Introduction

The Council is pleased to comment on the Maules Creek Project Environmental Assessment.

The main thrust of the Council’s comments is confined to the socio economic impacts of the coal mining industry within the Shire Council and the impacts which could impinge upon surrounding Shires within the Namoi Councils which are made up of Gunnedah, Liverpool Plains

Shire Councils, Tamworth Regional Council, Namoi Valley Catchment Management Authority and

Walcha Shire Council.

The Namoi councils have been proactive in developing the Minerals and Energy Working Group with help from the Department of Premier and Cabinet calling on the NSW Government to develop a regional plan for the Gunnedah basin to ensure that growth due to mining is sustainable.

Coal Mining is playing a major part in the revitalisation of the economic strength of the Narrabri

Shire Council area with the following developments being scheduled or proposed to begin in addition to the Maules Creek proposal.

Boggabri Coal – expansion;

Whitehaven Tarrawonga – expansion;

Page 1 of 18

Vickery Mine – potential to re-open;

Goonbri Mine – discussions about potential.

These mines are in addition to the coal seam gas venture through Eastern Star Gas (to be taken over by Santos) which if approved will ramp up exploration including activities and further development of the Wilga Power Station and the proposed pipeline to “fuel” the Wellington Power Station.

Narrabri Shire Council is not a boom or bust Shire and has survived on its diversity including being one of the most productive agricultural Shires in with nine grain consolidators based between Narrabri and , in addition to AWB operating bulk rail terminals at six locations within the Shire. The centralisation of grain containerisation at the Narrabri rail land has contributed to Narrabri’s development as a transport hub, located on the junction of the Newell and Kamilaroi

Highways.

The emergence of this grain consolidation hub for national and export grain handling, backed up with extensive research facilities and investment by both State and Federal Governments which also includes a major expansion by the University of Sydney Plant Breeding Institute. Cotton continues to play a major part in the agricultural buoyancy of the Shire and with water capacities in the dams; crops for the next three years are assured. The Council has recently assisted in the transition from a

Queensland based organisation to the Narrabri Shire Council.

The pressures within the Shire is not only from the coal mining industry but the diversification which makes Narrabri a dynamic and sustainable Shire area on a local, state and federal perspective.

Page 2 of 18

General Comment

In opening, it is important to make the Council’s stance clear on mining within the Narrabri Shire which is that it is not opposed to mining which does not affect the health, safety and general well being of its residents and visitors alike.

The Council’s mission statement is:

“To deliver services to, and represent the interests of the whole community, facilitate

growth in partnership and provide a quality country living environment within

available resources.”

The Council is mindful that information disseminated by governments should be accurate to allow for good planning into the future. The Department of Planning in a publication titled: “New South

Wales Statistical Local Area Population Projections Detailed Survey” showed resident population in the Narrabri Local Government area declining from year 2006 at 13,700 to 9,900 in year 2036, whereas, the Australian Bureau of Statistics showed in 2009 a 127 increase.

Page 3 of 18

Council, together with other Local Government in Northern Inland NSW has lobbied for over two year to have the matter of (population projection addressed). Responses to cumulative impacts are very much affected by official government population projections. The lack of willingness to properly address regional issues has left regions like the Gunnedah Basin struggling to manage growth, especially state significant projects.

To the credit of the current government, at least “planning” and looking at the future on a cumulative impact basis is commendable and the allowing of submissions and hearings locally through the Planning Assessment Commission is welcomed and allows local community input regarding direct impacts and responsibilities from developments in these areas.

The Maules Creek Coal Project predicts: “the following economic benefits to the state economy:

2.8 billion in annual direct and indirect outspent on business turnover;

1.6 billion in annual direct and indirect value added;

303 billion in annual household income;

4029 direct and indirect jobs.

In addition, the project will provide net production benefits to society of approximately 8.7 billion.

Royalty payments to the NSW government over the first 21 years of production are expected to total

2.8 billion.”

Source Maules Creek Coal Project Environment Assessment July 2011 Pages xxiii to xxiv of the

Executive Summary.

Page 4 of 18

The NSW government has indicated a Royalties for Regions will be introduced at $160m over four years, to assist communities across the State where mining is occurring, or the impacts of mining demanding additional services and community infrastructure.

The State government would be well aware that for proposed mining activities within a local government area, the lead up to mining occurring is not a short term process. Therefore it is in the best interest of the state and local governments to be able to plan head looking at the cumulative impacts over time, a “little vision.”

RECOMMENDATION 1

That the State Government work with Local Governments in the Gunnedah Basin to look at details of planned mining activity in the cumulative impacts for the next ten years can be viewed over a longer term and allow planning for infrastructure projects.

Housing

The Council commends Maules Creek Project for the following initiatives introduced through their management strategies to mitigate impacts from the project on the community:

Implement an Employee Incentive Scheme which will including policies on items such as

encouraging progressive relocation to the local area by provision of financial assistance with

emphasis on construction of new dwellings.

Page 5 of 18

RECOMMENDATION 3:

That the development of incentive policies to encourage relocation to the Narrabri/Gunnedah local government areas be completed by the 30th June 2014.

Focus relocation and development strategies for all non-local hires to the Narrabri Local

Government Area to mitigate against cumulative impacts on housing in the Gunnedah Local

Government Area.

RECOMMENDATION 4:

That the relocation and development strategies to the Narrabri Shire Council be completed by the

30th June 2014.

Monitor housing affordability and availability in the Local Government Area and report in

the regulatory required annual review.

RECOMMENDATION 5:

That the State Government through the Department of Housing address the demand for affordable housing in the Narrabri and Gunnedah Local Government Areas by the 30th June 2013.

The Department of Housing has indicated to the Narrabri Shire Council that Narrabri is not presently under consideration for building of new affordable housing. The Shire has already developed a two

Page 6 of 18 tier rental economy with landlords capitalising on returns which can be achieved through rentals when mining comes to town along with associated industries. With the increase in activity in the coal mining industry, the demand for accommodation will increase along with increased rentals which will “push” renters to lease accommodation based on price or the worst case scenario away from the Local Government area. The Council has already experienced this impact as new staff appointments have not taken up positions due to high cost of rentals.

A recent housing forum conducted by State Government agencies at Narrabri identified a tenfold increase in homelessness in Narrabri due to the increased cost of rentals.

The median price of housing in Narrabri is over $270K and rising. Maules Creek EIA has based the following comment on 2009 data which cannot fund costs for accommodation for existing clients

“The median house price in Narrabri was $235,000 compared to $206,250 for

Gunnedah in 2009. Although the housing market (both purchase and rental) appears

to be tight, there is considered to be adequate land available for significant new

housing development. …. Also in the local area are a number of short term

accommodation options including hotels, motels and caravan parks; however, these

are, with the recent increase in mining related activities, regularly at full utilisation.”

Despite comments of the inadequacy and detailed research on Council’s submission at the consideration of adequacy of the EIA, the document has not been reviewed to reflect the present

Page 7 of 18 situation regarding short term accommodation especially when the Narrabri Shire council has provided evidence.

The Council last year approved the development of “The Mac Village” in Narrabri to ease the pressure on the rental/accommodation market and meet the accommodation needs of the mining companies during construction. The issue is that even after The Mac has opened, the overnight accommodation is still tight as other regular users, including people involved in other projects, business reps and tourists take up the vacancies created. With a projected 2000 mine workers set to work on the area by 2014, the market will be tight for many years even when the two proposals for mining accommodation at Narrabri and are built (650 and 850 rooms respectively).

The Council has been proactive in establishing an 87 lot subdivision at Shannon Estate with the aid of

State Government funds at interest free rates. A recent sale of privately held land and a number of rural subdivisions allows for a choice for intended purchasers. The Council is also progressing with the fast tracking of its new Local Environmental Plan with assistance from the Department of

Planning.

Child Care

Management Strategy as outlined in the EA:

“Provide an annual scholarship for a locally based student to study a child care

related course as well as sponsoring a traineeship program for children care

workers.”

Page 8 of 18

Maules Creek have identified child care as an area of concern and their efforts in putting forward part of a solution is commendable. There is recognition that child care facilities are lacking within the Shire and as such, it plays an important role in attracting and retaining employees.

An area of concern for the Council is the level of trained staff to students and this will be compounded as further changes in ratio of trained staff to children are made by the State

Government.

RECOMMENDATION 6

That the State Government develop a state wide forum to address issues within the child care industry (based on the care for preschoolers rather than education) and focus on the growth employment areas where childcare plays a critical role in the decision to relocate.

RECOMMENDATION 7

That the State government needs to provide additional child care places.

Transport

The Maules Creek Project does not consider seasonal congestion for grain and cotton harvesting and with the doubling of capacities in the existing grain commodity companies, the demand for rail time

Page 9 of 18 slots will be compounded including the demand for containerised freight to the Port of Botany which only enhances the urgent need for reassessment of projected rail traffic through the Murrurundi

Range, crossings through Gunnedah and Scone etc.

RECOMMENDATION 8

1. That the State Government undertake a comprehensive study and formulate a strategy for

the long term use of rail transport to Newcastle, Botany Port and Brisbane to minimise

congestion including the building of a freight marshalling area in Narrabri.

2. That the State Government address crossing issues through Gunnedah, Curlewis, Scone etc

to minimise the disruption to the community.

The growth in general and long distance freight travelling the Newell and Kamilaroi Highways is expected to increase dramatically over the years which only adds to the use and damage to local and state roads. Whilst the mines may say that their operations (through the use of rail and private haulage roads) does not impact, the reality with the increase in full time positions and especially during the construction phase, the impacts will only grow with traffic associated with the mine activities.

RECOMMENDATION 9

That the State Government upgrade the Manilla Road through Regional Road Grants as a priority to support the mining in the Leards Forest area.

Page 10 of 18

The reason behind recommendation 9 is imperative (that the state controlled road be targeted for funding) as the traffic using this road (both mining and other users) has grown significantly with the

Manilla Road being the shortest route through to Tamworth, which in turn allows access to a

Regional Workforce. Crosses three Shires – Gunnedah, Tamworth Regional Council and Narrabri

Shire Council, truly a regional road of significance.

RECOMMENDATION 10

That Maules Creek Project along with Boggabri Coal, Whitehaven (Tarrawonga and Narrabri

North) and the Narrabri Shire Council meet every six months to determine road traffic trends within the region.

Airport

The Maules Creek Project has the following management strategy to mitigate impacts from the project on the community.

Contribute a total of $1,500,000 to Narrabri Airport paid evenly over three years (as part of

the Narrabri Shire Council Voluntary Payment Agreement) for the expansion of services and

routes, including renovation of terminal and upgrade of air strip infrastructure.”

This aspect of the Voluntary Planning Agreement was agreed to be based on some 80% of a construction workforce will generally be required to be sourced from outside of the local area “

Source Draft Social Impact Assessment 27 May 2011.

Page 11 of 18

The Council is currently serviced by Aeropelican/Brindabella with daily services to Sydney and

Brisbane with some sectors three times daily. Recently the Council has been requested by a charter company to land a 74 seater on the current strip which will require a dispensation to utilise the strip.

Following discussions with the previous State Minister for Infrastructure, Council developed an

Airport Master Plan to support Council’s request to the Government for Infrastructure Funding to upgrade this essential facility.

The passenger numbers for Aeropelican have steadily been increasing with the Airport Master Plan predicting that within 20 years, passenger traffic will be at a minimum of 30,000 to a maximum of

50,000 passengers per annum (present patronage already exceeds 15,000 per annum and is growing rapidly) Immediate upgrading of this facility is essential to underpin the growth of the region.

Accommodation Mining Village

The Maules Creek Project will employ the following management strategy to mitigate impacts from the project on the community:

“Continue to consult and work with The Mac, Narrabri Shire Council and the community

where necessary to facilitate the approval of The Mac Group workers accommodation

village to be located in Boggabri.”

Page 12 of 18

The Council is fully supportive of this stance based upon the level of professionalism shown during the development of The Mac in Narrabri.

The community of Boggabri is familiar with the standard set by The Mac and have embraced the project concept to house both permanent and construction workforces with the aim of relocating some of these employees into the local community permanently. The Council was able to attain views from a visit to Roma and Emerald in reviewing the impacts of mining upon these communities and ensuring that the mining villages are incorporated into the local community.

Voluntary Payment Agreement (VPA)

The Council is very concerned that a senior office in the Department of Planning has directed the

Maules Creek Project that they will have a VPA with the Council. Our Council understands that the mine will impact upon Gunnedah …..rail traffic and some workers living in

Gunnedah; however, the mine is located within the Narrabri Shire Council and a VPA should only be required with the local government area where the mine is situated, the Maules Creek Project have stated their focus is on accommodating staff with Narrabri Shire. This appears to be a well defined fact and should you seek a VPA with neighbouring Councils, the question posed is where does it end?

Negotiations are well under way.

Page 13 of 18

RECOMMENDATION 11

That the State Government endorse that a VPA be developed only with the Shire/City Council where the mine is located and in the case of the Maules Creek Project, Narrabri Shire Council.

RECOMMENDATION 12

Separate to any VPA entered into by Maules Creek and Narrabri Shire Council, that the

Department of Planning place in the conditions of approval for the Maules Creek Project that (on a quarterly basis) 20c per tonne of coal produced to be paid to the Narrabri Shire Council for the life of the mine to be utilised on community infrastructure projects within the Narrabri Shire Council.

The rationale behind this stance is that the Council is embarking on major infrastructure upgrades including airport, swimming pool and other facilities to enhance facilities for Maules Creek Mine workers and current residents, that the Council is committed to borrow funds for the purpose and allow the mines to pay an amount per tonne based on production figures to be paid quarterly to support the Shire Council initiatives. The mines have a vested interest in ensuring the community assets are at a standard to support their employees. Narrabri Shire Council and Maules Creek Mine have developed strategies including provision of recreational facilities to encourage long term family relocation for their benefit.

The following key lessons should form a review of the socio-economic and environmental effects of mining and highlight the importance of:

Page 14 of 18

Compliance

The Council is mindful that with all best intentions in the world, matters will happen and as the Council has found with issues in another sector, where the development was approved by the State, the level of compliance is lacking as monitoring from afar does not work.

There is no doubt that communities are better educated and take particular notice of developments not only in their area of concern but to other sites were a community of interest exists. The Maules Creek Project must establish the trust of government, communities and the impacts which will occur and deal with all matters in an open, transparent and accountable way.

The Maules Creek Project should not self administer nor should the state administer from afar.

The Narrabri Shire Council recommends:

Page 15 of 18

RECOMMENDATION 13

That the State Government establish an independent “Ombudsman” to oversight compliance by all mining and other resource development companies in New South

Wales, including the Gunnedah Basin with their development approval conditions and any other issues raised by the community in relation to the mining operations.

An independent monitor reporting to the Ombudsman be based in the Gunnedah basin and report directly to Parliament and the people of on an annual basis.

The recommendation to establish an Ombudsman is based on the following areas which require a level of expertise to monitor developing trends. The monitoring and compliance is well beyond

Council resources and should consider as a minimum the following impacts:

Air Quality

Acoustic Impact

Visual and Lighting Impacts

Ecological Impacts

Surface Water

Groundwater etc

Page 16 of 18

RECOMMENDATION 14

That the State Government set up a Gunnedah Basin Terms of Reference for an Air Quality

Monitoring Network funded by the mines.

Waste Management

Narrabri Shire Council acknowledges the extended efforts of Aston Resources to promote recycling of waste at the Maules Creek Project. However there are no quantities of waste production projected within the EA. This raises concern for Narrabri Shire Council, being a large mining project

Council would like further information in relation to the production of waste from this site and the planned dumping station, as Boggabri has only a transfer station. Council needs prior information of expected waste productions as Narrabri landfill may need a new waste cell to absorb the extra influx.

RECOMMENDATION 15

That the State Government as a condition of development consent, direct Maules Creek Project to allocate $250,000 to assist in the building of a “new cell” at the Narrabri Waste Disposal Facility to dispose of waste through the construction and ongoing product phases of the project.

Page 17 of 18

Land

The mining companies either through offsets or to expunge an issue are purchasing tracts of highly productive farm land around the mine site. The council has concerns that the productivity of this land could be last and as such all efforts should be explored to keep the farm areas operating.

RECOMMENDATION 16

That the State Government where ever possible explore opportunities with the mining companies to keep highly productive farm land in use.

Page 18 of 18