aggregated could deliver an additional $280,000 per year funding into projects that safeguard the environmental assets of the region. Finally, having a consistent approach to wayfinding throughout the townsites would greatly assist visitors locating key services.

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Construction Snapshot The construction industry, accounting for 9.8% of the local workforce, has a higher concentration of employment than the national average, and includes professions associated with building and renovating residential dwellings, renovating homes, building patios, decks, fences, carports, retaining walls, and other additions, building and maintaining tourism structures and accommodation, shops, sheds, and commercial properties. While alterations and additions to dwellings make up 5-10% of the value of the local construction industry, the vast majority of work relates to new residential dwellings, and to a lesser degree new commercial buildings, and is predicated on population growth of residents and visitors. Growth of residents within the Shire is comparatively high, growing at roughly 3% per year and bringing an additional 500 or more new residents per year. Building approvals are very consistent year on year, though recent home building grants, part of COVID-19 recovery efforts of both Federal and Western Australian governments, have stimulated a construction boom within the Shire. Since the announcement of the grants, the Shire has received 573 building applications (over an 8 month period), compared with only 356 applications over the same period the year before.

Building approvals 2015-2020 $80,000,000

$70,000,000

$60,000,000

$50,000,000

$40,000,000

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$20,000,000

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$0 New residences Alterations/ additions Commercial Guest accommodation

2015 2016 2017 2018 2019 2020

Figure 10: Building approvals – residential dwellings, additions/modifications, commercial buildings, and guest accommodation.

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The median value of residential property prices has risen from $466,460 in 2014 to $496,911 in 2018. This is 50% higher than the median house price of Regional Western Australia, and it is expected that current values would be much higher as a result of upward push on property values from government stimulus programs. It is worth being cautious when equating rising property values with increasing wealth – increased value of a property is only beneficial when the owner intends to either sell the asset or increase borrowing against it. As property values increase it places greater pressure on first home buyers wanting to enter the market. Therefore, growth in property values could be seen as a measure of growing disparity between the wealth of investors and those community members – particularly young people – who are yet to own a home.

Challenges Prior to COVID-19, the increase in new construction businesses coupled with consistent building approvals–see Figure 11 – created a very competitive industry. This helped keep the costs of building down, but created additional stresses on the industry. Since government home building grants were launched the housing construction boom has led to other challenges. Builders have reported a shortage of qualified bricklayers in the area, and there is concern about finishing trades such as painters and tilers as the glut in new house builds moves towards the finishing stages. The sudden increased demand for houses has had an inflating effect on construction costs, which gives further concern for future housing affordability. Interestingly, one of the main challenges facing the industry is supply shortages. Timber milled in the south-west for framing houses has a 5-6 week lag time, compared to the previous 3-4 day wait. In addition, supplies coming from China and other overseas destinations is facing disruption with increased protocols at ports. While the home building grants have served to help pull Australia out of recession, they have contributed to an increase in Australian private debt. This debt, mostly comprising home loans, is at a record high, and a significant recession with corresponding job losses could lead to loan defaulting and downward pressure on the entire economy. As the Australian Bureau of Statistics states, “high levels of debt, when considered against the value of current household income and assets, indicates vulnerability in the event of an economic shock” (23). While being less volatile to economic shocks than other investments, property values may also expect to drop, creating less incentive for investment related construction. Population growth has economic benefits for the construction industry but presents challenges for the social identity of regional townsites, for additional asset burden, and for the natural environment.

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Building Approvals and Constuction Industry

750 430 420 700 410 650 400 600 390 380 550 370 500 360 450 350 340 400 330 350 320 2014 2015 2016 2017 2018

Approvals Employees Businesses

Figure 11: Building approvals and construction industry in the shire

Opportunities Improvements have been made in the environmental performance of construction methods themselves and the resultant buildings, including protocols for reducing and capturing sediment runoff, improved energy efficiency of buildings, and increased penetration of solar panels and solar hot water systems. The Shire is currently exploring ways to increase the sustainability performance of new developments, based on a sliding scale that mandates fewer requirements on smaller dwellings and greater requirements for larger dwellings. Sustainability measures are to include such things as rainwater tanks plumbed to the house, solar PV systems, heat recovery systems, and low energy hot water systems. A proposal by the Shire to increase the thermal performance of all new dwellings (+1 star) is currently under consideration by the State Government. REMPLAN data shows that, after the Manufacturing sector, the Construction sector imports more inputs than any other local industry. While much of this imported product has a low opportunity for local production – e.g. nails, screws, silicon putty – undertaking further analysis of what could be produced locally could highlight new industries for the region. For example, there may be opportunity for scaling up existing door and window manufacture to service the local construction industry. Building materials are often imported, but the increasing proliferation of alternative building methods in recent years may enable greater use of local materials. These include methods such as straw bale construction, hempcrete building, and the Shire’s first “Earthship” house utilising used tyres rammed with earth. While still only comprising a small percentage of new dwellings, this has potential benefits for localising materials supply chains. Strategic planning can also play a role in building opportunities for more affordable housing by encouraging smaller home footprints, urban infill, and a diversity of building and land options. The Shire currently has a proposal with State Government to unlock potential for ‘backyard infill’, delivering a more flexible approach to encourage bespoke and small home designs which require fewer inputs due to their size.

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Retail Trade Snapshot The retail sector contains 116 registered businesses in the shire, and includes fuel retail, food retail, motor vehicle and parts, and other store-based retailing. Examples in the shire include tyre stores, supermarkets, hardware stores, petrol stations, furniture stores, newsagents and sports shops. Food retail refers to grocery stores, supermarkets, butchers, etc rather than cafes and restaurants, which fall under the Accommodation and Food Services category. Most retail in the shire is concentrated in the townsites of Cowaramup, Margaret River, Witchcliffe and Augusta.

Challenges Retail businesses in the Shire reported declines in sales and a challenging economic environment for retail (2019 Business Survey). These challenges likely derived from a number of factors – increased competition, disruptive technologies, rising business overheads, and a general slowing down of the economy. The COVID pandemic created further challenges with all non-essential businesses ordered to close doors in early 2020. The data shows an incredible bounce back once lockdowns were repealed, with skyrocketing retail sales across Western Australia and within the Shire. These may be attributed to a combination of high rates of return to work, a keenness to get out and about and return to normal, and the hard state border which meant retail spend had to occur within the state (except for online).

Western Australia’s retail turnover: months $3.5b

$3.4b

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$3.2b

$3.1b

$3.0b

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$2.6b Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019 Dec-2020

Figure 12: Western Australian retail turnover

Online sales account for between 6 and 9% of retail sales in Australia, and with the growing influence of Millenials this is set to grow. With the comparatively low profit margins of store-

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based retail (Figure 13) this sets a major challenge into the future. High rental prices in town centres, particularly in Margaret River, make it challenging to be competitive.

Profit margin (%) of select Australian industries

20.0

15.0

10.0

5.0

0.0 Agriculture Beverage Building Accommodation Food & Store-based manufacture construction beverage retail service

2015-16 2016-17 2017-18

Figure 13: Profit margins of select Australian industries

Looking at Figure 14, the volatility of the retail sector is quite stark. For businesses that rely heavily upon visitor spend there is an additional challenge of seasonality and fluctuations in visitation. One challenge identified by retail businesses in Margaret River was the tendency for visitors to rapidly disperse to wineries and experiences away from the town centre, and that place-making efforts were needed to help retain visitors on the street for longer.

% Year-on-year change in retail sales

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AMR WA

Figure 14: Retail sales over time

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Opportunities Bricks and mortar shops will increasingly struggle to compete with online stores on price alone, and will need to offer a compelling additional value proposition such as great service and expertise advice. A big focus for traditional retail is in adopting e-commerce platforms for online sales – shifting to a “bricks and clicks” model. With only a third of local businesses stating that they currently sell online (16) a promising strategy could be to hold a series of courses in online marketing and sales. Expanding this concept into a consolidated online marketplace owned by community members could help gain back market share from large outside multinationals like Amazon. This is the central concept of the Provenance marketplace being developed by Rotary Margaret River. Shared workspaces present another opportunity for the retail sector, reducing rental costs and broadening the diversity of stock. Examples in the Shire include Margaret River Artisan Store, Margaret River Collaborative, and Temper Temper/Two Cracks/Seven Seas in Cowaramup. Another opportunity in the retail sector is “popup shops”, where a newly launched business can trial a retail space on a very short lease, often at a low cost. Bypassing the fear of committing to a long-term lease can provide an opportunity to test the viability of an idea, aiding the creative and entrepreneurial ideas to thrive. This opportunity seemed particularly relevant in early 2020 when there were a large number of empty commercial spaces on the Margaret River main street, but over following 12 months at least eight new businesses opened up on the street and vacancy rates are very low. Likewise, commercial vacancies on Cowaramup’s main street are very low. Popup shops may have more of a role to play in Augusta. Place-making opportunities to encourage town centres to become more “sticky”, keeping people on the street for longer may assist the retail sector. With the proliferation of new murals throughout Margaret River’s town centre there is opportunity to develop an interactive mural trail to encourage visitors and locals to stay and explore for longer. The newly developed new street in Margaret River will also serve to make the town centre more attractive for pedestrians and could be enhanced removing barriers to street buskers. Outcomes from the Creative Culture Plan (2020-2025) will also assist in these place-making opportunities.

Creative Industries Snapshot The cultural and creative industries are “those areas of practice that turn original individual creativity into social and commercial outcomes” (24). These industries can fall under two broad categories:

• “creative services”, such as architecture and design; advertising and marketing; and software and digital content; and • “cultural production”, such as film, TV and radio; music, visual and performing arts; and publishing.

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It is challenging to account for the contribution of creative industries to the local economy as there is no standard industry classification designating as them as such1. The Shire has 109 businesses that could be considered as “creative and cultural businesses”2. Noting that these are only those businesses registered for GST, there are an additional 347 creative industry businesses in the Shire not yet of a scale to require GST registration. These fledgling businesses include jewellers, fashion designers, clothing producers, printmakers, architects, drafters, graphic designers, web developers, photographers, musical composers, performers, writers, potters, artists, and app developers.

Rollout of the National Broadband Network has helped create necessary infrastructure to support creative industries to flourish outside of metropolitan centres.

Challenges Compared with other states, the concentration of creative industries in Western Australia is low, with 3.76% of the workforce employed in creative occupations. Victoria, New South Wales, and ACT have creative industry concentrations of up to 8.73% (24). The cluster benefits of high industry concentration may be lacking to some extent in Western Australia. While only 8% of Western Australian jobs in the creative services are located outside of metropolitan centres, a significantly higher proportion of jobs in the cultural production segments (17%) are located in non-metropolitan regions. This could highlight challenges for regional businesses engaged in creative support services away from the metropolitan concentration of industry, but also opportunities for focussing on the strength of cultural production. One challenge for existing creative sole traders wanting to expand their operation has been availability of young talent.

Opportunities The Shire is home to reoccurring events that specifically foster creative industries: Creative Emergence Festival, West Australian Guitar Festival, Augusta River Festival, CinefestOZ, and Open Studios. Continuing to support these events and look for increased local participation and commercial engagement can help develop the creative industries. Many creatives in the Shire are sole traders or very small businesses lacking the capacity to win bigger contracts and tenders. As such, there is an opportunity for capacity-building within this sector to facilitate successful joint-venture arrangements. This could be undertaken by Creative Corner, the local peak body for creative industries, with support from the Shire. The opening of the HEART (Hub for Entertainment, Arts, and Regional Tourism) is a boon to local creatives, who can access HEART grant funding and in-kind support to develop their art. In addition, there has been a rise in local creative clusters – co-working hubs and spaces where diverse creative professionals can operate and collaborate. These include

1 For example, jewellery manufacture forms part of the Manufacturing statistics, while graphic design falls under the Professional, Scientific and Technical Services category, and comic book publishing comes under the Information Media and Telecommunications category (43).

2 Determined utilising the industry classes identified in the experimental ABS Australian National Accounts: Cultural and Creative Activity Satellite Accounts.

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Mixtape, and Creative Corner in Margaret River; and Hardware Creative in Witchcliffe. These co-working spaces foster collaborative opportunities. South Regional TAFE is running courses in music production and visual arts, but not currently running courses with a strong focus on graphic design. Conversations between educational institutions and creative industries could inform further development of courses to support these industries.

Health Care Snapshot Health care and social services is the largest sector for employment in Australia, and also the largest sector in Western Australia (25). The growth of jobs in this sector can be attributed to a growing population, ageing population, and the rollout of the National Disability Insurance Scheme (26). The health care sector is smaller in the Shire than the national average, but an important and growing employer. This sector comprises government, non-government, community health organisations, and private practitioners. It tends to have a much higher female participation rate, with nearly four in five workers being female. Breakdown of local employment: • Hospitals: 136 employees • Medical and other Health Care Services: 211 employees • Residential Care Services: 63 employees • Social Assistance Services: 110 employees The health care sector is not only a direct employer, but has a positive impact on the economy through its outputs. Improving health levels of the community has a positive upward impact on the local economy, allowing people to be more productive and engage in building their own livelihoods.

Challenges Lack of awareness of existing services is a challenge for people wanting to access health services. This is partly a result of the high proportion of services (56%) provided via a drive in and drive out service delivery model (27). There is a disparity in the level of service provided between townsites, as highlighted in Figure 15.

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Location of service delivery within the Shire

Augusta Margaret River

Figure 15: Health care and social service delivery by location One challenge for the industry is the short-term funding cycles that create uncertainty for health and community service agencies.

Opportunities To address challenges in identifying services the Shire has implemented an online My Community Services Directory. The National Disability Insurance Scheme is an opportunity for new development in the health and social services sector, giving clients the say in how they prioritise their health spending. “Significant changes have occurred within the disability and aged care sector with the introduction of the National Disability Insurance Scheme (NDIS) and My Aged Care Packages. These changes seek to give consumers greater control over their health care. The change in funding model has impacted on previously block funded NGOs who are now required to alter their business model to an individualised service funding model” (27) Recognising the challenges for non-profits in short-term funding cycles, the Shire allows for multi-year funding agreements as part of its annual grants program. A number of local non- profit organisations receive support through these grants. Data from the National Disability Insurance Agency shows that not all of the budget allocated through the NDIS for customers in the shire is fully used each year. In the South West region there was a utilisation rate of less than 65% in 2020 (28). It is hard to know whether the underutilisation is due to:

• customers feeling the need to leave contingency in their plans in case of emergency • customers needing more assistance implementing their plans, or • lack of supports available in the market

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In the case of the last point, provision of additional services may lead to greater utilisation and provide additional jobs in the local economy. The Margaret River campus of South Regional TAFE offers a Certificate III in Individual Support (Ageing) but the nearest location for training in the Disability stream is Bunbury. Additional jobs may be created not just for service providers, but also for people living with disability. One suggestion from staff at Life Without Barriers was for the creation of a training hub to teach people with disability independent living skills, pre-employment skills, and more. Existing facilities, such as commercial kitchens at the Margaret River Community Centre and the TAFE could assist with teaching cooking skills, and a link to a short TAFE course could provide individuals with a recognised qualification (29).

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Economic Leakage Analysis Economic leakage refers to money leaking from the local economy, rather than recircling around and supporting local industry and prosperity. The more these leaks are plugged, the higher the “multiplier effect” of any given dollar. Money leaks in the form of imports – that is consumers spending on non-local goods, and businesses spending on non-local inputs to their production. Leakage also occurs through dividend payments to outside business owners/shareholders.

Import leakage Examining where economic leakages are occurring through existing imports can help identify opportunities for new local industries, which can mature to provide significant local employment, and greater self-sufficiency in services and other industries. This is characterised by an increased business diversity.

The biggest imports into the Shire currently come from the following sectors (30):

Imports, 2018-19

Manufacturing: $240 million

Import trend Current Main subdivisions since Opportunity imports 2012/13 Since 2012/13 exports from the Shire have risen  Food Product Manufacturing $25 million $7 million from $8 to $24 million, suggesting a strong and growing sector. Given that Agricultural exports more than doubled during this same period, while Manufacturing exports significantly declined, an Basic Chemical & Chemical $32 million  $9 million assumption can be made that most of these Product Manufacturing chemical imports were used in the Agricultural industries. Opportunity for locally produced fertilisers (e.g. compost), and reduction in farm inputs through regenerative agriculture. Machinery, equipment, Not easily substitutable. $78 million  $7 million transport equipment

Textile, Leather, Clothing, Opportunity for increased local clothing $17 million  $2 million and Footwear manufacture.

Financial and Insurance: $122 million

Current Since Main subdivisions Opportunity imports 2012/13

Finance $53 million  $11 million Local financing, crowdfunding, and credit unions

*Includes SMSF. There is an opportunity to Insurance & Superannuation $48 million  $23 million Funds* facilitate local investment for superannuation.

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Health Care & Social Assistance: $64 million

Current Since Main subdivisions Opportunity imports 2012/13

Social Assistance Services $13 million  $6 million Inc ludes childcare, disability services, aged and youth services Residential Care Services $15 million  $5 million Includes nursing homes, residential care for the aged, hospices, crisis accommodation

Transport, Postal and Warehousing: $55 million

Current Since Main subdivisions Opportunity imports 2012/13

Includes airport operations, customs services, Transport Support Services $13 million  $6 million freight forwarding services. Opportunity for food hub – cooperative freight transport. Warehousing and Storage $10 million  $4 million Declining use of outside warehousing could Services reflect decreased exports of Manufacturing, or changed distribution methods.

Electricity, Gas, Water and Waste Services: $28 million

Current Since Main subdivisions Opportunity imports 2012/13

Electricity Supply $14 million  $1 million Opportunity for local electricity supply

Water, Sewerage and $11 million  $9 million Water tanks, local sewerage and drainage Drainage Services services

To fully understand the opportunities available by substituting imports with new local industries, an extensive consultation process needs to be undertaken with different industry sectors.

Dividend leakage In 2017-18 $313 million left the region in dividend and interest payments – or 38% of Gross Regional Product. There was an additional $75 million that came into the region as dividend payments to local residents, but the $313 million outflow is a significant immediate leakage3. This suggests strategies to increase local ownership, local cooperatives, local capital raising, local credit unions, and local crowdfunding.

3 Calculated by contrasting “Factor Cost Gross Regional Product” – therefore GRP post-tax – with “Local Industry GRP”, which shows the post-tax value generated by local industry after dividends have been taken out.

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Shire’s procurement leakage A significant amount of suppliers to the Shire Council are located either within the shire or in neighbouring shires in the South-West, accounting for 63% of Council’s spend in 2017-18. A majority of the remaining purchase from further afield in Western Australia (32%), or interstate (6%), has little potential to be localised due to the nature of the spend. For example, the Shire’s spend on Australia Post cannot be localised as this is a national service. Likewise, the Shire’s spend on software for managing Library systems or record- keeping relies on proven digital products developed by outside companies, and has little opportunity for local substitution. The opportunity for the Shire Council on increasing local procurement lies in smaller bespoke services, like marketing, architecture, and printing, but needs to be balanced against a value-for-money proposition that aims to keep resident’s rates at a minimum. The Shire already aims to ensure purchasing policies and procedures are equitable and effective, enabling local businesses to provide contract services for the Shire. Any efforts to increase the success of local businesses winning tenders should be explored.

Business diversity Greater business diversity can represent opportunities to locally produce or provide services that would previously have been imported. The trend in business diversity can be examined by looking at the number of industry categories in which there is a growth versus a decline of business numbers. From 2014 to 2018, as per Figure 16, it can be seen that fifteen sectors saw an increase in registered businesses, whereas only four saw a decline, suggesting a trend towards greater diversification.

Figure 16: Change in registered businesses by industry, 2014-2018

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SWOT ANALYSIS

1. Healthy ecosystems Strengths • 60% native vegetation retention in state forest and reserves • Bicycle lane in new Margaret River main street to encourage non-motorised modes of transport • Undeveloped coastline • Strong support for local environment, including Shire’s Environmental Management Fund, local charities such as Nature Conservation Margaret River, Margaret River Regional Environment Centre, and “Friends of” groups • Three-bin system diverting Food Organics and Garden Organics (FOGO) to compost industry • Strong and growing traditions of organic, biodynamic, and regenerative agriculture and viticulture Weaknesses • Economic imperative for global competitiveness in agricultural production limits uptake of regenerative practices • Predominant reliance on coal-power • Reliance on imported fertilisers • Health concerns and litigatory environment dissuades food/drink container reuse • Lack of influence over waste at private events Opportunities • Ecotourism to provide jobs in an environmentally low-impact manner • Greater management of land by Aboriginal residents • Augusta Margaret River Clean Community Energy biogas project • Bulk milk for café schemes

Threats • Flights into Busselton-Margaret River Airport • Increasing visitor and resident population • Climate Change • Weeds, pests, and pathogens • Falling water tables

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2. Fair and inclusive economy Strengths • Voluntary organisations such as Rotary, Lions Club, Men’s Sheds, conservation groups, etc • Indigenous leaders are active in the community and running successful businesses • Libraries as free hubs for learning, workshops, inclusive access to knowledge • AMR Shire has won Most Accessible Regional Shire/Town award two years in a row • Lions Shed recirculation of second-hand goods amongst community members, and generation of funds for local community groups and charities

Weaknesses • Lack of diversity in educational and career opportunities for school leavers • Shire has significantly fewer residents between the age of 15 and 34 than in Perth

Opportunities • Accessible tourism • Improve safe community access to Davis Rd resources

Threats • “Severely unaffordable” housing rating • Volunteer burn out • Lack of childcare options in Karridale and Augusta (4)

3. Vibrant townsites Strengths • Pedestrian-friendly new Main Street in Margaret River, with a “Festival Precinct” that can be closed off to traffic for community events in the heart of town. • Diversity of local, independent shops, galleries, and cafes • Water refill stations in Margaret River • Attractive, well-maintained parks

Weaknesses • Poor integration with the Blackwood and Margaret rivers in Augusta and Margaret River respectively • Dispersed and quiet night life

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• Lack of enticing entry statement to Margaret River, with new Perimeter Road infrastructure dominating

Opportunities • Consolidated and simple approach to attract buskers • Greater presence of local artists

Threats • High rents in townsite CBDs • Shifting consumer behaviour threatens viability of traditional retail sector • Poor pedestrian safety in crossing main road in Cowaramup

4. Economic resilience Strengths • Diversity of agricultural produce, including beef, dairy, sheep, goats, avocadoes, olives, grapes, and horticultural produce • Access to inputs for soil fertility, including FOGO compost, manure, seaweed, and agricultural lime • Cohesive community, including high volunteer rates • Diversity of industries

Weaknesses • Significant distances and limitations on transportation options to outside markets • Very strong reliance on fossil fuels for tourist visitation, food production, and commodity transit • Strong reliance on tourism

Opportunities • Becoming a hub of regenerative agriculture practices and education • Threats • Climate change • Peak oil leading to steep increases in the oil price • Lack of action underpinning Margaret River’s “clean and green” brand image threatens hollowness of brand • COVID-19 or other impacts on tourism

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5. Successful livelihoods Strengths • Well reputed brand name “Margaret River” • High number and diversity of community events and “iconic events” to attract visitors to the region • Margaret River HEART (Hub of Entertainment, Arts, and Regional Tourism) • Augusta Marina • Venues such as pubs, breweries, wineries and restaurants supportive of local musicians • Diversity of festivals, such as West Australian Guitar Festival, West Australian Circus Festival, Cabin Fever, etc • South Regional TAFE campus with strong industry links • Mediterranean climate, very comfortable most of the year, suitable for a diversity of crops • Active TAFE campus

Weaknesses • Isolation from markets • Lack of time or tender writing skills amongst local contractors wanting to win tenders • Limited post-secondary training options

Opportunities • Jet Star flights into Busselton-Margaret River Airport, and opportunities for air-freight of high value produce • Further strengthen local music related industries – studios, performers, workshops, sound engineering • Greater utilisation of local produce in institutions such as schools, hospitals, etc • Value-adding of primary produce • Joint venture amongst creatives to win larger tenders • Import substitution to create local industries • Development of a grants round for circular economy business start ups and development

Threats • Lack of affordable housing to attract foreign students and retain young people • Poor road quality in Scott River Region threatens viability of market access for food producers • Environmental pressures (e.g. acidity, erosion, variable rainfall) threaten agricultural productivity

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6. Local ownership Strengths • Incubator hubs: Farmers Markets, Margaret River Artisan Store, Hardware Collective (Witchcliffe), MixTape, Creative Corner, Generator Network • Good number of interesting, diverse, locally-owned businesses creating a strong sense of place and interesting main streets • Active business chambers to facilitate capacity-building for successful business operations • Local bank in Augusta

Weaknesses • Limited local banking options outside of Augusta • Inability to invest in local businesses • Poor capacity amongst tradesmen to write successful tenders

Opportunities • Co-working / collaborative retail spaces • Buy Local campaign • Local investment initiatives

Threats • High rents in townsite CBDs • Competition from online shopping • Sale of land and businesses to outside interests

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BROADER MEGA-TRENDS

In addition to analysing the local economic context it is important to consider broader trends in Australia and the world, and how these might inform local opportunities and challenges. Broad “mega-trends” identified by CSIRO (31) (32) in recent years include:

COVID-19 The impacts of the COVID-19 pandemic are still being felt in the local economy, despite the easing of border closures and household lockdowns since their height in early-mid 2020. For example:

• COVID-19 closed off markets for the wine industry, the bulk of whose produce goes to other States in Australia. With lockdowns in place across the country, sales to premises such as restaurants and hotels ceased. • Tourism visitation has still not recovered from interstate and international sources, and while strong intra-state travel has resulted in some local businesses bouncing back well, almost 40% of tour operators in Western Australia are at risk of bankruptcy due to strong market positioning on non-local markets. • Construction has seen a boom due to the combined effects of government subsidies for new builds and the “VESPA” phenomenon (Virus Escapees Seeking Provincial Australia) that has seen an influx of new residents to the shire. The increasing demand for construction is pitted against longer delays in supply chains due to a changing and complicated environment at marine ports.

Deputy CEO of Austrade, Tim Beresford, has said of COVID-19 that the disruption it has caused to supply chains is of a magnitude not seen since World War 2 (33). He stated:

“Overnight our air freight literally stopped, those perishable goods, goods which have a need for fast movement, literally came to a grinding halt – crayfish, lobster, beef, dairy products that are high in value all came to a crashing halt. Freight rates are up, if x was the pre COVID price, the post-COVID price was 13x.” COVID-19 has highlighted the importance of resilience – the ability to withstand and bounce back from adverse situations. Such adversity may be in the form of mild shocks, enduring crises such as pandemics or climate change, and major disruptions such as natural disasters. It is important that any efforts to rebuild the economy from COVID-19 do not exacerbate other problems, such as environmental damage or inequality.

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Climate Change and environment Environmental pressures, including consumer demand for environmentally climate change, biodiversity and habitat benign products may play a role, but the loss, and alarming resource depletion, scale of the challenge poses questions coupled with a growing global population around the ongoing feasibility of and growing demand for consumption are consumerism as a lifestyle, single bottom highlighting the need to reconsider models line investment, and wealth concentration. of production and consumption, both These trends could suggest more globally and locally. cooperative and local forms of ownership and wealth distribution, smaller home Carbon markets and impact investment sizes and mortgages, job-sharing, and may serve as a financial tool to help foster more participatory production based on regenerative activities, and increasing sufficiency and relationships.

Rise of Asia According to CSIRO, by 2030 the Asia- challenges. One resolution to this Pacific region is expected to consume paradox would be for domestic “more than half the world’s food supply, innovations to focus on technologies and 40% of its energy and be home to an services that can improve quality of life estimated 65% of the world’s middle class” while reducing environmental footprints, (31). This trend presents a double-edged such as renewable energy, circular sword, with the benefit of new markets for manufacturing technology, and Australian exports and tourism potentially ecotourism. exacerbating the above environmental

Ageing population Australia has an ageing population, with the proportion of people aged 65 and over accounting for only 4% of the population in 1901, 8% in 1950, 15% of the population in 2017, and projected to increase to 21-25% by 2066 (33) (34). This changing demographic brings the dual challenges of the retirement savings gap and increasing health expenditure, but also yields benefits. The increasing number of active older people, with their wealth of life experience, reliable work ethic, and accumulated savings, has been dubbed the “silver economy”. Opportunities exist to:

• create greater cross-generational collaborations (such as Adelaide’s dual aged-cared facility/Montessori school); • employ older people (with financial incentives of up to $10,000 through the Federal Government’s Restart program to hire and retain mature age employees); • provide specific services and products for an older audience; and • support entrepreneurialism amongst older people (so-called “seniorpreneurs”).

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Technological change New and emerging technologies will Things and Smart Cities, precision continue to disrupt given ways of doing medicine, and mass data collation and things. The stuff of sci-fi movies is readily analysis (35). This suggests the need for becoming the reality of today, with rapid ongoing debate, responsiveness, development in areas like artificial creativity, and accountable governance. It intelligence, autonomous vehicles, also highlights the importance of training blockchain, drones, additive opportunities responsive to a rapidly manufacturing (3D printing), Internet of changing world.

Declining trust in business and institutions Trust in institutions, including government, business and the media, has declined significantly in recent years. For example, the percentage of people who say they trust government has fallen from 42% in 1993 to just 26% in 2016 (31), with levels of distrust in Australia’s key institutions only 4 percentage points away from the world’s least trusting country – Russia (36).

This declining trust has been correlated with:

• concern about the influence of big business over government, particularly around political donations and the “rapidly-revolving door between political office and lobbying positions” (36); • a sense that major political parties are disconnected and will promise anything to win votes; • a sense that business leaders are focused on short-term financial gains to the detriment of the broader social good. Trust is the glue that facilitates collective action to address complex, long-term challenges, and this loss of trust suggests the need for greater democratisation of ownership and transparency of decisions.

Changing consumer expectations Within Australia and many developed countries there is a shift in consumer habits, with a rising demand for services and experiences over products. Part of this trend may be attributable to social media, with status derived from “Instagrammable” experiences over products. Services are an area that small, local business can often compete well in. Demand for experiences can also serve the local economy, where sense of place delivers the very uniqueness and authenticity consumers are searching for. The shift away from products, coupled with increasing efficiency of production, has led to less material intensity per unit of GDP, a positive sign for overtaxed natural systems.

Another consumer trend is the increasing demand for corporate social responsibility – it is increasingly becoming a necessity rather than an option. This is evidenced in the rise of B- Corps, organic produce, ethical superannuation funds, impact investment, green bonds, free-range produce, and more.

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Appendix: Business Survey 2019 Report

Process Nine business surveys were published online and in hardcopy from 6 June to 10 July 2019. The purpose of the surveys was to gauge the state of businesses in the Augusta Margaret River Shire, to better understand the challenges and opportunities of business operators in the region and the key factors relating to their ongoing viability and sustainability. The results of the survey will inform the development of the Sustainable Economy Strategy. The surveys were developed under the following categories, with some survey questions customised to suit:

• General (8 submissions); • Station Road Traders (3 submissions); • Wine Industry (0 submissions); • Cowaramup Traders (7 submissions); • Agriculture (13 submissions); • Tourism & Accommodation (18 submissions); • Margaret River Main Street Traders (27 submissions); • Augusta Traders (17 submissions); and • Light Industrial Area (3 submissions). The business-type of survey participants is shown below.

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Which best describes your business? 30

The survey closed on 10 July 2019, with all submitters who included their contact details going in the draw for a massage. The prize was selected by utilising a randomiser function in Excel. The survey was promoted through the Shire’s Your Say engagement website and advertised widely. This included weekly publishing in the Shire’s Community Consultation section of the AMR Times newspaper and the Shire website, as well as the Margaret River and Augusta Chambers of Commerce newsletters, Margaret River Wine Association newsletter, Margaret River Busselton Tourism Association newsletter, a quarter page advertisement in the AMR Times and in a number of posters and hardcopy surveys circulated at local libraries, cafes, and agricultural stores throughout the Shire. Door-knocking of businesses also took place, with both the Shire’s Sustainable Economy Officer and Councillor Pauline McLeod visiting businesses to promote the survey. In addition, key times and places were advertised for face-to-face meetings and to fill out the survey, as per below.

Station Road Businesses 8am Wednesday 26th June @ Blue Ginger

Margaret River Main Street 9:30am Thurs 27th June @ Morries

Cowaramup Businesses 5pm Wed 26th June @ The Golden Jersey

Augusta Businesses 9am Tuesday 2nd July @ Deckchair Café

Margaret River Light Industrial 4:30pm Thurs 4th July @ Cape to Cape Explorer Tours, Auger Way Area

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Outcomes The most attended of the face-to-face meetings was in Cowaramup, where promotion by the Cowaramup Retailers Association and the offer of wine and nibbles drew a small crowd, with constructive conversation generated and a number of surveys completed. The Station Road event had no attendees, possibly reflecting the lack of an organised group representing these traders. Also, the Light Industrial Area event was cancelled due to very poor weather. In total there were 96 survey submissions, of which six were completed in hardcopy and 90 online. This equates to roughly 5% of businesses in the Shire. There was a low response rate from the wine industry and the construction industry, which could be indicative of survey fatigue, with the Wine Industry Association recently undertaking their own surveying. It is difficult to target the construction industry specifically, as they are by nature a geographically mobile and dispersed sector and have no local representative organisation. Given that the construction industry is so important to the region’s economy, representing 21% of all local businesses and 10% of local employment, strategies to gain meaningful feedback from this sector will be developed to best inform the draft Sustainable Economy Strategy.

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Findings

General feedback Themes that emerged from this engagement include: • Concern about rising commercial rates during an economic downturn; • Feeling a need for better signage; • Market saturation (particularly in accommodation); • The desire for a buy local campaign; • The need for the Shire to prioritise procurement from local businesses; • The beneficial impact of events and desire for more of these; and • A strong sense of wanting to be better understood by the Shire – for the realities of running a small business to be understood and considered in the Shire’s decision- making processes. 35% of businesses indicated a lack of optimism for their business’s future, 40% felt that things were ok, and 25% felt optimistic. 63% stated that the current financial year had not been an improvement on the previous one.

Leading into this Winter season, how optimistic do you feel about your business’s future (on a scale of 1-5)? 40 35 30 25 20 15 10 5 0 1 (Very 2 3 (Things are 4 5 (Very concerned) looking ok) optimistic)

Has the 2018-19 financial year been an improvement on the 2017-18 year?

Yes No

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This business concern derives from a number of factors – increased competition, disruptive technologies, rising business overheads, the coming Main Street redevelopment and a general slowing down of the economy. One survey submission stated: “As a long-term business owner, I see the effects of the retail downturn. It’s never been as bad as this in the last 33 years I've been in business.” Some other submissions reflected this sentiment, with statements like businesses are “really struggling in this economic climate”. Despite official tourism figures reflecting a significant increase in visitation to the Margaret River Region since the 2017 drop, it is uncertain how much this has correlated to increased visitor spend. The latest figures from the Western Australian Department of Treasury show an annual fall in State Final Demand – a broad measure of the demand for goods and services in the economy – from March 2018 to March 2019 of 1.1%. Since the end of the State’s mining boom in late 2014, growth in State Final Demand has plummeted below the national average.

Visitors to Margaret River Region 1,700,000 1,650,000 1,600,000 1,550,000 1,500,000 1,450,000 1,400,000 1,350,000 1,300,000 YE Mar-15 YE Dec-16 YE Dec-17 YE Dec-18

Total Overnight Visitors

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In the case of both the retail and accommodation sectors, disruptive technologies have played a role in reducing the competitiveness of existing modes of operation. These disruptive trends may see a dramatic restructuring of the local economy over time. Amazon, eBay and other online shopping platforms have created a convenience that appeals to many time-poor shoppers, not only pulling money away from local retailers but also undermining the potential for that money to recirculate multiple times through the local economy. Distant companies often fail to be competitive in services and in offering product or experience that is authentically local. The Shire has a limited capacity to address many of these broader disruptive factors, but the instigation of a Buy Local campaign (discussed later) could play a role in supporting the local retail sector. In addition, two-thirds of businesses surveyed do not currently sell online, so initiatives to support capacity-building in this arena could be of assistance. Some themes and strategies are discussed below, with additional attention given to feedback from Augusta traders, Margaret River main street traders, the agricultural sector and the accommodation sector.

Seasonality The Shire’s reputation as a tourism destination was further validated through the investigation of how much business revenue was reliant upon visitor spending rather than local spending. In total, 57% of businesses reported that more than half of their income relied upon visitors, and of these businesses half reported that more than three quarters of their income relied upon visitors. This highlights the challenges for cash flows for many of our businesses over the quiet winter months and suggests that strategies to either increase winter visitation or reduce overheads during this time of year could greatly benefit the business community. Seasonality was also identified as a major challenge for attracting and retaining staff, with the inability to provide consistent hours unattractive for potential employees.

What percentage of your revenue relies upon Visitors, rather than locals? 30

0 0-25% 25-50% 50-75% 75-100%

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Buy Local One of the tools used for adding vitality to local economies, and consistent with the submissions made through this engagement, is Buy Local / Choose Local campaigns. There is ample evidence to suggest that communities that implement and foster a greater awareness and appreciation of local businesses increase the circulation of currency before it leaks from the local system, as shown below.

Local businesses report already utilising local suppliers to a high degree, with 54% of businesses stating more than half of their business inputs are purchased locally. Of those businesses utilising comparatively small amounts of local goods and services, some are in a constrained position to increase this, particularly those retailing mass-produced goods such as computers and white goods that are only manufactured outside of this region. A Choose Local campaign could target both local residents and local businesses, and previous communications suggest eagerness for a collaborative campaign between the Margaret River Chamber of Commerce and Industry, Transition Margaret River, local business owners and the Shire. One of the challenges in running such a campaign is drawing a line on what constitutes “local”. For example, history suggests that effective Choose Local campaigns need to exclude franchises, yet the 8% of businesses that indicated they were a franchise – many of which are locally-owned – could easily feel unfairly excluded. Another grey area is business ownership: local ownership is linked to greater investment in the local community, yet the 26% of businesses who reported being wholly or mostly owned by people living outside the Shire still make a valuable economic contribution to the region. “Local” can therefore be reduced solely to geographic location, but in such a case reduces the impact of prioritising spend in businesses that maximise the local multiplier effect.

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Is your business a franchise?

Yes No

What percentage of your business is owned by residents living in the Augusta Margaret River Shire?

0-25% 25-50% 50-75% 75-100%

Local Investment Further support for local businesses could be achieved by implementing a local investment initiative, connecting the investment potential latent within the local community to those businesses seeking additional capital for business expansion and development. 47% of businesses stated that access to finance had been a challenge at some stage in their business development, and easing this challenge can be the difference between make or break. There are numerous examples of communities that have launched initiatives aimed at moving even a small percentage of capital from distant offshore investments to their local community – Local Investment Opportunity Networks, Community Credit Unions and Banks, Angel networks, local stock exchanges, etc. In the south-west region we already have the beginnings of a capacity-building network for businesses either at the startup phase, or ready to undertake a growth phase. The Generator Network, driven by Peter Griffyn, Creative Corner and Agristart, features a series of online courses aimed at fostering greater business acumen, a “Validator” program to help validate the commercial viability of a business idea and a funnel to investment and capital-raising avenues. In particular, graduates from the Validator program can pitch their idea to the South West Angels, an Angel investment group in the region. Alternative capital-raising ventures should be explored, particularly those aimed at diverting a small percentage of local investment potential away from distant businesses and back into the local business ecology,

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and those aimed at building relationships within the community aimed at mutual benefit over the long-term, rather than high returns on investment over the short-term.

Has access to finance been a challenge at any stage in your business development?

Yes No

Environmentally-friendly practices Businesses self-reported a high degree of participation in environmentally-friendly practices, with some behaviours featuring more prominently than others. This information can help identify and prioritise which behaviours to promote and support businesses adopting in the future. Nearly three-quarters of all surveyed businesses undertook some form of recycling and a similar number indicated they purchase from local suppliers. A high number of businesses (43%) reported they were eliminating single use plastics – a surprising statistic for such a challenging achievement, possibly indicating a trend around reducing rather than eliminating single-use plastics. 57% of businesses reported using LEDs, but there is insufficient detail to conclude whether this entails a single LED or a full retrofit of their business’s entire lighting requirements. Less than a quarter of businesses reported composting or utilising food scraps and three quarters of businesses stated they would not be interested in a FOGO (Food Organics Garden Organics) bin service if it became available in the future for a fee. The food/hospitality sector – the industry sector that would produce the most food waste – also had the highest penetration of composting scraps and the impact of a composting scheme in other sectors such as mechanical services might be limited. Therefore the most effective initiative to encourage and support a greater adoption of environmentally-friendly practices amongst businesses should examine each sector’s specific inputs and outputs and promote those activities with the lowest penetration and highest impact for that sector. Environmentally-friendly building retrofits, such as LEDs, photovoltaics and solar hot water, may require a degree of advocacy on tenant’s behalf to their landlords if the Shire is to see greater uptake. 27% of businesses reported the use of solar photovoltaic panels, a higher rate than the Shire’s residential installations, which account for 18.5% of dwellings in the Shire. Given that most businesses operate during the day time where the benefit of solar power is most financially impactful, and in the current context of historically low interest rates, a much higher penetration rate seems achievable and desirable. Care must be taken in drawing conclusions from a limited sample size (roughly 5% of businesses in the Shire). The degree to which all of these actions are taking place is difficult

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to determine as the survey aimed at capturing broad trends. Future engagement with businesses around sustainability practices will explore these items in greater detail. One model, undertaken in the City of Darebin, Victoria, is an assessment and recognition program called “We are greening our business”. This initiative uses a framework to explore with business owners various options for reducing their environmental footprint and provides participating businesses with certificates and stickers of recognition, inclusion in a “green business” directory, and regular networking opportunities with other participating businesses.

Do you currently undertake any of the following environmentally-friendly 80 practices?

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Agricultural business feedback Amongst farmers who responded to the survey, none reported that the 2018-19 financial year was an improvement on the previous year, and all farmers whose sole product was dairy conveyed a severe lack of optimism about the future of their business. Amongst the challenges they face, a common theme was a sense of incompatibility in agriculturally zoned areas between industry and “lifestyle” or accommodation blocks, particularly small lots around Rosa Brook, Warner Glen, Karridale and Nillup. The view was that these block owners didn’t understand the day-to-day realities of farming and were intolerant of noise and farming activities. In addition, there was a common perception that Shire planning approvals for simple requirements such as new sheds was too time-consuming and too costly, and a concern about planning decisions being compatible with farming, including a mention of “One house per title doesn’t suit farming families”. This feedback substantiates the suggested changes in the current review of the Local Planning Strategy, which includes increased exemptions for shed approvals, a presumption against subdivision of agricultural lots and allowance of larger ancillary dwellings to provide intergenerational housing on farming properties. Some of the feedback reflected a sense of being unacknowledged or left behind, with comments such as: ‘Make all farmers within the Shire feel as though they are valued and a part of the community.” And “As the biggest earner for the Shire agriculture should be celebrated just as much as tourism and given the same respect and assistance!” The Augusta Margaret River Shire could consider making a conspicuous effort to honour the region’s farming heritage, informed by further discussion with the farming community. Strategies could include making a public declaration; erecting signs, monuments, and artwork; hosting an annual event for farmers or bringing farmers and other community members together; creating a Gourmet Fringe Festival showcasing local produce with talks and demonstrations by famers; greater recognition and showcasing of farmers at the Margaret River Agricultural Show. Ideas for future development in the agricultural sector included: • continued support for Farmers Markets and ensuring their long-term existence; • advocate for local/regional abattoirs and other food processing and value-adding facilities; • exploring efficient technologies such as crop boxes, vertical farming and controlled climate facilities for growing crops; and • support for trialling and managing cooperative structures.

Regarding the suggestion for cooperative structures, the survey gauged interest levels in a cooperative processing facility (or food hub) for value-adding, marketing, and selling produce. More than half of the respondents stated that they were interested, and further quarter stated they might be interested. The National Good Food Network, United States, defines a food hub as “business or organization that actively manages the aggregation, distribution, and marketing of source-identified food products primarily from local and regional producers to strengthen their ability to satisfy wholesale, retail, and institutional demand.” The role of a food hub or network in the Augusta Margaret River Shire and Scott River Region has been identified and discussed at a series of Food Summits held by the Shire in 2016.

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A food hub has the potential to assist in distribution channels for smaller producers in the region and may bridge the divide between those producers aimed at satisfying local demand for fresh produce and those producers focused on large-scale, export-oriented production. The potential for marketing, value-adding and distribution cooperatives is part of the scope of works for the Scott River Sustainable Economy Strategy, soon to be produced by a consultant.

Augusta community feedback Bearing in mind that this survey is only a snapshot of local businesses, more than 80% felt that the main street lacked vitality. Ideas for improvements included:

• streetscaping; Do you feel that the Main St • safe paving; or town centre of Augusta is • benches; lacking vitality? • murals; • whale and abalone themed sculptures; • opportunities for “selfies”; • a unifying theme, colour or character; 18% • pedestrian crossings; Yes • more bins; and • fixing drainage issues. No One comment stated that while they didn’t feel the street 82% lacked vitality, it lacked vision, and in the 20+ years of their residency in Augusta there has been “no visible attempt at drawing up a realistic and visionary plan for the centre of town”. In considering economic opportunities for Augusta, a number of comments related to the ambition to attract more families and young people to the town. There is a large age disparity between Augusta and other settlements in the Shire, with the median age for Augusta residents being 59, compared to 35 for Margaret River, and 37 for Cowaramup. While this older demographic may underpin the comparatively higher rates of volunteerism in Augusta, it may create other challenges for securing labour and seeing business startups develop. Augusta has a number of assets that could be marketed and made further visible for both adding to liveability of the area and for attracting visitors and young families. Assets include: • The river and ocean front; • Slow pace of life (in the survey contrasted against Margaret River); • Excellent walking trails, including close proximity to the Cape to Cape Track; • Natural, pristine, and serene surrounds; • Relaxed fishing vibe; • Forest; • Plenty of seafood; • Whales; • Unique coastline; • Marina; • Lighthouse; and • Abalone.

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Augusta is nestled on the Blackwood River – the largest river in the south-west – yet the river is largely invisible from the main street. Consideration could be given for ways to better integrate river views with existing businesses, such as creating eating decks at the rear of those food establishments located on the west side of the main street. Many of the assets listed related to a marine theme – whales, seafood, marina, lighthouse, abalone and fishing opportunities. This could inform a unifying theme for the town, if residents feel this is a strong part of the town’s identity, and could be made more conspicuous through murals, sculptures, colour schemes, etc.

Main Street Traders feedback The survey captured a large degree of concern about the upcoming Main St redevelopment which, given the previously mentioned sense of general economic decline, is unsurprising. The main concerns related to uncertainty about the timing and impact of the construction, a concern about parking options and signage, concern about construction taking place during the peak trading period over summer, and that the construction will not be completed within a timely manner. These concerns have been taken onboard by the Shire, who has developed a communication campaign utilising the YourSay portal, Facebook (via Main Street Traders page), and public information sessions to update the community on the construction process and timing. Ned Higgins Lane currently holds underutilised parking capacity, and both the contractor and the Shire will be implementing signage to encourage simple wayfinding for vehicle movements and parking. In conjunction with a group of Main Street Traders, the Shire is developing a marketing strategy to provide positive messaging and images for visitors around the values of the future street, emphasising that businesses are still open, and highlighting parking and wayfinding options. Marketing materials will include large banners on the entry to town, printed shade cloth on construction barriers, and DLs and flyers provided for accommodation businesses. Further submissions on methods to support Main Street Traders included: • Plenty of directional signage; • An innovative, highly original “buy local” campaign; • Upgrade Ned Higgins Lane to allow cars to pass each other; • Focusing construction work outside of trading hours; • Investigate a delivery aggregator service (the example of Town Around was provided); • Have Main St businesses agree on a 20% “renovation sale”; • Increase events in the region, and run satellite events on the Main Street rather than just in outlying areas such as in the case of Surf Pro, Gourmet Escape, and other events; • Printing on construction barriers and additional banners erected; • Tree lighting and light shows; • Consider alternative back entrances and advertise to customer databases; • Having other businesses on the Main Street agree to stay open on Mondays of long weekends, or allow food vans and vendors onto the street on these days to encourage visitors to linger around longer before departing the town; • Including a central meeting space, more seating, and more opportunities to linger rather than walking “straight up and down the main street in half an hour”; • Greater visibility of our historical connection with indigenous and non-indigenous local culture; • PR and marketing;

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• Visitor maps for wayfinding and parking accessibility; • Signage and other mechanisms to encourage visitors to explore the southern end of the street and greater connectivity with the river and Old Settlement precinct; • Reduction in rates. This final point of a reduction in commercial rates, particularly during the construction period, was raised by a number of respondents as the most preferred solution to offsetting a downturn in revenue. There are a number of challenges with this approach, in particular the loss of Shire revenue to provide its core services, the requirement for non-main street residents to effectively subsidise main street traders for a development that will ultimately have the greatest benefit for those traders, the difficulty in ensuring a rates reduction is passed from landlord to tenant, and the difficulty in determining who is and who is not potentially affected by the redevelopment. The Shire’s focus is on supporting traders on the main street to avoid loss of revenue in the first place, ensuring the construction program is as least disruptive as possible, maximising wayfinding signs for visitors and implementing a marketing campaign to promote that business is still open and the future benefits the project will bring.

Accommodation providers The disruptive influence of Airbnb has caused concern amongst accommodation providers, many who see the rise of this platform as the key change that has led to a reduction in their bookings. While online booking platforms have been in existence for some time, Airbnb has been the most successful in assisting homeowners to commercialise their properties for short- stay accommodation. Part of Airbnb’s attractiveness derives from its strong system of vetting potential guests through a review system and its initial focus on allowing private rooms, rather than entire properties, to be available for short-stay. Airbnb and other online platforms have allowed private house owners to create additional supply in the tourism market in direct competition with traditional accommodation suppliers. From the perspective of these traditional enterprises, Airbnb does not operate on an even playing field and thus has an unfair advantage. Critics assert that Airbnb operators do not need to comply with the same suite of health and safety standards, or with disability access requirements, and that they flood the market in peak times undermining the viability of businesses who operate all year round. In fairness, any property approved for short-stay accommodation is required to meet a similar set of standards and it is only those non-compliant, non-registered properties that shrug the constraints of traditional accommodation operators. As a response, the Shire created a Compliance Officer position in 2019 to counter the rise of Airbnb properties that were either operating outside of approved areas, or were operating within approved boundaries but were not registered. The Compliance Officer undertook more than 50 inspections and issued 26 infringements, reducing the number of non-compliant holiday houses in the Shire. Another common concern is that shifting houses from the residential market to the short-stay market reduces availability of homes for rent and has negative implications for housing affordability. As of March 2017 more than 61% of Airbnb listings in Western Australia comprised whole homes or apartments rather than a single room in a hosted setting. In addition, there are planning concerns related to amenity for neighbouring properties in what are essentially residential areas. For home-owners living in a region where the ratio of house- prices to income is comparatively high, there is a strong benefit in Airbnb leveraging the latent capacity of empty rooms for a boost to income. The additional work in managing bookings, cleaning and laundering, is often outweighed by the higher earning capacity of short-stay tenants over long-term tenants, in essence creating new employment streams.

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Communication between the Shire and Businesses A common criticism levelled through the survey was a sense that businesses didn’t feel heard, that the Shire wasn’t listening, or that the Shire didn’t understand the challenges of running a small business in the region. Given that the newly-created position of Sustainable Economy Officer is the first time the Shire has had a role with a specific focus on the business community it is unsurprising that improvements in communication between the Shire and local businesses has been flagged. In the six months since the position’s inception, the Sustainable Economy Officer has held a number of meetings with business owners, facilitated a number of group meetings and networking events, attended events organised by business peak bodies, assisted with and run workshops for business owners, and engaged in email correspondence with business owners. It is anticipated that this ongoing engagement with the business community will create increasingly improved relations over time and provide a conduit for information flows in both directions. The Sustainable Economy Officer has also updated the Shire’s Economy webpage, adding several more pages and creating a YourSay platform. This online presence will be an ongoing project aiming to create clarity for businesses around their compliance requirements, where to get help for business development, upcoming capacity-building and information opportunities and a two-way communication channel via YourSay. The Shire’s Procurement Officer has created an extensive webpage on “Doing Business with the Shire”, providing background information on what is required to become a supplier for the Shire, and a portal for registering interest in becoming a supplier. A workshop was held, in conjunction with the Western Australian Local Government Association in March 2019, for local businesses to get a better understanding of the Shire’s procurement process and what it takes to submit a competitive tender or quote. The Shire is committed to continuous improvement in its procurement processes.

Conclusion The Business Survey was a valuable process for hearing from businesses on the ground, highlighting the challenges in maintaining an open communication channel with the business community and the need to establish stronger two way communication into the future. Those business sectors that have an established networking group or peak body were the easiest to engage with and have a greater potential for ongoing collaboration. Consequently there could be merit in the Shire helping facilitate the development of industry-specific networking groups for those sectors that currently have none. Key areas for further exploration in the Sustainable Economy Strategy currently under development include: • Implement a Buy Local / Choose Local campaign; • Support workshops and initiatives to improve online presence and online sales of local business; • Partner with MRBTA to consider strategies for increasing winter visitation, and explore ideas for reducing overheads during the offpeak season (e.g. variable commercial rates); • Work with experts in the field, such as Michael Shuman, to explore opportunities for local investment and capital raising initiatives; • Development of a green business initiative, informed by the City of Darebin’s program; • Gauge interest in, and opportunities for, a bulk-purchasing scheme for commercial solar photovoltaic panels;

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• Continue support for the Margaret River Farmers Markets, and identify alternative sites to locate markets in the future if the Department of Education requires repossession of the current site; • Advocate for local/regional abattoirs and other food processing and value-adding facilities; • Consult with farmers and experts on efficient technologies such as crop boxes, vertical farming and controlled climate facilities for growing crops; • Subsequent to the completion of the Scott River Sustainable Economy Strategy, undertake a review of food hub models and gauge appetite amongst local producers; • Launch a consultation and visioning process with the Augusta Community for adding vitality to the town, exploring options for streetscaping, artwork, and a clearer presentation of the town’s self-identity; • Continue to execute the Communication Plan for the Main Street Redevelopment, undertaking regular meetings with Main Street Traders Group throughout the duration of the project; • Continue to liaise with accommodation providers and ensure Airbnb operators are compliant; • Continue to improve the Shire’s online communication channels with the business community; • Facilitate development of networking/peak groups for Light Industrial Areas, the construction industry, and the service/commercial sector on Station Road and Acer Place.

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References 1. Hawken, Paul. Blessed Unrest: How the Largest Social Movement in History is Restoring Grace, Justice, and Beauty to the World. United Kingdom : Penguin Books, 2008. 2. C40 Mayor's Agenda for a Green and Just Recovery. C40 Cities. [Online] https://www.c40.org/other/agenda-for-a-green-and-just-recovery. 3. Considine, Robyn, et al. Mental Health and Wellbeing in the Shire of Augusta Margaret River. s.l. : Lishman Health Foundation, 2019. 4. Burke, G. and Stocker, L. Tacking Disadvantage and Inequality Through the Economic Development Strategy. s.l. : Shire of Augusta Margaret River, 2018. 5. Affordable Housing Strategy. s.l. : Shire of Augusta Margaret River, 2015. 6. PHIDU. Social Health Atlas of Australia: Data by Local Government Area. Social Health Atlases. [Online] September 2020. [Cited: 9 December 2020.] http://phidu.torrens.edu.au/social-health-atlases/data#social-health-atlases-of- australia-local-government-areas. 7. Diversification of regional economies: Why did the chicken put all its eggs in one basket? REMPLAN. [Online] [Cited: 10 November 2020.] https://www.remplan.com.au/blog/2019/10/diversification-of-regional-economies-why- did-the-chicken-put-all-it-eggs-in-one-basket/ . 8. Connolly, Ellis and Bank, Joel. Access to Small Business Finance. s.l. : Reserve Bank of Australia, 2018. 9. Coriolis. Premium Agri-Food Market Opportunity. s.l. : Department of Agriculture and Food, 2016. 10. Curtin University and Perth NRM. Food Security Plan for Western Australia. 2019. 11. Department of Agriculture and Food. Report Card on Sustainable Natural Resource Use in Agriculture. s.l. : Government of Western Australia, 2013. 12. Hoyle, Francis. Managing Soil Organic Matter: A Practical Guide. s.l. : Grain Research and Development Corporation, 2013. 13. Bankwest. Bankwest Future of Business: Focus on Agriculture. 2019. 14. Department of Agriculture and Food. Scott Coastal Plain a Strategy for a Sustainable Future. Perth : Department of Agriculture and Food, Government of Western Australia, 2001. 15. Rural Bank. Australian Farmland Values. s.l. : Rural Bank, 2019. 16. Shire of Augusta Margaret River. Business Survey Report 2019. 2019. 17. University of New England and Mobium Group. Australian Organic Market Report 2018. s.l. : Australian Organic, 2018. 18. Unger, M. and Emmer, I. Carbon Market Incentives to Conserve, Restore and Enhance Soil Carbon. s.l. : The Nature Conservancy, 2018. 19. Climate Solutions Fund - Emissions Reduction Fund. [Online] [Cited: 10 9 2019.] https://www.environment.gov.au/climate-change/government/emissions-reduction- fund.

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20. Tourism WA. Shire of Augusta-Margaret River Visitor Fact Sheet. 2019. 21. —. International Market Profiles. Tourism Western Australia. [Online] [Cited: 25 October 2019.] https://www.tourism.wa.gov.au/Research-Reports/Facts- Profiles/Pages/International-Visitor-Profiles.aspx#/. 22. Flight shaming: how to spread the campaign that made Swedes give up flying for good. The Conversation. [Online] 27 July 2020. [Cited: 12 2 2021.] https://theconversation.com/flight-shaming-how-to-spread-the-campaign-that-made- swedes-give-up-flying-for-good-133842. 23. Australian Bureau of Statistics. 6523.0 Household Income and Wealth, Australia, 2015-16. [Online] 2018. [Cited: 4 6 2020.] https://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/6523.02015- 16?OpenDocument. 24. SC Lennon & Associates, ARC Centre of Excellence for Creative Industries and Innovation. Creative Industries Statistical Analysis for Western Australia. s.l. : Department of Culture and the Arts, Government of Western Australia, 2013. 25. Australian Bureau of Statistics. ABS Labour Force Survey. 2019. 26. Australian Government. Health Care and Social Assistance jobs on the rise. Department of Employment, Skills, Small and Family Business: Newsroom. [Online] 10 September 2018. [Cited: 5 November 2019.] 27. Wood, Clare. Health and Community Services Access and Mapping Project Final Report. s.l. : GP Down South, 2019. 28. National Disability Insurance Agency. The NDIS Market: 31 December 2020. [Online] 2020. https://data.ndis.gov.au/reports-and-analyses/market-monitoring . 29. Stanlake, Linda. personal interview. 30. National Institute of Economic and Industry Research (NIEIR). economy.id. [Online] 2019. https://home.id.com.au. 31. CSIRO. Australian National Outlook 2019. 2019. 32. Hajkowicz, S., Cook, H., Littleboy, A. Our future world: Global megatrends that will change the way we live. s.l. : CSIRO, 2012. 33. Australian Bureau of Statistics. 3222.0 Population Projections, Australia, 2017 (base) - 2066. Australian Bureau of Statistics. [Online] 2018. [Cited: 6 November 2019.] https://www.abs.gov.au/AUSSTATS/[email protected]/mf/3222.0. 34. —. 3105.0.65.001 - Australian Historical Population Statistics, 2016. Australian Bureau of Statistics. [Online] 2019. [Cited: 6 November 2019.] https://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/3105.0.65.001Main+Features120 16?OpenDocument. 35. Schwab, K. The Fourth Industrial Revolution: what it means, and how to respond. World Economic Forum. [Online] 14 January 2016. [Cited: 8 November 2019.] https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it- means-and-how-to-respond/. 36. Wood, D., Daley, J., and Chivers, C. A crisis of trust: The rise of protest politics in Australia. s.l. : Grattan Institute, 2018.

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37. Connolly, Ellis, Norman, David and West, Tim. Small Business: An Economic Overview. s.l. : Reserve Bank of Australia, 2012. 38. Sudmeyer, Rob, et al. Climate change: impacts and adaptation for agriculture in Western Australia. s.l. : Government of Western Australia: Department of Agriculture and Food, 2016. 39. WAPC. Augusta-Margaret River Regional Land Supply Assessment. s.l. : Government of Western Australia, 2016. 40. Tax incentives for early stage investors. Australian Taxation Office. [Online] [Cited: 4 October 2019.] https://www.ato.gov.au/Business/Tax-incentives-for- innovation/In-detail/Tax-incentives-for-early-stage-investors/. 41. WALGA. Economic Development Framework. 2019. 42. Department of Water. The Effects of Climate Change on Streamflow in South-West Western Australia: Projections for 2050. s.l. : Government of Western Australia, 2010. 43. Australian Bureau of Statistics. Australian National Accounts: Cultural and Creative Activity Satellite Accounts, Experimental, 2008-2009. 2014. 44. Steffen, W. et al. Compound Costs: How Climate Change is Damaging Australia's Economy. s.l. : Climate Council of Australia, 2019. 45. Parilla, J. and S. Liu. Talent-Driven Economic Development: A new vision and agenda for regional and state economies. s.l. : Metropolitan Policy Program at Brookings, 2019. 46. Department of Jobs, Tourism, Science and Innovation. Western Australia Economic Profile October 2019. 2019.

677 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 APRIL 2021

11.2 Sustainable Development and Infrastructure

11.2.6 CLIMATE ACTION PLAN – FINAL ADOPTION

Attachment 1 – Climate Action Plan – Part 1 Towards Zero Emissions

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Climate Action Plan Part 1 – Towards Zero Emissions

2020-2030

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Acknowledgement of Country Kaya, Nala Maat Kaya Noonduk (Hello, Our spiritual significance to the coastal Wadandi Family Welcomes You) to Wadandi / people. Pibulmun Boodja (Saltwater People’s Boodja – Land, Country, Mother Earth – is our Country) – we all come together on Boodja most important resource. No matter what (Country). Whilst on Wadandi / Pibulmun culture or religion – all of us rely on Nala Boodja we ask that you respect the land by Boodja, Our Country. walking softly and take the time to listen to It is up to all of us to listen to the land, Boodja as she Wongi (Talks). understand the connection to Country that we We respect the presence of the Demmala all have and realise how urgent it is to work Goomala (Ancestors) whose Djanga (Spirits) together to make better decisions on how we reside on Boodja and whose djenna (feet) can create that balance, ensuring walk the land and whose Djanga Korda (heart sustainability for the generations to come, in spirit) flows through all creation. order to protect and preserve the beauty of Wooditjup (Margaret River) is the heart of Boodja. Wadandi / Pibulmun Boodja (country), a “Whilst living, travelling, visiting and holidaying meeting place between land and sea, on Wadandi / Pibulmun Boodja (Saltwater connecting us all with Wadandi / Pibulmun People’s Country) we ask that you respect the Boodja. area and walk softly on the country, taking the The Wadandi / Pibulmun Boodja time to listen to Boodja (Country) as she (Motherland) reaches from Bunbury, along the Wongi (Talks) of the Season, and leave coast of Geographe Bay, extending to nothing but footprints”. Yallingup (Place of Holes) to Taalinup, Augusta (Place of the Knob Sedge Reed) Wadandi Traditional Cultural Custodian inland to Nannup (The Stopping Place), taking Wayne “Wonitji” Webb. in the region of Undalup (Busselton) The Wadan Boodja (Sea Country) is of great .

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Foreword

The Shire of Augusta Margaret River is well placed through our legislative responsibilities and links within the community to influence the greenhouse gas emissions generated by our own activities. The Shire is also able to play a key role in supporting local households and businesses to mitigate the effects of climate change through initiatives in areas like energy use, waste disposal, land use change and transport.

It has been suggested local governments have the capacity to influence activities that contribute up to 50% of our national greenhouse gas emissions. When combined, the efforts of local government and their communities can make a real difference.

Reducing greenhouse gas emissions also has other benefits for local government and their communities, from improving local air quality and traffic congestion to reducing energy costs for residents and businesses, to generating Ian Earl new jobs, industries and incomes for local government. The Shire is also mindful Shire President of the financial benefits of initiatives such as well considered uptake of renewable energy. Through diligence in the preparation of actions and their implementation, the Council can achieve positive environmental and economic outcomes for the community.

The Shire of Augusta Margaret River is committed to reducing greenhouse gas emissions from its corporate operations and will play a lead role in reducing emissions from our community.

Through implementing this Climate Action Plan (CAP), Council aims to improve energy conservation and promote renewable energy. The Shire completed an inventory of greenhouse gas emissions from our own activities (Shire organisation) and those within the Shire as a whole (community) taken from base year 2007.

This CAP identifies a wide range of actions to be undertaken by the Shire organisation, and also actions to assist the community to reduce emissions and achieve carbon reduction targets. The CAP has been prepared in partnership with the community and the Shire looks forward to working with the community to achieve broad, positive and proactive change. Stephanie Addison-Brown Such actions are likely to bring environmental, social and economic Chief Executive Officer benefits for all residents of the Shire, now and in the future.

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Table of Contents

Foreword 1

Introduction 1

What can we do? 2

Our progress so far…. 3 Climate Action Timeline 3 Historical Targets 4 Current Emissions 4 Community 4 Shire Organisation 5 Where to from here? 7 Re-thinking Targets 7 Action Plan Overview 8 Policy and Education 9 Energy and Emissions 11 Transport 13 Waste 15

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Introduction Within the Shire of Augusta Margaret River, as in the rest of the world, climate change is occurring and is affecting our lives.

The world’s leading scientists warn that the worst impacts of climate change can still be avoided, however change must occur quickly.

The Shire of Augusta Margaret River’s Climate Action Plan sets out practical, economically responsible and inclusive measures which the Shire will put into place over the next 10 years in order to make a meaningful contribution to the worldwide mitigation task. In 2022, the Shire will also produce a similar plan to guide adaptation measures.

The Augusta Margaret River Shire has a strong track record in providing support and leadership on climate change. The first ‘Local Energy Action Plan’ or LEAP was endorsed in 2010 with updates in 2014 and 2018. A shortcoming of the plan however, was the lack of community ownership, which was identified as a necessary requirement of achieving greater emissions reductions across the community.

The foundations of this new plan stem from a grass roots community led initiative supported by the Shire, which culminated in a ‘Climate Action Summit’. Extensive community consultation identified 50 potential projects which were presented to Summit attendees. Attendees agreed on 11 Priority Actions to be developed into collaborative projects developed through partnerships between government, local business and community.

Priority Actions from the Climate Action Summit

1. Assist Augusta Margaret River Clean Community Energy group to develop a major community renewable energy project 2. Develop a community renewable energy power sharing system 3. Revegetate riparian zones, buffers, shelter belts, corridors, catchments, parks 4. Support agricultural transition to regenerative farming 5. Incorporate sustainability planning regulations into the Local Planning Scheme 6. Develop and promote programs to think local, buy local, swap, share and exchange 7. Support the development of new, sustainable and local industries 8. Provide low carbon public, tourist and school transport 9. Support transition to electric vehicles 10. Coordinate, champion and implement the AMR Climate Action Plan 11. Lobby for change at the state and federal political level

Most of these projects are already underway and progressing well. A summary of progress to date can be found in Appendix E Climate Action Report Card. The following plan outlines the Shires role in delivering these projects and other actions required to meet our emissions reduction targets and assist the community to meet their targets.

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The ‘Augusta Margaret River Climate Action Plan 2020-2030 towards zero emissions’ recognises that zero emissions targets are an accepted norm across international and Australian jurisdictions and will, in a short space of time, become legislative requirements. Therefore, early and sustained action will provide the smoothest transition for the organisation to excel in a carbon constrained environment.

Actions are set out under the following themes (insert stylised symbols):

Policy and Education Setting the right culture through community partnerships, lobbying and behaviour change

Energy and Emissions Focussing on how we avoid, swap and offset our emissions

Transport Switching to electric vehicles and alternative fuels

Waste Encouraging our community to reduce, reuse and recycle as we work towards zero waste and conscious consumption

What can we do? We understand that many of the structural changes and policy reforms needed to address climate change are outside the direct control of local governments. Nonetheless, in addition to meeting the emissions reduction requirements of its own operations, the Shire has an important role to play in providing direction and leadership for the community and industry within its borders. The circles of concern, influence and control1 help us to focus our climate action in a meaningful way.

Concern Concern The Shire has little control over international expectations and commitments, but we can respond and adapt to changes at this level.

Influence Influence The Shire doesn’t directly control community emissions or state and federal government climate policy, however, we can educate, collaborate, support and advocate for change.

Control Control The Shire can control how we manage our assets and infrastructure, our internal policies and how we carry out our statutory responsibilities.

1 Adapted from the City of Yarra Climate Emergency Plan 2020-2024

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International Our progress so far…. American Petroleum Institute Climate Action Timeline 1951 links atmospheric carbon to fossil fuels

Local First warning issued by US 1957 oceanographer Local rainfall begins rapid decline 1970’s First World Climate 1979 Conference held in Geneva

Intergovernmental Panel on 1988 Climate Change established Augusta Margaret River Shire set a target of * 20% reduction in emissions UN Framework Convention 1992 by 2020 on Climate Change Rio * below 2006/7 levels

Kyoto protocol sets Joined Cities for Climate 1997 emissions targets Protection Program 2007

An Inconvenient Truth 2006 Local Energy Action Plan 2010 premieres at Sundance (LEAP) adopted, updated 2014 and targets refined 2018 Several summits fail to reach 2000’s international agreement - 30% reduction in building & fleet emissions by 2020 Paris Agreement - 20% reduction in per capita 2015 streetlight emissions by 20/22 - 20% reduction in community emissions by 20/22 Greta Thunberg begins her - 20-25% renewables by 20/22 2018 School Strike for Climate

Catastrophic bushfires cover Council declares a climate 2019 2019 emergency much of Australia

Australia fails to commit to a 2020 net zero target

- Net zero emissions by 2030

Climate Action Plan finalised, The world looks to Glasgow 2021 and targets updated 2021 for international climate action

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Historical Targets

The Shire’s actions have previously been directed by the emissions reduction targets contained within the Local Energy Action Plan, which has been revised over time. The 2018 targets (which will be replaced by this Climate Action Plan) were:

Historical Targets Community • Assist community to reduce emissions by 20% by 2022 • Encourage community to source 25% renewable energy by 2022

Organisational • Reduce emissions from Shire buildings and fleet by 30% by 2020 • Reduce emissions generated from street lighting by 20% by 2022

Current Emissions Community Waste, 4% Emissions data has previously been difficult to accurately measure on a community wide basis. Recently, an Australia wide project has made this information available for all Shires Agriculture Electricity, 23% from 2018 (see figure and Appendix B). , 16%

Energy and waste data allow community progress to be tracked against the targets. Overall, energy emissions have continued to grow above 2007 levels. However, given that our population grew by nearly 43% between 2007 and 2018 and is likely to Transport, keep growing at 3.2% each year, per capita projections show 57% that the previous target for 2022 is still within reach. Community Emissions Carbon emissions tCO2 Residential Business WasteBreakdown Total2018 3 electricity electricity Actual 20072 35,134 36,850 18,862 90,846 20183 55,600 42,300 12,600 110,500 Target – 20% reduction by 2022* Not adjusted for growth 28,107 29,480 15,090 72,677 Adjusted for expected growth 45,449 47,669 24,400 117,519 *Using 2007 as the base year for emissions

There are currently 1,981 solar installations across the shire totalling 9,973 kW. It is estimated that systems are installed on 22% of dwellings4. With the South West Interconnected System (our local grid) already over 20% renewable, our community will easily meet the 25% renewable energy target by 2022.

2 Figures from Local Energy Action Plan 3 Figures from Snapshot data (see Appendix B) 4 Figures valid as of 31st December 2020 from https://pv-map.apvi.org.au

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Shire Organisation

Carbon Buildings Fleet Offsets Total Streetlights Total emissions (buildings + (all) (tCO2) fleet - offsets) Actual 2007 1,367 853 2,219 324 2,543 2020 1,290 934 - 550 1,674 477 2,151 Target – 30% reduction 20% by 2022 2020 956 597 1,553 268 1,821 Target – Net zero 2030 0 0 0 0 0

The Shire currently purchases 550t of carbon offsets each year to help offset emissions, however, this is not enough to meet our targets. Whilst we may have been close to meeting the target for buildings and fleet, streetlights are significantly impacting on our ability to meet previously agreed targets. As a result, we emitted 330tCO2 over our target of 1,821tCO2 in 2020.

Streetlights are managed by Western Power with the Shire paying the bill. This has created an ongoing issue for local governments wanting to tackle energy efficiency and emissions due to a lack of control. The current review of state energy policies may provide new opportunities to address this over the next few years.

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Where to from here? Re-thinking Targets

Over time targets have, as they must be, been influenced by a global context taking into account what appears to be possible and desirable in both a political and technological sense. Since the Climate Action Summit, and arguably, because of a ground swell of local action across the globe like the Summit, State and Federal governments and corporations, have made significant commitments towards cutting carbon emissions. Whilst it has always been necessary, it now appears possible that a zero net emissions economy can be created within a short space of time.

The Shire now must position itself to respond to the inevitable requirements which will need to be imposed by State and Federal governments, service companies and partner industries in the very near future to ensure that all institutions, corporations and individuals play their part in dramatically reducing emissions.

Our community appears ready for the challenge. More than 80% of responses to the draft Climate Action Plan either supported the proposed targets or called for greater action. In fact, over half the responses to the draft called for stronger targets and or greater action. Moving now towards a zero emissions ‘footing’ will significantly reduce the cost burden of implementing the necessary changes by allowing them to occur over a longer period of time.

Net zero 2030 target - community emissions (ktCO2) 400

350 14 13 300 56 51 12 47 10 250 82 42 75 9 200 68 37 8 61 203 33 7 186 55 28 150 170 48 6 153 41 23 136 5 19 100 119 34 102 27 3 14 85 20 50 68 2 9 51 14 1 7 5 0 34 17 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Transport Electricity Agriculture Waste

Net zero 2030 target - organisational emissions (tCO2) 3,000

2,500 324

2,000 853

268 1,500 263 597 259 537 1,367 227 478 194 1,000 418 162 956 358 860 130 765 299 500 669 239 97 574 478 179 65 382 119 287 32 60 0 191 96 2007 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20300

Buildings Fleet Streetlights

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Action Plan Overview The following pages outline the actions that will deliver on our organisational and community emissions targets. The four themes represent key areas of the organisation where significant focus is required. Actions are grouped under desired outcomes within each theme.

Targets Targets Net zero emissions by 2030

Themes Actions are grouped into 4 themes - Policy and education Themes - Energy and emissions - Transport - Waste

Outcomes Outcomes Each theme includes key outcomes to be achieved

Actions Actions Individual actions are grouped under the relevant outcomes

This plan provides a summary of actions to which the Shire commits itself to undertaking over the next ten years. Further detail will be provided through an Implementation Plan which will include timelines and resourcing along with tracking the progress against each action. It is expected that the plan will be regularly reviewed and updated in response to community expectations, budgets, technology and policy changes.

The Shire and community will work together to deliver the priority projects from the Climate Action Summit together with the organisational actions outlined in this plan. Annual updates will be provided to the community on how the projects are progressing and to what extent they are facilitating progress towards zero net emissions.

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Policy and Education These actions involve setting the right culture through community partnerships, sector transition, lobbying and behaviour change. They are supported through planning controls, education and improved carbon accounting. Outcomes can be difficult to measure but policy and education drive the cultural shifts required to reduce emissions.

Sustainability education is provided to the community each year through the Living Smart program and Low Impact Living workshops. There are also a number of community organisations actively promoting more sustainable lifestyles.

We have a diverse local economy with great opportunities for value adding and boutique experiences. Our clean, green image can be supported by leading the way on regenerative agriculture and developing sustainable, local industries.

We are currently reviewing our Local Planning Strategy and Scheme which is providing the opportunity to build in climate considerations. Improving the quality of the built environment will reduce emissions and ensure liveability in a changing climate.

Our Shire organisation carbon emissions are currently captured through Azility, whilst community emissions are estimated using Snapshot (see Appendix C). We will work to make this information more readily accessible to the community.

Strong action at the local level can drive change at a larger scale. By advocating for change we can influence state and federal governments. Divesting from fossil fuels and investing in renewables will influence the broader markets and accelerate positive change. Any organisation or individual has the ability to influence markets through their banking, superannuation and investment choices.

Policy and Education Outcomes and Actions 1. Outcome – Community groups are empowered to lead action on climate We support our traditional owners and local climate champions to lead and inspire community action 1.1. Make annual grant funding available for local community groups to promote sustainability to the broader community 1.2. Monitor the progress of Climate Summit projects via regular meetings with key partners and provide advice and coordination where necessary (Project Plan 10) 1.3. Participate in the Shire funded cultural burning workshop and identify further opportunities to collaborate with local traditional owners on low carbon land management as per agreement 2. Outcome – The Community is empowered to take action on climate We inform and educate our community to encourage sustainable behaviour change and enable the transition to net zero households 2.1. Fund an annual community sustainability education course 2.2. Organise and deliver low impact living workshops 2.3. Utilise media and Shire communications to provide the community with the latest information on sustainability, renewable energy and simple steps to reduce emissions 3. Outcome – A vibrant and sustainable local economy We encourage the development of sustainable local industries and help to facilitate the transition to a net zero economy

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3.1. Implement the Sustainable Economy Strategy 3.2. Monitor the success of the Shire funded transition to regenerative farming project and direct educators to appropriate funding opportunities (Project Plan 4) 3.3. Modify the land use planning framework via a new local planning scheme to support the development of new, sustainable and local industries (Project Plan 7) 3.4. Develop and promote programs to think local, buy local, swap, share and exchange such as the Local is More Campaign (Project Plan 6) 3.5. Obtain Eco-destination accreditation for the whole shire 3.6. Make annual grant funding available to local businesses to undertake sustainability improvements as per the Sustainable Economy Strategy 3.7. Facilitate industry specific planning to transition to a net zero economy 4. Outcome – Net Zero Shire organisation emissions We understand and implement the changes required to reach net zero 4.1. Part fund and host a PhD student to explore effective climate responses in a local government context using Shire of AMR as a case study 4.2. Implement the findings of the PhD study to mainstream climate considerations within the organisation 4.3. Develop a complimentary climate change adaptation plan 5. Outcome – Climate considerations are built into the planning framework We use planning policy to help drive the transition to net zero 5.1. Incorporate sustainability planning regulations into the Local Planning Scheme (Project Plan 5) 5.2. Develop a style guide for developments to increase urban greening 5.3. Develop a tree preservation process 5.4. Set canopy targets for urban areas 5.5. Develop a clearing offsets plan 5.6. Facilitate Shire organisation and community transition to carbon neutral buildings and infrastructure through policy and education around industry best practice 6. Outcome – Carbon emissions are measured and publicly available We share data on community emissions and monitor emissions from streetlights, waste management, Shire buildings and fleet 6.1. Continue to monitor and review the Shire’s energy, water and fuel data 6.2. Provide an annual update to council and community on progress against the Climate Action Plan and emissions reduction targets 7. Outcome – We inspire strong action beyond our community We lead by example and advocate for broader change beyond our boundaries 7.1. Develop a divestment plan to ensure all shire investments are emissions free 7.2. Encourage other local governments to adopt net zero targets 7.3. Join a local government climate alliance to share learnings on the transition 7.4. Join Climate Emergency Australia 7.5. Advocate for a stronger position on climate change at the state and federal level (Project Plan 11)

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Energy and Emissions These actions focus on how we avoid, swap and offset our emissions. The cheapest energy is the energy you don’t use whether through good design or efficiency upgrades. For the remaining energy, we can choose emission free sources and any residual emissions can be offset through carbon capture.

AVOID SWAP OFFSET Energy efficiency Renewable energy Capture carbon Good design Alternative fuels Purchase offsets Divestment

At a local level, the Augusta Margaret River Clean Community Energy group are developing a community led renewable energy project with wind, solar and a biodigester and administering a revolving fund to increase community solar installations and energy efficiency upgrades. Individual households and businesses are also charging ahead with solar installations.

125 kW solar have been installed across shire buildings with another 100kW due for installation on the Margaret River Administration Building this year. We also partnered with Western Power to install a 116kW battery at the Recreation Centre which helps to stabilise the local grid and provides new opportunities for more solar installations.

Upgrades to lighting, pumps and water heating at the Recreation Centre have improved the energy efficiency and switched from gas to electricity. New opportunities arise to improve energy efficiency with technological advances and as new technology becomes more affordable.

Currently a portion of our Shire organisation emissions are offset with carbon credits each year. We also support significant revegetation projects which actively draw down carbon.

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Energy and Emissions Outcomes and Actions 1. Outcome – Broad community access to renewable energy We encourage the rapid uptake of local renewable energy in our community 1.1. Consider support requests for non-commercial community renewable energy projects – e.g. funding for related research (Project Plan 1) 1.2. Investigate community renewable energy power sharing opportunities such as local demonstration projects (Project Plan 2) 1.3. Investigate opportunities to facilitate household solar PV installation, particularly for low income households 1.4. Investigate offering no interest loans to community groups to enable installation of solar PV and energy efficiency upgrades 2. Outcome – Renewable energy on Shire infrastructure We investigate and pursue opportunities to install renewable energy on shire facilities 2.1. Install a 20KW solar PV on the machinery shed of the Shire depot building 2.2. Install a 100kW solar PV system on the roof of the Shire offices 2.3. Investigate expanding the solar PV installation on the Margaret River Recreation Centre as part of the rebuild of the roof structure 2.4. Consider opportunities presented by WALGA’s Power Purchase Agreement 3. Outcome – Buildings and facilities use energy efficiently We look for opportunities to improve the energy efficiency of our own facilities and advocate for life cycle assessments across all new builds and retrofits 3.1. Lobby for whole of life costs to be factored into state and federal infrastructure projects (eg state housing projects for vulnerable community members) 3.2. Lobby for state government to adopt the 2019 National Construction Code and future upgrades to the code 3.3. Prepare energy audits for key Shire buildings, and implement outcomes of audits following review of cost/benefit 3.4. Review the Shire Administration Office Building Management System to determine where cost and energy savings can be made. 3.5. Adopt life cycle assessment tools to guide asset planning 4. Outcome – Energy efficient lighting is installed across the Shire We look for opportunities to upgrade to more efficient forms of lighting 4.1. Install a centralised lighting system at the Margaret River Recreation Centre 4.2. Convert to LED lighting on Gloucester Park sport ovals 4.3. Undertake a cost benefit analysis of converting streetlights to LED 5. Outcome – Homes, businesses and Shire facilities are all electric We support the Shire organisation and community transition away from gas 5.1. Support transition to all electric buildings 5.2. Encourage community to retrofit with efficient electric appliances 5.3. Provide information on climate friendly alternatives to wood burning for heating 6. Outcome – Carbon is actively captured and remaining emissions are offset We use carbon offsets to neutralise the emissions we can’t avoid yet and to meet our targets 6.1. Purchase Green Power to reduce emissions from grid electricity 6.2. Offset 550 t CO2 each year through an accredited (preferably local) source as a means of offsetting a portion of the Shire’s emissions 6.3. Continue to revegetate priority riparian zones, buffers, shelter belts, corridors, catchments and parks etc. (Project Plan 3) 6.4. Encourage landholders to increase carbon sequestration through land management practices

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Transport At 50% of our communities’ emissions, transport is an area requiring some serious attention. Luckily there are some great opportunities with the price and range of electric vehicles improving rapidly.

Hybrid and plugin hybrid vehicles have been trialled in the Shire fleet with plans to Shire Vehicle Fleet Energy transition to hybrids and electric vehicles over Consumption time. Electric equipment is also being trialled in the Parks and Gardens team to move away Light Fleet from fossil fuels and provide a safer work 6% environment.

Electric vehicle charging infrastructure has been installed in Margaret River and Augusta as part of the RAC Electric Highway project. The use of these charging stations is rapidly Heavy Fleet 94% increasing as more people switch to electric vehicles.

New walk and bike trails are being EcoMobility gives priority to walking, constructed and connected into the cycling, public transport, and shared existing infrastructure to support light electric vehicles. It promotes travel EcoMobility5, including a dedicated through integrated, socially inclusive, bike lane in the Margaret River main street. Existing paths have also and environmentally friendly options been upgraded, however, there are without depending on privately-owned still plenty of opportunities for vehicles. improvement.

5 https://sustainablemobility.iclei.org/

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Transport Outcomes and Actions 1. Outcome – Shire vehicles and equipment are fossil fuel free We transition our fleet and equipment away from fossil fuels 1.1. Progressively transition the light fleet to electric vehicles (Project Plan 9) 1.2. Monitor technological advances in heavy fleet and investigate electric or hydrogen alternatives and conversions 1.3. Investigate alternative fuels for existing heavy fleet 1.4. Install electric vehicle chargers at the Shire depots and offices to facilitate a transition to electric vehicles 1.5. Progressively transition to electric and solar powered equipment (i.e. mowers, blowers, snippers etc.) as it becomes available and affordable 2. Outcome – Community embrace electric vehicles We encourage our community to embrace electric vehicles 2.1. Lead the transition to electric vehicles by demonstrating their effectiveness and providing second-hand vehicles to the market when the Shire disposes of them (Project Plan 9) 2.2. Provide parking/planning incentives for EV charging 2.3. Lobby State government to accelerate the electric vehicle transition 2.4. Encourage car sharing and EV bulk buying opportunities within the community 2.5. Lobby Federal government to set emission standards for vehicles and support transition to electric vehicles 3. Outcome – EcoMobility is supported We encourage climate and people friendly transport options 3.1. Continue to provide infrastructure in appropriate places to encourage walking, biking etc (eg connecting and extending paths) 3.2. Provide bike lockers at bus stops 3.3. Continue to provide electric bikes for staff use 3.4. Implement the Department of Transport Your Move program https://yourmove.org.au/ 4. Outcome – Emissions free local public transport is available We advocate for local, low carbon public transport 4.1. Advocate for business and state government to provide low carbon public, tourist and school transport (see Project Plan 8)

695

Waste These actions encourage our community to reduce, reuse and recycle as we work towards zero waste and conscious consumption

Several strategies were implemented during 2019/20 to improve landfill diversion rates in an effort to achieve the State Government’s Waste Avoidance and Resource Recovery Strategy 2030 targets.

The introduction of the Shire’s 3-bin FOGO (Food Organic Garden Organic) kerbside collection service in July 2019 saw landfill diversion rates jump from 22% to 58%, a significant increase in the amount of residential waste diverted from landfill when compared with the former 2-bin system.

FOGO material collected through the Shire’s lime green lidded bins is transported to Bunbury Harvey Regional Council’s Banksia Road Organics Processing Facility where it is commercially composed into organically certified compost.

The state’s container deposit scheme is also increasing the recycling rates for beverage containers and providing a welcome funding source for local charities.

Material Diverted from Landfill - 2019/20

Mixed paper/cardboard - Tyres - 0.2% 21.5% Non-ferrous metal - 0.3%

FOGO - kerbside Other inert 1.3% collection - 49.8% Mixed plastic packaging - 1.7% Concrete and Garden construction waste drop- waste - 3.2% off - 6.5%

Ferrous Glass packaging - metal - 7.9% mixed - 7.6%

The chart above provides a breakdown of waste material diverted from landfill which was received through the Shire’s rural transfer stations, dropped off at the Shire’s Davis Road Recycling and Waste Management Facility, and collected through the Shire’s residential kerbside collection service.

696

Waste Outcomes and Actions 1. Outcome – Visitors and locals minimise waste We provide waste education to support the transition to zero waste for our residents, businesses and visitors 1.1. Continue to implement a waste education campaign for locals 1.2. Develop and implement a waste education campaign for visitors 1.3. Facilitate peer to peer learning from businesses and community members who are seen to be leaders in best practice waste management 1.4. Support waste education and resource recovery programs in schools 2. Outcome – Recycling is supported across the Shire We encourage people to reduce, reuse and recycle wherever they are in the shire 2.1. Provide recycling and FOGO bins in public places 2.2. Continue to implement a commercial three bin program and work towards making it mandatory 2.3. Investigate commercial waste audits to help businesses address waste streams 2.4. Work with the construction industry to reduce construction waste 2.5. Develop a guide and policy for waste wise events held in the shire in accordance with the Sustainable Events Strategy 3. Outcome – Local infrastructure supports zero waste vision We support the transition to zero waste through the development of our local waste infrastructure 3.1. Consider support for the development of a local green waste composting facility 3.2. Convert Davis Road Putrescible Landfill site to a transfer station

697 APPENDIX A

Globa l and Local Context

698 Global Context Intergovernmental Panel on Climate Change (IPCC) Projections Australia was a participant at the United Nations Climate Change Conference which led to the historic Paris Agreement on climate change. Signatories to the Paris Agreement agreed to take universal action to limit global warming to well below 2°c (preferably 1.5°c) to achieve net zero emissions, and to increase resilience to the emerging impacts of climate change. Subsequent Intergovernmental Panel on Climate Change (IPCC) reports have found that current national pledges will see Earth reaching at least 3 degrees above pre-industrial levels by 2100, which is catastrophic1.

Climate change has resulted in increased extreme weather events like heatwaves, droughts, bushfires and coastal flooding

Key findings of the IPCC include: • Global temperatures have been rising rapidly, posing grave risks for humanity. • The global effort to tackle climate change has begun but must be accelerated. • Australia is one of the most vulnerable developed countries to the impacts of climate change but is contributing little to solutions. • Inaction has already cost us dearly. A 1.5°c world, our best possible future, will change our lives even further. • Limiting global warming to no more than 1.5°c is a formidable challenge but solutions are available.

The Greenhouse Effect The Greenhouse effect is the natural system that warms the earth to a habitable temperature. Scientific evaluation shows that since industrialisation, human activities, such as burning fossil fuels, vegetation clearance, and poor land management practices has led to an imbalance in greenhouse gases in the atmosphere.

The atmosphere regulates the temperature on earth by absorbing or reflecting energy from the sun back into space. It is this infrared radiation that is absorbed by greenhouse gases in the lower atmosphere that warms the earth and creates a greenhouse effect.

1 UN Emissions Gap Report 2020 https://www.unep.org/emissions-gap-report-2020

699 Local Context The Shire of Augusta Margaret River Council adopted a Local Energy Action Plan (LEAP) in 2010, with subsequent modifications to the document occurring in 2014 and 2018. The LEAP focused on reducing Shire emissions as an organisation and assisting the wider community to reduce their emissions, through supporting community sustainability initiatives. In November 2018, Council made a decision to host a Climate Action Summit in the first half of 2019. Community members, Shire, State and Federal Government representatives attended the summit with the intent of developing ambitious and well considered actions on climate change that can be undertaken by whole of community. Secondly, it seeks to inform development of a Climate Action Plan (CAP) to replace the previous LEAP. On 28 May 2019, the Shire of Augusta Margaret River, allied with the community as represented by the ‘Climate Action Augusta Margaret River’ group, hosted a one day Climate Action Summit, in partnership with Surfing Western Australia and the World Surf League. The Summit’s focus was on ‘climate change mitigation’, with later engagement intended to explore climate change adaptation. In response to climate change, there is a global movement to reach net zero emissions. The Shire, and the broader community, are committed to achieving this ambitious target by 2030, building on its sustainability achievements to date and driving towards a carbon free and climate resilient future. Climate change forms one of the core principles of the Shire’s Community Strategic Plan 2036, acknowledging the pivotal role the Shire and community play in addressing climate change over the next 20 years. The CAP is based on a 10 year period of 2020 – 2030, with periodic reviews planned. The CAP is a two-part plan, with this document concentrating on reducing and offsetting emissions. This document proposes a number of actions targeted towards reducing the organisations emissions and encouraging the community to reduce their emissions. This CAP details both the Shire’s commitment to actions arising from the Summit and the Shire’s actions aimed at reducing emissions, as modified from the LEAP document. A second component of the CAP ‘Part 2 – Adapting to a changing climate’ will be developed in conjunction with the community. The goal of the adaptation phase will be to reduce the Shire organisation and community’s vulnerability to the harmful effects of climate change (including sea-level encroachment, more intense extreme weather events or food insecurity). The adaptation phase will involve conducting a risk assessment of the potential impacts of climate change, to both Council and community activities. Adaptation planning will involve embedding ‘planning for climate change’ into all Shire functions including bushfire planning, health and well-being, biodiversity, built form and infrastructure. The Climate Action Plan Framework is outlined below. Some current adaptation measures undertaken by the Shire have been captured in this, initial CAP Part 1. The CAP signifies the Shire’s commitment to addressing climate change. Other sectors including residential and business, and environmental groups in the community are encouraged to develop their own versions of a Climate Action Plan.

700 Climate Action Plan Framework

Climate Summit Outcomes

Revised Part 1 LEAP Targets Mitigation

Consultation

Risk Assessment Shire and Part 2 Community Adaptation Response* Climate Summit Outcomes

Climate Plan Action Plan

*Environmental, social and economic responses to manage climate change impacts in the areas of emergency management, biodiversity, health and well-being, planning etc.

701 Climate Action Summit On the 28 May 2019, the Shire of Augusta Margaret River, allied with the community as represented by the ‘Climate Action Augusta Margaret River’ group, hosted a one day Climate Action Summit, in partnership with Surfing Western Australia and the World Surf League. The Summit’s focus was on climate change mitigation. The intention of this work was to engage the community in leading climate action and gather insights to develop this Climate Action Plan.

Methodology In late 2018, the Shire of Augusta Margaret River directed the Sustainability Advisory Committee (SAC) to create a whole of community approach to reducing greenhouse emissions and moderating the impacts of climate change on the Shire from an environmental, social, cultural and economic perspective. To work collectively with the community, the SAC established the Climate Action Augusta Margaret River Working Group to direct the solutions and establish a clear pathway for creating positive change. The working group undertook pre- summit consultation from 14 April 2019 to 7 May 2019, through an online survey and several face to face workshops. This process generated 249 unique proposals which were then consolidated for consideration and reflection at the Summit.

Consultation Attendees /submissions Climate Action Workshop – Margaret River 60 Climate Action Workshop - Alexander Bridge 25 Climate Action Workshop – Margaret River 35 Climate Action Workshop – Augusta 12 Community Health & Network Group Meeting 15 Community Access & Inclusion Reference Group 12 Sustainable Economy Advisory Committee 12 Youth Climate Action Summit 35 Community Action Submissions 43 Total 249

702 Summit Outcomes The objective of the Climate Action Summit was to establish a process by which the community could prioritise a number of foundational projects within different categories. These projects were then progressed through a project planning exercise to initiate greater depth in thinking for each project and to feed actions into the Climate Action Plan. Overall, 50 projects were presented to Summit attendees across various key activity areas. Attendees were asked to vote for their top three projects under each theme. Summit attendees agreed on 11 Priority Actions to be further developed (see Appendix D for details).

Priority Actions 1. Assist Augusta Margaret River Clean Community Energy group to develop a major community renewable energy project (Community/Shire) 2. Develop a community renewable energy power sharing system (Community/Shire) 3. Revegetate riparian zones, buffers, shelter belts, corridors, catchments, parks (Community/Shire) 4. Support agricultural transition to regenerative farming (Community/Shire) 5. Incorporate sustainability planning regulations into the Local Planning Scheme (Shire) 6. Develop and promote programs to think local, buy local, swap, share and exchange (Business/Community/Shire) 7. Support the development of new, sustainable and local industries (Business/Community/Shire) 8. Provide low carbon public, tourist and school transport (Shire /State Government/Business) 9. Support transition to electric vehicles (Shire /Business/Community) 10. Coordinate, champion and implement the AMR Climate Action Plan (Community/Shire) 11. Lobby for change at the state and federal political level (Community/Shire)

The outcomes of the Summit create the foundation for the Shire and community to confidently move forward with an initial 11 projects to input into the inaugural Climate Action Plan and further progress their implementation in partnership with the community. The nature of the projects requires a range of stakeholders to be involved in further project development including diligence and feasibility, as well as recognising that established businesses; community groups and the Shire are accountable for delivery, whilst concurrently playing an advocacy role in influencing support from State government.

A Project Plan was developed for each priority action, and a lead stakeholder assigned to each action. The Shire is responsible for implementing and/or facilitating each one of these projects. The Shire’s role varies across the projects but it remains commited to supporting the Community to deliver these projects.

703 APPENDIX B

Snapshot Community Emissions Data

704 Snapshot Report Augusta-Margaret River 2018 municipal emissions snapshot

Agriculture 15.79% Electricity 23.06%

Residential 15.65% Commercial 0.62% Waste 3.89% Industrial 6.78%

Total municipal emissions Gas 0.00% 355 200 t CO2e

Transport 57.26%

On road 57.26%

Augusta-Margaret River is a rural Source Sector Emissions (t CO2e) municipality that is small in area relative to Electricity Residential 55 600 Commercial 2 200 the state average and has a very low urban Industrial 24 100 density. It’s major emissions source is on road Gas Residential 0 transportation, due to the community’s larger Commercial 0 commuting and other travel requirements. Industrial 0 The second largest source of emissions is Transport On road 203 400 electricity consumption. Domestic air travel 0 Waste Landfill 12 600 There are many reasons why a profile can Water 1 200 change over time including changes in Agriculture 56 100 emissions sources, updates to methodology Land Use 11 700 Land Use data is not used in the chart nor the and more accurate data sources. Read our displayed total municipal emissions. FAQs for more information.

Characteristics

Land area 2 122 km2

Population 15 700

Gross regional product $ 929 750 000

Climate zone 5

Source: V7M • Last modified: 2020-08-10 snapshotclimate.com.au705 • page 1 of 2 Snapshot report Snapshot Report About this report

Sources of emissions Inclusions & Exclusions Understanding uncertainty

This report outlines the major sources of carbon The Snapshot provides you with a profile of your With any data, there is some level of uncertainty. emissions for the entire municipality. Due to the municipality’s emissions for the inventory year (2017) This report will be more accurate for municipalities approximate nature of the profile, the emission and gives a breakdown of emissions by sector. This that are closer to the average across Australia. You values are represented as rounded numbers. This Snapshot of your local government area’s may have local data that doesn’t match up exactly report includes the following sources: greenhouse gas emissions profile is based on with what you are seeing here. That’s ok — the portioning state level data sets. Snapshot can be purpose of this profile is to provide comparisons — Stationary energy (grid supplied electricity/gas) used alongside local data sets where more detail is that work for everyone across Australia, and it may — Transport (on-road use and domestic passenger needed. be that in some areas there is locally supplied data air travel) which is more accurate or measures different areas — Waste (landfill and wastewater) There are a number of minor emissions sources that than the Snapshots. What makes it unique is that it — Agriculture (enteric fermentation, manure are included as part of a larger total or excluded. uses a common framework. This means the total of management, and synthetic fertilizer use) The full list of inclusions and exclusions can be all local profiles match the national emissions total — Land Use Change (land clearance and found in the Methodology document. and no emissions go unaccounted for. reforestation)

It has been developed to be consistent with the Global Protocol of Carbon Emissions reporting (GPC Protocol), the main international standard for cities and local government areas.

For help using this report to plan CO2 CO2e Characteristics reductions strategies, please see our user guide. Carbon dioxide equivalent Climate Zone 5

All data is presented in carbon dioxide Warm temperate equivalent (CO2e). This measure combine all the different greenhouse gases (such as methane) into a single figure + represents an equivalent amount of carbon dioxide being released.

Source: V7M • Last modified: 2020-08-10 snapshotclimate.com.au706 • page 2 of 2 Snapshot report APPENDIX C

Climate Summit Report Card

707 COMMUNITY PROJECTS 2020 STATUS UPDATE

708 PROJECT WELL PROJECT COMMENCED PROJECT STILL IN PROJECT NOT YET UNDERWAY WITH INITIAL PROGRESS PLANNING FEASIBLE

Revegetate riparian zones, Assist Augusta Margaret River Develop a community renewable Provide low carbon public, buffers, shelter belts, corridors, Clean Community Energy group energy power sharing system tourist and school transport catchments, parks to develop a major community renewable energy project

Support agricultural transition to Coordinate, champion and Support the development of more sustainable practice implement the AMR Climate new, sustainable and local Action Plan industries

Incorporate sustainability Lobby for change at the state Support transition to electric planning regulations into the and federal political level vehicles Local Planning Scheme

Develop and promote programs to think local, buy local, swap, share and exchange

709 1 PROJECTS WELL UNDERWAY

710 KEY PROJECT PARTNERS

MARGARET RIVER BUSSELTON TOURISM ASSOCIATION

PROJECT WELL UNDERWAY ACTIVITIES KEY ANNOUNCEMENTS 6 Nature Conservation Margaret River Region have planted 6 Nature Conservation Margaret River Region announced 14,680 native seedlings including 11,530 as part of a Western significant funding agreements with the Wright Burt Foundation Revegetate riparian zones, Ringtail Possum habitat enhancement project (undertaken in and LINE IN THE SAND. The Wright Burt Foundation’s contribution buffers, shelter belts, corridors, conjunction with South West Catchment Council), 2260 at various goes to underpin core operations, while Line in the Sand is catchments, parks foreshore, bushland and coastal sites with local primary school partnering with Nature Conservation Margaret River Region on a students, and 890 on Augusta Margaret River Shire reserves. range of coastal programs. 6 450 native seedlings were planted on Yalgardup Brook as an 6 Augusta Margaret River Shire continues to fund community offset for the 2019 Climate Summit event. based revegetation projects through its Environmental 6 Management Fund. Support agricultural transition to Lower Blackwood Land Conservation District Committee (LCDC) have undertaken riparian fencing and revegetation 6 Nature Conservation Margaret River Region has secured State more sustainable practice through a Regional Estuaries Initiative project, resulting in 14ha of NRM funding for a For Nature Landowner Stewardship Program riparian revegetation and 38km of stock exclusion fencing in the which will assist landowners to undertaken conservation action catchment. including revegetation with local native species. 6 MRBTA have established revegetation plans and planted 1500 6 Lower Blackwood LCDC will continue to deliver riparian fencing native seedlings at its sites across the region. and revegetation from 2021-2024 through Healthy Estuaries WA, undertaken in partnership with the Department of Water and Incorporate sustainability Environmental Regulation. planning regulations into the Local Planning Scheme

Develop and promote programs to think local, buy local, swap, share and exchange

711 3 KEY PROJECT PARTNERS

PROJECT WELL UNDERWAY ACTIVITIES KEY ANNOUNCEMENTS 6 Lower Blackwood LCDC undertook a Regenerative Agriculture 6 Lower Blackwood LCDC and Margaret River Wine Association in Practice – Adapting for a Changing Climate project throughout have signed an MOU to work together on sustainability initiatives. Revegetate riparian zones, 2020.This project was aimed at increasing awareness, knowledge 6 Lower Blackwood LCDC have received funding from the buffers, shelter belts, corridors, and understanding, access to advice and adoption of regenerative Augusta Margaret River Shire to undertake a Regenerative catchments, parks agriculture techniques by farmers in the Lower Blackwood Agriculture in Practice - ‘Building Resilience’ project throughout Catchment. 2021. The project will see continuation and further development 6 Lower Blackwood LCDC have also developed a Regen Ag ‘Info of it’s Regenerative Grazing program with an additional focus on Hub’ on their website. The Hub consists of Guides and reading on building soil health and resilience. the topics of soil health, pasture biodiversity, regen grazing and 6 Margaret River Wine Association will hold workshops for its Support agricultural transition to regen ag, water health, stock health, bio-stimulants, weeds and members on Biodiversity, Soil and other Sustainability topics ferals, farmer profiles and case studies, podcasts and webinars. more sustainable practice throughout 2021. 6 The Landsmith Collection (which includes Voyager Estate) 6 Margaret River Wine Association has received a $42k grant from hosted a free Field Day in November 2019 for around 70+ the AMR Shire to support Sustainability Plans in 2021 and employ a community members interested in starting on a regenerative Sustainability Engagement Officer for the next 12 months to assist farming journey. members in the Shire to join the Sustainable Winegrowing Australia 6 AMRCCE has now completed its Z-Filter on-farm trial with program. Incorporate sustainability funding from the State Government’s Regional Estuaries Initiative 6 21 wine producers in the region have now gained organic planning regulations into the through the Department of Water and Environmental Regulation. certification for some or all of their vineyards. Local Planning Scheme The trial was assessed whether it was possible, both practically and economically, for farmers to separate the effluent into reusable 6 AMRCCE’s Z-Filter on-farm trial was very successful. The results liquid filtrate (water) and stackable manure solids. showed that the Z-Filter very effectively separated the solids and liquid (filtrate) components of the effluent allowing the farmer 6 Margaret River Wine Association formed a Sustainability Sub- to reuse the filtrate with onsite bore water and to irrigate over Committee and have now developed a Sustainability Action Plan. large existing irrigation areas using existing irrigation equipment Develop and promote programs directly offsetting synthetic fertiliser use, with anticipated savings to think local, buy local, swap, benefit. It also provided the farmer with separated Filter Cake share and exchange to apply to the land boosting of soil productivity in previously underperforming areas.

712 4 KEY PROJECT PARTNERS

PROJECT WELL UNDERWAY ACTIVITIES KEY ANNOUNCEMENTS 6 The Local Planning Strategy and Scheme are currently 6 Public consultation on the Draft Local Planning Strategy undergoing major updates with a strong focus on sustainability. occurred late last year with consultation on the Draft Scheme Revegetate riparian zones, occurring this year. buffers, shelter belts, corridors, catchments, parks

Support agricultural transition to more sustainable practice

Incorporate sustainability planning regulations into the Local Planning Scheme

Develop and promote programs to think local, buy local, swap, share and exchange

713 5 KEY PROJECT PARTNERS

MARGARET RIVER BUSSELTON TOURISM ASSOCIATION PROJECT WELL UNDERWAY ACTIVITIES KEY ANNOUNCEMENTS 6 A major initiative to promote participation in the local economy 6 A pledge to encourage locals to choose, think and support local was launched through the LOCAL-IS-More Campaign. The launch first is available on the LOCAL-IS-More website. Revegetate riparian zones, was supported by a number of promotion and education initiatives 6 MRBTA stocks the retail products of 55 local suppliers at its sites buffers, shelter belts, corridors, including events, website, social media, special local offer, window across the region including support for Owl Friendly Margaret catchments, parks decals and a support local pledge. River, the Western Ringtail Possum Action Group and the Friends 6 Live Local Month saw over 35 events take place throughout of the Cape to Cape Track. November 2020, including the Margaret River Farmers Markets and Town Square Markets, as well as feature events including the Live Local Night Market, the Festival of Forgotten Skills, Support agricultural transition to Produce Swap Shuffle Share, Undalup Bush Tucker Workshop and more sustainable practice Intercultural Morning Tea.

Incorporate sustainability planning regulations into the Local Planning Scheme

Develop and promote programs to think local, buy local, swap, share and exchange

714 6 PROJECT COMMENCED WITH INITIAL PROGRESS

715 KEY PROJECT PARTNERS

PROJECT COMMENCED WITH INITIAL PROGRESS ACTIVITIES KEY ANNOUNCEMENTS 6 Augusta Margaret River Clean Community Energy (AMRCCE) 6 Augusta Margaret River Shire has allocated $30,000 in support has been working on a feasibility study and gaining approvals for a of AMRCCE for FY21. Assist Augusta Margaret River 10MW Grid Connected windfarm in the Scott River. AMRCCE aims 6 AMRCCE is now a Registered Charity with Deductible Gift Clean Community Energy group to find a suitable partner to develop / operate the wind farm whilst Recipient status which enables it to provide tax deductibility to to develop a major community securing a community shareholding to fund ongoing projects to donations towards its activities. renewable energy project reduce community emissions. 6 PROGRESS TO DATE: • Optional locations identified within 3 km of Beenup substation Coordinate, champion and • Access Agreements obtained implement the AMR Climate • Modelling undertaken with publicly available and gifted wind Action Plan data • Onsite wind monitoring completed • Western Power Connection Application commenced • Potential finance opportunities explored • Conceptual Development Application underway Lobby for change at the state • Wind data analysed and advice on turbine specifications and federal political level received

716 8 KEY PROJECT PARTNERS

MARGARET RIVER BUSSELTON TOURISM ASSOCIATION

PROJECT COMMENCED WITH INITIAL PROGRESS ACTIVITIES KEY ANNOUNCEMENTS 6 Climate Action Augusta Margaret River continues to monitor, 6 In August 2020, Augusta Margaret River Shire Council endorsed promote and facilitate progress of the community projects the Corporate Business Plan 2020-2024 which included a series of Assist Augusta Margaret River identified as an outcome of the Climate Action Summit. Key Performance Indicators (KPIs) for the Chief Executive Officer. Clean Community Energy group One of the KPIs was “Maintain the Shire as a leader in climate 6 Augusta Margaret River Shire’s draft Climate Action Plan was to develop a major community change mitigation and adaptation improving our scores across the released for review in 2020. renewable energy project ten WALGA climate excellence categories”. 6 MRBTA has partnered with UWA on a climate change research 6 Augusta Margaret River Shire will sponsor a PhD student project involving the monitoring of Karri Trees. through Edith Cowan University South West to undertake three years research on climate action and adaptation and report on Coordinate, champion and opportunities for mainstreaming responses to climate change implement the AMR Climate across the Shire. Action Plan 6 The Climate Action Summit was awarded Runner Up for Australasian Project of the Year and Winner in the Environment Category at the 2020 International Association for Public Participation Core Value Awards. 6 Augusta Margaret River Shire has installed 20kW solar at the Lobby for change at the state Margaret River depot. and federal political level 6 MRBTA has installed solar power at Margaret River Visitor Centre and Lake Cave.

717 9 KEY PROJECT PARTNERS

PROJECT COMMENCED WITH INITIAL PROGRESS ACTIVITIES KEY ANNOUNCEMENTS 6 WA Forest Alliance ‘Forests for Climate, Forests for Life’ 6 On 9th September 2020 AMR Shire Council endorsed the campaign was launched and a Forest Rally held in Margaret River following five Forest for Assist Augusta Margaret River in August 2020. Climate actions: Clean Community Energy group 6 A letter writing workshop was hosted by Margaret River • Immediately protect mature native forests as biodiverse to develop a major community carbon stores renewable energy project Regional Environment Centre. • Protect degraded forests as Future Forests and allow them to 6 The Nannas for Native Forests group was launched including recover their full biological potential mothers, grandmothers and great grandmothers from all walks of life and all political persuasions, who share a deep concern for the • Complete the transition of the timber industry to sustainably managed plantations and farm forestry Coordinate, champion and well-being of future generations. • Develop a targeted, strategic approach to fire management implement the AMR Climate with guidance from Noongar fire practitioners and ecologists Action Plan • Rule out native forest bioenergy 6 The following three major aims of Forests for Life: • To protect forests from threatening processes • To develop a world-class farm forestry sector in south-west Lobby for change at the state Western Australia; and and federal political level • To meaningfully account for the critical role forests play in the mitigation of, and adaptation to climate change 6 It was also endorsed that the CEO write to the Premier, Opposition Leader, relevant ministers and local Members of Parliament to express Council’s position.

718 10 PROJECTS STILL IN PLANNING

719 KEY PROJECT PARTNERS

PROJECT STILL IN PLANNING ACTIVITIES KEY ANNOUNCEMENTS 6 AMRCCE continues to investigate and evaluate establishing a 6 AMRCCE is finalising the terms of an agreement to enter into a community retail partnership with suitable partner(s). community retail partnership to be announced during March 2021. Develop a community renewable energy power sharing system 6 Support for a local revolving fund 6 AMRCCE was successful in the Shire’s Community Resilience has been obtained from Corena (corenafund.org.au) who have grants and obtained a $50,000 loan (non-recourse) to provide seed provided AMRCCE access to policies and processes from their funding and $15,000 funding to improve their website to support funding model. a revolving fund which makes interest free loans to community groups for emissions reduction projects. 6 The AMRCCE Revolving Fund is expected to be in operation by Support the development of the end of the 2020/21 financial year. new, sustainable and local industries

Support transition to electric vehicles

720 12 KEY PROJECT PARTNERS

MARGARET RIVER BUSSELTON TOURISM ASSOCIATION

PROJECT STILL IN PLANNING ACTIVITIES KEY ANNOUNCEMENTS 6 Augusta Margaret River Shire is in the process of drafting 6 Augusta Margaret River Shire’s economic stimulus grants a Sustainable Economy Strategy which will be supported by a supported businesses focused on plastic recycling, eco-tourism Develop a community renewable Sustainable Economy Grants scheme. and primary producer marketing. energy power sharing system 6 Ecotourism Australia’s Global Eco Asia-Pacific Tourism 6 Augusta Margaret River Shire and MRBTA have sought ECO Conference was held in Margaret River in December 2020. Destination Certification through Ecotourism Australia. The Certification approves destinations committed to sustainable practices and to quality, nature-based tourism experiences. 6 Currently 12 tourism businesses in the Shire have had their Support the development of sustainable credentials certified by either Ecotourism Australia or Tourism Council WA, including MRBTA-managed attractions. In new, sustainable and local February 2021 MRBTA and the Shire of Augusta Margaret River industries launched a program to support 10 new businesses to gain ECO Certification with Ecotourism Australia. 6 Development of a Sustainable Industries Cluster is scheduled for 2021. Support transition to electric vehicles

721 13 KEY PROJECT PARTNERS

MARGARET RIVER BUSSELTON TOURISM ASSOCIATION

PROJECT STILL IN PLANNING ACTIVITIES KEY ANNOUNCEMENTS 6 Augusta Margaret River Shire continues to investigate transition 6 Augusta Margaret River Shire has purchased a number of hybrid of shire fleet to electric vehicles. and plug in hybrid vehicles and recently purchased 2 electric bikes. Develop a community renewable energy power sharing system 6 MRBTA has 8 hybrid vehicles in use across the organisation.

Support the development of new, sustainable and local industries

Support transition to electric vehicles

722 14 PROJECT NOT YET FEASIBLE

723 PROJECT NOT YET FEASIBLE COMMENTS 6 There are currently issues with commercial viability for this project. Provide low carbon public, 6 Expecting significant price reductions over the next few years and potentially some state government initiatives to address this. tourist and school transport

724 16 Climate Action Augusta Margaret River would like to acknowledge that we operate on the country of the Wadandi and Pibelmen people, and recognise their ancestors and descendants as the traditional owners of this country. We acknowledge that sovereignty was never ceded and that this always was and always will be Aboriginal land.

725 APPENDIX D

Climate Action Summit – 50 Feeder Projects and 11 Priority Action Project Plans (as developed at the summit)

726 Climate Action Summit Working together to reduce carbon emissions and

create a climate resilient community that is sustainable and just

Theme 1: Power generation and use

Strategy Projects

Major renewable 1.1 Assist Augusta Margaret River Clean Community Energy (AMRCCE) group energy projects to develop a major community renewable energy project Establish a renewables power plant using wind and biogas to produce 10 MW of wind and 2 MW of biogas from cow effluent and other waste products, and create a community shareholding to provide ongoing funding for further emissions reduction.

Increase 1.2 Develop a community renewable energy power sharing system community (Shire, business, industry, A community-wide cooperative and power sharing system is developed for PVs and householders) batteries (or community battery sink) on all residential, community and commercial uptake of buildings. renewable energy 1.3 Develop incentives to increase renewables in the community

Make available subsidies, incentives, loans and/or bulk-buy schemes for households to purchase solar panels and batteries.

1.4 Develop future zero-carbon renewable energy industries

• Large-scale solar farms /depots are developed, with solar panels (& incentives), Solar Thermal. • Solar thermal energy plant through solar heat gradient salt ponds. Specifically focus on this for dairy farms. 1.5 Shire (organisation) reduce emissions through renewables and energy efficiency Shire continue to install solar panels on buildings and emissions-free lighting (Convert all street lighting to LED and Turn off street lights after 10 or 11pm in residential areas to reduce power use), develop wind turbines (eg at Busselton foreshore).

Divest and invest 1.6 Shire sources ethical, fossil fuel-free investments to promote • Shire implements ethical, fossil fuel-free investments (including reserve funds) renewable energy and innovative • MR Shire attract investors for new industries and opportunities. technology 1.7 Divestment from fossil fuel companies AMR businesses and organisations divest from schemes and banks that fund fossil fuel extraction, and invest in renewable energy.

Climate Action727 Summit Climate Action Summit Working together to reduce carbon emissions and

create a climate resilient community that is sustainable and just

Theme 2: Vegetation, forests, fire and land use Strategy Projects

Protect forests, 2.1 Shire develop policies to protect vegetation and habitat bushland and urban • vegetation Target habitat protection and creation as its primary goal in mitigating the effects of climate change on wildlife. • Initiate an audit of remnant bushland within the Shire, both private and reserved. • reward future developers for incorporating substantial areas of natural bushland • Biodiversity sensitive prescribed burning - Co-operate with Gondwana Link and other local bodies in an effort to establish contiguous environmental corridors. 2.2 Give South West ‘Amazon Rainforest’ status Give South West 'Amazon Rainforest' status to concentrate efforts here by building a global connection to the SW to protect and enhance the area. 2.3 Aboriginal collaboration across land management Principle of practice across the whole Climate Action Plan: Aboriginal people are involved in programs for education, training and promotions regarding sustainable land management. 2.4 Develop partnerships in biodiversity innovation Develop partnerships with universities (such as environmental scientists) for future research and innovation on best practice to maximise protection of biodiversity.

Revegetate 2.5 Revegetate riparian zones, buffers, shelter belts, corridors, catchments, agricultural, public parks and private land Revegetation and fencing of riparian zones, water ways, farms and creeks to protect

the land and increase plants. Lift the quality of streams and protect natural springs. Provide a wide buffer of vegetation along waterways. Establish subsidies, incentives, loans and/or bulk-buy schemes for households to purchase solar panels and batteries. 2.6 Education and training for landowners on land management Provide education and training for landholders on revegetation techniques, biodiversity management, environmental values.

Develop and adopt 2.7 Education on fire management and firebreak design sustainable • Provide education / re-training for people involved in fire management. approaches to fire management based • Firebreak designed to avoid clearing of valuable vegetation, improved response on local Aboriginal times. knowledge 2.8 Controlled burns are improved and reduced Adopt Aboriginal burning practices, improved fuel reduction focus, strategic mulching, firebreaks and other methods of control; timing smaller, targeted, asset protection burns. Research on optimum / evidence-based prescribed burning regimes.

Fund vegetation 2.9 Develop carbon offset scheme protection, revegetation and Develop a scheme for AMR residents and tourists to purchase carbon offsets for conservation though transport and other emissions (travel, events, consumption etc) to rehabilitate the carbon offsets local environment

Climate Action728 Summit Climate Action Summit Working together to reduce carbon emissions and

create a climate resilient community that is sustainable and just

Theme 3: Agriculture, viticulture and food industries Strategy Projects

Transition to 3.1Support agricultural transition to regenerative farming closed loop, Provide accessible and affordable training and financial support for farmers in holistic sustainable, regenerative land management, organic/sustainable farming practices and regenerative agriculture to store agricultural techniques. soil carbon 3.2 Develop an agricultural support network • Support group to assist farmers to migrate towards carbon capture and storage. • Grant funding applications for fencing and revegetation initiatives. • On-ground work; fencing, planting, maintenance. The group could work in partnership with the Lower Blackwood Landcare Development Committee, Nature Conservation Margaret River, SW Catchments Council, AMRCCE

Reduce 3.3 Develop bio digester system/s agricultural

industry and Develop a bio digester for farmers - underway as part of AMRCCE biomass project. viticulture waste 3.4 Develop new agricultural waste industries and packaging Develop partnerships between farmers, viticulturists and local businesses to reuse agricultural waste 3.5 Reduce packaging Producers and businesses reduce packaging of their products

Divest and invest 3.6 Develop shared renewable energy and collective infrastructure to promote • renewable energy shared compost turner (with training) and innovative • collective renewable energy systems with big battery system technology • shared vehicles and infrastructure • Households and businesses in remote areas share power e.g. one source generating power for multiple properties

Foster research, 3.7 Develop innovative agricultural industries development and

implementation of Support the development of new agricultural industries. innovative 3.8 Undertake carbon capture research sustainable

agricultural Conduct/access research on approaches to carbon capture industries

Climate Action729 Summit Climate Action Summit Working together to reduce carbon emissions and create a climate resilient community that is sustainable and just

Theme 4: Housing and development Strategy Projects Improve sustainable 4.1 Incorporate sustainability planning regulations into the Local Planning planning, development and Scheme subdivision design 4.2 Design subdivisions with a focus on sustainability practices to reduce • emissions associated Smaller lots, community settlements, eco-villages and co-housing with vegetation • Water sensitive urban design, walkpaths and cycle ways removal, buildings, • Tree retention and drought-resistant gardens transport and waste, and to incorporate • Developers do not impose restrictive covenants that undermine sustainable revegetation housing, such as minimum house size • Maintain and increase street trees, public planting of natives and low water use plants, edible verge gardens, shade for carparking. Design and construct 4.3 Provide sustainability education for residents, businesses and tourism low-impact houses,

buildings and tourist operators accommodation to Education on sustainable building and housing design and living, waste reduce carbon management and renewable energy. emissions from construction, heating, 4.4 Design policies and guidelines promoting energy efficient development cooling, landscaping d• evelopers and building industry design and build private and public houses and buildings with passive solar orientation and increased energy efficiency, sustainable materials (hemp, local timber, clay, straw).

• sustainably designed affordable housing. Building companies engage in collectivised transportation of building materials • support wineries and agriculture to provide sustainable camp grounds on-site for workers (eg off grid, solar power, composting toilets) • develop sustainable social housing, youth accommodation and hostels with a community education component 4.5 Reduce building waste Incentivise and increase the use of recycled building materials, such as encouraging builders to separate waste, and providing improved tip separation 4.6 Provide incentives to achieve sustainability and affordability • Support income opportunities for low income people to stimulate action, such as returns on solar, composting, and reduced water consumption • AMR Shire designs policies, incentives and guidelines for buildings

Retrofit and better 4.7 Provide education/incentives to improve energy efficiency of homes utilise existing housing stock and • Upgrade existing buildings with insulation, double glazing etc to be more buildings to reduce sustainable, and incentivise property owners. carbon emissions • Provide guidelines and home consults for retrofitting. • Retrofit and better utilise existing housing stock and buildings to reduce carbon emissions. • Require minimal occupancy rates and provide rates incentives to landlords to tenant houses long-term.

Climate Action730 Summit

Climate Action Summit Working together to reduce carbon emissions and create a climate resilient community that is sustainable and just

Theme 5: Consumption and waste Strategy Projects

Promote “buy 5.1 Support the development of new, sustainable and local industries local” and foster • growing, sharing, MR Trading Co develop an app to measure the impact our customers are making swapping to when they purchase locally owned, made and sourced eco product on our online reduce emissions marketplace. associated with • Local milk vending machines are developed transport (eg food miles), • Create more types of packaging that can be recyclable, reusable and production, biodegradable packaging and 5.2 Develop and promote programs to think local, buy local, swap, share and disposal exchange • buy and source local campaign to reduce food miles and contribute to circular economy • a local sharing scheme for residents • community programs for individuals and neighbourhoods to share/exchange produce - promote in-season produce and produce with low food miles. 5.3 Increase the number of community gardens throughout the community AMR residents grow their own food at their homes, in urban places and public spaces, or rent/buy garden beds in community gardens, other properties

Implement waste 5.4 Facilitate peer to peer education on sustainable living reduction and • recycling Educate community about low-impact living to reduce power use, consumption and strategies to waste (reduce, re-use, recycle, repair, upcycle) to lower emissions associated with reduce emissions power production, materials production, packaging and disposal from transport • Encourage community compost systems and worm farms (regenerative systems), and landfill in households, businesses, organisations and community gardens • Plastic free.

Promote and 5.5 Create a local market place for 'waste exchange' support business, Develop a waste exchange program for individuals and businesses to register and industry and share waste that others may use i.e. wood, food, building, demolition waste tourism 5.6 Reduce fertiliser use operations to reduce power Farmers use fertilisers with alternatives to plastic. use and adopt 5.7 Promote Waste reduction with a special focus on the tourism industry sustainable best • practice with MRBTA's programs focus on low impact tourism respect to • Businesses in AMR and that supply to AMR reduce their packaging. resource • consumption and Educate holiday visitors to act sustainability while on holidays, such as use of waste electricity, water, waste, garbage and change tourists expectations for accommodation. 5.8 Promote and reward sustainable businesses Audit and give environmentally friendly branding eg wine, produce, shops, restaurants, accommodation providers

Climate Action731 Summit Climate Action Summit Working together to reduce carbon emissions and create a climate resilient community that is sustainable and just

Theme 6: Transport Strategy Projects

Transition to low- 6.1 Enhance community understanding of transport emissions emission transport • Undertake an audit to determine where transport emissions come from (e.g. cars, for locals and trucks, buses etc) tourists to reduce vehicle emissions • Map movements of goods/from AMR - Develop a local scheme/promotion where mechanics offer free emissions testing of vehicles. 6.2 Support transition to electric vehicles • Develop a bulk purchasing group for low emission electric vehicles, with information and bulk buy discounts. • AMR businesses transition to low-emission transport through: - Businesses engage in freight sharing and shared deliveries - Transport building materials using rail - Install more electric car charging points in AMR and between MR and Perth, and install solar panels on roofs of carparks for electric car charging. 6.3 Shire demonstrate leadership by transitioning to electric vehicles AMR Shire transition its vehicle fleet to electric vehicles and badge them appropriately to show leadership

Reduce vehicle 6.4 Promote walking and cycling use through • Community campaign to promote the health benefits of lower emissions travel, fostering walking walking and cycling i.e. TV, promotion of walking/cycling tracks. and cycling and alternatives to • Develop a scheme for sharing bikes and scooters with an app (e.g. in Vancouver) long-distance work and bike sharing stations travel to reduce • Develop more well-designed cycle ways, bike paths, bike racks and solar vehicle emissions changing stations for electric bikes. • Implement Travel Smart initiatives commencing with preparation of a TravelSmart Action Plan • Workplaces have increased flexibility for workers to reduce emissions, such as allowing employees to work from home and use skype instead of travel to work

Reduce vehicle 6.5 Provide low carbon public, tourist and school transport use through AMR has an accessible electric/hydrogen bus service (possibly driverless), with improved public shuttle bus services between Augusta and Busselton. transport to reduce vehicle emissions 6.6 Normalise car sharing by making it easy Develop an AMR car sharing / fleet car scheme with app and online booking system that is accessible. This includes inter-agency carpooling Taxis - Better taxi service and introduction of Uber

Offset transport 6.7 Encourage the use of offset schemes with a focus on transport emissions. emissions • Trucking businesses and other businesses that use freight offset their emissions including FIFO, tourists, outbound • FIFO employers contribute to offset program travel, through a • Develop an AMR carbon offsets scheme for transport emissions including FIFO, program to fund tourists, outbound travel, through a program to fund local vegetation protection, local vegetation revegetation and conservation initiatives. This is part of the Project Offsets under protection Vegetation, forests, fire and land use, strategy

Climate Action732 Summit Climate Action Summit Working together to reduce carbon emissions and create a climate resilient community that is sustainable and just

Theme 7: Community mobilising Strategy Projects

Advocate for 7.1 Lobby for change at the state and federal political level change in State • and Federal Advocating to all candidates about our ideas before elections policies that impact • Lobby polluting companies to meet low pollution targets transition to • Demand State and Federal Government move away from coal and enable sustaiunable renewable energy quicker and more affordable transition. and local decision- • Inform community to take on responsibility and engage in political process i.e. making (eg the reality of climate change and the need to address it. planning policy) • Mobilise a people's movement for system change i.e. caring for country, transition to a circular. 7.2 Monitor CO²emissions at local, state and national levels

Promote cultural 7.3 Promote cultural change (local residents, visitors and tourists) to transition change (local to lower-impact living residents, visitors and tourists) to • Promote community understanding and cultural change (AMR residents change transition to lower- their worldviews and beliefs systems that are outdated) through education impact living campaigns • Shire continues to support community sustainability courses focussing on behaviour change • AMR school students participate in the School Strike for Climate and hold school events • Organise community events, workshops and meetings to increase awareness, conversations and action for the climate, inlcuding regular Climate Action Summits

Coordinate, 7.4 Use accreditation programs as a means of tracking continuous champion and improvement implement the AMR Climate Apply for EARTHCHECK Accreditation for Margaret River or the whole Shire. Action Plan https://earthcheck.org/ "EarthCheck is the world’s leading scientific benchmarking certification and advisory group for the travel and tourism industry. 7.5 Coordinate, champion and implement the AMR Climate Action Plan Develop a whole-of-community climate justice alliance in AMR with key stakeholders and organisations, community leaders, elders, and young people to champion and lead the implementation of the AMR Climate Action Plan.

Climate Action733 Summit PROJECT 1: Assist Augusta Margaret River Clean Community Energy Group to Spearhead a Major Renewable Energy Project Project Description Assist the development of a bankable business case and Western Power (WP) Access Offer for a 10MW wind and biogas grid connected renewable energy facility in Scott River. If feasible, AMRCCE will seek suitable partner(s) as developer/operator and take a community shareholding in the facility. Use community returns to further reduce emissions in shire with a focus on those excluded by socio-economic reasons. Lead Organisation Augusta Margaret River Clean Community Energy Incorporated (AMRCCE) Cost • The feasibility study and connection application costs are estimated to be approximately $1.8 million. • Shire contributions following completion of milestones. Risks and • Expenditure of time and money and project is found not to be feasible. Unintended • Project does not find suitable partners. Consequences • Project team becomes fatigued. Potential Project Supporters: Partners . Augusta Margaret River Shire/Lower Blackwood LCDC Potential Partners: . Industry Stakeholder lead Gail Gifford . State and Federal Governments . ARENA Funding Shire, grants, donations, fundraising and pro-bono expertise. Intended Outcome • Recruit support to engage specific stakeholders (e.g. wineries, dairies, growers) in biogas development phase. • Recruit support to broaden community engagement with AMRCCE and generally on renewable energy. Project Support • Ongoing Shire sponsorship and financial support. • Shire to consider future supply of green waste to project. • Assist to obtain broad community support (volunteers, membership and fundraising). • Shire potential to sponsor Open Day and interim activities of community interest (e.g. transport of turbines). Timing • 2016 Shire Working Party conducts high-level feasibility study. • 2017 AMRCCE is formed to take project forward. • 2022 Expected date for grid connection of the wind/biogas energy facility. • Review ½ yearly intervals. Next Steps • Greater community profile of AMRCCE (Suzanne Hicks). • Saturday Morning Farmers Markets (SH). • Open Day for key Stakeholders and community (all). • Drip feed media (i.e. newspaper articles) on AMRCCE project updates and milestones (SH). • (Lower Blackwood LCDC is the landcare group with responsibility for the area surrounding Beenup and they work in close cooperation with Nature Conservation which operates in the northern area of the shire) • Target stakeholders (Gail Gifford).

734 PROJECT 2: Develop a Community Renewable Energy Power Sharing System Project Description – Decentralised Energy Decide on project description which may include one or both of the following: 1. Virtual power plant with PV proof + solar battery with capacity and services. 2. Investigate solar PV bulk-buy purchasing agreements throughout community Intended Outcome • Maximise people using renewables because: affordable, available and accessible. • Reduce costs of energy bills / save planet • Reduce carbon emissions • Reduce CO² output • Create renewable grid by 2030 • Link with AMRCCE project • Project is designed to be rolled out across the south west • Investigate solar PV for charities/ schools/community groups Risks and • Some people may not pay bills Unintended • Social housing needs to be given more thought / support e.g. discounts on energy bills Consequences • Solar PV equipment needs to be recycled • Solar PV price continues to decrease below agreed bulk buy price. Potential Project • Climate Action Reference group – decide on project description in consultation with community. Lead • Industry leaders - i.e. Plico Energy and Dunsborough Community Energy Project and other solar PV companies. • Shire - play a lead role in promotion of the project, in particular solar PV bulk-buy opportunities. • Community – provide face-to-face consultation with local business and residential sectors on benefits of the project. Potential Project • Link with state government/ Synergy, Western Power Support • Link with existing projects who can support the project & potentially provide energy for battery top up at night i.e. AMRCCE. Cost • Cost of individual or bulk-guy solar PV systems (with or without batteries) needs to be established for our Shire Potential Funding • Fair/ equitable fund required to be established for this project. • Investigate funding opportunities i.e. SUSI Partners funding Timing • Further develop Project Plan • Create specific Augusta / Margaret River Renewable Association • Liaise with Shire and local groups to help parallel project • Undertake consultation with key groups in the community where solar can be installed i.e. residential, industry, business etc. • Start installation

735 PROJECT 3: Revegetate Riparian Zones, buffers, Shelter Belts, Corridors, Catchments and Parks Project Description • Revegetation across the landscape including riparian areas, wind breaks, shelter belts, roadsides, private land, enhancement of remnant vegetation etc. • Knowledge sharing and inspiration, funding assistance, engaging landholders, demonstration projects initiated, weed eradication, planning regulation and bushfire control, community planting days Intended Outcome • Reduced fire risk due to moist understory • Continued management • Local knowledge education • Making restoration economically viable • Improved biodiversity • Central information source • Registering tree planting • Raffle for trees • Trees for weeds - incentive Risks and • Bushfire regulations (risk) Unintended • Lack of education Consequences • Lack of funding Potential Project • Nature Conservation MRR Lead • Role for Shire on roadsides, parks, reserves and as support for wider community engagement. Potential Project • Landowners Support • Gondwana Link • Fire services • Shire, particularly through Environmental Management Fund (EMF) grants • WA Forest Alliance – Forests for Life • Schools • “Adopt a Spot” program Cost • Anticipated cost is $100k (including support person) / annum Potential Funding • Impact investors • Landowner incentives • EMF grant funding from the Shire Timing • Staged approach to the project. • Ongoing project delivery Next Steps • Discussions between Nature Conservation and Shire about future of Shire stewardship program • Link into regenerative agriculture project • NCMRR Stewardship Program currently being developed and hoping to fund through Lotterywest grant next year

736 PROJECT 4: Support Agricultural transition to Regenerative Farming Project Description Best practice developed on the following: • Soil – living soil / soil health / maintain & improve soil carbon / improve mineral balance • Water – retention + management / quality • Plants – pasture biodiversity • Animals – diets / methane, awareness campaign, demonstration / farm trials, High school farm education program Intended Outcome • Improve over time (long-term journey) • Value adding opportunities • Awareness • Extension • Adoption Risks and • Concerns about profitability Unintended • Achievability Consequences • Beware of greenwashing • Large scale / corporation owned farms • Cost of food • Regulation e.g. farm gate milk Potential Project • Lower South West Growers Group Lead • SWCC support • Agriculture Department • Southern Dirt • LBLCDC • Regen WA • ihemp and others Potential Project • Shire Support Cost • TBD Potential Funding • LBLCDC received EMF funding in 2018-19 for this project. Build from this project. • Dept. Agriculture have funding for sustainable agriculture Timing • 3 months to gather representatives • 6-9 months hubs Next Steps • Identify hubs / needs / gaps + nominations for representatives on a lead group • Identify knowledge gaps / opportunities / barriers • Run best practice education and training / demonstration sites

737 PROJECT 5: Incorporate Sustainability Planning Regulations into Local Planning Scheme Project Description • Front end framing of ‘Sustainability’ incorporating measures into LPS’s • Local Planning Scheme and Local Planning Strategy – to frame/ encourage / ensure sustainability as the driver of growth in the region Intended Outcome Local Planning Scheme and Local Planning Strategy considerations…. • Orientation / setbacks for northern access / guaranteed solar access • Energy efficiency of new homes / solar passive • Incentivise development that exceeds minimum standards • Increase biodiversity (contribute back to biosphere), decrease impact on biodiversity • Increase capacity of system / scheme to promote sustainability • Consolidation of population growth – localized food production • Community gardens / food • Access & transport • New development to protect & retain remnant vegetation • Stormwater use in pros and community gardens • Post development flows Risks and • Promotion of ongoing ‘growth’ is unsustainable Unintended • Legacy issues from past planning decisions Consequences • Housing affordability • Lack of evidence / modelling to support decisions Potential Project • Shire of Augusta Margaret River Lead • Consult with DLPH Potential Project • University (ECU + Curtin) Support • Building ground representatives Cost • In house, staff, community pays Potential Funding • Rate revenue Timing • 2019-2022 estimate Next Steps • Acknowledge / set limits to growth • Interpret the above and put targets into place • E.V charging infrastructure, technological measures • Sense of place

738 PROJECT 6: Develop and Promote Programs to Think Local, Buy Local, Swap, Share and Scheme Project Description • Promote sourcing, buying, sharing, purchasing networks and policies including projects such as: - Living smart, Swap Shuffle, share neighbourhood food, garden tip shop, fix it up café, festival of forgotten skills, think local webpage to share information - Source (buy…) education campaign, promote benefits (money recirculating) Intended Outcome • Create a more circular economy with less waste • Lower carbon emissions • Foster local business and industry Risks and • Risk- preaching to converted – need to promote widely to kids Unintended • Alienating people who perceive excluded by costs – encourage affordable choices Consequences • Impact on retailers of swap/ share/ recycle if we curtail buying  opportunity for business e.g. repairs Potential Project • Transition MR 2020 Lead • Hub to bring all players and attract more funding Potential Project • Shire Tip and Waste Education Programme, Fair Harvest, Support • Shire of Augusta Margaret River • Margaret River Farmers Market • MR Chamber of Commerce, Men’s Shed, Retirement village – Skills, fix it up • Tourism Association • Schools – e.g. canteens • SEAC • Community centre, Rotary / Lions • MR Producers Association • Witchcliffe Ecovillage (construction waste depot) Cost • $5k seed funding + volunteer input Potential Funding • Shire funded $9k in 2018-19 through EMF • Rotary/ MR Chamber of Commerce • SW Development Commission • Local Campaign • Community Funding • Industry Engagement Timing • Start 2020 (Facilitated) • Established / self-supporting network by 2021 Next Steps • Transition to MR produce • Apply for Shire EMF funding for 2020 • Facilitate wide community partnership  to develop ongoing, self-supporting network of local producers, services and consumers

739 Project 7: Support the Development of New, Sustainable & Local Industries Project Description Support and develop new sustainable & local industries: Hemp Natural, reuse of waste, “Precious Waste” e-platform Intended Outcome • Mitigation of cause – carbon • Inspire, educate, champion • Promote circular economy to reduce transport carbon, packaging, waste • More employment / career opportunities in new economy Risks and • Possible damage to existing industry? Unintended • Growth pressure Consequences • Possible perception as ‘green tape’ Potential Project • SEAC, MRCCI, Transition, Traders Cowaramup, Traders MLBTA Lead Potential Project • Tertiary campus – training, research and advice, industrial, co- working space, investor scheme, recognition scheme Support • Business template • “Green business” • MRCCI Awards • Shire Cost • SEAC – Officer and membership • $ and time Potential Funding • AMR Shire • SED Officer • GLS BBR grant • Community crowd funding and investment grants • Investment (local and bigger funding) • Self – funding • Industry partnerships Timing • SEAC commenced May 2019 • GLS action planning July 2019 Next Steps • Electric bike friendly • Mentorship • Swap job to reduce travel • Remote working from home – encouragement? , internet connection issue? • Capitalize on excess energy in the daytime for businesses • Incentivise • Differential notes

740 Project 8: Provide Low Carbon Public, Tourist And School Transport Project Description • Bicycles for public use with bicycle stations, investigate public bus service on local routes within the shire (electric buses / hydrogen) • Set up a team to undertake a high level feasibility study – where is the demand, who should operate // i.e. current operators vs new • Look at study on price sensitivity, where the high volume routes are • Investigate electric vehicle manufacturers to see if interested in sponsoring + MR brand • Speak to existing operators about existing hurdles to be able to go low carbon, school bus convert to low carbon Intended Outcome • Links with other sustainability projects i.e. Windfarm community benefit fed into projects such as this • Amount of people using, availability of the service, affordability for all, accessibility to those without access to vehicle • Provide incentives to existing operators to switch to low carbon vehicles, develop media and communications plan Risks and • Availability of mechanics skilled in maintaining low carbon vehicles Unintended • Electric vehicles – less noise = increased risk of accident Consequences • Limited route distances due to capacity • Additional upgrades required for other infrastructure e.g. electric charging points, additional bike lanes Potential Project • Call for expressions of interest from community and industry to form a group Lead • Obtaining people with appropriate skills base Potential Project • Shire to provide support / guidance / access to resources (advocacy role only). Support • Industry expert support • Education department discussions on how they award contracts to transporters i.e. building in requirement for low carbon vehicle incentives into procurement procedures • Lobby State Government on changing targets for use of low carbon vehicles and support Cost • Depends on the type of transport option + availability • Cost for feasibility study, operation, maintenance Potential Funding • Sponsorship from existing low carbon vehicle manufacturers • Windfarm community benefit money • Grants (local, state etc.) • Corporate sponsors (e.g. RAC) Timing • 2-3 years including feasibility study, community consultation, funding and implementation on the ground • Break into small scale first i.e. bikes first Next Steps • Expression of interest into forming a project lead group / working party • Research existing best practice on other communities • Resourcing options + responsibilities in the group • High level feasibility study – then form set of projects and priorities • Form links with universities and other experts • Make contact with Peter Newman (CUSP)

741 Project 9: Support Transition To Electric Vehicles (EV’s) Project Description • EV public transport (skate park)Feasibility study to research viability of bulk – buy EV’s, profile existing EV users in AMR Shire • In collaboration with 1.1 (Assisting AMRCCE energy project) • Carpooling • Charging stations at shire depots • Increasing charging stations in shire & neighbouring • Develop EV friendly maps Intended Outcome • For ownership of EV to be more affordable and desirable • Well connected and well known EV network in AMR shire and WA • By 2025 AMR shire to be EV friendly Risks and • Not supporting / inability to support local manufacturers Unintended • Current lack of support for sudden influx of EV units Consequences • Unaffordable for lower income residents • Must be linked with renewable energy grid (i.e. not coal burning) • Impact on grid Potential Project • AMR shire  fleet transition to EV’s (including rubbish collection), Sustainability Reference Group, Big business – EV stations Lead • Developers – build in EV charging stations in new developments (powered by solar) Potential Project • Federal and state government (EV stations) Support • LG (AMR Shire) + neighbouring shires • RACWA (stations) • Local business – stations at wineries? Cost • Research required • Long-term Potential Funding • Infrastructure funding EV stations – State Government • Shire increase investment in EV stations (counteract with changing incentives) • State government incentive – buy them then allow by purchase contract Timing • By 2025 AMR shire to be EV friendly (which will coincide with price parity) Next Steps • Encourage EV ownership • Profile existing EV users • Identify suitable locations and partnerships for EV charging stations • Shire to begin conversion to EV fleet • EV for MR CBD • Work with community clean energy project (for charging stations)

742 Project 10: Coordinate, Champion and Implement The AMR Climate Action Plan Project Description • Diverse group/ reaffirm priorities, Climate economy – systems approach, community development, project steering group, declare a climate emergency – gives more power to the group, carbon economy language, take from advocacy to mainstream, auditing / monitoring / measuring, caring / nurturing – inclusive approach. Not about costs – about opportunities, economic development, governance structure – integrate shire policy / projects Intended Outcome • Integrating diverse elements of the plan, keep everyone on track, vision creation, create strategic pathway, work with/ coordinate all the projects to link up, help groups to work together for seamless integration, holistic / coordinated communication Risks and • Flat structure. If this falls over then other projects could fall over, too large for group to manage, exhaustion of topics  hard to Unintended keep up energy / enthusiasm, establish Shire / community relationship, separate groups may not want a plan leader Consequences Potential Project • Climate Action Reference Group, including experts, one rep from each priority project, champions from community, young people Lead effective communicators / marketing, partner with Shire Potential Project • Artists/ creatives/ wine + food/ interesting stuff? Support • Other project groups, visiting luminaries / events, Indigenous • Business • Farmers groups • Schools / P+Cs • MRBTA • State and Federal Government Cost Minimum cost for- • Meeting place, time, volunteers, Shire staff, professional marketing, digital/ print communication, wine and food Potential Funding • Look for Federal/ State funding • Art events • Sponsorships • Fundraising • Shire contribution? • Carbon offset scheme (also educates) Timing • Must be collaborated quickly to maintain momentum • Each project to have built in timing goals – separate from overall group • This group to facilitate/ educate/ mentor/ coordinate/ leverage funding opportunity/ organise events/ liaise with other groups Next Steps • Seek nominations (group from this event or others – call for nominees • They can then decide on the best team mix – permeable membership boundaries • Information sharing – first meeting facilitated • Developing background culture + understanding

743 Project 11: Lobby for Change at the State and Federal Political Level Project Description • Build an integrated social movement led by young people for climate justice, Democracy school with ongoing activist skills training • Communications across different platforms • Strategizing to perform effective actions at key moments – in partnership with Shire and other organisations • Taking action – school strikes, meeting with politicians, arts-based activist, petitions, litigation • Partnerships & support from Shire, organisations and businesses. Intended Outcome • A strong intergenerational movement led by young people • Legislation change • Community and resilience • Ongoing relationship between youth population (YP), community and politicians • Education • Removal of social licence of companies destroying the planet Risks and • Negative reaction from government, people don’t want to be involved Exhaustion and fatigue – mental health Unintended • Give up hope, require transport to Perth and other cities for training Consequences Potential Project • Young people with strong support of city, YACP lead, community development trainee at the Shire Lead • Primary school leadership groups, MR Regional Environment Centre Potential Project Project Support: Support • Shire, Transition Margaret River, MRRCC, NCMRR, Businesses - pledge to support AMR for climate justice – network of supporters Support through: • Training / education, co-organising actions, promotions Cost • Time, training / education Potential Funding • Donations from business – goods, training and venues, MRRCC could establish a bank account Timing • Immediate General strike – 20 September 2019Continue and flourish after Next Steps 1. Form AMR Climate Justice Council – YP Council and Adult Council • YP hold first meeting – open for all • YP led but with support of community allies (some adults) as mentors, support and logistics 2. Communicate to community 3. Start running training (democracy school) 4. Compile list of people, organisations and businesses willing to speak out & support young people.

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Alignment with Community Strategic Plan This document relates to Key Result Area 1, 3, 4 and 5 in the Community Strategic Plan.

Key Result Area 1 Valuing, protecting and enhancing the natural environment

Key Result Area 2 Welcoming, inclusive and healthy communities

Key Result Area 3 Ensuring sustainable development

Key Result Area 4 Vibrant and diverse economy

Key Result Area 5 Effective leadership and governance

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Version Control table

Related Documents Environmental Elements of Sustainability Strategy Corporate Plan 2020-24 Responsible Directorate Sustainable Development Prepared by Sustainability Planning Officer Approved by ELT Last Reviewed 11 December 2019 Date of this Review 31 March 2021 Next Revision Date

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