Blayney, Cabonne and Orange Regional Economic Development Strategy (REDS)

Discussion Paper for Consultation

1. What this is about Economic development strategies have historically been produced by councils using a variety of methodologies. The problem with this approach is that different methods don’t allow comparison between local government areas (LGAs), they often don’t consider the broader region and small councils lack the resources to prepare appropriate strategies.

AgEconPlus has been engaged by the NSW Department of Premier and Cabinet to work in collaboration with Councils and local stakeholders in the preparation of a Regional Economic Development Strategy for the Blayney, Cabonne and Orange LGAs (the Region).

The aim is to help:  Councils review, and where appropriate, refresh existing economic development strategies using a specific methodology applied to the region as a whole; and  The region access NSW Government infrastructure funding.

Your comment on this draft discussion paper will contribute to the development of a REDS for the Region.

Further information on the REDS process is available from Stewart Webster, Director, Centre for Economic and Regional Development, NSW Department of Premier and Cabinet (02) 6391 3618.

2. Brief description of the economy of the region

Blayney

 Villages and towns in the LGA include Blayney, Barry, Carcoar, Lyndhurst, Mandurama, Neville and Newbridge  Gross Regional Product of $0.5B in 2014  Population growth rate between 2011 and 2016 was 4%, less than the NSW rate of 8%  Employed labour force has grown at a rate greater than NSW.  At the same time employment in the LGA grew more than two times the rate of NSW  56% of the employed labour force residing in the LGA work outside the LGA, particularly in Orange (23%), Bathurst (8%) and Cabonne (6%).  The top four sectors in the economy (One Digit ANZSIC) are:  Mining – Metal Ore Mining;  Agriculture, Forestry and Fishing – Beef Cattle Farming (Specialised), Sheep-Beef Cattle Farming, Sheep Farming (Specialised)

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 Manufacturing – Food Production Manufacturing; and  Education and Training – Preschool and School Education.  Of these four sectors all but Agriculture, Forestry and Fishing have been growing.  Other growth sectors include Construction, Other Services, Administration and Support Services, Professional, Scientific and Technical Services.  At the One Digit ANZSIC level, Blayney has a regional specialisation Mining, Agriculture, Forestry and Fishing and Manufacturing.  Other regional specialisations at finer industry detail include Preschool and School Education, Grocery, Liquor and Tobacco Product Wholesaling, Accommodation, Basic Material Wholesaling, Non-Metallic Mineral Product Manufacturing and Civil Engineering Construction.  Potential industry clusters are:  Mining;  Agriculture, Forestry and Fishing with associated Food Product Manufacturing Cabonne

 Villages and towns include Borenore, Canowindra, Cargo, Cudal, Cumnock, Eugowra, Manildra, Molong, Mullion Creek, Nashdale, Yeoval  Gross Regional Product of $0.8B in 2014  Population growth rate half that of NSW.  Employed labour force has grown at 5%, less than NSW (8%)  At the same time employment in the LGA has grown more than two times that of NSW  54% of the employed labour force residing in the LGA work outside the LGA, particularly in Orange 34%)  The top four sectors in the economy (One Digit ANZSIC) are:  Agriculture, Forestry and Fishing – Beef Cattle Farming (Specialised), Sheep Farming (Specialised), Grain-Sheep or Grain-Beef Cattle Farming, Fruit and Tree Nut Growing  Mining – Metal Ore Mining;  Manufacturing – Food Production Manufacturing (Grain Mill and Cereal Product Manufacturing); and  Health Care and Social Assistance – Hospitals, Residential Care Services.  Of these four sectors all but Agriculture, Forestry and Fishing have been growing.  Other growth sectors include Education and Training, Construction, Professional, Scientific and Technical Services, Other Services, Administration and Support Services, Transport, Postal and Warehousing.  At the One Digit ANZSIC level, Cabonne has a regional specialisation Agriculture, Forestry and Fishing, Mining, and Manufacturing.  Other regional specialisations at finer industry detail include Exploration and Other Mining Support Services, Grocery, Liquor and Tobacco Product Wholesaling, Heavy and Civil Engineering Construction, Primary Metal and Metal Product Manufacturing, Fabricated Metal Product Manufacturing.  Potential industry clusters are:  Agriculture, Forestry and Fishing with associated manufacturing;  Mining with associated manufacturing ; DISCUSSION PAPER FOR COMMUNITY CONSULTATION – 12 SEPTEMBER 2017 2

Orange

 Gross Regional Product of $2.84B with major exporting and importing sectors being mining and agriculture  Population growth rate was greater than for NSW between 2006 and 2011 and less than that for NSW between 2011 and 2016.  Employed labour force has grown at 11%, greater than the rate for NSW (8%)  At the same time employment in the LGA has grown at a rate less than half that of NSW  22% of the employed labour force residing in the LGA work outside the LGA, particularly in Cabonne (5%) and Blayney (3%)  The top four sectors in the economy (One Digit ANZSIC) (allowing for closure of Electrolux) are:  Health Care and Social Assistance – Hospitals, Medical and Other Health Care Services.  Retail Trade - Other Store Based Retailing, Food Retailing  Education and Training - Preschool and School Education, Tertiary Education  Public Administration and Safety - State Government Administration  Of these four sectors only Health Care and Social Assistance and Education and Training have been growing.  Other growth sectors include Administration and Support Services, Construction, Other Services, Accommodation and Food Services, Professional, Scientific and Technical Services, Rental, Hiring and Real Estate Services.  At the One Digit ANZSIC level, Orange LGA has a regional specialisation Health Care and Social Assistance, Public Administration and Safety and Mining.  Other regional specialisations at finer industry detail include Preschool and School Education, Tertiary Education, Repairs and Maintenance, Motor Vehicle and Motor Vehicle Parts Retailing.  Potential industry clusters are:  Health Care and Social Assistance  Public Administration and Safety;  Education;  Mining. Orange, Blayney, Cabonne

 Gross Regional Product of $3.73B with major exporting and importing sectors being mining, agriculture and manufacturing  Population growth rate was greater than for NSW between 2006 and 2011 and less than that for NSW between 2011 and 2016.  Employed labour force has grown at 10%, greater than the rate for NSW (8%)  At the same time employment in the region has grown at a rate (9%) slightly less than NSW (10%)  16% of the employed labour force residing in the region work outside the region, particularly in Bathurst (2%) and Cowra (1%)  The top four sectors in the economy (One Digit ANZSIC) (allowing for closure of Electrolux) are:  Health Care and Social Assistance – Hospitals, Medical and Other Health Care Services.  Retail Trade - Other Store Based Retailing, Food Retailing DISCUSSION PAPER FOR COMMUNITY CONSULTATION – 12 SEPTEMBER 2017 3

 Education and Training - Preschool and School Education, Tertiary Education  Agriculture, Forestry and Fishing - Beef Cattle Farming (Specialised), Sheep Farming (Specialised)  Of these four sectors only Health Care and Social Assistance and Education and Training have been growing.  Other growth sectors include Mining, Construction, Administration and Support Services, Other Services, Professional, Scientific and Technical Services, Rental, Hiring and Real Estate Services.  At the One Digit ANZSIC level, Orange Region has a regional specialisation Health Care and Social Assistance, Agriculture, Forestry and Fishing and Mining.  Other regional specialisations at finer industry detail include Preschool and School Education, Repairs and Maintenance, Public Administration, Repairs and Maintenance, Food Product Manufacturing, Motor Vehicle and Vehicle Parts Retailing, Exploration and Other Mining Support Services.  Potential industry clusters are:  Health Care and Social Assistance  Agriculture, Forestry and Fishing  Mining  Public Administration and Safety;  Education  Q1: Consultation question: are these the key economic features that best describe your LGA, what key features missing?______

 Q2: Consultation question: what are the core competencies, endowments and economic drivers that define your LGA – please edit/add to those provided in Table 1?

Table 1 Core Competencies, Endowments and Economic Drivers Competencies (‘what good at’) Endowments (‘natural, infrastructure’) Economic Drivers (‘big picture, e.g. aging population’) Blayney Blayney Blayney  Mining  Mineral resources  Global agricultural markets  Agriculture  Productive Agricultural land  Global mineral markets  Regional Livestock selling centre  Strategic location for freight on  Health of Orange and Bathurst  Agricultural processing (e.g. Nestle Midwestern Highway, Western Rail economy Purina), Australian Natural line  Wind Farm (Renewable Energy) Landscapes (ANL) and Warehouse  Proximity to Orange and Bathurst and Mining conflict with Farming Facility (SeaLink)  Good road and rail access  Blayney – Demondrille Rail line  Village Lifestyle  Carcoar Dam, Lake Rowlands  Education Cabonne Cabonne Cabonne  Agriculture  Mineral resources  Global agricultural markets  Mining  Agricultural land  Global mineral markets  Agricultural processing (e.g.  Pleasant historical settings  Health of Orange economy Manildra)  Proximity to Orange  Business relocation driven by  Health Care attractive lifestyle Orange Orange Orange  Mining  Mineral resources  Self-sustaining economic growth,  Health services  Education infrastructure possibly at the expense of smaller  School and Tertiary education  Rail/road access rural centres.  Mining services  Health Care Infrastructure  Global mineral markets  Public Administration  Government policy re location of Government agencies

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 Q3: Consultation question: these key features describe the current situation, what changes / trends do you see occurring in the economic structure of the region?______

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis  Q4: Consultation question: the following SWOT has been prepared for your LGA, are you able to add to the analysis?

Blayney SWOT Strengths Weaknesses/Issues  Well located – 3.5 hours from Sydney and  Loss of young people to other areas Canberra with direct access Melbourne and  A youth unemployment rate of 10.1% (according Adelaide. to the 2011 census)  Proximity to 2 regional cities – Orange and  Former Abattoir stigma Bathurst  Lack of residential land ready to be developed  Clean environment with 4 distinct seasons  Train services passing Millthorpe and Newbridge  Rail terminal and intermodal operations without Stop On Request  Industrial Lands close to highway and rail  State Road linking Orange to Midwestern Highway intermodal. Land is serviced with water, natural (Cowra and Bathurst) traverses through CBD and gas, electricity, telephone and sewerage over Railway line  Mineral resources with active mining operations including Newcrest and new prospects in Kings Plains  Extensive agricultural lands  Advanced livestock saleyard facility (Carcoar) CTLX Opportunities Threats/Challenges  Mining support services such as logistics firms,  Sponge City effect from Orange and Bathurst – equipment and personnel hire and general Retail and Secondary School Education business support services.  Meeting the residential demand expected for new  Train Services daily from Blayney, passing through Mines in the area 2 Villages – Millthorpe and Newbridge  Transport – ideal location for transport companies wishing to relocate with easy access to Sydney and other states.  Tourism opportunities and growth  Transport and warehousing – existing intermodal terminal providing direct import and export rail to Sydney ports, serviced industrial land and existing cold storage export facilities.  Food manufacturing aimed at export markets e.g. Nestle has recently expanded its Purina factory to meet growing demand for dog food supplies  Emerging sectors –cold food storage, light manufacturing, rail sidings, vineyards

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Cabonne SWOT Strengths Weaknesses/Issues  Well located – 3.5 hours from Sydney and  Loss of young people to other areas Canberra  A youth unemployment rate of 10.1% (according  Attractive towns and villages – Borenore, to the 2011 census) Canowindra, Cargo, Cudal, Cumnock, Eugowra, Manildra, Molong, Mullion Creek, Nashdale, Yeoval  Clean environment with 4 distinct seasons  Tourism – gold rush history, ballooning, food and wine  Agriculture – grain production from rich, fertile soil  Mining  Available and competitively priced industrial land  Manufacture of food and wine products - Manildra Flour Milling, MSM Milling Manildra and Canobolas Eggs.  Council assistance for business including market development, information technology use, networks and skills development. Loans of up to $10,000 to assist with residential land development. Opportunities Threats/Challenges  Food manufacturing – close proximity to inputs,  ‘Hollowing out’ of some services including retail as low cost inputs and a council that is keen to Orange continues to grow support food value adding  Mining – further growth opportunities identified within the shire  Manufacturing – that builds on raw material supplies from mining and agriculture  Tourism – attractive rural landscape, quaint towns, food, wine and art.

Orange SWOT Strengths Weaknesses/Issues  Lifestyle and character filled city  Vulnerability to changes in the global fortune of  Natural beauty, attractive landscapes and towns the mining and agricultural sector  Clean environment with 4 distinct seasons  A youth unemployment rate of 10.1% (according  Diverse economy to the 2011 census)  Upgraded airport, providing daily passenger  Finding employment opportunities for ‘high risk services to Sydney and a scheduled service to employees’ of the Electrolux Factory post its Melbourne from October 2017 closure (i.e. those <55 years, <5 years’ service).  Major regional hospital with allied services. Best bets will be aged care, mining, construction) Orange Health Service is the largest rural hospital  Gap – major retail operators in NSW  Gap – accommodation in the form of a caravan  Ample employment lands – Leewood Industrial park, motels and serviced apartments. RV facilities Estate, Narrambla Industrial Estate, Strathgrove and parking Way, Industry Drive and The Gateway  Tourism – established food and wine reputation Opportunities Threats/Challenges  Mining - building on strengths of Cadia Valley  Mining and agricultural sectors exposed to Operations and adding support services changes in world commodity prices  Health care – growing and aging population,  Health sector exposed to changes in public policy opportunities across all health care sectors  Tourism challenged by access and transport - inclusive of mental health facilities getting to and around the region. Road, train and plane are somewhat limited and there is a

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 Advanced manufacturing – especially servicing the perception problem re ‘getting over the mountain’ mining supply chain (Orange Regional Tourism Engagement Report  Tourism opportunities especially weekend visitors 2016) from Sydney. Product has a focus on events, festivals (e.g. Food Week in April, Wine Festival in October). Blayney, Cabonne and Orange function as a single tourism region  There is opportunity to grow harvest/pick-your- own tourism with special train and coach support  Tourism opportunity – do well with foodies and young people what about families, overseas visitors  Education – grow Charles Sturt University, TAFE, and other education providers  Other sectors with potential – agricultural processing, airport services, retail, construction  Emerging sectors – services to mining, medical services

3. Regional Risk Analysis  Q5: Consultation question: the following risk factors for economic development of the region have been identified. An impact/consequence if the risk eventuates and likelihood of it eventuating has been estimated. Impact descriptors and Likelihood descriptors are provided on the next page. Please edit/add to the Table 3 analysis.

Table 3 Regional Risk Analysis Impact (Very Significant, Likelihood (Almost Significant, Moderate, Certain, Likely, Weak, Insignificant, Possible, Unlikely, Very Medium, Low) Unlikely) Blayney Failure to secure approval for the proposed Regis Mine Significant Possible Water supply limits industry and residential growth Significant Unlikely Increasing congestion on road system limits industry growth Moderate Unlikely Other? Other? Cabonne Mining – ongoing expansion limited by regulation or commodity cycles Moderate Possible Agricultural production disrupted by supply (e.g. drought) or demand (e.g. Moderate Possible commodity price) constraints Continued meed for agriculture scale economies with resulting Weak Likely amalgamation of farms and decline in employment Other? Other? Orange Mining – ongoing expansion limited by regulation or commodity cycles Moderate Possible Insufficient industrial and residential land for new businesses and tree Moderate Unlikely changers Public policy/favour centralisation of public health Weak Possible Other? Other?

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4. Infrastructure Audit Q6: Consultation question: please identify gaps in regional infrastructure by editing, and adding to, Table 4.

Table 4 Working Draft Infrastructure Audit Blayney Cabonne Orange Utilities Domestic water A new storage plus upgrade A new storage plus upgrade New water supply of existing storages and the of existing storages and the infrastructure in place but reticulation system required. reticulation system required. further investment required. Sewerage No gaps No gaps No gaps Power/Energy No gaps No gaps No gaps Telecommunications Mobile/internet blackspots Mobile/internet blackspots Mobile/internet blackspots Transport Infrastructure Rail Inefficient and slow for Inefficient and slow for Inefficient and slow for passengers and freight passengers and freight passengers and freight Roads Bells Line of Road needs Bells Line of Road needs Bells Line of Road needs upgrade to take freight. upgrade to take freight. upgrade to take freight. A Blayney ring road is Regional roads require Roads required to service required as is upgrades to upgrade to better service city growth including a ring approaches to the town grain and livestock road and improved access to from both the east and the movement. employment/residential land west. in both the north and south. Mine Infrastructure Water supply Water supply required for No gap Water supply for Newcrest the proposed Regis Mine in Cadia Mine may require Blayney. further augmentation in the medium term. Serviced land Industrial land No gaps No gaps No gaps Residential land No gaps No gaps Medium term additional areas required for residential. Agricultural Infrastructure Irrigation water Not relevant Not relevant Not relevant Supporting infrastructure No gaps No gaps No gaps Services No gaps No gaps No gaps Education University No gaps No gaps No gaps TAFE No gaps No gaps Gap in training opportunities for Aboriginal people High Schools No gaps No gaps No gaps Primary Schools No gaps No gaps No gaps Pre school No gaps No gaps No gaps Child care No gaps No gaps No gaps Health Services Hospitals No gaps No gaps No gaps Other Supply of doctors willing to Supply of doctors willing to Supply of doctors willing to work in rural areas. work in rural areas. work in rural areas. Aged Care Aged care would benefit No gaps No gaps from an upgraded aquatic centre. Recreation and sporting Residents, including school No gaps New sporting and facilities children would benefit from recreational precinct an upgraded aquatic centre. required to service growth in Showground and equine north Orange. Area would facilities are sub-standard.

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benefit from mountain bike facilities. Cultural and entertainment CBD/town centre is ‘tired’ New library and community Orange CBD would benefit and dated and would centre required. from further revitalisation to benefit from upgrade ensure ongoing success of including a new library and its retail sector. art gallery. Accommodation May be a shortage of motel No gaps Shortage of motel beds and and serviced apartments if serviced apartments. Also proposed Regis Mine goes low cost alternatives such as ahead. backpacker accommodation and additional caravan / RV space.

5. Infrastructure Priorities  Q7: Consultation question: Please provide additional detail and a rank (High, Medium or Low) for the following Blayney, Cabonne and Orange infrastructure priorities. Add new infrastructure priorities to the end of the table.

Table 5a Working Draft Infrastructure Priorities Blayney LGA Project Who benefits Priority (H, M, L) Rail priorities - stabling the Bathurst Bullet overnight in Business travellers to Blayney and Orange Orange – the train could service Blayney and Orange including those working long shifts (e.g. passengers instead of terminating at Lithgow. Such a daily visiting doctors, mine employees) who seek return train should attract more “full fare” business an accident free alternative to driving. customers from Orange, many of whom already drive two hours to Mt Victoria and catch the 26-stop Blue Mountains suburban services to Central Station. Cost estimate of $?M. Rail priorities - support XPT replacements – possible use Current and potential rail passengers of tilt train technology, better scheduling, reduced travel including visitors and business travellers. A time, a new regional maintenance facility and stabling of the faster service would attract more users with train in Orange. Cost estimate of $??M. flow on benefits for the region. Rail priorities – infrastructure upgrade between Lithgow Current and potential rail passengers and Blayney - support essential upgrading of rail including visitors and business travellers. A infrastructure for faster modern passenger rail travel for faster and more efficient service would residents of Orange and the Central West. Infrastructure attract more users with flow on benefits for upgrade required for the Western Line between Lithgow and the Orange region. Blayney. Cost estimate of $??M. Rail priorities –infrastructure upgrade between Blayney Line is used mainly for grain haulage and and Demondrille - support essential upgrading of rail upgrade would deliver productivity gains in infrastructure for freight. Cost estimate of between $35M grain handling for the benefit of regional and $45M. grain producers. It is noted that grain is mainly grown in other parts of the Orange region/outside Blayney LGA. Upgrade of the Bells Line between the M7 and Upgrade of the Bells Line of Road to a dual Marrangaroo – upgrade to dual carriageway capable of carriage expressway will provide a major handling freight. The Great Western Highway will always be boost to economic activity in the Central constrained by topography and the Central West is the only West. The upgrade will lower the cost of region not linked to Sydney via an expressway. A staged freight and encourage tourism growth. approach is proposed and immediate set aside of the corridor is required. Total project cost is in the order of $2 billion. Heavy Vehicle Traffic Relief Route. New 'ring road' that Residents of Blayney through reduced will connect the Mid-Western Highway to Council's industrial travel times, improved safety and possible land and through to the Orange Road. Cost estimate of economic growth and job creation. The $15M.

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project will provide better access to employment areas and lower freight costs. Old Lachlan Road. Provide for heavy vehicle access from Freight savings and productivity gains the east across to Central Tablelands Livestock Exchange. especially for livestock producers. Cost estimate of $6.8M. Browns Creek Road Bridge. Replacement and realignment Freight savings for goods originating in of Cowriga Creek Bridge on Browns Creek Road. This project Blayney/passing through Blayney and would remove a 10t load limit and open up access to the moving further west. west along Browns Creek Road. Cost estimate of $1.5M. Water supply for the Regis Mine in Blayney – the The proposed mine will provide a major proposed mine will be a major development for the Blayney fillip for employment and economic activity community generating several hundred jobs with flow on in the Blayney LGA. benefits for the region. Mine water supply is not yet secured. Cost estimate of $?M. A New Domestic Water Supply Storage to be Residents of Blayney LGA who are Constructed High in the Catchment. Further work required periodically affected by water restrictions on suitable options. New storage would supply Central and shortages. Tablelands Water which services Blayney, Mandurama, Carcoar and Lyndhurst. Cost estimate is in excess of $10M. Domestic Water Supply Expansion Lake Rowlands and a Residents of Blayney and Cabonne LGAs Pipeline from Lake Rowlands to Goolagong. Increase the who are periodically affected by water size of the lake Rowlands storage from 4,500ML to 26,500ML restrictions and shortages. Beneficiaries and construct a 75km pipeline to Goolagong. Cost estimate might include residents of Mandurama, of $28M. Billimari, Eugowra, Nyrank Creek and Canowindra. Domestic Water Supply Pipeline from Goolagong to Residents of Blayney and Cabonne LGAs Parkes. Construct a 50km pipeline from Goolagong to who are periodically affected by water Parkes. Cost estimate of $18M. restrictions and shortages. Beneficiaries might include residents of Mandurama, Billimari, Eugowra, Nyrank Creek and Canowindra. Upgrading the Blayney Centre Point Sport and Leisure Blayney residents especially children and Centre. The Blayney Swimming Pool was built over 50 years the disabled. ago and is in need of an upgrade to improve swimmer comfort, provide disabled access and facilities, improve safety and make use the latest pool water heating and cleaning technology to reduce operating costs and increase energy efficiency. The project includes children’s play areas, disabled access, toilet facilities and change rooms. Cost estimate of $3.7M. Blayney Cultural Centre and Urban Revitalisation Blayney residents who make use of the Precinct. This project will relocate the Blayney Shire Library library. Residents and visitors who make use to a new centrally located Cultural Centre and extend the of a new art gallery. civic space via a new pedestrian link into the Farm Lane shopping centre. The project will create a vibrant, economically viable, high quality and safe town centre; address the fatigued public domain and improve local market position and connections for the Blayney CBD. The Cultural Centre will include an Art Gallery and Library Service and adjoin the newly refurbished Visitor Information Centre and Commercial Café. Cost estimate of $3.5M. The Central West Equestrian and Agricultural Events Blayney community through the provision Facility. The project will establish a Central West equestrian of improved showground facilities with the centre of excellence, enabling attraction of national events. It potential to add to the visitor economy (e.g. will include an upgrade of existing facilities to better cater food and accommodation) via the hosting for the wide range of sporting activities undertaken at the existing showground. The project will include construction of of national equestrian events. stables, an indoor arena with seating, turf and irrigation upgrade, associated amenities and support facilities. Cost estimate of $1.5M. Other?

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Table 5b Working Draft Infrastructure Priorities Cabonne LGA Project Who benefits Priority (H, M, L) Upgrade of the Bells Line between the M7 and Upgrade of the Bells Line of Road to a dual Marrangaroo to dual carriageway capable of handling carriage expressway will provide a major freight. The Great Western Highway will always be boost to economic activity in the Central constrained by topography and the Central West is the only West. The upgrade will lower the cost of region not linked to Sydney via an expressway. A staged freight and encourage tourism growth. approach is proposed and immediate set aside of the corridor is required. Total project cost is in the order of $2 billion. Rail priorities –infrastructure upgrade between Blayney Line is used mainly for grain haulage and and Demondrille - support essential upgrading of rail upgrade would deliver productivity gains in infrastructure for freight. Cost estimate of between $35M grain handling for the benefit of regional and $45M. grain producers based in Cabonne with flow on community benefits. Orange to Mudgee Link Road. The upgrade of this road The tourist economy of both Orange and will create a viable shorter distance route to travel between Mudgee i.e. food, wine and Orange and Mudgee. This will create a tourism link road accommodation providers with flow on between two renowned wine regions. Cost estimate of benefits to the economy of the wider $155M for a ‘moderate upgrade’. region. Banjo Paterson Way B Double Upgrade. The Upgrade of Freight savings and productivity gains Banjo Paterson Way between Cumnock and Yeoval would especially for livestock producers. provide livestock producers with a direct route between the two towns, as well as allow a more direct route between Dubbo and Narromine, and Orange and Blayney. Kurrajong Road, Manildra B Double Access Upgrade. The Freight cost savings for grain growers, upgrade of Kurrajong Road Manildra would allow a more improved efficiencies for MSM Milling. direct route for B Double vehicles transporting grain from silos in Canowindra, Nyrang Creek and adjacent towns to MSM Milling in Manildra. Cost estimate of $?M. A New Domestic Water Supply Storage to be Residents of Cabonne LGA who are Constructed High in the Catchment. Further work required periodically affected by water restrictions on suitable options. New storage would supply Central and shortages. Tablelands Water which services Cudal, Canowindra, Eugowra and Manildra. Cost estimate in excess of $10M. Domestic Water Supply Expansion Lake Rowlands and a Residents of Blayney and Cabonne LGAs Pipeline from Lake Rowlands to Goolagong. Increase the who are periodically affected by water size of the lake Rowlands storage from 4,500ML to 26,500ML restrictions and shortages. Beneficiaries and construct a 75km pipeline to Goolagong. Cost estimate might include residents of Mandurama, of $28M. Billimari, Eugowra, Nyrank Creek and Canowindra. Domestic Water Supply Pipeline from Goolagong to Residents of Blayney and Cabonne LGAs Parkes. Construct a 50km pipeline from Goolagong to who are periodically affected by water Parkes. Cost estimate of $18M. restrictions and shortages. Beneficiaries might include residents of Mandurama, Billimari, Eugowra, Nyrank Creek and Canowindra. Molong Library & Community Facility. The Molong library Molong residents who make use of the is currently located in facilities leased from State Rail and is library and / or community meeting spaces. separated from the majority of the population by the Mitchell Highway, resulting in a crossing hazard for children and the elderly. In addition, the current community meeting facility has been found to be structurally unsound and will require demolition. This will also result in the toilet facilities for the existing town hall being demolished. The construction of a new facility enabling the library to relocate to a civic precinct and include both community meeting facilities and toilet facilities is required. A total project cost of $3M. DISCUSSION PAPER FOR COMMUNITY CONSULTATION – 12 SEPTEMBER 2017 12

Age of Fishes Museum Canowindra – extension to include The tourist economy of Canowindra e.g. storage facility. Digital display and cinema is an essential food and accommodation providers with upgrade and is the subject of an existing funding flow on benefits to the economy of the application. Upgrade of the museum will enhance tourism wider region. within the region. A total project cost of $3.8M. Other?

Table 5c Working Draft Infrastructure Priorities Orange LGA Project Who benefits Priority (H, M, L) Rail priorities - stabling the Bathurst Bullet overnight in Business travellers to Orange including Orange – the train could service Orange and Blayney those working long shifts (e.g. visiting passengers instead of terminating at Lithgow. Such a daily doctors, mine employees) who seek an return train should attract more “full fare” business accident free alternative to driving that is customers from Orange, many of whom already drive two not subject to air travel delays (e.g. fog). hours to Mt Victoria and catch the 26-stop Blue Mountains suburban services to Central Station. Cost estimate of $?M. Rail priorities - support XPT replacements and a Current and potential rail passengers maintenance facility in Orange – possible use of tilt train including visitors and business travellers. A technology, better scheduling, reduced travel time, a new faster service would attract more users with regional maintenance facility and stabling of the train in flow on benefits for the Orange region. Orange. Cost estimate of $??M. Rail priorities – infrastructure upgrade between Lithgow Current and potential rail passengers and Blayney - support essential upgrading of rail including visitors and business travellers. A infrastructure for faster modern passenger rail travel for faster and more efficient service would residents of Orange and the Central West. Infrastructure attract more users with flow on benefits for upgrade required for the Western Line between Lithgow and the Orange region. Blayney. Cost estimate of $??M. Rail priorities –infrastructure upgrade between Blayney Line is used mainly for grain haulage and and Demondrille - support essential upgrading of rail upgrade would deliver productivity gains in infrastructure for freight. Cost estimate of between $35M grain handling for the benefit of regional and $45M. grain producers with flow on community benefits. Upgrade of the Bells Line between the M7 and Upgrade of the Bells Line of Road to a dual Marrangaroo to dual carriageway capable of handling carriage expressway will provide a major freight. The Great Western Highway will always be boost to economic activity in the Central constrained by topography and the Central West is the only West. The upgrade will lower the cost of region not linked to Sydney via an expressway. A staged freight and encourage tourism growth. approach is proposed and immediate set aside of the corridor is required. Total project cost is in the order of $2 billion. South Orange Economic Development Corridor - stages 2 Residents of Orange through reduced travel to 4 are part of a larger plan to create an orbital road times, improved safety, economic growth network around Orange. Stage 2 provides access to and job creation. The project will provide desirable industrial land in Edwards Street that was better access to both current and new previously the Orange livestock saleyards. Stage 3 links the employment areas. Mitchell Highway to the employment growth areas of the Health Precinct, Cadia Mine and Leewood Industrial Estate. Stage 4 links a 1,600 lot housing development to employment lands. Excluding Council’s commitments, and other funding sources, $21.9 M is required to complete all stages of the corridor. Orange to Mudgee Link Road. The upgrade of this road The tourist economy of both Orange and will create a viable shorter distance route to travel between Mudgee i.e. food, wine and Orange and Mudgee. This will create a tourism link road accommodation providers with flow on between two renowned wine regions. Cost estimate of $155M for a ‘moderate upgrade’.

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benefits to the economy of the wider region Forest Road Orange Upgrade to better service growth in Residents of Orange through reduced travel the south of the city including the Health Precinct and times and improved safety. Newcrest’s Cadia Mine. Estimated cost of $?M. Clergate Road Upgrade to better service growth in the Residents of Orange through reduced travel north of the city including Charles Sturt University and times and improved safety. northern residential developments. Estimated cost of $?M. Mt Canobolas Mountain Bike Trail Centre and Recreation Orange visitor economy (e.g. Precinct – the project would create a network of 11 trails accommodation and food providers) as well ranging in difficulty from novice to world class. Phase 1 as local mountain bike enthusiasts. would include trail network design, Aboriginal and environmental impact assessment, development of management and governance arrangements, road and pedestrian access. Phase 2 would develop Mt Canobolas summit facilities consistent with the relevant management plan. Phase 3 and 4 would develop the trail network. The total cost of Phase 1 is $8M and council has allocated $2M through forward estimates. Scout Park Upgrade to Tourist Park – upgrade the scout Horticulture sector which will be better able camp near Mt Canobolas to provide backpacker to attract and retain seasonal labour. accommodation. Backpacker accommodation is required to Orange’s visitor economy will benefit support Orange’s horticulture harvest and visitors to the including accommodation and food proposed Mt Canobolas Mountain Bike Trail Centre. Project providers. cost is $3M. Regional Sport and Recreation Park – new sporting and Orange and district residents, particularly recreational precinct on the North Orange Bypass. The site, young people. recently purchased by Council, will include sporting fields, grandstands, parking, passive recreation areas and access roads. By NSW standards Orange has a very large infant population and more playing fields will be required to cater for these children through the next twenty years. Total budget is $21.4M and Orange Council has made a $4.5M contribution to this total. Orange CBD Upgrade – upgrade is required to ensure the Residents of the Orange region through CBD remains an economic driver of the city and the region. further growth of the employment intensive The retail sector is a critical part of the regional economy retail sector. and is its second largest employer. Council funds will be used to complete upgrade of three of six city blocks. However, a further $25M is required to complete the whole project. Lucknow Village Upgrade – the village of Lucknow is the Residents of Lucknow and the local and the eastern gateway to Orange. It is rich in history including regional visitor economy. early mining history. Orange Council had an upgrade scoping study completed in 2015 and implementation of study findings would cost approximately $??M. Canberra Airport - recently established ‘capital express’ Beneficiaries would include local food operated by Singapore Airlines services Canberra, producers and niche manufacturers. Wellington and Singapore and provides export opportunities Securing additional markets has the for regional businesses. The opportunity best suits cut potential to increase gross regional product flowers; micro herbs; fruit and vegetables; just in time and employment. componentry; paddock to plate premium cuts of meat; and high value machinery. A strategy to maximise the opportunity for the Orange region is required and will cost approximately $0.2M. Private Hospital Development – Bloomfield Medical Centre Private hospital development will service announced June 2017 with phase 1 comprising hospital / the Orange region and draw patients from

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medical centre, medi-motel, childcare, retail and car park. further afield. Economic benefits for Orange When complete the project will deliver 500 jobs to the will include direct employment and flow on community. This is a private sector project and does not benefits for the economy i.e. additional require infrastructure spending. However, it does require spend in the Orange community. NSW Government planning approval. Murray Darling Medical School – to address the shortage Beneficiaries would include residents of the of doctors in rural areas. The project is a joint initiative of Murray Darling region requiring reliable Charles Sturt and La Trobe Universities with support from access to a GP including residents of the councils in Orange, Wagga Wagga and Bendigo. The school Orange region. The Murray Darling includes would train 120 doctors across three campuses in its first NSW west of the Great Dividing Range. year and 180 doctors per year thereafter. The universities have requested $50M over 4 years to assist with start-up. Former Base Hospital Redevelopment – Orange City Orange residents and the regional economy Council purchased the former hospital site from Health through employment creation during Infrastructure NSW and the purchase price included an construction and ongoing operation of the allowance for demolition and site rehabilitation. The master revitalised site. plan for the site makes allowance for parkland, dwellings and commercial space. Funding assistance of $??M is required to realise the site’s potential. Orange Local Aboriginal Land Council Hotel and Beneficiaries would include Aboriginal Hospitality School – Yugaway. In 2014 council approved a people trained in hospitality and related $14M hotel that included 110 room accommodation, 20 X industries with jobs in the facility. The two bedroom serviced apartments, restaurant with capacity project would also benefit the Orange for 120 people, a function centre for 200 people, 164 car regional economy through construction parking spaces, gymnasium, pool and an information and employment and ongoing flow on activity – education facility with arts and craft gallery and cultural gross regional product and employment. centre. A $2M funding gap remains to deliver this project. Clarification of the Status of South Orange DPI Lands – in Orange residents and the regional economy 2011 the NSW Government zoned an area of land held by through employment creation during the NSW Department of Primary Industries as residential construction and ongoing economic with supporting retail. A former riffle range may also be activity. available for residential development. To date there has been no attempt to activate the development. Neighbouring developments including the new hospital and the Shiralee residential area have brought a focus to this part of the city. There is a need for clarification around the NSW Government’s intention for this area so that the future growth of the city can be properly planned. Cost estimate of $?M. Airport Business Park Considered outside this process. TAFE NSW Digital Headquarters – a relocation opportunity Additional economic activity and that brings additional employment to Orange. Cost estimate employment in Orange. of $?M. Rural Fire Service Decentralisation Opportunities – a Additional economic activity and relocation opportunity that brings additional employment to employment in Orange. Orange. Cost estimate of $?M. Other? Source Economic Development Community Committee briefing papers and other Council documents

6. Other Actions Required for Sustainable Economic Development  Consultation question: Sustainable economic development for the region is more than infrastructure. Please identify additional:

 local strategies and/or actions e.g. “retention of young people through provision of improved vocational training opportunities”; and

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 any broader government policy actions e.g. "Stamp Duty and Payroll Discounts for businesses operating within regional centres";

required for sustainable development in your region.

Local Strategies/Actions

1.______

2.______

3.______

Broader Government Policies/Actions

1. ______

2.______

3.______

7. Comment

Please provide any additional commentary relevant to the preparation of the Regional Economic Development Strategy in your area

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8. Next Steps

AgEconPlus will be using the information collected to develop a Draft REDS. Additional opportunity will be provided for people to comment on the Draft REDS.

Thank you for your assistance with the REDS Development Process

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