SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 and Infrastructure

ITEM NO SUBJECT PAGE

11.2.1 ACKNOWLEDGEMENT OF REGIONAL OPTIONS PAPER AND STRATEGIC RECOMMENDATIONS DOCUMENT FROM SOUTH WEST REGIONAL WASTE GROUP 1

11.2.2 MARGARET RIVER MAIN STREET PARKING CONSIDERATIONS 63

11.2.3 SCHEME AMENDMENT 69 FOR INITIATION – REZONE PART LOT 30 PEAKE STREET, COWARAMUP FROM GENERAL AGRICULTURE TO TOURISM 75

11.2.4 BARRETT STREET AND RENDALL CLOSE WEIRS ENVIRONMENT MANAGEMENT PLANS 132

11.2.5 SUBMISSION OF THE REFERENCE GROUP MEETING MINUTES 142

11.2.6 LOCAL PLANNING POLICY 2- DESIGN REVIEW – FOR FINAL ADOPTION 148

11.2.7 SUSTAINABLE ECONOMY STRATEGY 152

11.2.9 SUBMISSION OF SUSTAINABLE ECONOMY REFERENCE GROUP MEETING MINUTES 280

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.1 ACKNOWLEDGEMENT OF REGIONAL OPTIONS PAPER AND STRATEGIC RECOMMENDATIONS DOCUMENT FROM SOUTH WEST REGIONAL WASTE GROUP

Attachment 1 – Regional Options paper and Strategic Recommendations

1 South West Regional Waste Group

REGIONAL OPTIONS PAPER AND STRATEGIC RECOMMENDATIONS February 2021

2

ACKNOWLEDGEMENTS

Thanks to all Council staff and State Agency personnel who have contributed to this work. These include in no particular order but are not limited to:

 Kate Shaw and Tony Battersby from Bunbury-Harvey Regional Council for information relating to the Materials Recycling Tender recently concluded.  Haydn Jones, Manager Waste and Safety Services, Shire of Harvey,  Chris Yates, Manager Waste, Health & Ranger Services, Shire of Augusta-Margaret River  Aileen Clemens, Manager Waste Services, City of Bunbury  Kyra Nimmo, Senior Regional Development Officer, South West Development Commission  Christine Szostak, Asset Management Officer, Shire of Collie  James Kain, Waste and Sustainability Officer, Shire of Capel  Mark Wong, Manager Waste and Fleet Services, City of Busselton,  Melanie Turnbull, Waste Services Project Officer, City of Bunbury  Steve Potter, Executive Manager Operations, Shire of Donnybrook-Balingup And to those who have prepared past reports for the South West Regional Waste Group that I was fortunate enough to read:

 IW Projects P/L  C. Webster  Sam Green (Loop Close Enterprises)  Talis Consultants

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3

Contents

Recommendations ...... 4 Executive Summary ...... 5 Treatment Options Summary ...... 7 FAQs ...... 8 Introduction ...... 11 Context ...... 13 Literature review ...... 13 Framework and Principles ...... 14 National ...... 14 State ...... 14 Regional ...... 17 Regional Coordination ...... 20 Integrated Waste Management System (IWMS) ...... 20 Administration ...... 21 Business as Usual ...... 21 Regional Subsidiaries ...... 22 Expand the Regional Council ...... 26 Regional Subsidiary vs the Regional Council ...... 27 Other Options ...... 28 Fleet Operations ...... 28 Waste Management Option Analysis ...... 30 Whole of Life Factors ...... 30 Life Cycle Assessment ...... 30 Bin Assessment ...... 31 Transporting each bin ...... 34 The costs of landfill ...... 34 Treatment Options ...... 37 Waste To Energy ...... 37 Thermal ...... 37 Gasification / Pyrolysis ...... 40 Anaerobic Digestion (AD) ...... 42 Composting ...... 46 Procurement ...... 48 Logistics and Transport ...... 52 Transfer Station Design ...... 53 Logistics ...... 54 Waste Levy Impacts ...... 58 Conclusions ...... 60 Appendices ...... 61

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4 RECOMMENDATIONS

1. That the Group prepares a comprehensive Integrated Waste Management Plan coordinating regional waste assets and operations as a single entity. This is to: a. Identify locations for complex waste treatment facilities; b. Draft community engagement strategies; c. Define responsibilities between Councils including waste ownership boundaries; d. Apportion risk according to the level of engagement.

2. Preparing a Business Plan for the representative entity that clearly defines long term visions, targets, development timelines and proposed expense and revenue projections.

3. Commence planning a regionally focussed ‘Expressions of Interest’ process focussing on regional Municipal Solid Waste treatment. The included specifications are to allow a variety of service providers to make submissions proposing technologies that may be proven internationally but yet to establish in Australia. Siting requirements and other supportive needs, for example, access to complementary assets/partners should be included.

4. Establish an Integrated Waste Management Working Group comprising senior technical and operational staff from within the members of the South West Regional Waste Group to formalise and review waste management initiatives for the Region.

5. The Group considers formalising a representative entity e.g. a Regional Subsidiary, to equitably represent members in pursuing the Recommendations in this Report.

6. That the Group Accepts the Recommendation in this Paper as presented.

7. Provide regional representation to support or conduct contract negotiations on behalf of, or in conjunction with multiple similarly sized Councils to attain sub-regional economies of scale.

8. Seek funding and institutional support from State and Federal agencies for implementing the Recommendations of this Report.

9. That a standardised data collection program commences across the region. The metrics for Local Government Areas to report against are to be consistent and relevant that informs strategic decision-making and allows reliable triple bottom line comparisons to be made. The data is to be relevant to assessing preferable waste operations between Councils. For example, contamination statistics, waste service costs, capital investments, tonnages, community consultation expenditure and bin audits among others.

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5 EXECUTIVE SUMMARY

The changing nature of the National and State waste industries provides a unique development opportunity for the South West Region that streamlines operations and reduces costs for those Councils willing to collaborate on more complex treatments. The move from cheap landfilling to a more complex diversion system delivers greater cost savings and lower disposal volumes by leveraging market forces.

This Paper addresses themes recurrent in previous studies conducted by the South West Regional Waste Group - cooperation, market creation and maintaining a prudent investment program. New projects such as trialling regional procurement programs can build local markets by using waste products to create jobs and economic growth. The Recommendations proposed in this paper are forward-looking, intended to provide a pathway towards achieving:  External management of waste operations, separating them from individual Councils;  Maximising diversion from all landfills in the Region while minimising external impacts;  Managing the impact of additional waste charges or levies;  Providing options for waste management investment in the South West; and  Providing cost neutrality or better when considering relevant waste treatment options. Using cooperation and common purpose to leverage economies of scale, requires commitment from participating Councils. Formalising how members interact, either as partners or clients provides options to work together. A regionally representative group such as a Regional Subsidiary model or expanded Regional Council, means that common interests can be negotiated in the open market and be held accountable. Commitment can be financial or volume supply of waste. More participation will improve effectiveness in removing barriers preventing private industry from more active roles in diverting waste from landfill.

By framing South Western waste operations as a single entity, coordinating contracts, plant and filling regimes can be streamlined. Innovation can be simplified by choosing from a variety of facilities that are available for set purposes. Plant and operations can be developed on a scale larger than any one Council could provide and benefits shared equitably. Introducing adaptability to a regional waste management system targets multiple levels of the waste management hierarchy, prioritising reduce, reuse, recycling/compost and energy recovery from waste. This focuses strongly on waste prevention and landfill minimisation.

The ultimate goal for the regional entity should be to separate waste operations from SW Councils, equitably distributing cost savings and risk among members without creating unjustifiable cost increases. This long term goal will have local impacts in guiding investment, for example, local facilities can be acquired/designed assuming that at some future point they may be acquired by a larger organisation. In this context, regional initiatives also must respond to local issues and be easily monitored. These initiatives include:  Evaluating complex waste treatment plants for the region, investigating external risks (buffer zones), harnessing economies of scale, population effects and other siting factors;  Designing an optional Procurement Policy Trial for South West Councils to use their collective purchasing power in shaping private industry diversion solutions; and  Coordinating a regional education and consultation strategy to deliver tangible outcomes for local Councils.

Of the options considered, thermal Waste-to-Energy was found to be magnitudes more expensive than smaller, targeted options but they higher diversion percentages of highly co-mingled, non-

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6 organic waste. Cheaper initiatives such as education and promoting reuse, repair and recycling were more labour intensive but can achieve significant outcomes and have considerable community support. Blending these approaches can be a role for the regional body which can negotiate waste supply contracts and support multiple waste education officers.

Growing FOGO markets is critical for continued organic matter diversion success. Diversifying the risk by using more than one treatment technology, i.e. composting, can produce more products and reduce long term disposal costs for the region. For example, an anaerobic digestion unit produces energy and bio-fertiliser that can also support composting enterprises.

A combination of several treatments is proposed, coordinated by a central body and organised in a formal framework called an ‘Integrated Waste Management Plan’. This Plan coordinates transport, research, business development and community education across Local Government Area boundaries. This approach allows for sub-regional agreements and negotiations between individual Councils to leverage local economies of scale.

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7 TREATMENT OPTIONS SUMMARY

Administrative Operational Procurement Regional Council WTE - WTE - WTE - Materials Recovery Option Regional Subsidiary Landfill Composting Cooperative Trial Expansion Thermal Gasification Anaerobic Digestion Facility (MRF) $14M Manual Capital Cost Depends on extent Under $250,000 Under $250,000 Approx. $3M / Cell N/A for SW $70 M $12-15 M $5.5M $19M Semi-Auto Estimate ($) of participation $24M+ Automated Gate Fee* $/tonne 86 (Regional avg) *(does not include N/A N/A 150 - 190 160-200 50-80 42 (BHRC) $60-100 N/A transport) 40 aprox (Cleanaway) Less than landfill 156 (Regional avg) Waste Levy N/A No change No Change No Change No change costs following N/A 107 (Cleanaway) sorting Impact  Commences  Externalises waste  No change to  95% diversion  Lower transport  Up to 55%  Wholly owned  Large scale waste  Proactive drive to operations on operations from current practices  Large minimum fees (locate in SW) diversion (removes government Diversion build local industry research Council  Will be subject to a waste volume  90% diversion organics) enterprise  Strong negotiation  Incremental immediately  Creates Waste Levy required  Modular  Produces fuel  Experienced position  Supporting private  Liability risk and opportunities for  Land required for  High transport  High operational (natural gas) and operators  Partnership enterprise revenue sharing sub-regional new to construct costs costs fertiliser  Value add operation opportunities with innovation needs to be private/public these facilities  Could backload  Expect community  Carbon credits  Operationally private enterprise  Product needs to defined partnerships  Licence facilities with ash opposition available intensive  Long term economy be acceptable  Establish  Quarantines requirements are for savings  Stifle innovation in  Working examples  Modular support  Sourcing local Agreement needs ratepayers from technically  Discourages other streams in Jandakot and  Room to expand  Needs sufficient waste maybe to be altered waste operation demanding recycling  EPA and DWER Yallingup  Market security markets to be problematic  Elected Council costs  This option is losing  May discourage approvals can be  Specialist  Carbon profitable  Auditing the system guides operational  External experts community support innovation on other onerous knowledge sequestering – long may be problematic decisions can help guide  This is at the streams  No operational required term stability in business bottom of waste  Low waste model in Australia  Needs low process development hierarchy hierarchy option feedstock contamination Gate Fee Contract negotiation Gate Fees, Recycled products; None. Electricity Compressed Natural Fee for service None, for Share of R&D Savings Ratepayers Gate fees Revenue Standard fee for Steam Gas (CNG) Waste Supply procurement action Findings Fee for Service subsidised Container deposit service Digestate / Fertiliser Agreements only Member Investment Owners investments Reclaimed materials scheme. Within 5 years from Within 2 years from Within 2 years from Time to Operation 6-12 Months 6-12 months Currently operating Commence 2022 Before 2022 Within 12 months Contract Signing approvals approvals Depends on loan Estimated Payback N/A N/A conditions and N/A TBD TBD TBD TBD N/A time Council reserves Table 1: Comparison table of prices for alternative waste treatments. Information for composting and a proposed MRF has been supplied by Bunbury-Harvey Regional Council.

The growth in available waste technologies means costs change according to the operators’ response to operational demands, environments and minimum waste volume thresholds. The waste levy is applied to waste received at landfill premises and is not applicable to diverted materials.

Integrating regional waste management diversifies investment risk, controls the speed of transition towards a circular economy and provides collaborative opportunities with private industry. Complementary waste treatments can provide a range of diversion methods at varying costs to individual Councils, usually at a reduced rate.

These options are underpinned by a comprehensive Regional Waste Education Program designed to coordinate regional waste operations with local community involvement. This can include supporting community liaison groups, influencing commercial practices through market intervention, employing regional waste officers (preferably from existing staff positions), establishing a uniform Reuse Shop model and potentially a ‘Free-Trade Website’. These options are relatively low cost but can have significant impact in the contamination rates and cost-effectiveness of proposed treatment solutions.

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8 FAQS

In the interests of clarity and brevity a summary of main report points are:

 How should the Recommendations inform immediate progress?

A. Should a formal cooperative model be supported, a low financial contribution is proposed to commence activities. Initially, a model needs to be selected and Business Plans prepared clearly stating each Council’s responsibilities and risks.

B. An Expressions of Interest should be mapped out with draft Specifications to be circulated among Councils (or through the Technical Group) to capture Municipal Solid Waste treatment options suitable for the Region. Additional treatments such as the organic stream could also be included.

C. A voluntary Procurement Policy Trial should be designed that leverages the collective purchasing power of the Councils in growing the local waste diversion economy. This is intended to promote those reuse/recycling businesses that can grow diversion activities by demanding defined reuse/recycling content in Council purchases. For example, requiring all street furniture to comprise ten percent recycled material sourced from the South West. This has been successfully deployed in other States.

D. Sub-regional contracts should be negotiated to leverage economies of scale between multiple Councils. This will require significant cooperation between local staff and regional representatives.

E. Prepare a regionally Integrated Waste Management Plan that frames regional waste operations as one system, identifying local growth areas and operational coordination, for example, collection regimes, sorting facilities, potential Waste to Energy sites.

 Are there timelines associated with moving forward? As an outline,

Within 5 Years: o Regional representative entity is formed with clear member benefits and client relationships defined in the waste management industry. . A fully costed Business Case including liabilities and risk profiles is prepared. . Roles and risks are clarified. . Regional coordination plans are used to determine direction o Regional Expressions of Interest process complete. Negotiations for a major waste diversion operation are at the least, to be underway, if not complete and outcomes enacted. o Regional Integrated Waste Management Plan completed and consistent with long term goals. o FOGO treatment expanded through supporting Bunbury Harvey Regional Council’s operations. o Materials Recovery Facility investigations complete. o Waste-to-Energy investigations complete and potential contracts in place.

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9 o Anaerobic Digestion feasibility complete and site identification studies accepted. Within 10 years: o Partnership opportunities supported by feasibility analysis be operative and external funding support agencies informed. Acquisition could commence. o Be substantially on the way to achieving or exceeding State Waste Targets. o Regional Entity is established and benefitting members and clients.

 Can we continue our local agenda without compromising regional benefits? Having a long term goal such as externalising waste operations will help shape design and function of local facilities. The risk to regional outcomes is reduced if local facilities are designed to be potentially sold or re-vested within the next 20 years. For example, local processing assets could have the capacity to process volumes greater than the local Council produces using modular technology or flexible site layouts.

 How much and how long will it cost to start a Regional body? Assistance will be required from WALGA to establish this entity. Following the Rivers Regional Subsidiary as an example, it would take approximately six months to prepare documentation and one year to advertise, amend and submit proposal to the Minister for Authorisation. The early activities of any regional entity will strategic with contract negotiation to try and prove its effectiveness. Overall investment is anticipated to be low. Legislation governing the behaviour of Regional Subsidiaries is anticipated to be amended by 2025 which will clarify risk, liability and other business parameters. Staff are proposed to be sourced from existing Council staff levels, potentially on a part time basis to avoid any new costs.

 What other waste management costs can we anticipate? The introduction of a Waste Levy is anticipated but the timing and rate remain unknown. Whether $70 per tonne as applied in Perth Metro or a reduced ‘Regional rate’ is unclear. Eastern States experience and WA State government discussion papers suggest that a split rate between City/Regional Centres is at least under consideration. This approach has resulted in greater cross- border shipping of waste to smaller towns that may not have the facilities to manage these larger volumes of waste.

Transiting from landfills to Transfer Station is estimated somewhere between $300,000 - $500,000 depending on operations, facilities, state of the site and other in situ considerations. Designs should be made with consideration to Regional expansion. Further design matters are contained within this Paper.

 How can we get the best and most suitable treatment options for the SW region? Nationally, regions undergoing a similar exercise to the South West have conducted long Expression- of-Interest (EOI) processes to capture the best long term outcomes. The complexity of many of the technologies being considered require a 20 year plus investment horizon, which can justify the long investigation period. This allows for new entrants to the Australian markets and time to solicit submissions from overseas companies which may be appropriate in the SW context. Once complete, discussions with preferred candidates can inform a focussed Tender process which could be shortened by the EOI process.

 How can we coordinate communication about local and regional waste development?

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10 To leverage advantages of local knowledge and larger scale investment continued discussions between local and regional staff are critical. Forming a technical group of committed operational staff with the specific purpose of assessing strategies, planning new investigations and identifying investment opportunities between Councils will improve regional coordination.

 What are the baseline costs to know before looking at options? The range of regional gate fees are $50 – $150 /tonne, averaging at $86/tonne. These costs are not just operational but may include contingencies, remediation, reserve contributions and may be offset using other revenue streams.

There is not a definitive method of setting gate fees which is standard across the region but are determined locally. Complexities in pricing an actual ‘processing cost per tonne’ include differing contract rates, transport, depreciation, staffing levels and facilities.

Annual waste charges for ratepayers are more complex again and reflect the local policy environment. Costs to ratepayers range across $147 and $498 (2020/21) per annum averaging at $321 per annum.

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11 INTRODUCTION

Since 2010 a regionally coordinated regional approach to waste management has been sought that that leverages economies of scale. These efforts are repeatedly undermined by the continued low cost of landfilling. The social willingness of moving away from landfills has not been supported by the economic reality of managing these services. This means more complex facilities that can offer greater diversion, returns on investment and lower overall operation liabilities have not been worth the cost.

There is now a unique opportunity to commence building local, long-term diversion schemes with feasible returns on investment. Aging landfills, population growth and a transitional policy context have made cooperative waste management solutions worth pursuing. A coordinated waste approach across Local Government Area (LGA) boundaries can leverage economies of scale needed for significant waste diversion from landfill and ease the triple bottom line costs. Without a separate waste management entity these benefits are unlikely to be equitably distributed. The simplest means ensuring fairness is by creating an external entity such as a Regional Subsidiary that equitably manages waste on behalf of member Councils.

A central body can then take a strategic view of regional waste, matching local waste needs with regionally available facilities and services. Using Waste to Energy (WTE) facilities as they are established in East Rockingham or Kwinana is a good example of how we use our local solutions. This is an expensive option but highly effective and could form part of a regional solution. Gate fees can be high and when added to transport may exceed $200 per tonne. This figure quadruples some local processing costs. However, for the highly co-mingled putrescible waste which is not worth recovering, it is a valid treatment solution, we just need to ascertain volumes.

Funding this model is not intended to raise existing costs substantially. Short terms gains are proposed to come from negotiating multiple Council contracts. In the long term setting a clear regional goal will align local investment decisions. This goal is to satisfactorily externalise all waste operations for local Council members.

Commencing the formation of a Regional Subsidiary will focus waste efforts on outcomes and provide sufficient planning time to allow rapid expansion when proposed legislative amendments are made, anticipated to be before 2025. The issues faced by the Group when seriously considering any formation of a collaborative waste model include:

1. Reducing waste management costs for individual Councils throughout the South West; 2. Introducing operational efficiencies at individual locations; 3. Attaining more complex and higher diverting technologies in the region; 4. Creating employment opportunities; 5. Growing the local waste economy and remanufacturing sector; 6. Moving towards ‘Zero Waste’ outcomes throughout the South West Region; 7. Supporting or creating innovative opportunities to divert waste; 8. Collectively negotiating contracts with private enterprise; 9. Building collaboration between government and industry; and, 10. Pursuing beneficial partnership opportunities. This report has a focus on Municipal Solid Waste (MSW) and organic waste, referred to as FOGO as these are the two main waste streams going into landfill and there is not yet substantial private investment to improve diversion.

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12

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13 CONTEXT

LITERATURE REVIEW

Since 2010, the Group has commissioned studies that identify opportunities to leverage regional economies of scale by centralising and simplifying waste management. Of these papers, five pivotal studies have been summarised in a Literature Review which is attached in Appendix 1. These are:

1. ‘Feasibility Study for the Formation of a Regional Council for Waste’ (2010) – prepared for the City of Bunbury on behalf of the Wellington Group of Councils 2. ‘Strategic Waste Management Plan’(2012) – prepared for the Bunbury-Wellington Group of Councils 3. ‘Organics Officer Project: Helping to reach a regional solution to a local problem’ (2012) – prepared as part of the Strategic Waste Initiative Scheme (SWIS) 4. ‘Regional Waste Management Strategy’ (2015) – prepared by Talis Consultants 5. ‘Integrated Regional Waste Management’: Market Sounding Exercise (2020) – prepared for and by the South West Regional Group

These works have informed significant progress in the South West, such as forming a Regional Council and commenced a composting enterprise. Other initiatives included exploring the potential for a Regional Landfill.

In addition to the operational outcomes, the Group’s strategic direction has also adapted to changing conditions, policies and objectives. Throughout these changing contexts, recurrent themes appear suggest there are opportunities which remain unacted upon and the reasons to pursue these recommendations appear to have not fundamentally changed. These themes include;

 Formalising regional collaboration by forming an external entity (such as a Regional Subsidiary) to manage waste. This entity would externalise risk and given sufficient operational capacity would meet the evolving waste management complexity in the South West;  Recognising the critical role of public involvement in waste management for source separation, program participation and lowering contamination rates to produce higher value waste streams;  A measured approach to large capital investment early on which can also be high risk;  Developing appropriate markets for waste derived materials which can service resource separation initiatives. Long term customers are critical to developing complex waste diversion facilities as it creates confidence for investors. Targeting infrastructure providers such as Councils (which can have dual supply/demand roles) can provide the most secure outcomes;  Private enterprise can contribute essential technical knowledge, investment capacity and risk management in providing new waste diversion technologies to the region;  Declining landfill availability is common throughout the SW, both in existing sites and finding alternate locations; and  The need to meet Federal and State government waste targets as a means in providing consistency in approach.

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14 FRAMEWORK AND PRINCIPLES

National

The National Waste Policy 2018

The National Waste Policy – Less Waste More Resources published by the Department of Sustainability, Environment, Water, Population and Communities in 2018 coordinates waste management across jurisdictions through championing a circular economy model.

The Policy provides necessary direction across statutory boundaries now since losing waste exportation as a key component of broad waste management practices. International agreements now impact local operations. This context requires a coordinated strategy across jurisdictions and the State and Federal government have supported imposing Circular Economic theories as a galvanising model. The State Policy approach champions five principles: 1. Avoiding waste Prioritising waste avoidance, encourage efficient use, reuse and repair so waste is minimised. Materials are made to last and more easily recovered. 2. Improving resource recovery Making systemic changes and promoting reuse and recycling processes to improve the quality of recycled material produced. 3. Building demand and markets for products that increase use or reuse of materials. 4. Better management of material flows to benefit human health, the environment and the economy. 5. Improving information to support innovation, guide investment and enable informed consumer decisions.

Supporting these principles are 14 strategies articulating the intent for waste to be diverted from landfills in line with waste hierarchy principles.

State

Waste Avoidance and Resource Recovery Act 2007 (WARR Act)

This sets out the management framework for LGAs to ensure operations are comparable across the State. Primary objectives are to contribute to sustainability, protect human health, the environment and move towards a waste free society. The WARR Act coordinates with the National Waste Policy by emphasising the:

• Efficient use of resources, including resource recovery and waste avoidance; • Reducing environmental harm, including pollution through waste; • A hierarchical approach to resource management options, specifically; o Avoid waste creation and resource consumption; o Resource recovery; and o Disposal. This legislation requires Waste Plans from local governments that outline how waste services will implement Waste Strategy priorities in protecting human health and the environment. The WARR Act gives the CEO of the department powers to require a local government to submit a report on the implementation of its waste plan. Waste plans will inform and be informed by the strategic planning activities which local governments undertake under the Local Government Act 1995.

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15 Waste Avoidance and Resource Recovery Levy Act 2007 (WARR Levy Act)

This legislation allows for the imposition of a levy per tonne of waste disposed to landfill. Although currently only applicable to waste received at metropolitan landfills or non-metropolitan landfills receiving metropolitan waste, this levy can be extended to the Peel and South West regions, which is being considered by the Government as mentioned by the Minister for Environment at the Municipal Waste Advisory Council Meeting in February 2019.

Western Australian Waste Strategy 2030 and Annual Action Plan

The Waste Strategy is the tool supporting the Waste Authority objective of transitioning to a “sustainable, low-waste circular economy in which human health and the environment are protected from the impacts of waste.” Two crucial components of the strategy are the waste hierarchy and circular economy.

The Waste Strategy 2030 asserts targets which depart from landfill diversion benchmarks and focus on three objectives – avoid, recover and protect. Underpinning these objectives is a 10 per cent reduction target in waste generation per capita by 2025 and 20 per cent reduction by 2030. The targets for recovering more value and resources from waste are to increase material recovery from the State rate of 57 per cent to 70 per cent by 2025 and 75 per cent by 2030.

Accompanying the Strategy is the Action Plan renewed annually, which clarifies specific actions, timelines, lead responsibilities and collaborations to achieve the stated objectives.

Better Bins Plus: Go FOGO

Announced in May 2020, this program provides financial support for local governments to shift to a three‑bin kerbside collection systems with a separate food organics and garden organics (FOGO) service.

Although local governments are not mandatorily required to move to FOGO, there are considerable regulatory measures the State government is using which obliges local governments to adopt FOGO over time.

Case Study: The Move to FOGO in Mandurah The City is a member of the Rivers Regional Subsidiary which had collectively negotiated waste contracts with Avertas Energy to process their waste long term in the waste-to-energy (WTE) facility under construction in Kwinana. These contracts allowed for the processing of all waste streams generated from the City, including organics.

In December 2020, the City was strongly obliged to adopt a FOGO component for the organic fraction despite potential cost increases for ratepayers if the service is introduced. Through preparation of the Waste Plans required by the Department of Water and Environmental Regulation, these wouldn’t be approved without the introduction of FOGO being included within the Plan’s five year timespan.

The Waste Strategy 2030 requires all councils in Perth and Peel to provide three bin kerbside collection by 2025. In providing the third bin, the City found it won’t meet the minimum tonnage commitment under the Avertas Energy contract they had negotiated. Not meeting these commitments obliges a minimum tonnage payment stipulated within the contract, regardless whether it deliver the waste to the plant. If the significant financial penalties incurred under the

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16 contract were enforced, they would be added to the additional costs of implementing FOGO which is estimated at $80 extra per year to each eligible household.

The State Government reaffirmed their commitment to FOGO to reduce the amount of material sent to landfill and increasing recovery rates to more than 65 per cent. Recycling supports around three times more jobs compared to sending a similar amount of waste to landfill.

The Waste Authority is providing funding for the next five years to support transition to a 3 bin kerbside collection program that includes FOGO. The amount available in 2020/21 was 4.6 million distributed using the ‘Better Bins Plus: Go FOGO’ program, which is expected to continue at a similar funding level. This supports implementation of a key Waste Strategy initiative, delivering consistency through a three bin kerbside collection program including FOGO by all Perth and Peel local governments by 2025.

The City of Mandurah meets their obligations by incorporating FOGO investigation in their five year Waste Plan as mandated by the State Government.

Within the Group, the shires participating in Better Bins Plus: Go FOGO Program include Augusta- Margaret River, Collie and Dardanup.

Waste to Energy Position Paper 2020

This Position Statement states that the Waste Authority considers waste to energy to be an appropriate resource recovery option only for the management of residual waste. This means that it is appropriate when there are no technically, environmentally and economically practicable options higher up the waste hierarchy available and any recovered material has been used as a recognised input into another product or process.

Projects are to be generally accepted by the local community and community engagement is required throughout the process. Non-technical aspects such as design considerations and publicly available monitoring of emissions are also important.

Container Deposit Scheme

The container deposit scheme ‘Containers for Change’ commenced on 1 October 2020 and collects empty beverage containers. The scheme has several consequences including litter reduction, product and producing a low contaminant waste stream. There are opportunities to facilitate the recovery of some of the materials for public or private operators.

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17 REGIONAL WASTE MANAGEMENT

The dominant waste treatment model in the South West is disposal to landfill. Although economic, this approach is being compromised by social policy, a rapidly changing resource recovery market and cost-effective large scale recycling technologies. Land is becoming scarcer for landfill expansion and the costs associated with either closure or expansion of these sites can be a major financial risk.

The Federal and State policy developments are changing the development pressures for landfills. Expansion is no longer a supported strategy, instead, more complex waste treatment solutions are being promoted resulting from greater stockpiling of waste materials, typically in landfills. The complexity of the waste industry demands significant capital investments over longer periods (20-25 years) so favourable cost to benefit ratios can be attained. Although the large capital outlays can increase waste diversion the length of investment is a risk based on the changing nature of the Australian waste industry. For example, diversion technology selected for the next 25 years may be superseded before the returns on investment are realised. Despite this pressure, there are no practical alternatives to maintaining the status quo given the growing costs and operational inadequacies of the current systems.

Introducing adaptability to regional waste management by encouraging greater private company participation targets multiple levels of the waste hierarchy and prioritises reduce, reuse, recycling/compost and energy recovery from waste. These are aimed squarely at waste prevention and landfill minimisation. This approach considers treatment options as part of an integrated system rather than as isolated features within a region. The ‘Regional Waste Management Strategy 2015’ (RWMS) grouped Waste Management actions for achieving higher diversion rates.

Avoid/Reduce/Reuse o Waste avoidance is the most preferred but along with reduction are the most challenging aspects of waste management. o Education plays a strong role in the ‘avoid, reduce and reuse’ messaging. o Reuse/Repurpose Shops can capture material value before they move to lower levels Recycle o Manufacturing can benefit recycling initiatives and reduce demand for raw materials. o Local governments can influence recycling through collection, sorting, material sales and education. Recover and Treat o Recovery processes waste to make products or energy but unlike recycling, the generated products may not be similar to the original waste materials e.g. compost from organic waste. Dispose o Least preferred methods include landfilling and incineration without energy or heat recovery. o While inevitable that some waste will require disposal, it is a last resort. o Landfilling inevitably results in a loss of materials/energy, greater contamination and pollution even in best practice landfills.

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18 Integrating regional waste management diversifies investment risk, controls the speed of transition towards a circular economy and provides collaborative opportunities with private industry. Complementary waste treatments can provide a range of diversion methods at varying costs to individual Councils, often at a reduced rate.

The RWMS groups treatment options into ‘Clusters’ based on their downstream waste treatment options. By identifying the end of material life treatment options, the composition and quantity of material required for reuse can be determined, allowing additional complementary treatment options to be considered.

The Cluster approach simplifies consideration between low cost/high diversion and high-cost/high diversion options to maximise diversion and minimise future risk. For example, combining clean waste derived from source separated materials including organics with commercially viable treatment of remnant material treated between thermal WTE and gasification.

Low Cost/High Diversion Options

This approach concentrates on maximising materials separation at the source (households) to ensure downstream treatment is as efficient as possible. Households play a significant role in determining both the quality and quantity of contamination in the red, yellow and green bins. Lower contamination from the household makes downstream treatment more economic, lessens environmental impact and benefits from community involvement. Educational messaging emphasising the benefits of clean waste streams and cooperative participation is critical to generate high yields of clean materials. This is low cost as many of these systems either exist or can be easily adapted for new roles.

Recommended activities are:

1. Integrate a Regional Waste Education Program A systematic education program is critical to the success of any waste management system. Directing information towards households and businesses will ensure wide scope.

2. Support Community Liaison Groups Within the South West, there are training groups (e.g. Living Smart) that frequently result in action groups being formed. These groups do not normally last for a variety of reasons but professional admin support is one factor that would assist their longevity to provide Councils a grass roots waste messenger. Waste management initiatives could be supported by providing information, running talks, workshops and community events. Additionally, this simplifies Community engagement to assist consultation regarding new waste initiatives.

3. Influencing Commercial Practices Although not a central focus of this Paper, Commercial and Industrial waste is a large contributor to the waste fraction sent to landfill. Greater businesses contact can improve access to services and obtain support for larger waste management initiatives. There is significant potential to improve resource recovery within the C&I and C&D streams within the region. The South West Group could also influence commercial practices through its procurement processes. Either through requirements for a Waste Management Plan, or requiring recycled products to advance recycling markets.

4. Regional Officer

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19 A Regional Officer provides consistency across the South West when developing closer partnerships between regions, LGAs and communities. An important role is liaison, new waste management design and services for a reliable waste management strategy.

5. Reuse Shops Many waste facilities have areas where small quantities of reusable materials are returned to the community for a fee. By treating these operations as a serious opportunity for diversion, their improvement could increase uptake. Creating a regional model for dedicated Reuse Shops with attractive and well organised shops is more likely to encourage use and improve the quality of the items received. The spaces should at least include a stock limits, storage shed, forecourt, consistent layout, signage and receptacles. This is a simple and low investment diversion opportunity that if done correctly with commercial motivation, could provide a good rate of return for the capital investment. Operating Reuse Shops may be undertaken wholly or in part by community groups and be run at least as cost-neutral, if not some profit.

6. Free Trade Website Free Trade websites promote the reuse of household and commercial materials including those from a Reuse Shop. There are dedicated pages doing this currently such as Facebook and Gumtree but a dedicated approach to develop and promote a common approach for the SW waste to pool reusable items. This includes using existing platforms with a consistent profile across all LGAs in the region.

High Cost/High Diversion Options

These options are more facilities with complex technologies requiring greater investment and focussed on co-mingled MSW. These large capital items also involve a dedicated long term workforce. The options available in the South West are summarised as:

 Sub-regional waste transfer stations,  WTE, thermal, gasification or biologic (anaerobic digestion),  Licenced sub-regional landfill options with future expansion approved, which include Busselton, BHRC and Cleanaway (Banksia Road).

Separating the material from red bins requires the highest level of investment to extract the most value following best practice diversion operations. At present the high level of comingling means separating waste streams is inefficient and so it is disposed as an analogous stream to landfill. The red bin is both a costly source of materials if separated but expensive to dispose of as a waste stream.

New technologies are being introduced to Australia to address this stream of waste and many regions have adopted new processing technologies following extended EOI processes to engage with operators and technology suppliers. This process has yielded novel methods of processing MSW that move away from the traditional Council-owned landfill operation towards private/public partnerships that seek returns for all stakeholders.

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20 REGIONAL COORDINATION

INTEGRATED WASTE MANAGEMENT SYSTEM (IWMS)

To commence the process of realising any economies of scale at a regional level, any proposed waste treatment at a local and sub-regional level should be considered as part of a larger system, either regional or beyond. Using a framework called ‘Integrated Waste Management Systems’ (IWMS), a network of Local, Sub-Regional and Regional infrastructure and services combine to form a coordinated waste management system that is efficient, cost effective and achieves environmental objectives1. The more efficient examples using this approach considers how to reduce, reuse, recycle and manage waste to protect human health and the natural environment. There are formal processes to evaluate local conditions and needs before choosing, mixing and applying the most suitable solid waste management treatments. The Waste Hierarchy provides a framework within which regional options can be considered.

IWMS Framework

Every organisational level has a specific function when delivering waste management on a regional scale. Although the RWMS2015 advocated for the operations of local initiatives to be owned and operated by the local government, the appropriate strategy for the South West needs to recognise the long term goal of separating waste operations from local government.

Each alternative treatment solution will be addressed on a case-by-case basis to determine which body will be responsible for the facilitation, construction, operation and management of the IWMS. Once implemented, the treatment option will become part of the everyday operations of the LGA and will be utilised to directly engage with the community and waste service providers.

Local

Waste management infrastructure in the IWMS includes Reuse Shops, Recycling Stations and other community drop-off centres as appropriate. Facilities should be designed to assist in changing community behaviours regarding waste management facilities as well as stockpiling recoverable materials prior to processing such as greenwaste, scrap metal, mattresses and clean C&D waste. These types of facilities should be located close to population nodes across the South West Region.

To complement the infrastructure, local waste management services should manage collection or processing waste and/or recyclables. The following options are examples of locally managed initiatives:

 Greenwaste mulching;  Supporting local waste groups to drive community action;  Scrap metal recycling;  Kerbside refuse and recycling;  C&I waste collections;  C&D waste processing; and  FOGO/organics collection.

1 An integrated approach was discussed in the Regional Waste Management Strategy: South West Region. By Talis Consultants, July 2015.

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21 These services would be implemented by the LGA however, a regional contract for the procurement of the services should be considered by the South West Group to reduce costs.

Sub-Regional

Sub-regional opportunities include those between neighbouring Councils or addressing waste issues which share attributes among certain Councils. Examples include mattress recycling, composting and waste transfer stations. This organisational layer provides a layer of flexibility within the IWMS by diversifying waste processing operations across a wider geographic area and deliver services to more residents than would otherwise have access. In addition to sub-regional infrastructure, services such as haulage can also be considered at this level. Whether this is the purchase and operation of vehicles or negotiating haulage contracts.

Regional

Consolidating waste volumes improves the viability of specific projects and delivers greater economies of scale for recycling or providing processing services. Regionally, the waste management services provided by the South West Group are as important as the associated infrastructure. Messaging consistency is critical when implementing plans and addressing contamination and reclaiming waste. Regional service options include:  Implementing an integrated waste education program;  Supporting local waste groups;  Influencing commercial practices; and,  A free trade website. An integrated waste education program would provide consistent waste messaging including the implementation of new initiatives throughout the Region.

The regional infrastructure options include MRFs, Waste-to-Energy facilities and logistical concerns. Developing large scale treatment facilities can divert significant waste volumes from landfill. Combustion, AD, gasification and pyrolysis technologies all exist and should be considered, there are a variety of practitioners which can meet regional demands. Residue from many treatment facilities will always require landfills but reducing that volume to a level that existing best practice sites can manage provides long term waste disposal security.

ADMINISTRATION

The components of a complex IWMS includes management structures that coordinate activities and remain accountable to Councils. Formal entities with clear boundaries include Regional Councils, Regional Subsidiaries and official agreements that allow LGAs to coordinate participation and enable stronger negotiating positions. A separate entity provides considerable advantage to the local waste sector against a manageable risk profile.

Business as Usual

Maintaining the status quo of Councils managing their own waste services more or less independently can persist, although will become less cost efficient and more risky over time. Once landfills reach their capacity, Councils can choose to convert their sites to transfer stations and manage disposal accordingly. Within the SW, there are two best practice landfills in Dardanup and Busselton with lined construction and BHRC in Wellesley is approved to construct lined cells. These three sites have the capacity to take all the waste generated in the South West but it will be a competitive process.

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22 The cost of continuing business is expected to rise as policy (and potentially a Waste Levy) will work against this option and new landfill sites become harder and more expensive to develop. The expense of transitioning to transfer stations, increased transport costs and ongoing environmental monitoring/remediation costs associated with unlined cells will add further to the financial burden.

The established landfill model provides little opportunity to claim income beyond uncertain benefits of stockpiling waste for mining in the future. Council discretion in pricing their own waste systems will be reduced as the final disposal of waste products must be outsourced. Disposal costs will significantly impact operational costs and be passed on to ratepayers. This moves Councils from a pro-active ‘price-maker’ role to a passive ‘price-taker’ role, having to react to market charges which is an additional risk to pricing waste rates for the future.

The opportunity cost of maintaining the current practices is foregoing the improved use of ‘waste’ materials which can benefit Councils and customers of waste derived products. Capturing lost value in waste streams can be recovered by re-classifying waste as a ‘resource’.

The policy and regulatory framework surrounding waste in Australia which has hindered resource recovery and waste management industry from reaching its potential is now changing. Building procurement policies and specifications into waste derived products can provide significant benefit for LGAs and offset transition costs.

Social views on waste are linked with good governance within the sector, perceived impacts, benefits and distributive fairness. These attitudes can be influenced on a national level but affect local opinion. The WA Auditor-General [1] found that stakeholders managing MSW have varying views and attitudes which have not aligned with the Waste Strategy and the State Government’s preferred approaches to diverting MSW from landfill. Inconsistent waste management systems for MSW coupled with limited guidance from State Government hinder efforts to increase resource recovery and reduce waste to landfill.

The rising costs of waste management, changes in market innovation, loss of proactive pricing, inability to capture lost value from waste streams and changing social attitudes suggest that business as usual is not the most effective means to continue operating.

Regional Subsidiaries

A Regional Subsidiary is a statutory corporation that can separate risk and investment from Councils while delivering cross-boundary services. In 2016, the Local Government Act 1995 (the Act) was amended so that two or more local governments could establish a Regional Subsidiary which is:

 managed by a board  governed by a charter and  a separate legal entity from the local governments who formed it. Commencing the formation of a beneficial enterprise is the beginning of long term strategy externalising waste management assets and operations. The separation of these critical services is not advised to be fast but will be an ongoing process, consistent with Councils desire to adopt a cautious investment strategy. This has been a recurrent theme in many previous studies for the Group.

Achieving full separation will take a considerable time and externalising some localised activities may not be possible but it is an aspiration goal that can coordinate the development of waste management in the South West to attain economies of scale.

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23 Attaining separation of waste management will involve a range of cost effective actions, one leading to another, that needs to prove its viability as it grows. Early tasks will be foundational and include:  sub-regional contract negotiations seeking more localised savings;  preparing a cohesive business plan that includes milestones, proposed growth timeframe and review timelines; and  acting on ongoing regional initiatives as they arise. This may include designing and managing a formal Expressions of Interest (EOI) process seeking waste diversion technology and designing a Procurement Trial intended to help Councils shape their local economies.

It is proposed that a small number of staff are tasked with commencing this process and include a mix of technical skills, employed either part-time or full-time. This is not anticipated to be costly but a cost-neutral approach is to be adopted, where existing roles may contribute to the Regional Subsidiary as it develops. Immediate roles will be to:

 Negotiate MSW and recycling contracts on behalf of multiple members or clients,  Design a regional Integrated Waste Management system with local assets designed to be relevant across LGS boundaries  Detail a long term business growth plan setting out milestones in growing the beneficial enterprise,  Encourage waste diverting industry to operate in the SW and  Propose effective waste management initiatives for the region following Business Case submissions, including procurement and other policy initiatives.

By centralising regional initiatives, the waste assets and operations in the South West can be more effectively set apart when negotiating with external agencies or companies. Any proposed facilities can be presented to the Group and finding additional support will be a Subsidiary task. Other reasons supporting the formation of this entity include:

(a) ability to employ professional directors and management with experience specific to the commercial objectives of the entity; (b) removing detailed investment decisions from day-to-day political processes while retaining political oversight of the overarching objectives and strategy; (c) the ability to take an overall view of commercial strategy and outcomes rather than having each individual transaction within a complex chain of inter-related decisions being subject to the individual notification and approval requirements of the Local Government Act; (d) the ability to quarantine ratepayers from legal liability and financial risk arising from commercial or investment activities; (e) the ability to set clear financial and non-financial performance objectives for the entity to achieve; and (f) providing greater flexibility to enter into joint ventures and partnering relationships with the private sector on conventional commercial terms.

This entity is designed to address market ‘gaps’ in delivering services which have clear economic, social and environmental benefits but are not necessarily profitable such as waste management. It formalises the lower cost outcomes as a driver for reform rather than making a profit, which is ineffective in a market failure scenario like waste processing. Although unable to profit from the ‘beneficial enterprise’, coordinating resources can build demand and supply for social good where margins are insufficient to support private investment.

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24 Regional Subsidiaries legislation constrains the scope of permissible activities such as growing the capacity of local governments to act more commercially, develop alternative revenue streams or enter into commercial partnerships with the private sector. These restrictions limit the role these entities can play in the market place.

The structure of a Regional Subsidiary may provide services or undertake functions more efficiently and effectively than a single local government. Local governments can then focus on projects that directly benefit the region with important flow on effects for its local community without sacrificing local priorities.

Placing the commercial activities of local government at arms’ length from political influence - under the control of independent Boards made up of expert directors and the regulatory provisions of normal company or trust law – results in more robust management than more politically influenced arrangements. In this case, experts in the industry can influence development and can support the effects of the election cycle in long term development.

The Local Government (Regional Subsidiaries) Regulations 2017 (the Regs) determine how to form, operate and disband Regional Subsidiaries but is considered to constrain operations by:  Prohibiting any land transaction or trading undertaking with a view to producing profit; and  Prohibiting borrowing money other than from one of the participating local governments. WALGA is advocating for a review of the legislation provisions which will alter how Regional Subsidiaries can behave. These changes include;

1. Reducing the overly prescriptive community consultation provisions. These are seen as unnecessary in the Regs as Local Governments will have consulted with communities on the proposal to form a subsidiary; 2. Enabling a subsidiary to borrow funds in its own right; 3. Simplifying the financial management provisions; 4. Clarifying permissible commercial activity which can be undertaken such as where limitations are to exist when contemplating major commercial enterprises.

The current regulations are overly prescriptive and do not follow the principle of the Charter being the primary governance tool. The Local Government Act Review Panel has concluded investigations and has recommended changes to the Regs to be addressed by WALGA;

1) Overly prescriptive community consultation requirement. Local Governments will have already consulted with their communities on the proposal to form a Subsidiary. 2) No power for a subsidiary to borrow in its own right 3) Financial Managements provisions are complicated and confusing. States some Act provisions to follow and some not. 4) Restrictions around commercial activity require clarification. The Subsidiary should be able to undertake commercial activity within the limits of competitive neutrality following a thorough risk assessment.

Over time, external commercial or corporate experience will be required to manage that risk while seeking commercial efficiency. Isolating assets within a corporate structure places legal accountability with the board of the entity and any financial risk associated with their use. Prudential controls by (for example) lending agencies act as a further constraint on reckless assumption of risk.

For these reasons, it is proposed that the Regional Subsidiary use the time prior to legislative change to establish a detailed Business Model and commence contract negotiations on behalf of or in

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25 partnership with existing Councils. Should not all Councils wish to participate in this model, provision must be made that for a fee the Regional Subsidiary can act on their behalf as a local government representative, complete with the Region growth model informing local advice and decisions.

Cost estimate

Operations

Item Title Role (FTE) Salary Program Director/Coordinating Role 1 FTE 110,000 Contract negotiation 0.2 FTE 90,000 Technical Specialist, recycled materials 0.2 FTE 90,000 Salary Total 1.4 FTE $146,000 Overheads estimated at 40% 58,400 Events, consumables 5,000 Assets/Operations 12,300 Proposed final cost $219,400

Asset and Operation costs include:  A vehicle; $10,000 /year  a computer, $1,300 /year  a phone $1,000 /year The Program Director would be responsible for:  completing the Business Planning;  establish new contracts;  preparing the IWMS;  negotiating with local councils on supportive information;  establishing business systems;  commencing community engagement;  actively engaging with industry; and,  engaging other roles as required. Contract negotiations would include legal assistance, EOI and Tender preparation, site investigation, relationship building. This position can either be separate or contributed to ‘in-kind’ from participating local governments. Likewise legal counsel could be made available on an as-needs basis to limit costs further.

Technical assistance would include sourcing materials, investigating locations, seeking regional opportunities for land, conducting audits and general work as required. This will be a casual system hiring as needed or accessing skills in participating local governments on an ‘in-kind’ or seconded basis.

It would be advantageous to maintain consistency of personal in these positions to benefit from industry contacts and information sharing. As the program develops, the number of roles is expected to expand as operations become more complex.

Locations

It is not proposed to have a specific facility work but use Council property, which is the reason for the overhead factor. This location could be anywhere, depending on the proposal being undertaken

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26 so staff can maintain proximity to the companies and their flexibility for onsite inspections and progress.

A regional approach adopting waste management innovation can assess the collective assets cooperatively to potentially accommodate private enterprises close to resource streams. Providing land and access to clean waste streams. It is hoped that a holistic program of regional waste management will result in diversion initiatives benefitting Councils.

Establishment tasks

The establish the Regional Subsidiary and commence operations, it is proposed to 1. Consult with WALGA regarding the formation of the Regional Subsidiary, steps taken by Rivers Regional Subsidiary and present a list of costs associated with its formation. 2. Prepare a comprehensive consultation strategy, addressing formation of the entity, potential benefits and seeking feedback in each Council area; 3. Legal costs in drafting and advising on the framework being proposed as well as gathering any concerns of locally elected members.

Expand the Regional Council

The Bunbury Harvey Regional Councils (BHRC) already exists and changing the ‘establishment agreement’ (EA) is a relatively straightforward action. This is an opportunity to serve the SW faster than establishing a Regional Subsidiary. Any proposed change to the EA must account for existing liabilities and investments and be able to isolate new members from existing operational obligations. Should there be an acceptable model for change, this is a relatively low cost, expedient solution to forming a regionally representative body to commence operations.

Regional Councils are body corporates, can open and operate bank accounts, can invest and borrow money and have the ability to make local laws. The governing body of a Regional Local Government consists of Elected Members from the member Local Governments but experts can provide advice as required under contract. There is no scope to appoint external expertise or independent directors to the governing body. The EA under which Regional Councils operate must be agreed to by the Regional Local Government participants and Minister for Local Government.

While a streamlined and effective management body, reporting requirements can be onerous, considering it is only one aspect of managed Council business. As Regional Councils operate under the same legislation as Local Councils most of the compliance and accountability requirements are the same, so efficiency gains must significantly outweigh the compliance obligation costs. These obligations are already established so this cost is minimal.

Although expanding the Regional Council would a practical way of formalising the economies of scale within regional waste operations, an amended EA must be able to protect the different investment profiles of each Council. This will need an in-depth analysis of the various assets and liabilities associated with joining the Regional Council.

A Charter for a Regional Subsidiary can be drafted that allows one-off investment opportunities on specific projects, which is more difficult in a Regional Council model. These are significant legal questions that will need to be determined prior to this option being adopted.

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27 Regional Subsidiary vs the Regional Council

The amended ‘establishment agreement’ must include the purpose, membership and representation, means of determining financial contributions and procedures for winding up the Regional Local Government. A cost to join is likely to access established facilities fairly and share the profits and losses of the operation. This will require some negotiation and a clear understanding of the risks and opportunities involved. Asset sharing can form part of these negotiations. A name change is also possible, for example, the South Western Regional Council.

WALGA has suggested that the SW should wait until the recommended changes to the Regs are made but at the same time, significant regional investments are going to be required as landfills are approaching the end of their operational life. Delaying the formation of a regional body risks equitably funded regional solutions. By forming now wit cost restrictions, the intervening years prior to legislative review can be used to ensure no time is lost once the financial boundaries are adjusted. Revising the legislation is estimated to be complete by 2025. WALGA is lobbying the Minister to reconsider provisions in the Regs to ease the Regional Subsidiary restrictions and make it a more appealing option.

Case Study - Rivers Regional Council Transition from Regional Council to Subsidiary

The Rivers Regional Council entered a contractual agreement in 2015 to supply the WtE facility in Kwinana. Participants then sought to reorganise to reduce the costs in coordinating the waste supply agreements for the next 20-30 years. The responsibilities are essentially administrative, so avoiding the considerable reporting obligations associated with a Regional Council was economically justified. Activities undertaken by the Regional Subsidiary include:

• Establishing governance, administration and accounting arrangements. • Preparing the annual Waste Delivery Plan • Calculating and recover waste charges • Managing contract responsibilities and act as Principal. • Co-ordinating the required waste recovery, reuse and disposal education programs • Co-ordinating the energy supply arrangements. • Advocating on behalf of member Councils.

A Regional Subsidiary model was established to administer the interests on behalf of the Councils as there were few assets to operate. The role became one of contract negotiation and operational obligations for participant councils. Although not yet approved by the Minister for Local Government, this is currently being assessed and support for forming the Rivers Regional Subsidiary is anticipated.

Sharing transfer station facilities is possible but subject to separate agreements between councils. The significant diversion rates offered by WTE (97.5%) contracts mean that the majority of operating landfills will close.

It is anticipated that up to $200,000 (based on the 2018/19 Budget) could be saved by transitioning to the Regional Subsidiary and avoiding the reporting obligations required by the Regional Council. The Subsidiary’s budget is approximately $250,000 per annum although collection agreements are separated. The education component is anticipated to rise as it supports the WTE activities and associated supply agreements.

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28 Other Options

Incorporated Associations

Local Governments have the ability, under the Associations Incorporation Act 1987, to form or take part in an incorporated association (IA). These are not permitted to deliver statutory services like regional road construction or waste management. The IA model is typically used for narrow purposes such as economic development and promotion in a broad sense.

This is not considered to be a practical option.

Collective Tenders

The ability to tender collectively for specific or general services is open for Councils. While these may be reasonable in specific cases, Councils should be of similar size to coordinate services, share liability and risk, address different activities and manage transport costs. These variables make this model unwieldy due to the unevenly distributed risk and financial burden.

These agreements work when there are specific outcomes with standardised conditions, otherwise they become too complex to manage and negotiate. Variations to any contract may be costly and time consuming, resulting from the cumulative involvement of multiple signatories. These variations are likely to result in scope creep, potentially affecting the ability to execute the original work.

Considering many of these issues can be managed separately through formation of a Regional Subsidiary, collective tenders are not a preferable option for the Group but have some potential for sub-regional agreements.

Partnering

To make partnerships work enhanced communication is critical to improve the performance and quality of output of any joint project. Without enhanced communication partnering often tries to impose a culture of ‘win-win’ over the top of a commercial and contractual framework which results in an inherently “win-lose” scenario. Verbal commitments during the partnering process even if genuine at the time, are not enough to withstand the stress imposed by misalignment of commercial interests.

This framework is not considered sufficiently reliable for a joint delivery of waste capital or operations.

FLEET OPERATIONS

The number of Councils participating in cooperative model determines cost savings and investment. Contract values vary and transport can be a blend of Council owned operations and contractor vehicles. Examples elsewhere from Australia may be used as a guide only.

Aggregating waste and recyclables provides an attractive option for the market to bid for, hence the considerable potential savings that could be generated from a joint procurement of this size. Additionally, considering the Cities of Bunbury and Busselton run their own fleet, additional side- loaders are required to service more Councils.

Although weight dependent, side-loading vehicles collect approximately 800-1000 bins per day. Prudent fleet management also requires a reserve truck as to address breakdowns, servicing regimes

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29 and other non-core obligations. Side-loaders cost approximately $450,000 each and cost approximately $350,000 to operate. Approximate costs of running a waste fleet with 6 side-loaders, a semi-trailer and other supportive light fleet costs approximately $850,000. Without in depth analysis, expanding the waste fleet to those Councils which partook in the regional survey would require an estimated 10 trucks to service MSW in:  Augusta-Margaret River  Capel  Dardanup and  Donnybrook Using these calculations, expanding the fleet by 10 sideloading trucks would cost approximately $4.5M in trucks and another $3.5M per year to operate. These costs do not include finding a depot, servicing requirements and staff to do so, accounting costs nor savings in efficiency, economies of scale or auditing existing fleets to find opportunities to build on existing operations. Further analysis is needed of weights, route planning and collection regimes, which would also likely reduce this figure. This analysis and organisation would form part of the Integrated Waste Management System and would be a key role of a Regional entity.

Further Consideration:

a) Commence formalising a Regionally cooperative model to determine a level of commitment that allows greater investment in diversion technologies. This requires a detailed Business Plan with detailed cost analysis into an entity which would have capacity to act as an agent as required for non-member Councils. Clarify the roles, responsibilities and boundaries of an independent entity dedicated to managing regional waste operations on behalf of SW Councils.

b) Investigate the creation of a sub-agreement allowing Regional Council to share in the investment of new facilities without accruing the risk of previous operations. This must include a proportional investigation into the shared environmental risk going forward and any associated ancillary costs or risks.

c) Until costs and liabilities of joining the existing Regional Council are clarified, the informal operation of the SWRWG is to continue until such time as the provisions of the Local Government (Regional Subsidiaries) Regulations 2017 are reviewed and considered beneficial to regional waste management operations. Cooperative alliances and Collective Tenders should be reviewed as tools in delivering location-specific infrastructure as required with a long-term view that these assets could be ‘shared’ at a later stage.

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30 WASTE MANAGEMENT OPTION ANALYSIS

A whole of system approach on a Regional level coordinates investment decisions and clarifies the potential costs and revenues. Prior to establishing formal administrative frameworks, investment by local councils should acknowledge the extent of the investment and at which point waste streams enter and leave their influence. Reliable and repeatable assessment framework will make these estimates more useful. Determining what and where waste management costs originate requires;

1. Ascertaining the ‘whole of life’ costs for each stream of waste, identifying the roles of the Group, LGAs and subsequent responsibilities to the products, 2. Prepare an Integrated Waste Management System approach to regional disposal options. This would be helped by forming a central body to collect and analyse this data to find economies of scale.

WHOLE OF LIFE FACTORS

Comparing the values within Council-managed waste streams helps determine risk, investment priorities and assess alternate treatment options but what do these costs include? Should they include long term environmental cost? Costs of imposing social policy? Opportunity Cost? If the region seeks revenue to offset management costs resulting from a particular resource stream, identifying sources of expenditure and revenue can moderate adverse impacts on ratepayers. Transitioning towards a circular economy model requires clear understanding when a ‘waste’ cost can be offset by redefining a piece of waste as a ‘resource’.

Environmental costs can be determined using a holistic approach when considering resources and impacts of waste management. By identifying the parameters of a service: e.g. management of waste from city from “kerbside-to-grave”, identifying where costs start and finish are made easier. This has implications on landfill remediation and monitoring costs when they are closed and capped.

Almost all recycling in Australia is subsidised by someone, only metals (steel and aluminium) have sufficient economic value to outweigh the costs of collecting and reprocessing it. Prior to ‘China Sword’, fibre (paper and cardboard) also had sufficient value and now, some plastics are exhibiting positive value movement (as long as contamination is low). Higher recycling rates cost money for services, collection and sorting - the Group needs to determine who should pay and how much?

The nature of waste as something discarded or unwanted means treatment costs trend towards the cheapest point of disposal. If the recycling option costs a dollar more than the cost of landfill then the waste will go to landfill [2]. Clearly delineating what the cost of landfill becomes fundamentally critical in determining investment into alternative treatments.

Life Cycle Assessment

The Regional body should investigate each step of the waste process and clarify where cost obligations cease and revenue potential can begin. This investigation should be done in partnership with the Waste Authority as each step of disposal needs to be financially audited, which applies to other jurisdictions. For example, management of MSW covers: i) generation; ii) collection; iii) transfer; iv) sorting; v) treatment;

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31 vi) recovery; and vii) disposal. Council’s obligations within a regional setting typically include:

STEP ACTION END OF OBLIGATION (and to what) Generation  Community Education to minimise  Kerbside collection waste generation/contamination (to households)  Bin Tagging  Transfer Station/Landfill drop off  Community Reduce/Reuse Initiatives, (to households) e.g. Garage Sale Trails, home  Delivery to processors composting (to collectors and downstream  FOGO Bin collection processors)  Reusable Programs, e.g. nappies  ‘Waste Sorted’ initiatives Collection  Collect kerbside bins  When bin is empty (households) and Transfer  Deliver bins to the next stage in  When material is delivered (to treatment processers)  Transport infrastructure and working fleet Processing,  Pre-determined condition of  Delivery (to processors) Treatment deliverables, including contamination and/or rates Recovery  Pre-determined volumes Disposal  Landfill Management  Post-closure monitoring (50 years) Table 2: Typical set of obligations that local Councils have within a regional waste management system.

Bin Assessment

Commencing the treatment process from a regional standpoint begins with kerbside collection or drop off of the three main waste streams separated into the three bins colours, red, yellow and green.

Red Bin

This bin contains the most comingled materials and the largest uncertainty in the benefits of harvesting its contents. Currently the content of these bins are sent straight to landfill as separation is both costly and complex. The highest level of investment is required to achieve suitable diversion volumes and processing opportunities as it is the main source of material entering the landfills. Unless widespread source separation is adopted then this stream will skip several tiers of the Waste Hierarchy to energy recovery or direct to landfill, both options undesirable in a circular economy model. The bulk of this waste stream entering landfills comes from residential kerbside collection or dropped off by residents.

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32

Figure 1: Waste separation solutions don’t need to be onerous. Neat solutions exist for household adaptation.

Further Consideration:

 Audit the volumes of MSW (red bin) delivered to South West disposal sites.

 Conduct random regional bin audits to determine a potential recovery value of the materials.

 Focus education programs on improving source separation to lower recycle of organic matter levels in order to stabilise the MSW contents as much as practical.

Yellow

Most recycled materials by volume are taken to Picton (Cleanaway) for preliminary sorting before being transported to Perth for more in depth sorting. The transport costs added to the operational expenditure costs suggests there may be a cheaper option available part owned by Councils.

The small number of sorting facilities puts the South West at risk for recycling. Investing in a Materials Recovery Facility (MRF) would strengthen our collective waste management position, potentially gaining from an emerging recycled product market. A MRF can produce a cleaner line of higher value resources to supply supportive enterprises in the South West, benefitting the region. Building availability of higher quality recyclable resources is critical in achieving greater diversion from landfill, using the market as part of an integrated waste program.

Since the changes in the international markets and the inability of local manufacturing to meet the volumes created by loss of the export market, there is uncertainty of how and where our recyclables will be processed in the future. Additional weaknesses such as few service providers and distance to travel means that internalising MRFs can serve negotiations for specific product lines in the South West and open up partnership opportunities.

There are economies of scale and market creation potential analysis that needs to be undertaken prior to investment. This will also identify opportunities of working with established service providers in a way that benefits the Group by becoming part of the supply chain recovering materials for remanufacture.

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33 For large scale producers it is cheaper to buy virgin plastics than to clean and process recycled product. Policy and price directions have defined the role of private operators in waste but with the ‘stick’ of change in exportation opportunities and ‘carrot’ of economic and policy incentives, it is becoming possible to see growth of a remanufacturing sector.

Local governments controlling the separation, packaging and disposal recyclable materials offers some opportunity to recapture value invested in earlier stages of the waste cycle, specifically the costs of collection and transport.

Local governments in the South West can influence larger recycling operations to a point. While there are benefits from using the private industry to process certain wastes, taking more control of recycling closer can limit the impact of externally controlled waste policies such as price rise and disposal method due to market conditions outside regional control. Taking direct ownership of the waste fraction can ease the development of a locally focussed waste economy through new business deals or progressive partnerships with operators. This delivers greater autonomy in risk management and broader capacity to adapt to market forces.

A significant risk in this approach is that larger operators can undercut the processing costs which compromises the ability for the region to function more holistically. There are aspects of a circular waste model that may not suit private operators, such as reducing waste generation. Establishing supply commitments reduces this risk either as financial, waste volumes or other support. There are also partnership opportunities with research institutions that are available to local governments which may not yet be profitable. The partnerships could reduce local government costs and as they are normally not yet be profitable, they would be more attractive to a local government cost reduction approach.

The long term strategy is to grow the local recycling market driven by government projects to a point where co-investment with private industry becomes economically and environmentally viable. There may be opportunities at that point to capture other streams such as Construction and Demolition (C&D) waste and process this material to reduce other Council costs for instance, in infrastructure construction, e.g. roads.

Green

Processing green waste and FOGO bin contents locally is occurring but ancillary costs such as transport, decontamination, capital as well as the opportunity cost of alternative technologies means that for some Councils composting or shifting to FOGO is impractical. Social pressure is significant though and often Councils will shoulder the cost burden to provide the service.

The composting operation at BHRC is expected to expand in 2021 and with it, further opportunity for complementary operations, for example, decontaminating the waste stream. Using the service is strongly recommended as this is a government controlled commercial operation but with rising levels of organic matter forecast in the South West, the potential for carbon sequestration offered by organics processing and the increasing pressures of transport, high diversion, more complex, complementary solutions should be investigated.

Within an integrated waste system forecasting rising levels of waste organic matter, it is likely that one operation in Bunbury will be insufficient to service the SW Region. A pre-feasibility study of an Anaerobic Digestion (AD) unit located in Busselton suggests an alternative. More information on this option is discussed later in the ‘Regional Options’ section of this Report.

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34 Further analysis into the viability of extending the composting capacity throughout the region is required. Coordinating efforts and establishing complementary activities may continue to provide cost effective processing. Potential locations of organic processing facilities include Busselton/Margaret River, Collie and Bridgetown-Greenbushes, formed with the intent of reducing FOGO transport costs. The analysis is to address: a) Potential local demand for product (through infrastructure providers), b) Reducing ancillary costs using established plant and knowledge such as decontamination education messaging, transport, infrastructure and expertise, c) Working with State educational programs to support regionally low contamination of input, d) Seeking partnership opportunities with local private providers where practical. Applying experience gained from existing operations and leveraging a separated stream of organic matter, local economies and jobs can be supported to a point where the product has a value above the processing costs.

Transporting each bin

Within the Group, only the Cities of Bunbury and Busselton manage their own fleet. Transport costs can be a significant factor when processing waste and a collective fleet may be a solution in waste disposal costs. It is proposed moving towards a separate regional entity requires a full cost analysis of running an independent fleet. This would require auditing:  Other organic waste bins to be collected, e.g. public bins.  Collection regimes including route analysis for each Council that helps determine fleet demands; and  Light fleet demands, what vehicles are needed for local operation of services/waste staff demands.

Further Consideration:

 Determine potential fleet costs and seek savings, for example what trucks would we need for a regional collection service and can route planning reduce the number?

 Can we effectively audit waste handling consigned to contractors? Where does it all go?

 Will these destinations impact Council operations? For example, reducing contamination in collected construction and demolition waste.

 At what point does the ownership of waste transfer between Councils, contractors and Customers of waste derived materials?

 Define the ‘whole of life costs’ for waste?

 What is the ? This should include ‘waste miles’ recovering carbon credits and potential carbon sinks.

The costs of landfill

Landfill costs vary depending on the size of the landfill, type of waste taken and management measures in place. A list of costs, depending on the complexity of the operation, may include: • Land purchase;

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35 • Approvals process(es); • Capital cost of equipment and buildings; • Lining landfill to prevent leaching; • On-site gas recovery and flaring; • Preventing waste from being blown into adjoining properties; • Operational costs including labour, fuel and materials; • Capping landfills and landscaping; and • Rehabilitation and aftercare. The SW Regional Strategic Plan in 2015 estimated the cost for a LGA to develop a best practice landfill catering for 15,000 tonnes per annum at approximately $150/tonne of waste, considering both capital and operational costs. The estimate for an operating regional landfill co-owned by multiple councils was estimated at $28/tonne. The significant price difference came from the associated economies of scale produced when the capital and operational costs are spilt amongst the LGAs. In particular, the savings achieved via the split of the operational costs are far greater than the capital costs across the life of the landfill.

Regional Gate fees in 2020/21 range from $50 to $150/tonne. The variability of these costs reflect policy and operational approaches in each Council and are not a simple result of local operational costs. Gate fees include operation costs, overheads, plant and equipment, labour, depreciation of capital and other fixed assets and profit. There is also often a policy component, especially for the preparation of reserves for activities related to landfill management such as post-closure measures.

To offset long term costs the gate fee should include 30-50 year post closure management, long term monitoring and reporting and replacement of the landfill asset itself 2. Many Councils do not include these costs and price gate fees too low to cover the true costs of operation. This pricing strategy reflects the social value and public health concerns of these facilities, where illegal dumping and other costly landfill avoiding techniques used by the public are an immediate risk.

In addition, the average waste costs charged to ratepayers average $320. The composition of these fees can be detailed and determining what these costs cover and the effects for individual Councils is therefore difficult to accurately predict.

LGA Waste charges Bin Types Gate Fee $/year $/T Augusta - Margaret River 498 R/Y/G 150 Boyup Brook 347 R/Y 107 Bridgetown - Greenbushes 147 R/Y 81 Bunbury 327 R/Y/G 61 BHRC - - 73 Busselton 300 R/Y 67 Capel 254 R/Y/G 113 Collie 320 R/Y/G 50 Dardanup 226 R/Y 67 Donnybrook - Balingup 404 R/Y/G 73 Harvey 308 R/Y/G 61 Nannup 400 R/Y 123

2 https://mraconsulting.com.au/what-is-air-worth-appropriately-pricing-landfills/

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36 Average $320 $86 Table 3: Shows the publicly available charges across the region for waste disposal. Determining what constitutes these charges alters between Councils depending on local policy and operational environments.

 Collection costs for kerbside waste within the region are consistent among the responding Councils. Competing collection proposals need to address these costs to be competitive; o MSW : $1.20 – $1.40 per bin o CoRecyc : $1.20 – $1.40 per bin o FOGO : $1.20 – $1.80 per bin

o Hard waste collection rate ranges between $60 - $85 /T.

Post closure management can be very expensive. Costs from $1-20 million in post closure rehabilitation have been seen. The cost varies with the type of landfill, its location, size and surrounding environment. Additionally, the EPA requires monitoring of the closed landfill for up to 50 years prior to relinquishment of the landfill licence, with costs ranging between $10-$200,000 per year.

The cost of airspace in landfills is not often included when pricing new lands or quarries. That is fine if future users get the same benefits i.e. inheriting free voids. But as opportunities shrink and landfills become harder to find or replacement costs rise, future users are at a significant cost disadvantage. Estimates for airspace can range from $16 - $50 per tonne depending on the landfill characteristics.

Many Councils intend to borrow to fund the next landfill and therefore don’t need to provide for asset replacement from current users. Future users will then pay off new landfills via the debt service costs built into the gate fee. But what about current users of the current landfill? Few existing, council owned, landfills are debt funded.

Esperance Council in WA has recently introduced a one-off $6 million ratepayer fee because it under-priced its landfill gate fee over the operating life. This means general ratepayers have ended up subsidising all landfill users.

Many Councils introduce special rates to meet unfunded landfill liabilities. But ratepayers are not necessarily the same group as landfill users. On average 50-60% of all landfill waste is non-domestic (commercial and construction) waste but the majority of ratepayers are households. So it is not fair for households to subsidise both big commercial generators like clubs and pubs, retailers and building companies, as well as all past users. Elected representatives understandably want to keep landfill gate fees low for their ratepayers. The questions should be “What is the real cost of this service and who is going to pay for it – ratepayers or landfill users?” They are most often not the same or have very different waste generation profiles. Once the landfill has been filled, there is no chance to go back and recover the losses.

Artificially cheap landfill undermines all other recycling and resource recovery opportunities. Low recycling rates means fewer jobs are being created in this sector. As recycling materials creates more jobs than landfilling and the roles are countercyclical to mining booms and busts. Higher landfill prices create the headroom for recyclers to operate competitively. Recycling is probably the fastest growing manufacturing sector in Australia due to rising environmental controls on landfills and the introduction of landfill pricing signals.

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37 TREATMENT OPTIONS

Figure 2: Holistic waste management seeks to minimise landfill management costs. Externalising these costs separates risk and allows growth using private enterprise knowledge and experience.

WASTE TO ENERGY

Thermal

The investment required in establishing a small scale thermal WTE system in the SW is so high compared to the potential benefits that it would not be economic to build. However, the high diversion rates and ability to process heavily co-mingled waste streams suggest this should be considered within an integrated waste management framework. Support structures in establishing a local thermal WTE facility are lacking within the South West Region including viable waste quantities, low landfilling costs, suitable energy clients and an adequate grid connection.

The thermal facilities being constructed in Kwinana and East Rockingham can reduce waste volumes by up to 90% and result in residues such as ash need to be landfilled typically in a Class III facility. Other uses for these resulting waste materials is being researched.

An interview conducted with New Energy Corporation (NEC) in August 2019 on behalf of the Group identified that the costs associated with this type of technology changed significantly. These variations were not just because of the technology and required scale but also the infrastructure costs associated with becoming an energy generator. Charges such as network augmentation for grid connection could result in extremely high costs. Appropriate zoning, buffers, obtaining necessary permits and grid connectivity are also decisive factors in WTE viability. NEC advised that establishing a plant purely for energy production was a very expensive way to generate power but

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38 using the steam may be more feasible. NEC submitted to the market sounding exercise in 2019-20 for gasification (addressed below).

Figure 3: Rendition of a Waste-to-Energy Combustion Plant (National Energy Education Development Program, 2017)

Combustion systems are normally classified by the nature of the combustion chamber; moving grate, fixed grate, rotary-kiln and fluidized bed. The Western Australian facilities are both moving grate systems which are widely used internationally because of the ease of operation, level of technological understanding, high plant availability, comparatively low personnel requirements and relative ease of training new personnel.

As the combustion is less controlled than gasification, the flue gas cleaning systems are more complicated and expensive. Consequently combustion facilities are only economical at scales greater than 250,000 tonnes per annum. The East Rockingham WTE facility being constructed by NEC will be able to process up to 330,000 tonnes of residual waste per annum, generate 28.9 MW of power, around 70,000 tpa of bottom ash (BA) and 12,000 tonnes per annum of flue gas treatment residuals. The plant estimates a 96 per cent diversion from landfill.

A life cycle cost (LCC) analysis includes investment and operational costs. Investment costs typically include:  Equipment investment costs, including incinerators, fans, flue gas purification systems, waste heat boilers, incinerator supporting facilities and accessories, steam turbine units, generator units, electrical systems, water treatment system and thermal control systems.  Civil engineering costs and  Land costs.  The landfill leachate treatment system can also be divided into building construction costs and machinery and equipment costs.

Economic Analysis is given to the; • Economic life of the plant Typically 20 years

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39 • Operating hours per year Approx. 8000 (allowing one month cumulative downtime) • Ash treatment Variable ($/tonne) • Heating network & support cost Variable ($/kWh) • Flue gas treatment Variable ($/tonne) • Waste pre-treatment Variable ($/tonne) • Electricity cost Variable ($/kWh) • Gate fees Estimated 140-160 ($/tonne) Operating Costs of waste incineration power generation projects are similar to those of conventional power plants and include primarily;  Labour costs, power costs, costs of chemicals, disposal of waste water, exhaust gas, waste residue, maintenance costs, production safety expenditures, depreciation (straight line), taxes, surcharges, management costs and financial costs.

Should the region consider sending materials to the facilities the following parameters are likely:  Any waste supply agreement will be long term e.g. 20 years. At this stage, spot prices or short term contracts are not being considered as the volumes and running costs are not yet finalised. Should a contract be signed, this will tie up materials for the long term.  Savings could be made backfilling waste materials from the processing site and environmental contingency funds if historic landfills are mined. Although these are likely to be small.  The NEC East Rockingham facility is projected to commence operations in 2023 or before. SUEZ will be the operating agencies in the plant using a fee for service model based on waste supply contracts. Estimated gate fees for the SW region as a single client are approximately $140-160/tonne prior to transport costs.  The plant has an estimated 100, 000 tonnes per annum capacity and it is likelt that the final design will allow the NEC facility to receive larger vehicles than the Kwinana facility.  In Kwinana, Avertas Energy Pty Ltd is attempting to gain 200,000-300,000 tonnes per annum of MSW and up to 100,000 tonnes per annum of C&l waste. Phoenix is seeking contracts with LGAs for the supply of municipal solid waste to the facility on a fee for service contract basis. The Rivers Regional Council is one these clients.

Using these facilities as a Region would:

 Divert up to 96% waste by volume from landfill to extend the operational life of existing landfills;  Meeting the waste diversion targets adopted by the Waste Authority;  Reducing the environmental impacts of landfilling;  Increasing the amount of resources recovered from waste;  Generating ;  Cost four times more than current disposal costs on average; and,  Require transport to be organised between transfer stations or Councils coordinated to be as cost effective as possible.

Thermal WTE Summary Market Sounding: Cost Estimate N/A Gate Fee Estimated between $140-160 per tonne (before transport) Capacity Up to 120,000 tonnes Operational Kwinana plant is scheduled to commence operations in 2022

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40 East Rockingham to commence in 2023 Location Proximity to high energy users / Grid connection requirements Strategic Plan

Australian None operational. Two large scale sites in East Rockingham and Kwinana as examples scheduled to be operational before 2023. SWOT Strengths  Estimated 90% diversion of waste (by volume) from landfill.  Treat significant portion of the waste stream.  Electricity generation Weaknesses  Large minimum throughput requirement.  High capital and operational cost.  Diversion of material from recycling.  Long term contracts lock in waste management behaviours, i.e. lack of diverse disposal options Opportunities  Production of renewable energy.  Funding from external sources.  Communicating emission controls and pollution policy Threats  Planning and environmental approvals.  Community concerns that include: o Discourages recycling o Creates harmful pollutants (dioxins, furans, heavy metals, etc)3 o Source of toxic ash o Promotes generating rubbish – conflicting with State and National Policy Recommendation i. That a specific feasibility assessment is made into the full costs including: a. This option’s role in an Integrated Waste Management System, i.e. reducing tonnages (e.g. 25,000tpa) to meet diversion targets and maintain waste management diversity; b. costs/benefit of mining capped landfills; c. transport regimes and additional assets as required; d. Delivery parameters and supporting equipment. ii. Review potential stockpiling centres and waste ownership boundaries.

Gasification / Pyrolysis

These technologies convert carbon based materials into ‘syngas’ - gases comprising carbon monoxide, carbon dioxide and hydrogen in low and oxygen free environments. The gas is mainly comprised of hydrogen which powers the plant or is recovered as a fuel. Gasification has been widely used for generating electricity commercially around the world for more than 50 years in the refining, coal, fertiliser and chemical industries.

3 https://ensia.com/features/burning-trash-waste-to-energy-renewable-pollution-environmental-justice/

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41

Figure 4: Municipal gasification process (from Demoral, Gunay and Malayao. 2018, ‘Energy Use in Municipal Services’)

Renergi P/L, New Energy Corporation (NEC) and Recovered Energy Australia (REA) made submissions to the Market Sounding Exercise (2019-20). NEC proposed that any facility would need to agree on the following parameters and assumptions before progressing:  Site identification supported by the Group;  Technology – it varies and a specific treatment would need to be agreed;  Estimated total project cost is $70M;  Annual throughput – up to 60,000tpa MSW and C&I residuals;  Gate fee range from $160/t to $200/t depending on power off-take agreement (steam/electricity);  Project operations – 5 years from signed contract. Although gasification is a suitable WTE technology for the South West, there are challenges - costs, tonnages, markets and community acceptance among others. A Federal investigation into innovative waste management in January 2020 attracted community opposition that was coordinated, and informed about the technology. Their core concerns can be expected from most communities regarding any local proposal of this technology, summarised as:

 Too expensive as the energy produced is a minor fraction of society’s energy needs;  Relying too heavily on waste production, incentivising greater waste production to meet economies of scale. This greater release of carbon emissions conflicts with national emissions targets;  Labelling the technology as ‘resource recovery’ as only the calorific value of the products are reclaimed, once burnt the resources are out of the economic loop;  Requiring long-term municipal supply contracts which would undermine innovation and investment in more effective waste treatments; and,  Depending on a regulatory environment which is likely to be ineffective in protecting communities from unforeseen negative externalities.

A gasification project similar to that proposed in the SW was planned for Port Hedland by NEC obtained approvals from the Environmental Protection Authority and the Minister for the Environment but never progressed to construction. The proposal was for a modular (scalable) WTE (gasification) facility with process capacity of 70,000 to 130,000 tonnes per annum (tpa) of mixed

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42 waste, generating up to 15 MW of power. The incoming waste stream was a mix of MSW, C&I and C&D wastes separated in a sorting facility to remove recyclable materials such as concrete, bricks and metals prior to treatment. Following renegotiations based on changing volumes and energy demands any construction has been postponed indefinitely as the return on investment was insufficient to continue. The supply costs and penalties were an unacceptable risk for ratepayers to use the plant.

Gasification Summary Market Sounding: Cost Estimate $70M Gate Fee Estimated between $160-200 per tonne depending on power off-take agreement (steam/electricity) Capacity Up to 60,000tpa MSW and C&I residuals Operational Within 5 years from signed contract Location Proximity to high energy users / Grid connection requirements Strategic Plan There are limited commercial applications of gasification for municipal solid waste: Entech technology used by New Energy and Energos technology used in Norway. Both of these oxidise syngas to produce steam, rather than capture the gas and use it for other purposes Australian Funded to undergo a trial in Collie by Renergi Pty/Ltd out of Curtin University. examples Trials commencing in 2021. No commercially operational examples using MSW as feedstock in Australia. SWOT Strengths  Up to 90% diversion of waste from landfill.  Modular due to simplified quality systems. Weaknesses  High capital and operational cost.  Diversion of material from recycling.  No operational model in Australia suggests higher risk. Opportunities  Production of renewable energy.  Funding from external sources Threats  Community opposition.  Planning and environmental approvals.  Community concerns.  Stifles further innovation investment.  Sourcing sufficiently qualified staff in a highly technical process. Recommendation i. Prepare EOI specs that allow gasification suppliers to make submissions that address identified weaknesses in the technology. ii. A full cost comparison scenario is required investigating what the potential long term environmental risk and contingency funds may add up to as this technology may treat old and capped landfills.

Anaerobic Digestion (AD)

An AD facility accepts organic matter high in nitrogen and produces large quantities of biogas (methane and carbon dioxide) used to generate power and heat or refined to produce Compressed Natural Gas (CNG). The process also produces a solid by-product called ‘digestate’ which is a pasteurised semi-solid used as a fertiliser or can be composted. Both AD and composting can work

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43 collaboratively to create a ‘bio-fertiliser’ and generate both jobs and revenues. Further synergies include back-loading trucks delivering nitrogenous materials to the AD facility with digestate for nearby composting enterprises. These systems can also complement waste water treatment facilities and may qualify for carbon credits as awarded by the Clean Energy Regulator.

Potential suppliers of this technology have stated their contract preference was a ‘Build-Own- Operate’ model for a 25 year investment horizon. Gate fees are negotiable to be competitive and the region has an opportunity to negotiate as the technology is establishing and there are several new and growing providers in the market. The technology is underpinned by a focussed educational program designed to engage residents in helping reduce contamination levels fed through the system.

Figure 5: Anaerobic Digester System © Copyright Tennessee Department of Environment & Conservation

AD can produce renewable energy as opposed to aerobic systems such as composting which requires energy input to stabilise. The products generated by AD can offset the investment and be used as resources for further manufacturing for example, composting digestate can create an organic fertilising product and CNG can be refined to produce hydrogen.

The advantages of AD include:  Producing more energy than required resulting in a constant supply of renewable energy;  Sanitising the feedstock/ waste (pasteurisation);  Reducing odour below unprocessed waste odour levels. ‘Aromatic’ materials are processed in a negative pressure environment which traps noxious fumes;  Lower sludge mass generation when used as a primary water treatment method compared to an aerobic system applied to the same contaminant concentration and flow; and,  The effect of the fertiliser is longer lasting than for untreated organic waste.

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44

To balance these out, disadvantages include;  Requires a commercial scale level of investment, including in sorting and a clean feedstock;  Inefficient operation can cause an odour nuisance;  Cannot convert as much carbon in the biomass to biogas as gasification;  It takes longer to start the process due to the slow growth rate of the methane-producing organisms compared to aerobic systems;  In some applications has higher buffer chemical dosing requirements for pH control to keep the pH for AD within the range of 6.5–8;  Digestate must be transported safely and ensure there is sufficient processing capacity for the generated volumes;  Manufacturers operation specs must be stricylt adhered to, requiring  Without significant political leadership, AD will likely meet significant community resistance. A full communication data package including emissions, location, benefits and assurances is required prior to opening the public debate. This topic should be addressed in stages, allowing the community to consider the option before addressing community concerns.

Case Study: Jandakot Bioenergy Plant – RichGro

Richgro is a garden products company supplying compost and fertilisers across Australia and are licenced to receive organic waste streams from Councils. Following an extensive selection process they selected Australian company Biogass Renewables Pty Ltd to undertake the design, installation and commissioning of an AD plant for their Jandakot processing facility. The selection process commenced in 2011 and the plant was commissioned in 2015. This is the first plant of its kind in Australia.

Project Breakdown:  Total Capital Spend $8 Million Contributing grants from WA State Government, ($ 0.5 M4) Federal Clean Technology Investment Program ($ 1.6 M), Clean Energy Finance Corporation (CEFC) ($ 2.2 M5).  Capacity 35,000-50,000 tpa  Energy Production 2 MWe electricity total (1.7 MWe to the grid)  Heat production 2.2MWth  Products 100m3 of liquid bio-fertiliser at 6% dry solids Can be configured for power, heat, steam generation or a mix of these  DWER Approval of Site Applications 6 months  Grid Connection through Western Power 2 years  Return on Investment Sub 4 year payback on capital (before grants)

Critical decision elements:  Processed large quantities of green waste from council collections  Electricity costs from the energy retailer of $600,000+ / annum  Enabled higher revenue waste streams to be taken from contaminated organic waste  Produced a bio-fertiliser that blends with existing products  Closes a production loop with potential to utilise heat and CO2 produced on site

4 Waste to clean energy in a Southern Hemisphere first - Richgro 5 Richgro Bioenergy Plant, Jandakot, Western Australia - Waste Management Review

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45

Biogass P/L provides the following process example: 50,000 tonnes per annum of food waste at 150m3/tonne of biogas has the capacity to produce a mix of: 1. Biogas to power a 600KW genset (120 residences at 5KW per year) 24/7 (as well as 660KW of thermal output) to power a large commercial site, plus 3 2. 324m /hour of Natural Gas (CH4) for compression to CNG which could displace the equivalent of $3M/year in diesel if used in static engines or a transport fleet.

Following initial pre-feasibility report conducted by Biogass P/L, the financial key points for constructing a plant in the South West are:

Detail Value CAPEX -$ 9,425,328 OPEX (per annum) -$ 775,000 Electricity Revenue BTM (per annum) $ 1,206,373 Gate Fee Revenue (per annum) $ 814,949 LGC Revenue (Year 1) $ 314,430 Heat Revenue (per annum) $ - Estimated Project IRR (Pre-Tax) (20 yrs) % 11.19 Estimated Project IRR (Post-Tax) (20 yrs) % 10.18 Table 4: Figures from a 2019 pre-feasibility study conducted by Biogass P/L

Locations

It is recommended that any facility of this type is built in partnership with a suitable services provider, for example a Waste Water Treatment Plant (WWTP). Using the current parameters we have, the most viable site found within the SW at this stage both logistically and commercially would be in direct proximity to the Busselton Waste Water Treatment Plant, which is within a Waste Treatment Buffer Zone. Assuming agreements can be set in place, the location offers significant partnership potential as the WWTP can use a high amount of electricity and potentially use the digestate correctly and responsibly. This is represents a potential solution for the southern LGAs in the region by reducing transport costs for organics and introducing a revenue making operation.

Summary Market Sounding: Cost Estimate $12-15M Gate Fee $50-75 per tonne (estimate) Capacity 30,000-50,000 tonnes of organic material per year Operational Projected within 2 years dependent on Approvals Location Close to WWTP and users for steam/electricity requirements Strategic Plan

Australian Jandakot, Richgro facility operational for 5 years examples SWOT Strengths  Diversion of material from landfill to meet State and local targets.  Potential to generate electricity.

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46  Opportunity to value-add  Potentially cheaper FOGO solution for the smaller, southern LGAs  Job creation is 10 construction jobs and 4-5 full time equivalents for operation. Weaknesses  Cost and resources.  Environmental controls required.  Sensitivity of the biological process  Contamination of feedstock  Clean and safe transport of digestate Opportunities  Joint ownership and investment models  Engagement with local landscaping or agricultural businesses.  Partnership opportunities such as WWTP  Plant could be a source of multiple value adding products, eg. Compost, hydrogen, power charging electric vehicles  Community engagement and education  Government funding as alternative waste treatment Threats  Long term market security for products.  Variability in feedstock contamination, e.g. persistent herbicides Recommendation i. Commence Feasibility Studies into this facility ii. Commence site investigation studies into other suitable locations.

COMPOSTING

Turning FOGO into a marketable compost product keeps the feedstock out of landfills (reducing greenhouse gases) and boosts soil health and productivity. This activity is by and large uneconomic for single Councils and retailers and establishment requires financial support of collection, capital (construction) and operation.

The existing facility at BHRC processes material from approximately 43,500 households in the City of Bunbury and the Shires of Collie, Capel, Donnybrook-Balingup, Augusta-Margaret River and Harvey. The expansion underway at the BHRC facility is to increase processing capacity to 76,000 households, potentially servicing the City of Busselton, the Shire of Harvey and other local governments in the South West and Peel regions. Demand for FOGO processing capacity is high, with interest already expressed from local governments in the metropolitan region. BHRC remain confident that the supply of FOGO material will reach the 35,000tpa capacity of the facility before 2023.

The increased FOGO processing capacity will help expand the three-bin systems at an additional 32,500 households regionally. This will result in approximately 845,000 additional bin lifts per annum or 33% more collection activity for councils that have a two-bin system.

Assuming one collection vehicle is capable of providing approximately 200,000 bin lifts per annum, it is predicted that an additional 4 to 5 collection vehicles will be required to meet the increased collection demand. Based on a value of $450,000 for a new side loading collection truck, it is estimated that fleet investment alone will be approximately $2.250M. Capital investment in collection vehicles will be indirect and dependent on the collection models (internal or contracted services) used by individual councils.

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47 Councils that implement a FOGO bin will also need to source additional bins and red lids for existing refuse bins, this is anticipated to cost in the range of $65 to $75 per household ($2,112,500 - $2,437,500).

Assuming no changes to contract pricing, it is expected that implementation of a three bin system will result in bin collection costs increasing by approximately 33% for local government areas that already have a two-bin system (assuming FOGO bin collected weekly, yellow top bin and red bin on alternating fortnights).

Assuming a single bin lift costs in the range $1.30 to $1.70 it is estimated that provision of a two-bin waste collection service to 32,500 households costs between $3,295,500 and $4,309,500. Introduction of a FOGO bin is anticipated to increase this operational expenditure to between $4,394,000 and $5,746,000.

Depending on the how the systems are implemented in each local government area, it is also likely that additional operational expenditure will be associated with the provision of waste education initiatives and source separation materials (compostable bags etc.). Assuming $10 per annum per household is budgeted for waste education and source separation initiatives, it is estimated that this will increase operational expenditure by approximately $325,000 per annum.

Compared to landfill disposal it is anticipated that every tonne of FOGO waste composted will result in a $26 to $30 saving. The additional 15,000tpa of processing capacity is therefore anticipated to save local governments $345,000 to $450,000 per annum in landfill disposal costs. Introduction of a landfill levy to the southwest region is expected to occur within a five-year timeframe which could result in landfill costs increasing by $70 per tonne. This would increase savings to local governments with FOGO systems.

Based on an annual throughput of 35,000tpa it is forecast that the following outputs will be produced (tonnes) at the BHRC:

Product Volume (tonnes Compost 20,262 Mulch 2,594 Rehabilitation material 1,621 Contamination (landfilled) 1,200 Contamination (recycled) 300 Total 25,977 Table 5: Breakdown of organic outputs from BHRC composting operation

Establishing the composting facility is forecast at $5.5M of capital investment. The compost and mulch products produced at the upgraded facility will meet the AS4454 specifications and organic certification.

It is anticipated that the initial bulk of future demand will come from the Bunbury Outer Ring Road (BORR) project through 2022 and 2023. The BHRC will continue to market its recycled organic products to the local agricultural, horticultural and landscape sectors to ensure product demand post BORR. Procurement policies from the surrounding Councils should acknowledge this source of material and specifications will need to be established to ensure Councils of the quality standards.

It is anticipated that recycled organics produced will have a market value between $500,000 and $845,000 per annum based on a throughput of 35,000tpa.

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48 Summary Market Sounding: Cost Estimate $5.5M Gate Fee $42/tonne Capacity 35,000 tpa Operational Prior to 2022 Location Located within the Stanley Road Waste Facility requirements Strategic Plan

Australian Currently operating at Banksia Road examples SWOT (Forced Aeration System) Strengths  Diversion of material from landfill.  Greater control of composting process.  Quicker turnaround time for composting activity.  Relatively low capital cost and infrastructure requirements.  Smaller footprint requirements than windrow aeration.  Reduced compared to landfill. Weaknesses  Staff training requirements.  Capital and operational costs commitments.  Potential odour issues.  Spatial requirements. Opportunities  Engagement with local landscaping or agricultural businesses  Revenue generation. Threats  Security in markets for products.  Environmental approvals. Recommendation i. To continue supporting the rise and adoption of composting as a viable organic treatment ii. Seek to refine the end product to increase value iii. Investigate centrally coordinating a network of composting activities throughout the region that support related waste treatments.

PROCUREMENT

Transitioning to a circular economy is unlikely if market forces are relied upon to drive the change. While landfill remains the cheapest disposal method, processing used materials into a productive resource will be more expensive than using virgin materials or landfills. The market will not transition to a circular economy in this model. Governments and Councils have the most to gain from changing this model because of the benefits associated with landfill diversion. Market intervention appears to be the most effective means to change to an economic model that provides greater value in waste resources, creates jobs, is more diverse and reduces impact on the environment [2].

The direct impact on councils’ waste costs resulting from the changing waste operations landscape (and the viability of kerbside recycling in general) are not well understood. The South Australian Local Government Association (SALGA) estimates that the subsequent rise in recyclables processing costs are estimated around $15 million more in waste costs due to changes in the global market.

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49 The only way to manage cost increases from recycling services and impacts from any proposed waste levy is to develop local markets for recyclable materials so these materials become a valuable commodity. Impacts from Covid-19 including closing facilities, waived rents for commercial tenants, more residents seeking to invoke hardship provisions and increased demands on resources only highlight the need to control the cost of the facilities and services as low as possible.

Accelerating the transition towards a circular model will deliver return on investments sooner. For the SW Group, transition needs to be facilitated through growth incentives driving the local economy. Investment businesses consulting with WALGA have identified areas that could assist us locally, specifically:

 Levelling the playing field through better financing conditions and access to markets – this may means establishing local businesses close to resource materials and clean stream of waste to compete with access to virgin materials  Value-chain collaboration: different organisations in the value chain need to collaborate to optimise the circular solution, as resources and materials remain in a constant loop. This value chain collaborations needs to be enabled and rewarded.  Long term value creation: there should be actions to incorporate and reward product longevity in business models  Market Participation and end-users play a crucial role in the value chain to make products circular. Typically this is the part in the value chain where products turn into waste. There is a need to ensure better participation of consumers and end-users to change this behaviours  Integration of the public good: The cost of negative externalities and the benefits of positive externalities need to be considered in order to allow circular companies to compete more fairly. On average companies that price externalities contribute more to public goals and/or reduce societal costs  Financial knowledge build up: financiers who often struggle to quantify linear risks and fail to reward circular businesses need to know more about circular models. It is important that financiers and investors understand the differences in order to be able to correctly value the business model and its longer term economic potential.  First movers action: market demand pull is part of the success of new business models. This demand pull works as a magnet for new entrants and/or current businesses to change their operational and commercial model.

Relying on price alone to drive the transition towards greater uptake of recycled materials is unlikely to succeed. This is due to a number of factors including the unequal comparisons of virgin materials against recycling resources by using price alone. Recycling materials should also factor in the costs of keeping the materials out of landfills.

In a transitioning market local government purchasing policy can reshape the market and align new market conditions for businesses to refine and develop. A ‘good procurement system’ meets two conditions [3]:

i. A central ‘decision centre’ setting non-contradictory objectives, periodically assessing whether the system works coherently; and ii. Establishing a set of processes that maximize the chance of reaching the system’s objectives while minimising the use of resources.

By targeting particular outcomes, local government can create complimentary policies to ensure sustainable development of the circular economy. This is currently underway in South Australia

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50 using a SALGA initiative, the ‘Buying it Back LGA Circular Procurement Pilot Project’. The project is intended to grow the value of recycled materials, build viability of the recycling system and reduce councils’ waste management costs.

CASE STUDY SALGA’s ‘Buying it Back LGA Circular Procurement Pilot Project’

At the 2018 SALGA Annual General Meeting the City of Prospect put forward a motion requires the LGA to investigate how the local government sector can leverage its procurement capacity of products/goods made partially or wholly from recycled materials, in efforts to develop onshore end markets for waste derived materials.

A pilot procurement project was initiated in which nine councils volunteered to participate. A Grant was secured to progress the project resulting in a Memorandum of Understanding (MoU) between the councils and the LGA requiring councils to: 1. Prioritise the purchase of recycled-content products and materials through the procurement process; 2. Track the recycled-content purchased by weight; and 3. Publicly report on the tonnes of recycled-content products and materials they have purchased under the MoU. Additionally, most councils adopted a procurement target for plastic materials, seeking to incrementally buy back up to 10% of the amount of recyclable plastics collected in their council area and increase this to 50%.

Outcome Councils purchased of recycled content across the target product areas including: • Stationery and office paper; • Fixtures (street furniture, fencing, fitness equipment, garden boxes etc.); • Compost; and • Road construction materials. After 6 months of data capture the councils purchased plastic materials equivalent to 36% of the amount of the target.

The reported data was analysed to develop recommendations when rolling out circular procurement to the local government sector as a whole. The resulting recommendations were:

1. Acknowledge that action by councils is imperative for addressing the current challenges in waste and recycling (as detailed in the National Waste Policy Action Plan and including the implications of the impending COAG waste export ban); This is the biggest barrier to councils buying recycled materials as the connection between councils’ role in collecting waste (and paying for this service) and their ability to influence the market by creating demand for end-use recycled products is not directly related.

2. Commit to “buying recycled” as a high priority and as a necessary method of mitigating councils’ rising waste management costs; This talks to the nuance within the circular economy model which goes beyond recycling – it is about maintaining the economic value from production investment for as long as possible.

3. Amend existing Procurement Policies to a. Temporarily (e.g. 5 years) prioritise recycled-content through procurement; b. Mandate recycled-content in design/planning (including current contracts);

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51 c. Specifically consider “opportunity cost” associated with any purchase (i.e. When asking “which is best value for money?”, also ask “what will this mean for the materials involved past their intended use”); d. Track the purchase of recycled-content by weight and report this publicly. Amendments should reconcile this priority with other priorities such as “buying local” This addresses market failure and growth of new supply sources with a monitoring component

4. An administrative approach outside of the policy is to be considered. For example, buy stationery items with recycled-content; This is a transitional option for councils cautious about amending their existing Procurement Policy.

5. Share knowledge and experience to explore and/or support development of a certification scheme for recycled-content products and materials. Certification schemes are a cheap but effective means to build value down the supply chain and lend local government or State government integrity to the process.

6. Endorse the LGA writing to the Commissioner for Highways to request work be undertaken with peak bodies or Austroads to develop specifications allowing for recycled- content in roads (in particular, recyclable materials including plastic and glass fines). The Group continues to work with Main Roads WA (MRWA) to incorporate this in their plans although the materials are subject to considerable rigour. MRWA, the Australian Road Research Board (ARRB) and Western Australian Road Research Innovation Program (WARRIP) are looking at a number of recyclable materials that could have a future role in road construction. The ‘Roads to Reuse’ program has developed specifications for recycled road base and recycled drainage rock and is funding construction and demolition recyclers to ensure they meet the specifications. MRWA are committed to use more than 25,000 tonnes of recycled construction and demolition waste as road base.

The products regularly purchased by local governments include:

 Office stationary/paper;  Fixtures (e.g. street furniture, drinking fountains, bollards, fencing, decking, garden edging, planter boxes, fitness equipment, wheel stops, speed humps, bins, pipes, signage);  Construction materials (recycled-content includes recycled asphalt, glass fines, plastic, rubber, toner); and  Compost. The estimated magnitude of potential financial benefits is sufficient to justify a similar investigation into a comprehensive regional procurement strategy. This approach would also give manufacturers confidence to invest in the region to build on these recovery initiatives.

For tendered local government projects, a LGA could require contractors to: • Prepare Waste Management Plans (WMP) for proposals seeking planning approval, • Stipulate that the WMP maximises diversion of materials from landfill, • Require the use of recycled products, locally produced if necessary, This approach can be particularly relevant to construction projects, which could be leveraged to grow local recycling markets. These WMPs should help maximise the diversion of materials from landfill and ensure appropriate management systems are in place for all waste arising.

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52

Influencing Commercial Practices SWOT

Internal External Strengths Weaknesses Opportunities Threats  Involvement with  Cost and resources.  Influencing  Impacts on charity local businesses.  Getting buy in from consumer organisations and  Opportunity to the industry sectors. behaviour. small businesses promote initiatives  Increased currently involved preferred in the availability of in resource Waste Management recycled materials. recovery. Hierarchy.  Potential for new  Targets a significant business in the proportion of the South West Region. waste stream.

Further Considerations

 Research a Regional Procurement Strategy which fits LGA policy priorities and cost constraints. Input should be sought from Council representatives, SWDC, WALGA, DWER and other relevant parties.

 Develop sector-wide strategies focussed on greatest cost/benefit, especially in areas with a significant ‘infrastructure gap’ and limited financial capacity to close that gap.

 Deliver strategies that effectively aggregate demand and reduce costs as well as enhancing local and regional local economic development.

 Extend procurement collaboration into cross boundary sharing, service provision, assets and other infrastructure created for the benefits of communities.

LOGISTICS AND TRANSPORT

Regional Economic Indicators

Within the SW, 12 different waste management operations exist involving various contractors, disposal methods and acceptable waste types. To simplify this situation and externalise waste operations from local government operations will require considerable preparation, economic analysis and support from State agencies. The issues surrounding landfill conversion as the region moves towards a more holistic waste management system include:

 Transition costs converting landfills to Transfer Stations,  Estimated ongoing Transfer Stations operational costs,  Ownership of waste and partition of responsibilities,

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53  Collection Costs for kerbside waste and fleet ownership/operation. The recent survey conducted through the region suggested costs should be competitive to target the following lift rates; o MSW : $1.20 – $1.40 per bin o CoRecyc : $1.20 – $1.40 per bin o FOGO : $1.20 – $1.80 per bin o Hard waste collection rate between $60 - $85 /T.  Gate fees of alternate disposal services; for example the WTE gate fee from Avertas Energy for processing waste at Kwinana was $115/T in 2015. More recently estimates of either plant come in at approximately $150-160/tonne.  Design to serve economies of scale at a regional level.

Transfer Station Design

The local need for the transition to Transfer Stations reflect the nationwide trend in solid waste disposal towards the construction of large, centralised facilities rather than maintaining small, rural, and often unsupervised landfill sites. The rising cost and risk management pressures in maintaining small landfills are becoming unacceptable for the Councils responsible. Fewer but larger engineered landfills have increased environmental controls and opportunities for improved resource recovery, which aligns with state and national waste management and environmental legislation. Servicing these landfills with material require a coordinated network of Transfer Stations which will have to be developed across the South West within the next ten years.

The design of the Transfer Stations should help streamline future regional logistics pressure to effectively process and sort local waste streams. Facilities are to be located on land already owned by Council to prevent further land acquisition, reduce planning timelines and other negotiations. Consideration should be given to broader resource recovery networks, regional strategies, transport economics/logistics and potential for regional co-operation.

The operational areas of the proposed facilities should be sized depending on the:  Volumes of waste type to be transferred;  Rates of waste transport to and from the site;  Functions to be carried out on site (for example whether they are solely for waste transfer, will they hold Councils service vehicles, what recyclables can be stockpiled such as green waste or concrete for crushing);  Size and type of potential vehicles that may accessing the site, for example B-doubles for bulk transport; and  Types of customers the facility is intending to serve. Accommodating future expansion is required when considering the preferred land area. Sufficient space can increase operating efficiency over time and avoid expense relocation costs. Other considerations include space for resource recovery activities, community education facilities operational processing such as mulching/composting, metal recycling, reuse centres and community education centres can also be located at the site.

o MRF/Sorting Facility o Partnerships/Alliances o Innovation Hubs o Market Development & Potential market opportunities

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54

Logistics

Coordinating regional waste operations to capitalise on our economies of scale requires siting facilities that do not impose a disproportionate burden upon lower income or smaller communities. Negative impact facilities in smaller communities, labour demands that cannot be filled locally or creating various environmental and health issues need consideration. A central body to manage the various aspects not least location, is critical to obtaining cost-effective results.

Previous site investigations for the Group have focussed on putting dedicated facilities e.g. a Regional Landfill, in places acceptable to the majority of LGAs in the SW resulting from the Site Selection Study completed by Talis consultants in 2015. This was not found to be viable. The nature of the SW Region limits the effectiveness of centralised processing facilities over a certain volume and the RWMS2015 recommended developing a network of Local, Sub-Regional and Regional infrastructure and services to form an IWMS.

As the industry is now moving towards specialisation in resource recovery, the benefits of operating centralised locations need to be balanced against local opportunities to value add to waste streams. For example, multiple sorting centres would be too costly, so centralising the capital investments and targeting high value materials in sub-regional centres is necessary to recover economic volumes from large waste streams. Over time, LGA specialisation may be an option but this will be influenced by the development pattern of the resource recovery operations.

The ongoing development of the waste-to-reuse industry needs to ensure that Waste Derived Materials (WDM) are regulated to ensure safety of use and minimise risk to the growing business. Examples of commonly used WDM include:

Waste Use Food organics and garden organics Energy production and Composting Construction and demolition waste Road base and drainage rock Fly ash or bottom ash from waste to energy or Engineering materials electricity production Treated acid sulfate soils Fill Biosolids from wastewater treatment Soil amendment Red sand and alkaloam Soil amendments Gypsum and other calcium sulfate minerals Soil amendments produced from manufacturing Mixed gypsum, iron and manganese oxides Soil amendments from the refining of titanium ores Alumino silicate from lithium production Concrete and cement products Reclaimed asphalt from public roads Road base and construction products Used tyres and conveyor belts Crumbed rubber modified bitumen (CRMB) used for road sealant spray applications Recycled/reprocessed granular plastic Polymer modified bitumen (PMB) Treated wastewater Irrigation Table 6: Examples of materials that could be considered for general WDM determinations

Taking advantage of these opportunities requires specialities throughout the Region. To balance these, a summary of the sub-regional strengths can then identify potential industries:

SW Sub-Regions LGAs

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55  Bunbury-Geographe Bunbury, Harvey, Collie, Dardanup, Capel  Capes Augusta-Margaret River and Busselton  Southern Forests Boyup Brook, Donnybrook-Balingup, Bridgetown-Greenbushes, Manjimup and Nannup. Identifying the major economic drivers of each region will then identify the local opportunities for waste recovery and processing:

Bunbury Geographe region Southern Forests region Capes region Mining Agriculture Tourism Infrastructure projects Timber Viticulture Manufacturing Tourism Agriculture Agriculture Viticulture Creative industries Commercial & professional Professional services Professional services services

LGA Industries Popln* City of Busselton Tourism, Viticulture, Dairying, Market Gardening, 38,926 Manufacturing, Creative Industries City of Bunbury Business, Retail, Entertainment, Health, Arts, 31,776 Government sector, Heavy and light industry, Tertiary Education, Tourism, Mining, Port Trade Shire of Harvey Dairying, Beef Cattle, Horticulture, Mining, Citrus 27,798 Fruits, Vineyards, Abattoir, Silicon Smelter, Pigment Plant, Dairy and Fruit Processing Plants, Light Engineering Shire of Capel Mineral Sands Mining, Basalt, Dairying, Vineyards, 18,022 Fruit, Dairy Products, Timber, Arts and Crafts Shire of Augusta-Margaret Dairying, Beef, Sheep, Deer, Fishing, Timber, 15,700 River Market Gardens, Viticulture, Tourism, Timber Crafts and Furniture Making, Arts and Cottage Industries Shire of Dardanup Beef cattle, Dairying, Poultry, Sheep, Brickworks, 14,368 Timber Processing, Viticulture and Wineries, Tourism, Stockfeed, Mineral Sands Mining. Light Industry Shire of Manjimup Tourism, Timber, Wood chips, Horticulture, Beef 9,159 Cattle, Fruit and Vegetables, Dairying, Sheep, Wineries and Viticulture, Marron and Aquaculture, Truffles Shire of Collie Power Generation, Alumina Refinery, Open Cut 8,754 Coal mining, Timber, Farming, Tourism, Aquaculture, Viticulture Shire of Donnybrook-Balingup Sandstone Quarry, Fruit Orchards, Vegetables, 6,062 Sheep, Viticulture, Tourism, Dairying, Beef Cattle Shire of Bridgetown- Mining, Timber, Farming, Horticulture, Marron, 4,722 Greenbushes Viticulture, Crafts & Cottage Industries Shire of Boyup Brook Vineyards, Timber Plantations, Sheep, Cattle, Pigs, 1,756 Grain Harvesting, Olives, Cottage Industries

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56 Shire of Nannup Timber, Dairying, Beef Cattle, Horticulture, 1,363 Tourism, Arts and Crafts, Floriculture, Fishing, Furniture Making, Aquaculture, Viticulture Table 7: Figures arranged in order of population data as listed from Australian Bureau of Statistics, March 2018

Waste Products Opportunities

 Bunbury-Geographe waste opportunities: o Waste Water, o Tailings, o Logistics centre, o Mine Operations Waste, o Construction & Demolition, o Road Construction, o Organics processing, o Glass, o Rubber & Tyres  Southern Forests region waste opportunities: o Organics Processing, o Water processing, o BioMass  Capes region Waste Opportunities: o Glass, o Liquid waste, o Organics processing, o Rubber, o Cottage Industry recycling programs. Suitable Waste Streams or Facilities for Processing by LGA

LGA Potential waste Complementary Assets processing facilities City of Busselton: Bio-digester (WTE), Lined landfill Rubber shredding Land at Transfer Station Liquid waste Proximity to power users MRF Council owned side-loader fleet Mineral sand mining Organic waste sources City of Bunbury & Composting Operating landfill licenced for lined cells Shire of Harvey Rubber shredding Central location BHRC R&D Access to Mining operations MRF Access to Port Textiles Kemerton Industrial Park. Shire of Capel Transfer Station, Mineral sand mining Timber/high cellulose Centralised location stockpiling Shire of Augusta- Composting, Engaged community Margaret River Biomass, Organic matter from agriculture (viticulture), Large scale reuse/repair forestry, restaurants. facilities Textiles

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57 Shire of Dardanup Transfer Station Close to BHRC Softwood milling

Shire of Manjimup Biomass Access to forests for wood waste Shire of Collie R&D Access to power grid Pyrolysis Land at landfill Gasification Mining operations Metal recycling Power generation industries Glass manufacturing Provides region’s water from forested Liquid Waste catchments. Textiles Shire of Biomass, Transfer Station Organic matter from agriculture and forestry Donnybrook- Sandstone extraction Balingup Shire of Bridgetown- Transfer Station Organic matter from agriculture and forestry Greenbushes Shire of Boyup Brook Biomass Access to forests for wood waste Organic matter from agriculture Shire of Nannup Transfer Station Organic matter from agriculture and forestry Table 8: Identifies the most suitable waste facilities for further investigation according to the sub-regional strengths. Transfer stations are critical for waste supply volumes and are suited to high producers close to processing facilities. MRFs have been identified in high volume waste processing facilities (>15,000 tonnes/year).

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58 WASTE LEVY IMPACTS

Although not formally announced, the Minister for Environment, Stephen Dawson MLC stated at a meeting of the Municipal Waste Advisory Council (MWAC) in February 2019 that the levy is likely extend to the Peel and South West. Further messaging has reinforced this objective and although not a guarantee, addressing the impacts is critical to understanding the economic pressures that may impact regional waste solutions.

The Department of Water and Environmental Regulation (DWER) stated objectives of the waste levy are summarised as influencing waste management practices, especially reducing waste to landfill by:  generating less waste;  recovering more value and resources from waste; and,  protecting the environment by managing waste responsibly. The waste levy is currently set at $70 tonne and applies to materials received at landfill premises. There are few exemptions which include hazardous materials, waste need or generated for a function (e.g. cover) or resulting from non-human processes, e.g. waste washed up on shore by the sea. For practical purposes, it can be assumed that the MSW accepted by SW landfills will incur the levy. The rise in disposal cost per tonne makes alternate uses of waste more economically justifiable.

The State has signalled that should the Perth and Peel Levy area be expanded then compliance costs particularly in smaller areas where alternatives are more costly, is likely to be modest. Should the levy be applied to discourage metropolitan waste from being disposed in the SW, then it may be applied at a rate equal or slightly less than the metropolitan charge ($70/tonne). Regardless of the final charge, raising the cost of disposal will make alternative waste treatment more financially viable. A waste levy does not directly impact ratepayers but impacts the cost of landfill operations for LGAs. This incentivises source separation improvement and avoiding disposal.

Experiences from elsewhere in the country have shown:

 The waste levy has helped develop alternate waste management projects but the landfills remain central in waste operations. The investment from the levy is insufficient to adequately deal with the total volumes of overall waste management needs, despite generating significant amounts of money for State governments.  The waste levy unduly burdens certain councils. Large contributions from certain Councils to State programs mean that levy funds are applied to regions which are not subject to the levy.  There is a risk that should the government choose a different levy rate in regional areas to metropolitan areas as has been done in other States, urban Councils such as the Cities of Bunbury and Busselton will be subject to a higher levy rate than smaller regional Councils despite being further away from Perth and Peel. This incentivises waste operators to take greater volumes to smaller regional councils, resulting in shorter operational lifetimes due to increased volumes being received.  Already the return of funds generated from the waste levy to alternative treatment solutions is considered by many to be too low when considering the amounts of MSW still being deposited in landfills. The levy is included in the state’s consolidated revenue and a proportion is assured through various recycling programs. Insufficient investment of the levy undermines long term solutions and competition within the sector

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59 At a recent Parliamentary enquiry, national tyre recycling company, Tyrecycle stated that waste levies incentivise waste collectors in finding economic methods to dispose of material. By way of example, Tyrecycle showed that the profit-driven nature of the waste management sector means waste collectors will look for the cheapest point of disposal. Manipulating the disposal price to be higher than the cost of recycling makes recycling more attractive. In NSW where landfill costs can exceed $250/tonne, landfilling tyres becomes uneconomic. In contrast, tyres in Queensland, the Northern Territory and Tasmania are sent mainly to landfill. The costs associated with tyre disposal are generally lower than those associated with recycling.

 Since the Levy rates in Western Australia were substantially increased in 2011, there has been a significant diversion from landfill for C&D waste and C&I waste. Inert material diverted from landfill has resulted in reducing overall levy payments for inert material however it is unclear where this material has gone.  Low landfill prices are also a financial barrier to recycling, investing in resource recovery and implementing waste reduction.  Resource recovery operations employ more people and require greater investment in infrastructure per tonne of material compared to landfills. An example of this was provided by Envorinex, which highlighted that in Victoria (with a levy) four tonnes of waste black poly pipe would cost $600 dollars to dispose of at a landfill site, but in Tasmania (with a very low levy), disposal would only cost $40. The conclusion was that landfill levies should be priced to encourage businesses to send their waste to recyclers and not to landfill.

Should levies not be appropriately priced and managed, unusual and unintended outcomes have been seen such as:  the unnecessary transport of waste between jurisdictions to avoid levy costs;  an uncertain regulatory environment undermining investment in recycling infrastructure;  high administrative costs, particularly in the application of complex schemes;  potential for fraud created by mislabelled waste.  levies can encourage stockpiling and illegal dumping.

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60 CONCLUSIONS

The Group recognises that continued individual waste management reduces negotiating power for sub-regional contracts and increases costs. Coordinating operational assets using a separate entity, for example a Regional Subsidiary, is likely to achieve greater diversion and more effective education programs at an overall lower cost.

Although the Regional Subsidiary legislation is not ideal for operating and acquiring large waste assets or operations, clarifying the goals, risks and investment levels for SW Councils seeking to externalise all waste operations sets the long term vision to be ready when the legislation is amended. IF the changes do not proceed, there will remain a solid foundation for regional cooperation and investment strategies. Given the trend of waste management growth in Western Australia over the previous 15 years, strategic partnerships with private industry and growing the local economy will spread risk and reduce overall costs for Councils in the Region.

Councils participating in a cooperative model of investment will likely result in services being provided that are beyond the scope of an individual Council. More complex treatment processes underpinned by a comprehensive community engagement strategy and coordinated procurement policy can further reduce waste volumes through building a regional waste economy.

 Forming a Regional Subsidiary to equitably manage larger and more complex waste treatment systems is critical to achieve regional aspirations. Clear outcomes and business phases need to be approved prior to commencement;  All proposed treatments and growth needs to be underpinned by strong, consistent community messaging that plays a significant role in managing contamination and participation; and,  Councils need to use their purchasing power to promote the growth of the local reuse and recycling industries.

Although not as simple as a single disposal process, a comprehensive waste management plan take s a strategic view of the combined operations, providing greater flexibility and diversity in waste management. The loss of the international waste export market and the increase in recycling investment are significant drivers that have not been seen before in the Western Australian waste processing industry. With the existing State and Federal support for waste processing growth, this is the time to build the local economy. Identifying long term clients like Councils and State organisations provides a reliable market for waste derived goods as long as clear specifications determine quality.

As the industry undergoes growth and change, an Expressions of Interest process focussing on processing municipal solid waste is proven approach that will open the region to a wide pool of service providers. Crafted skilfully, the specifications can capture economic long term solutions that in some areas have developed local economies focussed on reusing materials previously considered worthless.

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61 APPENDICES

1. Literature Review

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62 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.2 MARGARET RIVER MAIN STREET PARKING CONSIDERATIONS

Attachment 1 – Engagement Report: Time limited, unpaid parking – Margaret River

Attachment 2 – Timed Parking and Taxi Zone Stall Locations

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Engagement Report Time limited, unpaid parking - Margaret River

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1 Introduction In response to requests from some local businesses, the Shire sought to gain an understanding of trader and community sentiment in relation to the introduction of timed unpaid parking along the main street on Bussell Highway in addition to determining a suitable location for the 24-hour taxi zone and peak period taxi locations.

Engagement took place between the 10 May and 07 June 2021 by means of a survey (available through YourSay or hard copy) and direct consultation with taxi service providers.

The collated outcomes of this will be harnessed to inform a recommendation for or against the inclusion of timed parking within the town centre of Margaret River in addition to permanent location for taxi zones. 2 Results Survey Submissions Eighty-seven (87) survey responses were received via this community consultation process. Of these 70 % were from shoppers, 14% business owners, 9% employees and 7% identified as having an alternative relationship with the main street. Based on this main street traders (business owners and employees) represent 23% of survey respondents. Timed Parking

Parking issues experienced by traders

General

• Complaints received from customers in • Rectangular design of parallel parking bays relation to parking supply. with non-mountable kerbs. • Bays being occupied by business owners • People parking on the main street for and staff during daytime hours. extended periods of time. • Availability of parking is only an issue during • Access to parking on Ned Higgins Lane is peak periods. impeded due to lane width. • No issues identified. • Upgrades to Ned Higgins Lane to accommodate more parking would assist with supply. Specific

• Increased use of private parking areas that • Availability of parking on the main street began at a similar time to a reduction in opposite Higgins Street. parking bays on the main street. This is • Closure of Fearn Avenue to vehicles has impacting ability for patients (including older removed additional car parking. people and people with mobility issues) from • Lack of ‘drop zone’ areas for tour operators. parking close to the medical practice. • Need for bays to remain vacant at certain periods of day to allow for deliveries (Newsagent)

1 Natural Connected Prosperous

65

Level of support – timed parking

As shown in Figure 1 the majority of survey participants (54%) do not support timed parking along the main street of Margaret River. Forty three percent (43%) of participants are in support of timed parking with 21% supporting a blanket 3-hour limit and 22% supportive of a variety of time limits depending on the demand. Three percent (3%) of participants were unsure whether they supported timed parking or not.

Support for timed parking within the town centre of Margaret River

3% 21%

54% 22%

3 Hour limit Variety of time limits Not supported Unsure

Figure 1 – Support of timed parking

The most common response provided by participants not in support of timed parking was that timed parking is not conducive with the laid-back small-town Margaret River feel. Other themes included: • • There is enough parking and variety of Timed parking will make the town centre feel options to suit all users. more like being in an urban environment. • • Timed parking should have a one-hour limit Peak time demand for parking is so limited fronting chemists and blanket three-hour limit meaning timed parking is unnecessary. • in all other locations. Associated cost of timed parking will be • There does not seem to be a parking issue. passed on to ratepayers. • • Timed parking is the first step towards paid Parking restriction signage is ugly. • parking. Timed parking will impact on people’s ability • Timed parking (including signage) will detract do what they need / want in town without from the recently completed beautification of stress. • the main street. Cars parking on the main street for extended • It may create confusion. periods of time is a non-issue. • • Untimed parking is a great motivator for Timed parking would increase pressure on visitors coming to shop in the main street. private carparks.

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Taxi requirements Taxi zone location – Permanent 24 hour

Seventy four percent (74%) of survey participants support the location where the taxi zone has recently been re-established (fronting Sidekick Café and Margaret River Artisan Store) as the permanent taxi zone location. Nineteen percent (19%) do not support this location and 7% are unsure whether this should become the permanent location for the taxi zone or not.

24-hour taxi zone location

7%

19%

74%

Support Not supported Unsure

The most common themes (separated by supported and not supported) provided as text responses to this location remaining as the permanent taxi zone location include:

Supported • Historical location association as this has • Taxi zone needs to go somewhere. been the taxi zone for a long time and it • Support views / wishes of nearby business works well. owners. • It’s good to have a permanent location for the • Located in good proximity to the Visitors taxi zone that is easily accessible for both Centre and Settlers Tavern and services patrons and taxi providers. that people who do not drive require. • It is imperative that a taxi zone is provided • Taxi zone need to be in locations that are in the middle of town, as it is the frailest of easily accessible and where the public can our community that need it! easily find them / see them. Locating this off • Taxi zone needs to be located in the centre the main street or away from venues that of town and this is a very central location for would generate the most usage (such as the all to get to and from. pub) doesn’t make a lot of sense. • Having a designated taxi zone encourages • There is adequate parking elsewhere so it’s people to catch a cab as appose to drink appropriate for this to be a taxi zone. drive. • This is the main location that taxis pick up • Does not impact on parking availability as its from so makes sense. directly adjacent to IGA carpark.

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Not supported • Not enough information provided in relation • Support views / wishes of nearby business to taxi demand to provide a response. owners. • Two bays exclusively for taxi usage may be • This is a prime location for carparking too much. predicted to go to waste with the lack of taxi • It’s too difficult to use a taxi. services we are currently experiencing. • It’s unfair that a specific business should be • Taxis can pick you up from anywhere singled out as having a public service in front meaning a rank is not required. of it for many reasons.

Peak period taxi zone– Fronting Teddy’s Big Spoon and Toastface Grillah Sixty seven percent (67%) of survey participants support the parking bays fronting Teddy’s Big Spoon and Toastface Grillah serving as the peak hour taxi zone (Friday and Saturday night – approximately 9pm – 1pm). Twenty-three participants (23%) did not support this location and 10% were unsure whether they supported this location or not.

Peak period taxi zone

10%

23%

67%

Support Not supported Unsure

The most common themes in provided by survey participants who are not supportive or unsure of their level of support of this location serving as the peak period taxi zone include:

Not supported • Only need one taxi zone in the town centre • Impacts on parking and as parking is of Margaret River and as there are not many already limited on the main street it should cars on the main street at night taxis will be be established on a side street instead. able to park here regardless. • This may impact on customers picking up • Taxi ranks should be grouped together (24 takeaways and on walk in trade from visitors hour and peak). who may be unaware of rear parking options. • 10pm – 1pm might make more sense.

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• Taxi ranks are outdated. People want to be • Council should support alternative affordable picked up from the location that are at transport options instead of supporting the instead of walking to a taxi rank. outdated taxi service. • Peak hour taxi zone should front the newly • Should be outside the Tavern. closed Fearn Avenue Precinct. • Limit the number of signs required by limiting • Adding more taxi zones will not solve the the amount of restrictions. issue of taxi availability.

Unsure • If owners/operators of said businesses are in • Confusing location favour I would be. If not, then no. • If it's peak time would need 4 bays in total • Main street parking is too difficult. (2 permanent ones) really be needed? But at that time of night probably not going to upset too many people.

Further Comments – General

The following provided a synopsis of further comments provided grouped by theme under timed parking and taxi rank. Timed parking • Timed parking make sense as it allows • If timed parking is introduced this needs to shoppers and visitors the most convenient be policed and be consistent as not to access to main street businesses and confuse users. services. • Timed parking should have a one or two- • Make sure the solution is for the long term (not just a short-term fix). hour limit potentially with no restrictions • If parking remains free, then no problems! between 6.30pm and 6.30am. • Timed parking is not required. • Timed parking should have a 15-minute • Would love to see positive solutions to time limit on the main street, then payment encouraging less vehicles to town as the by half hour. The main street should not be Shire has already started to do with cycling a long-term parking area. friendly initiatives in Main street makeover. • Timed parking would be a sad outcome for Parking infringements lead to increased policing with negative impacts on people’s Margaret River and if introduced it needs to perceptions of our brand - both as a holiday be a minimum of 30-minute parking (not 15 destination and as a place to live. They will minutes). also lead to an increase in negative • The community appreciates a light touch sentiment towards the Shire and its workers, when it comes to control of their daily lives. who need to be seen and acknowledged for Let's not organise Margs out of its relaxed, the positive impacts they have in our charming atmosphere. It's had a great community. • 15 minutes outside chemists is not a good freshen-up, but let's not ruin it with idea. bureaucracy. No parking meters, please! • Timed parking may be required to ensure • If people utilised the additional parking business owners and staff do not park on the available off the main street, we wouldn’t main street for extended periods of time. need to implement timed parking. • Parking infringements would damage the • Concern that timed parking will turn into towns friendly reputation. paid parking.

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69

• Timed parking for chemist needs to be 30 • Shire to consider adding additional minutes – not 15 minutes. carparking facilities off the main street.

Taxi zone

• Consider an additional taxi zone near Coles • Should be on private land. or near the Forrest / Wallcliffe / Bussell • Could the taxi zone serve as uber drivers in roundabout rather than an additional bay the future? near the permanent taxi zone. • The taxi zone should be more central. • 24-hour taxi zone should be located on a side street, such as Willmott Avenue.

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[email protected] www.amrshire.wa.gov.au

Margaret River Augusta If you are deaf, or have a hearing impairment or speech impairment, 41 Wallcliffe Road (PO Box 61) 66 Allnutt Terrace contact us through the National Margaret River 6285 Augusta 6290 Relay Service: T (08) 9780 5255 | F (08) 9757 2512 T 08 9780 5660 | F (08) 9758 0033 • TTY users phone 133 677 Office Hours Office Hours then ask for 08 9780 5255 Mon to Fri, 9am – 4pm Mon to Fri, 9am – 4pm • Speak and Listen users (closes for lunch 12pm – 1pm) Phone enquiries phone 1300 555 727 8am – 4.30pm Phone enquiries then ask for 08 9780 5255 8am – 4.30pm • Internet relay users

connect to the NRS www.relayservice.com.au then ask for 08 9780 5255 71

Attachment 2 –Timed parking and taxi zone stall locations Timed Parking Address: 148 Bussell Highway, Margaret River Coordinates: -33.952613, 115.073402 to -33.952538, 115.073413 Restriction: 30-minute parking between 6.30am-6.30pm No bays (stalls) 1 stall, adjacent to ACROD bay

Address: 101 Bussell Highway, Margaret River Coordinates: -33.949179, 115.074253 to -33.949004, 115.074295 Restriction: 30-minute parking between 6.30am-6.30pm No bays (stalls) 1 stall, adjacent to ACROD bay

1

72 Address: 105 – 107 Bussell Highway, Margaret River Coordinates: -33.949575, 115.074214 to -33.949466, 115.074239 Restriction: 30-minute parking between 6.30am-6.30pm and 3-hour parking 6.30pm-6.30am No bays (stalls) 2 stalls

Taxi Zones Address: 106 Bussell Highway, Margaret River Coordinates: -33.949537, 115.074114 to -33.949432, 115.074127 Restriction: 24-hour taxi zone No bays (stalls) 2 stalls

2

73 Address: 106 Bussell Highway, Margaret River Coordinates: -33.950506, 115.074011 to -33.950355, 115.074036 Restriction: Fri – Sat 10pm-2am taxi zone No bays (stalls) 3 stalls

3

74 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.3 SCHEME AMENDMENT 69 FOR INITIATION – REZONE PART LOT 30 PEAKE STREET, COWARAMUP FROM GENERAL AGRICULTURE TO TOURISM

Attachment 1 – Scheme Amendment Map

Attachment 2 – Scheme Amendment Proposal

75 76

SHIRE OF AUGUSTA MARGARET RIVER

Complex Scheme Amendment No. 69

Portion of Lot 30 Peake Street COWARAMUP

March 2021

77 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

IMPORTANT NOTE

Apart from fair dealing for the purposes of private study, research, criticism, or review as permitted under the Copyright Act, no part if this report, its attachments or appendices may be reproduced by any process without the written consent of Halsall & Associates Pty Ltd. All enquiries should be directed to Halsall & Associates Pty Ltd.

We have prepared this report for the sole purposes of Allan Earl (“Client”) for the specific purpose of only for which it is supplied (“Purpose”). This report is strictly limited to the purpose and the facts and matters stated in it and do not apply directly or indirectly and will not be used for any other application, purpose, use or matter.

In preparing this report we have made certain assumptions. We have assumed that all information and documents provided to us by the Client or as a result of a specific request or enquiry were complete, accurate and up-to-date. Where we have obtained information from a government register or database, we have assumed that the information is accurate. Where an assumption has been made, we have not made any independent investigations with respect to the matters the subject of that assumption. We are not aware of any reason why any of the assumptions are incorrect.

The report is presented without the assumption of a duty of care to any other person (other than the Client) (“Third Party”). The report may not contain sufficient information for the purposes of a Third Party or for other uses. Without the prior written consent of Halsall & Associates Pty Ltd.

(a) This report may not be relied on by a Third Party; and

(b) Halsall and Associates Pty Ltd will not be liable to a Third Party for any loss, damage, liability or claim arising out of or incidental to a Third Party publishing, using or relying on the facts, content, opinions or subject matter contained in this report

If a Third Party uses or relies on the facts, content, opinions or subject matter contained in this report with or without the consent of Halsall & Associates Pty Ltd, Halsall & Associates Pty Ltd disclaims all risk and the Third Party assumes all risk and releases and indemnifies and agrees to keep indemnified Halsall & Associates from any loss, damage, claim or liability arising directly or indirectly from the use of or reliance on this report.

In this note, a reference to loss and damage includes past and prospective economic loss, loss of profits, damage to property, injury to any person (including death) costs and expenses incurred in taking measure to prevent, mitigate or rectify any harm, loss of opportunity, legal costs, compensation, interest and any other direct, indirect, consequential or financial or other loss.

Version Control

Report version Revision No. Purpose H&A Author Review date by Date officer Version 1 Initiation VC March 2021

Approval for Issue

Name Signature Date

Marc Halsall

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78 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

TABLE OF CONTENTS

1.0 INTRODUCTION ...... 4 2.0 SUBJECT SITE ...... 5 3.0 PLANNING FRAMEWORK ...... 6 3.1 Local Planning Scheme No.1 (LPS1) ...... 6 3.2 Local Planning Strategy 2011 (LPS2011) ...... 7 3.3 Draft Local Planning Strategy 2020 ...... 7 3.5 West Cowaramup Townsite Strategy ...... 10 4.0 PROPOSAL ...... 11 5.0 JUSTIFICATION ...... 13 5.1 Strategic Planning Framework ...... 13 5.2 Location ...... 13 5.3 Land is surplus to requirements ...... 14 5.4 Land characteristics are beneficial ...... 14 5.6 Minor consideration ...... 14 5.7 Proposal provides needed tourism land ...... 14 5.8 Public open space provision is already significant ...... 15 6.0 CONCLUSION ...... 16

Attachment 1 - Bushfire Management Plan and BAL Assessment

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79 PLANNING AND DEVELOPMENT ACT, 2005 (AS AMENDED)

RESOLUTION TO PREPARE AMENDMENT TO LOCAL PLANNING SCHEME SHIRE OF AUGUSTA MARGARET RIVER LOCAL PLANNING SCHEME NO.1

AMENDMENT NO. 69

That Council pursuant to the Planning and Development Act, 2005 (as amended), and Part 17(2) of the Town Planning Regulations (1967), initiates Amendment No.69 to Local Planning Scheme No. 1 for the purpose of:

1. Amending the Scheme Map to incorporate a portion of Lot 30 Peake Street, Cowaramup with the ‘Tourism’ designation.

The Amendment is ‘complex’ under the provisions of the Planning and Development (Local Planning Schemes) Regulations 2015 for the following reason:

“an amendment that is not consistent with a local planning strategy for the scheme that has been endorsed by the Commission”

Dated this______day of______, 2021.

______CHIEF EXECUTIVE OFFICER

80 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

1.0 INTRODUCTION

Halsall and Associates have been engaged to prepare a Scheme Amendment to Local Planning Scheme No. 1 for consideration by the Shire of Augusta Margaret River and the Western Australian Planning Department (‘WAPC’). This amendment seeks to modify the zoning of a portion of Lot 30 Peake Street, Cowaramup to ‘Tourism’. The Shire may be aware that an adjustment similar to this was recently entertained by the Shire, Planning Commission and Minister for that land immediately to the south generally consistent with the planning framework applicable.

Prior to the preparation of this scheme amendment report an application for ‘In Principle’ support was lodged for consideration with the Shire, who advised that this would be accepted as a submission on the Local Planning Strategy, which was subsequently submitted to the Shire for review. The proposed Scheme Amendment has been tacitly supported at officer level and the Planning Commission has also advised informally that the proposal does appear to be logical. The Scheme Amendment report has been initiated on this basis.

Support of this Scheme Amendment is requested for this minor adjustment so that establishment of a low key tourism development can occur. Future urban planning would not be compromised.

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81 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

2.0 SUBJECT SITE

The subject site is Lot 30 Peake Street, Cowaramup which is substantial land holding held by the Earl family for many years. The site is situated immediately to the west of the town centre of Cowaramup and is approximately 11 hectares of the area. The location of the site is evident at Figure 1 below.

Figure 1 - Location Plan

Subject site

Source: AMRSC Intra-maps

As evident above, the subject site also has frontage to Memorial Drive in the southwest and Miamup Road in the west and also abounds the Rails to Trails Reserve and unconstructed road reserve in the northwest. The site also has frontage to the end of Peake Street in the northeast.

The site is predominantly cleared however, there is a stand of vegetation in the far southeast adjoining Reserve 22636 (Pioneer Park) and there is a creek line system that runs through the eastern part of the site with two dams constructed on this to support the grazing activities that have occurred.

A substantial shed has been constructed in the south west corner of the site and services including power, telecommunications, water and sewer are all located either immediate or nearby the site.

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82 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

3.0 PLANNING FRAMEWORK 3.1 Local Planning Scheme No.1 (LPS1)

The purpose of this Scheme Amendment proposal is to alter the zoning over a portion of Lot 30 from ‘General Agriculture’ to ‘Tourism’ by designation on the scheme map. This is required to be addressed by way of a (complex) amendment to the current scheme, the process of which is detailed under Part 5, Division 1 of the Planning and Development (Local Planning Schemes) Regulations 2015 to which this Scheme Amendment accords.

Under LPS1 the subject site is dual zoned with most of the site zoned General Agriculture with a strip to the west of Lot 12 in the south west zoned Residential R15. This is evident in the plan below.

Figure 2 - Excerpt Local Planning Scheme No 1 Map

Subject site

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83 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

3.2 Local Planning Strategy 2011 (LPS2011)

Under the Local Planning Strategy 2011 the site is identified for development in the west with DIA C4 applicable and parkland associated with the creekline system with tourism uses adjacent to the eastern boundary. This is evident on the excerpt from the strategy plan below. Figure 3 – Local Planning Strategy Map 2011

3.3 Draft Local Planning Strategy 2020

Under the Draft Local Planning Strategy 2020 currently advertised, the area of Lot 30 is identified as Future Urban, and this is obviously reflective of the objectives under the previous Local Planning Strategy and also the Cowaramup Village Strategy. Figure 4 below indicates the allocation for future urban under the Draft Local Planning Strategy.

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84 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

Figure 4 – Draft Local Planning Strategy 2020 Map

Subject site

The Draft Local Planning Strategy Report outlines a portion of the subject land as falling within “Precinct C3” with the proposed land use being Residential, with densities R10-R20 identified. The plan indicating the precinct within the report however appears to exclude land east of the creek within the Urban Zone for Residential and there is an estimated Lot yield of around 80 with short- term development time frame. Structure planning is required for this urban development. A notation indicates that water course protection on the eastern side of the precinct is a feature. An excerpt from the draft LPS is below.

The plan indicating the precinct for C3 as relevant is provided below:

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85 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

3.4 Cowaramup Village Strategy

The Cowaramup Village Strategy is endorsed by the Shire of Augusta & Margaret River in 2005 and this presented detailed considerations for various parts of the town site, including the subject site. An objective of this strategy was to identify tourism opportunities in the eastern part of Lot 30 extending along the eastern boundary. Further to this, the Shire supported a Scheme Amendment to create a Tourism Zoned portion of the land.

An excerpt from the Cowaramup Village Strategy indicating this objective is provided below:

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86 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

Figure 5 – Cowaramup Village Strategy Map

3.5 West Cowaramup Townsite Strategy

In 2003 there was also an adopted Town Site Strategy for West Cowaramup, which indicated the western parts of Lot 103 falling within precinct identified for future development. This is embodied within the Cowaramup Village Strategy 2005.

State Planning Policies

State Planning Policy 3.7 – Planning in Bushfire Prone Areas

The subject site falls into a bushfire prone area as designated under this policy. On this basis Bushfire Prone Planning were engaged to ascertain the suitability of the site in terms of achieving an acceptable BAL rating for consideration of future tourism development. A Bushfire Management Plan and BAL Assessment has been prepared and this is attached for review at Attachment 1. The purpose of the Bushfire Management Plan is to inform future development planning by indicating the Bushfire Attack Levels (BAL’s) that future buildings within the development site are potentially subject to. The report findings provide that it is considered that with the appropriate measures for location, siting and design of the development, vehicular access and firefighting water supply, compliance with the bushfire protection criteria can be achieved for this site.

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87 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

4.0 PROPOSAL From a review of the planning framework in the previous section it is noted that the land is identified for urban development and the western parts are earmarked for Urban Residential Development within the 2020 Local Planning Strategy suggesting R10-R20 density.

There has also been an identification within the Cowaramup Village Strategy of Tourism opportunities on the east side of the creek line in the subject site and this has already been taken advantage of to some extent by a proposed Scheme Amendment and creation of a lot in the eastern part of the site (including creation of Lot 2).

There is however, a portion of land to the north of Lot 2 which has not been allocated for Tourism as yet and is excluded from the creek area and also would not inhibit the extension of Peake Street into the urban cell and across to Miamup Road. As such, there is a portion of land (approx. 2000sqm) as indicated below, which could be surplus to the requirements of Public Open Space and access and would be separate from the urban cell. This portion of land is consistent with the tourism objectives previously identified immediately to the south could be considered suitable under the Local Planning Strategy as an offering of urban development separate from the residential offering, which would be in the precinct to the west. The plan below indicates the portion of land which is therefore the subject of this request for consideration of re-zoning to Tourism to create an additional offering of tourism land use. The scheme amendment will facilitate the rezoning of this portion of land and how this will be depicted is evident on the Scheme Amendment Plan appended to this report. Figure 6 below also illustrates how this will indicatively occur whilst un-inhibiting land area to the immediate north as an envisaged future 20m road reserve that will ultimately service future residential development as identified in the balance site area under the DLPS No.1

The overall land area of 2000m2 is consistent with lots immediately adjoining that also identified for tourism under the DLPS as such the proposal represents a consistent approach to future anticipated land use activities and results in orderly and proper planning outcomes.

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88 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

Figure 6 – Image of proposed tourism site (2000m2)

The tourism site identified above would provide another outlet for tourism with low key offering including main dwelling component and guesthouse or small scale chalet development.

Justification for this is provided below.

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89 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

5.0 JUSTIFICATION 5.1 Strategic Planning Framework Given the specific site as identified for urban purposes and there has been identification for tourism uses east of the creek line under the Cowaramup Village Strategy, the currently planning framework does not necessarily exclude consideration of an amendment for tourism and an adjustment to this effect would be consistent with a previous planning decision immediately to the south. The small area of land could therefore be seen to not conflict with long term planning objectives and the Local Planning Strategy.

In addition to the above, the consideration of this parcel of land for tourism would not inhibit the preparation of a future Structure Plan for Urban Development. This piece of land would not be a section considered for residential or that a public road would need to pass. Further, this would also unlikely considered to be very important land for public recreation given that the most obvious location for this would be along the creek line system, where pathway connections could be provided and in the southeast of the site where a natural extension of Pioneer Park would be provided. As such, excision of this parcel of land would not compromise any future planning for urban purposes.

5.2 Location The parcel of land subject to this scheme amendment is a small area of land immediately to the north identified for tourism between where obviously a public road connection would be considered with Peake Street heading westward and connecting Miamup Road, as indicated in the Local Planning Strategy 2020.

Further, this part of Cowaramup has been ear marked for tourism contribution, given it has an attractive outlook over the creek line system and is within walking distance to the town centre. The location is easily accessible by public road from within the town centre and has attributes which would lend well to low key tourism as demonstrated by the immediate development to the south (establishment of Bed & Breakfast/Guesthouse and Chalet).

The location of the site is one that has availability of services and would not conflict with future urban objectives on the opposite side of the creek.

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90 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

5.3 Land is surplus to requirements The strategic planning framework indicates a clear objective of urban development on the west side of the creek and establishment of public open space principally along the creek line system but also extending to Pioneer Park in the south east. This small piece of land would be separate from the Primary Public Open Space areas and urban areas identified for development and the natural extension of tourism use north to where Peake Street would pass through, would be effective use of land in an appropriate context.

5.4 Land characteristics are beneficial As demonstrated by the development immediately to the south, whilst there are some remnant Marri trees in the area, these trees are regrowth and have been considered acceptable for impact for tourist development immediately to the south. Whilst development cannot probably occur on this parcel of land without affecting the trees, the trees are obviously the same as those immediately to the south and therefore not a significant consideration from an environmental perspective, with there being no undergrowth and trees generally not having a trunk connected to 500mm at breast height thus providing habitat for black cockatoos.

The site slopes gently to the west providing an attractive outlook for development with easy access from Peake Street, where other services can be obtained.

5.6 Minor consideration The subject parcel of land is 2000m2 (approximately) and this is therefore a very small piece of land that is essentially a minor consideration in the context of the area. When the Cowaramup Village Strategy was prepared, the identification of tourism land use in the eastern parts of Lot 30, was identified. If the family had chosen to, they could have proposed to include this piece of land within the original Scheme Amendment proposal; however this was not the case at the time. As such, it could be considered that this minor addition of 2000m2 of land for tourism purposes could be seen to be a natural extension of the previous decision to the south and a minor consideration in the context of the overall land holding.

5.7 Proposal provides needed tourism land It is apparent from a review of the Strategic Planning Framework that there is not a significant amount of land identified for tourism within that framework. This section of Cowaramup with outlook onto the creek line system is an important opportunity within walking distance to the town centre to provide a rural tourism experience in an urban setting. The opportunity to provide additional tourism

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91 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

options at this location will bolster the town’s contribution as a tourism node and also in a location where tourists can easily access all that the town centre has to offer. The site would therefore provide additional employment opportunities and accommodation for tourists in an appropriate location.

5.8 Public open space provision is already significant We have undertaken a preliminary review of the area of public open space that has been generally earmarked through the strategic framework including the connection to Pioneer Park and extension along the creekline system. It is estimated that the area of land excluding the parcel the subject of this proposal would amount to around 2.25 hectares which would amount to around 20% of the site. This clearly demonstrates there is adequate public open space provision allocated from the parent title and the small pocket of land the subject of this proposal that would add additional tourism opportunities would not take away from adequate supply in this area.

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92 Proposed Scheme Amendment No. 69 (Complex) Portion of Lot 30 Peake Street, Cowaramup

6.0 CONCLUSION

This request for a Scheme Amendment (Complex) has been prepared to provide a natural extension of the previous decision of Council to support tourism in this part of the town. The Local Planning Framework could be determined to be not necessarily restrictive in this regard and the land could be seen to be surplus and also beneficial in the contribution that could be made to the town.

The request is a minor consideration in the context of future planning for Cowaramup would not inhibit future urban development or structure planning for the urban cell within the broader area of Lot 30.

The proposal is therefore presented as an in principle request so that if the Shire provides support for the objective, further detailed information and a formal scheme amendment can be submitted.

Support for this request is therefore respectively requested.

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93

PLANNING AND DEVELOPMENT ACT, 2005 (AS AMENDED)

RESOLUTION TO PREPARE AMENDMENT TO LOCAL PLANNING SCHEME SHIRE OF AUGUSTA MARGARET RIVER LOCAL PLANNING SCHEME NO.1

AMENDMENT NO. 69

That Council pursuant to the Planning and Development Act, 2005 (as amended), and Part 17(2) of the Town Planning Regulations (1967), initiates Amendment No.69 to Local Planning Scheme No. 1 for the purpose of:

1. Amending the Scheme Map to incorporate a portion of Lot 30 Peake Street, Cowaramup with the ‘Tourism’ designation.

The Amendment is ‘complex’ under the provisions of the Planning and Development (Local Planning Schemes) Regulations 2015 for the following reason:

“an amendment that is not consistent with a local planning strategy for the scheme that has been endorsed by the Commission”

94 SCHEME AMENDMENT MAP

SHIRE OF AUGUSTA MARGARET RIVER LOCAL PLANNING SCHEME No.1 AMENDMENT No. 69

LEGEND

LOCAL SCHEME RESERVES

HIGHWAYS AND MAIN ROADS

PARKS AND RECREATION

PUBLIC PURPOSES R15 CP - COMMUNITY PURPOSES PU - PUBLIC UTILITIES

R5 P E PU AK EET LOCAL SCHEME ZONES

R E

T S S T R

N EET E FUTURE DEVELOPMENT I R15

BR '

O EET R T S

N GENERAL AGRICULTURE IE

'BR O

R15 R15 PRIORITY AGRICULTURE

AY RESIDENTIAL W

IGH H

ELL TOURISM SS U DCA4a B

R15 TOWN CENTRE

CP SPA9 R15 OTHER CATEGORIES EXISTING ZONING R15 RCODES

DCA2d DEVELOPMENT CONTRIBUTION AREA

SPA17 STRUCTURE PLAN AREA

P E AK EET

R E

T S S T R

N EET

E I

BR '

O EET R T S

N IE

'BR O

AY W

IGH H

ELL N SS U B

0 150m 300m

PROPOSED ZONING January 2021

95 Adoption Regulation 13(1) Adopted by Resolution of Council of the Shire of Augusta-Margaret River at the Ordinary Meeting of the Council held on the_____day of______20 _.

______Shire President

______Chief Executive Officer

Final Approval Regulation 21(2), 22(1) & (2) Adopted for Final Approval by Resolution of the Shire of Augusta-Margaret River at the ______meeting of Council held on the ______day of ______20__, and the Seal of the municipality was, pursuant to that Resolution, hereunto affixed in the presence of

______Shire President

______Chief Executive Officer

Recommended/Submitted for Final Approval

______Delegated under S.16 of Planning and Development Act 2005 Date: ______Final Approval Granted

______Minister for Planning Lands and Heritage

Date: ______

96 97 Bushfire Management Plan

Lot 30 Peake Street, Cowaramup

Shire of Augusta - Margaret River

Strategic Proposal - Local Planning Scheme Planning Stage: Amendment

Planning Development Type: Change or Addition to a Land Use

Bushfire Policy – Specific Vulnerable Land Use (Tourism) Development or Use Type:

Job Number: 201109

Assessment Date: 8 February 2021

Report Date: 26 February 2021

98 BPP Group Pty Ltd t/a Bushfire Prone Planning ACN: 39 166 551 784 | ABN: 39 166 551 784

Level 1, 159-161 James Street Guildford WA 6055

PO Box 388 Guildford WA 6935

08 6477 1144 | [email protected]

DOCUMENT CONTROL

PREPARATION

Author: Mick Whitelaw (BPAD Level 2 - No. 37265)

Review/Authorise: Mike Scott (BPAD Level 3 - No. 27795)

VERSION HISTORY

Version Version Details Date

1.0 Original 26 February 2021

-

BMP (Subdivision) Template v8.4

DISTRIBUTION

No. Hard Electronic Destination Version Copies Copy Copy

Person/Business: Vivienne - Halsall and Associates 1.0 1 ☐ ☒ Email:

Limitation of Liability: The measures contained in this Bushfire Management Plan, are considered to be minimum requirements and they do not guarantee that a building will not be damaged in a bushfire, persons injured, or fatalities occur either on the subject site or off the site while evacuating. This is substantially due to the unpredictable nature and behaviour of fire and fire weather conditions. Additionally, the correct implementation of the required bushfire protection measures will depend upon, among other things, the ongoing actions of the landowners and/or operators over which Bushfire Prone Planning has no control. All surveys, forecasts, projections and recommendations made in this report associated with the proposed development are made in good faith based on information available to Bushfire Prone Planning at the time. All maps included herein are indicative in nature and are not to be used for accurate calculations. Notwithstanding anything contained therein, Bushfire Prone Planning will not, except as the law may require, be liable for any loss or other consequences whether or not due to the negligence of their consultants, their servants or agents, arising out of the services provided by their consultants. Copyright ©2020 BPP Group Pty Ltd: All intellectual property rights, including copyright, in format and proprietary content contained in documents created by Bushfire Prone Planning, remain the property of BPP Group Pty Ltd. Any use made of such format or content without the prior written approval of Bushfire Prone Planning, will constitute an infringement on the rights of the Company which reserves all legal rights and remedies in respect of any such infringement.

99 TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... 2 1 PROPOSAL DETAILS ...... 3 DESCRIPTION AND ASSOCIATED PLANS AND MAPS...... 3 EXISTING DOCUMENTATION RELEVANT TO THE CONSTRUCTION OF THIS PLAN ...... 7 2 ENVIRONMENTAL CONSIDERATIONS...... 8 NATIVE VEGETATION – RESTRICTIONS TO MODIFICATION AND/OR CLEARING...... 8 3 POTENTIAL BUSHFIRE IMPACT ASSESSMENT ...... 9 ASSESSMENT INPUT...... 9 3.1.1 Fire Danger Index (FDI) Applied ...... 9 3.1.2 Vegetation Classification and Effective Slope ...... 9 ASSESSMENT OUTPUT ...... 14 3.2.1 Bushfire Attack Level Results - BAL Contour Map Format ...... 14 3.2.2 Indicative Bushfire Attack Level Results ...... 15 3.2.3 Potential Bushfire Attack Level Results (Post Development)...... 17 4 IDENTIFICATION OF BUSHFIRE HAZARD ISSUES...... 19 5 ASSESSMENT AGAINST THE BUSHFIRE PROTECTION CRITERIA ESTABLISHED BY THE GUIDELINES...... 20 SUMMARY OF ASSESSMENT AGAINST THE BUSHFIRE PROTECTION CRITERIA...... 20 ASSESSMENT DETAIL ...... 21 Element 1: Location ...... 21 Element 2: Siting and Design of Development...... 23 Element 3: Vehicular Access...... 24 Element 4: Water...... 25 6 RESPONSIBILITIES FOR IMPLEMENTATION AND MANAGEMENT OF THE BUSHFIRE PROTECTION MEASURES ...... 26 DEVELOPER (LANDOWNER)...... 26 LANDOWNER (DEVELOPER)...... 27 LANDOWNER/OCCUPIER - ONGOING...... 27 LOCAL GOVERNMENT - ONGOING...... 27 APPENDIX 1: TECHNICAL REQUIREMENTS FOR ONSITE VEGETATION MANAGEMENT...... 28 APPENDIX 2: TECHNICAL REQUIREMENTS FOR VEHICULAR ACCESS ...... 30 APPENDIX 3: TECHNICAL REQUIREMENTS FOR FIREFIGHTING WATER ...... 32

LIST OF FIGURES

Figure 1.1: Proposed Development ...... 4 Figure 1.2: Proposed Development Area...... 5 Figure 1.3: Location map (spatial context)...... 6 Figure 3.1: Vegetation classification and topography map...... 13 Figure 3.2: Indicative BAL Contour Map ...... 16 Figure 3.2.2: Potential BAL Contour Map (Post Development)...... 18

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 100 1 EXECUTIVE SUMMARY

This strategic level Bushfire Management Plan is to accompany a Re-Zoning Application for proposed change in land use at Lot 30 Peake Street, Cowaramup in the Shire of Augusta Margaret River. The re-zoning of the current ‘General Agriculture’ land to ‘Tourism’ is to facilitate future development of the site. Future development of the land will incorporate additional bushfire mitigation measures in accordance with the bushfire planning requirements through the implementation of a subsequent site-specific bushfire management plan at the development application stage.

This proposal is currently limited by the offsite vegetation in the unconstructed portions of the Shire Road Reserves. The vegetation inside the Peake Street and unnamed section of road reserve between O’Brien Street and Peake Street has been assessed as Class A Forest. It is expected that this vegetation will undergo management as part of any future proposal for development on the site.

Contained within this bushfire management plan, contour mapping is utilised to visually show the potential radiant heat impacts from bushfire prone vegetation (Pre Vs Post Development), as separate Bushfire Attack Level contours across the site. The purpose is to inform future development planning by indicating the Bushfire Attack Levels (BAL’s) that future buildings, within the development site, are potentially subject to.

It is considered that with the appropriate measures for location, siting and design of the development, vehicular access and firefighting water supply, compliance with the bushfire protection criteria can be achieved for this site.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 101 2 1 PROPOSAL DETAILS

Description and Associated Plans and Maps

Bushfire Prone Planning Commissioned to Produce the Halsall and Associates Bushfire Management Plan (BMP) By:

For Submission To: Shire of Augusta Margaret River

Purpose of the BMP: To support a strategic planning assessment

‘Development’ Site Total Area: Portion of Lot 30 – Approx. 2000 m2

Description of the Proposed Development/Use:

The re-zoning of the current ‘General Agriculture’ land to ‘Tourism’ is to facilitate future development of the site.

Staged Development and Management of Potential Bushfire Hazard Issues

Strategic assessment to address the bushfire risk on a future development proposal.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 102 3 SCHEME AMENDMENT MAP

SHIRE OF AUGUSTA MARGARET RIVER LOCAL PLANNING SCHEME No.1 AMENDMENT No. __

LEGEND

LOCAL SCHEME RESERVES

HIGHWAYS AND MAIN ROADS

PARKS AND RECREATION

PUBLIC PURPOSES R15 CP - COMMUNITY PURPOSES PU - PUBLIC UTILITIES

R5 P E PU AK EET LOCAL SCHEME ZONES

R E

T S S T R

N EET E FUTURE DEVELOPMENT I R15

BR '

O EET R T S

N GENERAL AGRICULTURE IE

'BR O

R15 R15 PRIORITY AGRICULTURE

AY RESIDENTIAL W

IGH H

ELL TOURISM SS U DCA4a B

R15 TOWN CENTRE

CP SPA9 R15 OTHER CATEGORIES EXISTING ZONING R15 RCODES

DCA2d DEVELOPMENT CONTRIBUTION AREA

SPA17 STRUCTURE PLAN AREA

P E AK EET

R E

T S S T R

N EET

E I

BR '

O EET R T S

N IE

'BR O

AY W

IGH H

ELL N SS U B

0 150m 300m

PROPOSED ZONING January 2021

103 Figure 1.1 Proposed Development

Portion of Lot 30, Area : 2,000 sq m Peak Street COWARAMUP SHIRE OF AUGUSTA - MARGARET RIVER

D

V

B E ------LEGEND ------D I

S

K Subject Site

O

O

R Other Lots

B v® Hydrant Proposed Tourism Area v®

BUSSELL HWY

BROCKMAN RD PROPOSED v® v® TOURISM AREA

C O CURTIS ST W MIAMUP RD A R A C T

P E A K E S Lot 30 T v® 0 20 40 60 80 100 R ® v® D Metres v N A G G U ------LOCALITY ------D

NORTH W YELVERTON JINDONG A V E R L WILYABRUP E Y KALOORUP R METRICUP D v® SUBJECT SITE

T TREETON S COWARAMUP

N GRACETOWN v® E I R Y B

' W D O R OSMINGTON H S BRAMLEY E L V

A L C E ROSA BROOK S MARGARET RO S A BR O O K S v® RIVER D U R B R P E PREVELLY ERIM E T RO S A G LE N

Aerial Imagery : Landgate/SLIP HALL RD Image Date : Dec 2018

Coordinate System: GDA 1994 MGA Zone 50 I Projection: Universal Transverse Mercator Units: Metre " IN " I E Map compiled by: Ian Ross 4/02/2021 R N v® O Map udated by: Ian 4/02/2021 L A õÓ L 104 Disclaimer and Limitation: This map has been prepared for bushfire management planning purposes only. All depicted areas, contours and any dimensions shown are subject to survey. Bushfire Prone Planning does not guarantee that this map is without flaw of any kind and disclaims all liability for any errors, loss or other consequence arising from relying on any information depicted. Map Document Path / Name: F:\Projects\04_Mick\201109v® - Lot 30 Peake Street Cowaramup\Mapping\MXD\201109_Fig1-1_DEV_Lot30 Peake Street Cowaramup.mxd M Figure 1.2

I A M TO BUSSELTON 38 KM Location Plan

UP

R

D

BUSSELL HWY Portion of Lot 30, Area : 2,000 sq m DYSON RD Peak Street COWARAMUP SHIRE OF AUGUSTA - MARGARET RIVER

------LEGEND ------PIONEER RD Subject Site FRIESIANS T Proposed Tourism Area "" Bush Fire Brigade "" Volunteer Fire & Rescue Service T " I NG COPSE WAY

L E BROCKMAN RD W JERSEY ST O TREETON RD WRIGGLESWORTH DR

O D

C B BUSSELL HWY

T R OO KS IDE B V D PROPOSED CO TOURISM AREA W PEAKE ST C A T R A Lot 30 PICKERING Lot 30 BLUE P WRENPL ST A E L L O'BRIEN ST M K R E C D R U N S E Y L ROSELLA CT E G WAVERLEY RD LD N R I U I BARNARD A G O CURTIS ST COWARAMUP BFB T C G H G L

E H A P A ST A W K " L N R " L " D WARRY ST U R

D R B MEMORIAL DR Cowaramup COWARAMUP Primary MAGNOLIA LORIINI LANE VFRS GRANNY School BOTTRILL ST JAMES CT Settarah Park D 020406080100 T B N Y PL S L O T W KE G S S H J T Metres N A R L E E O T A N C L L T BB S A P A C W T E S E L L N T CHENIN ST R L ------LOCALITY ------A S S K S A PERCY ST D A R T C S C R N O O

R E

E U U E O ACACIA

L

U L I N B

T CURTIS ST L V R B B L I C T R W C S R S D D A T N Y AL A CT DUNSBOROUGH G A I A N S N H G WONNERUP M N C LIONS A G I T E G QUINDALUP S G YALLINGUP L R U BUSSELTON O D DR O Y

O S U DWINE WAY R H A E D BR A M I ET W CARBUNUP SET ON K M VASSE VASSE HWY

R N SUN EU A RIVER T X O L D UR E N P R H S Y

S E W

V H SUBJECT SITE A L D

C L R E

S S

E S U U B TREETON S RO HOCKING Y EARL DR GRACETOWN BAUDIN WHITING

DAISY RISE LANE T LANE ROSA H D C MARGARET

S R C RIVER BROOK

U S L I B N PREVELLY I E K EU SCHROEDER K WITCHCLIFFE N R T O E C O J FOREST M N S GROVE

W Aerial Imagery : Landgate/SLIP IRR ING Image Date : Dec 2018 RD

Coordinate System: GDA 1994 MGA Zone 50 TO MARGARET RIVER 12.5 KM Projection: Universal Transverse Mercator Units: Metre Map compiled by: Ian Ross 4/02/2021 BUSSELL HWY Map udated by: Ian 4/02/2021 105 Disclaimer and Limitation: This map has been prepared for bushfire management planning purposes only. All depicted areas, contours and any dimensions shown are subject to survey. Bushfire Prone Planning does not guarantee that this map is without flaw of any kind and disclaims all liability for any errors, loss or other consequence arising from relying on any information depicted. Map Document Path / Name: F:\Projects\04_Mick\201109 - Lot 30 Peake Street Cowaramup\Mapping\MXD\201109_Fig1-2_LOC_Lot30 Peake Street Cowaramup.mxd Existing Documentation Relevant to the Construction of this Plan

This section acknowledges any known reports or plans that have been prepared for previous planning stages, that refer to the subject area and that may or will impact upon the assessment of bushfire risk and/or the implementation of bushfire protection measures and will be referenced in this Bushfire Management Plan.

Table 2.1: Existing relevant documentation.

RELEVANT EXISTING DOCUMENTS Copy Existing Document Provided Title by Client Scheme Amendment Map – Proposed Zoning Site Plan Yes (January 2020) Relevant Stakeholder Emails - Subject: RE: Bushfire Planning - 201109 - Lot 30 Correspondence (Proponent & Yes Peake Street Cowaramup Shire of AMR) – (22-2-2021) Environmental Report N/A

Landscaping (Revegetation) Plan N/A

Bushfire Risk Assessments N/A

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 106 7 2 ENVIRONMENTAL CONSIDERATIONS

Native Vegetation – Restrictions to Modification and/or Clearing.

Many bushfire prone areas also have high values. SPP 3.7 policy objective 5.4 recognises the need to consider bushfire risk management measures alongside environmental, biodiversity and conservation values (Guidelines s2.3).

There is a requirement to identify the need for onsite modification and/or clearing of native vegetation and whether this might trigger potential environmental impact/referral requirements under State and Federal environmental legislation. Confirmation that any proposed native vegetation modification and/or clearing is acceptable, should be received from the relevant agencies by the proponent and provided to the bushfire consultant for inclusion in the Bushfire Management Plan if it will influence the required bushfire planning assessments and outcomes. The following table details any potential environmental restrictions of which the author of this report is aware.

Vegetation Modification and Clearing Assessment

Yes Will on-site clearing of native vegetation be required? (Native vegetation removal will be required onsite)

The bushfire assessment and management strategies contained in the BMP, assume there are no environmental restrictions over the site or clearing permit exemptions will apply.

Recommendations:

1. It is recommended that the proponent prepare an onsite vegetation management plan that can identify trees to be removed to achieve compliance with Schedule 1 of the Bushfire Guidelines or a Clearing Plan be prepared. Clarification of all vegetation to be removed would remove any ambiguity and ensure compliance.

2. It is advised that the proponent seek further advice from the Shire of Augusta - Margaret River for further information on the condition and species contained within the proposed development area and the requirement for referral of the proposal or the requirements for a vegetation management plan for this site.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 107 8 3 POTENTIAL BUSHFIRE IMPACT ASSESSMENT

Assessment Input

3.1.1 Fire Danger Index (FDI) Applied

AS 3959:2018 Table 2.1 specifies the fire danger index values to apply for different regions.

Table 3.1: Applied FDI Value

FDI VALUE As per AS 3959:2018 As per DFES for the Vegetation Areas Value Applied Table 2.1 Location 1-6 80 N/A 80

3.1.2 Vegetation Classification and Effective Slope

Classification: Bushfire prone vegetation identification and classification has been conducted in accordance with AS 3959:2018 s2.2.3 and the Visual Guide for Bushfire Risk Assessment in WA (DoP February 2016). When more than one vegetation type is present, each type is identified separately, and the applied classification considers the potential bushfire intensity and behaviour from the vegetation types present and ensures the worst-case scenario is accounted for – this may not be from the predominant vegetation type. The vegetation structure has been assessed as it will be in its mature state (rather than what might be observed on the day). Areas of modified vegetation are assessed as they will be in their natural unmodified state (unless maintained in a permanently low threat, minimal fuel condition, satisfying AS 3959:2018 s2.2.3.2(f) and asset protection zone standards). Effective Slope: Refers to the ground slope under each area of classified vegetation and is described in the direction relative to the view from the building or proposed development site. Effective slope is not the same as ‘average slope’, rather it is the slope which most significantly influences fire behaviour. This slope has a direct and significant influence on a bushfire’s rate of spread and intensity.

Table 3.2: Vegetation classification and effective slope.

ALL VEGETATION WITHIN 150 METRES OF THE PROPOSED DEVELOPMENT Effective Slope (degrees)2 Vegetation Identified Vegetation Types 1 Applied Vegetation (AS 3959:2018 Method 1) Area or Description if ‘Excluded’ Classification 1 Assessed Applied Range

1 Open forest A-03 Class A Forest 0 upslope or flat

2 Woodland B-05 ClassBWoodland 0 upslopeorflat

3 Closed scrub D-13 Class D Scrub 0 upslope or flat

4 Sown pasture G-26 Class G Grassland 0 upslope or flat

5 Open forest A-03 Class A Forest 0 downslope >0-5 Excluded – Managed Excluded as per Section 6 - - Vegetation 2.2.3.2 (f) Low Threat Vegetation Note1: Described and classified as per AS 3959:2018 Table 2.3 and Figures 2.3 and 2.4 (A)-(H)

Note2: Effective slope measured as per AS 3959:2018 Section 2.2.5 and Appendix B Part B4

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 108 9 VEGETATION AREA 1

AS 3959:2018 Vegetation Classification Applied: Class A Forest

Vegetation Type Present: Open forest A-03

Jarrah & Marri Forest(12-14m high) - >30% Canopy Cover (Shire Road Description/Justification: Reserves)

Photo ID: 1a Photo ID: 1b

VEGETATION AREA 2

AS 3959:2018 Vegetation Classification Applied: Class B Woodland

Vegetation Type Present: Woodland B-05

Jarrah & Marri Woodland (12-14m high) - <30% Canopy Cover, heavily Description/Justification: modified understory (evidence of recent vegetation management in this area – future dwelling site – neighbouring property)

Photo ID: 2a Photo ID: 2b

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 109 10 VEGETATION AREA 3

AS 3959:2018 Vegetation Classification Applied: Class D Scrub

Vegetation Type Present: Closed scrub D-13

Description/Justification: Remnant Creek line – Mixed shrub and scrub species (up to 3m tall)

Photo ID: 3a Photo ID: 3b

VEGETATION AREA 4

AS 3959:2018 Vegetation Classification Applied: Class G Grassland

Vegetation Type Present: Grassland G-26

Description/Justification: Pasture/ paddock (agricultural area) in the background

Photo ID: 4a Photo ID: 4b

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 110 11 VEGETATION AREA 5

AS 3959:2018 Vegetation Classification Applied: Class A Forest

Vegetation Type Present: Open forest A-03

Proposed Development site - Jarrah & Marri Forest(12-14m high) - >50% Description/Justification: Canopy Cover (Modified Grass understory)

Photo ID: 5a Photo ID: 5b

VEGETATION AREA 6 Excluded as per Section 2.2.3.2 (f) Low Threat AS 3959:2018 Vegetation Classification Applied: Vegetation Vegetation Type Present: Excluded Vegetation – Managed Grassland

Residential area – Managed Grass around buildings/ Gardens/ Cleared Description/Justification: Areas

Photo ID: 6a Photo ID: 6b

Note: This assessment is reliant on the surrounding land (Area 6) being maintained in a low fuel condition as per the Shire’s Firebreak Notice, reflecting the state of the vegetation at the time of the assessment. There are restrictions on accessing individual properties/ backyards to assess the status of vegetation (Managed/ unmanaged).

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 111 12 Figure 3.1 Topography & Classified Vegetation Portion of Lot 30, Area : 2,000 sq m Peak Street COWARAMUP SHIRE OF AUGUSTA - MARGARET RIVER

------LEGEND ------

AREA : 4 Subject Site Class (G) Grassland Effective slope: 0° Other Lots Proposed Tourism Area !

! ( Photo & Direction

mm

00 Hydrant 22 v® 11 Vegetation Assessment Area 150m from Subject Site ! VegClass, Class (!4b Class (A) Forest

Class (B) Woodland ( ! ! Class (D) Scrub 5b Class (G) Grassland !4a COWARAMUP !( Exclusion 2.2.3.2 AREA : 5 v® Class (A) Forest Effective slope: >0° to 5°

BUSSELL HWY (

! ! Lot 30 ! 5a 3a! ! ( !( 6a ! AREA : 6 (!1b Excluded

AREA : 6

AREA : 1 Excluded (

! Class (A) Forest 0 20 40 60 80 100 ( !

! Effective slope: 0° 2b ! Metres 6b P E A AREA : 2 K E ------LOCALITY ------3b! ! ( Class (B) Woodland S AREA : 3 T W Effective slope: 0° A NORTH Class (D) Scrub V ! E YELVERTON JINDONG R Effective slope: 0° L 1a v® E ! !( Y R 2a!( D WILYABRUP METRICUP KALOORUP mm v®

5 130 m 5 130 m

2 2

1 1 SUBJECT SITE

AREA : 6 TREETON COWARAMUP

Excluded GRACETOWN

D

R S

E V OSMINGTON A BRAMLEY O'BRIEN ST C ROSA BROOK MARGARET RO S A BR O O K RIVER PREVELLY RO S A G LE N

Aerial Imagery : Landgate/SLIP Image Date : Dec 2018

Coordinate System: GDA 1994 MGA Zone 50 v® Projection: Universal Transverse Mercator Units: Metre Map compiled by: Ian Ross 26/02/2021 Map udated by: Ian Ross 26/02/2021 112 Disclaimer and Limitation: This map has been prepared for bushfire management planning purposes only. All depicted areas, contours and any dimensions shown are subject to survey. Bushfire Prone Planning does not guarantee that this map is without flaw of any kind and disclaims all liability for any errors, loss or other consequence arising from relying on any information depicted. Map Document Path / Name: K:\Projects\Jobs 2020\201109 - Lot 30 Peake Street Cowaramup (BMP SA)\Mapping\MXD\201109_Fig3-1_VEG_Lot30 Peake Street Cowaramup.mxd Assessment Output

3.2.1 Bushfire Attack Level Results - BAL Contour Map Format

INTERPRETATION OF THE BUSHFIRE ATTACK LEVEL (BAL) CONTOUR MAP

The contour map will present different coloured contour intervals extending from the areas of classified bushfire prone vegetation. These represent the different bushfire attack levels that will exist at varying distances away from the classified vegetation in the event of a bushfire in that vegetation. The areas of classified vegetation to be considered in developing the BAL contours, are those that will remain as the intended end state of the subject development once earthworks, clearing and/or landscaping and re- vegetation have been completed (or each stage completed). Each bushfire attack level corresponds to a set range of radiant heat flux that is generated by a bushfire. That range is defined by the AS 3959:2018 BAL determination methodology.

The width of each shaded BAL contour is a diagrammatic representation of the separation distances from the classified vegetation that correspond to each BAL for each separately identified area of classified vegetation. They have been calculated by the application of the unique site variables including vegetation types and structure, ground slope and applied fire weather.

Construction of the BAL Contours

VEGETATION AREAS APPLIED TO THE DEVELOPMENT OF THE BAL CONTOUR MAP

All identified areas of classified vegetation have been applied with the following exceptions:

1. For Figure 3.2, all classified vegetation within proposed development site (Area 5) is excluded and the BAL contours are constructed into the lot from any classified vegetation outside the boundaries of proposed development site.

This approach is applied to indicate the achievable bushfire attack levels within the specified lot and the resultant area of developable land (i.e. subject to BAL-29 or less). It is based on the following assumptions:

 Any classified vegetation within the lot (Area 5) can potentially be managed/removed by the landowner to meet asset protection zone standards and dimensions corresponding to an indicated BAL.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 113 14 VEGETATION SEPARATION DISTANCES APPLIED

Table 3.1: Vegetation separation distances applied to construct the BAL contours.

BAL CONTOUR MAP – APPLIED VEGETATION SEPARATION DISTANCES

Derived from the Application of Method 1 BAL Determination Methodology (AS 3959:2018 Section 2, Table 2.5)1

BAL and Corresponding Separation Distance (m) Vegetation Effective Slope

Area Classification BAL- (degree range) BAL-FZ BAL-40 BAL-29 BAL-19 BAL12.5 LOW Vegetation

1 Class A Forest upslope or flat <16 16-<21 21-<31 31-<42 42-<100 >100

Class B 2 upslope or flat <10 10-<14 14-<20 20-<29 29-<100 >100 Woodland

3 Class D Scrub upslope or flat <10 10-<13 13-<19 19-<27 27-<100 >100

Class G 4 upslope or flat <6 6-<8 8-<12 12-<17 17-<50 >50 Grassland

3.2.2 Indicative Bushfire Attack Level Results

Table 3.2.2: Indicative BAL(s) for future building works on proposed development site.

BUSHFIRE ATTACK LEVEL FOR FUTURE BUILDING WORKS ON PROPOSED DEVELOPMENT SITE

BAL Determination Methodology Applied Method 1 as per AS 3959:2018 s2.2.6 and Table 2.5.

Indicative BAL Proposed Development Site (refer to start of s3.2)

1 BAL-FZ

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 114 15 Figure 3.2 Indicative BAL Contour Map

Portion of Lot 30, Area : 2,000 sq m Peak Street COWARAMUP SHIRE OF AUGUSTA - MARGARET RIVER

------LEGEND ------Subject Site Other Lots AREA 4 Proposed Tourism Area v® Hydrant Vegetation Assessment Area 100m from Subject Site Classified Vegetation Boundary

Indicative Bushfire Attack Levels BAL FZ BAL 40 BAL 29 Lot 30 BAL 19 AREA BAL 12.5 AREA 5 v® 3 AREA BAL LOW COWARAMUP 6

AREA 6 AREA 0 20 40 60 80 1 Metres

------LOCALITY ------

P E NORTH A K YELVERTON JINDONG E AREA S T 2 WILYABRUP METRICUP KALOORUP v® AREA SUBJECT SITE 6 v® TREETON COWARAMUP

GRACETOWN

D

R S

E V OSMINGTON BUSSELL HWY A C BRAMLEY

ROSA BROOK O'BRIEN ST MARGARET RO S A BR O O K RIVER PREVELLY RO S A G LE N

Aerial Imagery : Landgate/SLIP Image Date : Dec 2018

Coordinate System: GDA 1994 MGA Zone 50 Projection: Universal Transverse Mercator Units: Metre Map compiled by: Ian Ross 26/02/2021 Map udated by: Ian Ross 26/02/2021 115 Disclaimer and Limitation: This map has been prepared for bushfire management planning purposes only. All depicted areas, contours and any dimensions shown are subject to survey. Bushfire Prone Planning does not guarantee that this map is without flaw of any kind and disclaims all liability for any errors, loss or other consequence arising from relying on any information depicted. Map Document Path / Name: K:\Projects\Jobs 2020\201109 - Lot 30 Peake Street Cowaramup (BMP SA)\Mapping\MXD\201109_Fig3-2_BAL_Lot30 Peake Street Cowaramup.mxd 3.2.3 Potential Bushfire Attack Level Results (Post Development)

VEGETATION AREAS APPLIED TO THE DEVELOPMENT OF THE BAL CONTOUR MAP

All identified areas of classified vegetation have been applied with the following exceptions:

1. For Figure 3.2.2, all classified vegetation within proposed development site (Area 5) and the neighbouring unconstructed road reserves (Area 1) are excluded.

This approach is applied to indicate the potential bushfire attack levels within the specified lot and the resultant area of developable land (i.e. subject to BAL-29 or less). It is based on the following assumptions: A. Any classified vegetation within the site can potentially be managed by the landowner to meet asset protection zone standards and dimensions corresponding to an indicated BAL; and

B. The vegetation inside the Peake Street and unnamed section of road reserve between O’Brien Street and Peake Street has been assessed as Class A Forest. It is expected that this vegetation will undergo management (to a low threat state – AS3959: 2018) as part of any future proposal for development on the site.

Table 3.2.2: Indicative BAL(s) for future building works on the proposed development site.

BUSHFIRE ATTACK LEVEL FOR FUTURE BUILDING WORKS ON PROPOSED DEVELOPMENT SITE

BAL Determination Methodology Applied Method 1 as per AS 3959:2018 s2.2.6 and Table 2.5.

Proposed Development Site Indicative BAL

1 BAL-FZ

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 116 17 Figure 3.2.2 Indicative BAL Contour Map (Post Development) Portion of Lot 30, Area : 2,000 sq m Peak Street COWARAMUP SHIRE OF AUGUSTA - MARGARET RIVER

------LEGEND ------Subject Site Other Lots AREA 4 Proposed Tourism Area v® Hydrant Vegetation Assessment Area 100m from Subject Site

Classified Vegetation Boundary Indicative Bushfire Attack Levels BAL FZ

BAL 40

BAL 29 Lot 30 BAL 19 AREA BAL 12.5 AREA 5 v® 3 AREA BAL LOW COWARAMUP 6

AREA 6 AREA 0 20 40 60 80 1 Metres

------LOCALITY ------

P E NORTH A K YELVERTON JINDONG E AREA S T 2 WILYABRUP METRICUP KALOORUP v® AREA SUBJECT SITE 6 v® TREETON COWARAMUP

GRACETOWN

D

R S

E V OSMINGTON BUSSELL HWY A C BRAMLEY

ROSA BROOK O'BRIEN ST MARGARET RO S A BR O O K RIVER PREVELLY RO S A G LE N

Aerial Imagery : Landgate/SLIP Image Date : Dec 2018

Coordinate System: GDA 1994 MGA Zone 50 Projection: Universal Transverse Mercator Units: Metre Map compiled by: Ian Ross 26/02/2021 Map udated by: Ian Ross 26/02/2021 117 Disclaimer and Limitation: This map has been prepared for bushfire management planning purposes only. All depicted areas, contours and any dimensions shown are subject to survey. Bushfire Prone Planning does not guarantee that this map is without flaw of any kind and disclaims all liability for any errors, loss or other consequence arising from relying on any information depicted. Map Document Path / Name: K:\Projects\Jobs 2020\201109 - Lot 30 Peake Street Cowaramup (BMP SA)\Mapping\MXD\201109_Fig3-2-2_POST_BAL_Lot30 Peake Street Cowaramup.mxd 4 IDENTIFICATION OF BUSHFIRE HAZARD ISSUES

In response to the Bushfire Management Plan requirements established by Appendix 5 of the Guidelines for Planning in Bushfire Prone Areas (WAPC 2017 v1.3), the following statements are made to assist in the understanding of whether the proposal is likely to be able to comply with the bushfire protection criteria now or in subsequent planning stages.

Spatial Context - Broader Landscape Considerations Proximity of settlements The subject site is at the fringe of the Cowaramup townsite (<500m from town and emergency services centre) Wider road network and The development site is <200m from the Bussell Highway (major transport route). access constraints Bushfire prone There are small pockets of remnant native vegetation near the development vegetation types and site. Most of the vegetation adjacent to the site is either Grassland, Woodland extent Scrub or Low threat managed gardens. Provision of Access Within the Subject Site

Potential constraints Peake Street (North of O’Brien Street) is a dead-end road.

Potential Bushfire Impacts Any future development will implement a minimum of a BAL-29 dimensioned Flame and radiant heat APZ (around habitable buildings and required structures) to be established and ability to establish an within the lot. This will prevent flame contact from the classified vegetation. APZ Application of the BAL-29 bushfire construction standard will mitigate the risks from radiant heat impact to what is considered an acceptable level. Issues to be Considered at Subsequent Planning Stages (additional assessments/documents) Specific land uses to be Tourism Land Use (at the future development stage) addressed Site specific Bushfire Management Plan for future development proposal on the site that considers land use at that time.

Bushfire Emergency Plan for Vulnerable Land Use were future development Additional documents meets the definition of a vulnerable land use or other such land use as required by SPP 3.7.

Landscape Management Plan for the ongoing management and implementation of treatments to lessen the bushfire threat on the site.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 118 19 5 ASSESSMENT AGAINST THE BUSHFIRE PROTECTION CRITERIA ESTABLISHED BY THE GUIDELINES

For a subdivision application to be considered compliant with SPP 3.7, it must satisfy (achieve) the intent of each of the four elements of the bushfire protection criteria. These criteria are established by the Guidelines for Planning in Bushfire Prone Areas WAPC 2017 v1.3).

Summary of Assessment Against the Bushfire Protection Criteria

SUMMARISED OUTCOME OF THE ASSESSMENT AGAINST THE BUSHFIRE PROTECTION CRITERIA Basis for the Proposal Achieving Full Compliance with SPP 3.7 The Proposal Cannot Achieve Acceptable Solutions Achieves the Intent of the Full Compliance with SPP 3.7 Met Element All applicable solutions are not fully met. Element of the An Bushfire improvement Bushfire A merit based A planning in bushfire Protection All assessment and/or a performance development performance Criteria applicable bushfire performance principle- type that may compared to solutions are comparison of the based not require full the existing fully met proposals residual risk solution is compliance is development with that of the residual applied applied is detailed risk of the acceptable (refer Note 4) solution is conducted (refer Note 4) No – Will comply in 1. Location - - - subsequent stages 2. Siting and No – Will comply in Design of - - - Development subsequent stages N/A 3. Vehicular Access  - - -

4. Water  - - -

Note: The development proposal has been assessed: 1. Against the requirements established in Appendix 4 of the Guidelines for Planning in Bushfire Prone Areas, WAPC 2017 v1.3 (Guidelines). The Guidelines are found at https://www.planning.wa.gov.au/8194.aspx; and

2. Applying the interpretation guidance provided in Position Statement: Planning in bushfire prone areas – Demonstrating Element 1: Location and Element 2: Siting and design (WAPC Nov 2019).

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 119 20 Assessment Detail

Element 1: Location

Intent: To ensure that strategic planning proposals, subdivision and development applications are located in areas with the least possible risk of bushfire to facilitate the protection of people, property and infrastructure.

Compliance: How the proposed Will be able to achieve the intent of the element at a later development achieves the intent of planning stage by fully meeting all applicable acceptable Element 1: solutions.

ASSESSMENT (COMPLIANCE) STATEMENTS For each applicable acceptable solution, the following statements present the results of the assessment of the proposed development/use against the requirements established by the Guidelines (WAPC 2017 v1.3) and apply the interpretation guidance established by the Position Statement: Planning in bushfire prone areas – Demonstrating Element 1: Location and Element 2: Siting and design (WAPC Nov 2019).

Acceptable Solution: A1.1: Development Location

ASSESSMENT AGAINST THE REQUIREMENTS ESTABLISHED BY THE POSITION STATEMENT

The position statement establishes that:

 The source of risk (the hazard) to be considered in Element 1 is the “level of bushfire exposure” from the type and extent of bushfire prone vegetation and the topography of the land on which it exists; and

 “Consideration should be given to the site context” which includes the land both “within and adjoining the subject site”. The “hazards remaining within the site should not be considered in isolation of the hazards adjoining the site, as the potential impact of a bushfire will be dependent on the wider risk context.”

The position statement also recognises:

 That the proposed development site and its surrounding land may be part of an area “identified for development or intensification of land use prior to the release of SPP 3.7”; consequently

 Consideration by decision-makers “should also be given to improving bushfire management of the site and surrounding area, thereby reducing the vulnerability of people property and infrastructure to bushfire”; and

 The application of mitigation measures to lessen the risk to the broader area would include improvements to the local road network (including emergency access ways), improvements/additions to firefighting water supply and increasing separation distance from the hazard.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 120 21 Element 1: Location

The Hazard Within the Subject Site

It is expected that all the classified vegetation will be removed from the site as part of any future development. The primary bushfire threat from bushfire prone vegetation will be from outside the development site. This threat will be mitigated by the application of appropriate building design, bushfire construction standards and the ongoing maintenance of the APZ to ensure the buildings will not be impacted by consequential fire within combustible materials used, stored or accumulated within the APZ.

There are limited scenarios in which the subject development site is likely to be subject to a significant bushfire event. It is limited to a fire in the narrow strip of creek line vegetation (adjacent to the proposed development site) in which a bushfire would either be a flanking fire or if a direct fire, be unable to develop fully. Additionally, due to the limited extent of the unmanaged vegetation along the extent of the creek line to south west, and the expected grassfire behaviour of vegetation in the broader landscape to the north - the length of time the subject site would be exposed to the impacts of bushfire (ember and radiant heat) would be relatively short.

The Hazard Adjoining the Subject Site

Bushfire prone vegetation within the rural residential locality exists as native vegetation classified as Class A Forest, Woodland and Class G Grassland. Most of the land within the locality supports this vegetation except for the asset protection zones surrounding existing dwellings.

The impact of the slope under the vegetation will be dependent on a bushfire’s direction of travel, but slopes in the range of zero to five degrees downslope from the development site do exist. Bushfire travelling upslope will have increased intensity and rate of spread.

The potential bushfire impact on persons and property within the development site will be from ember attack in the event of a bushfire. This ember threat will be mitigated by the application of appropriate building design, bushfire construction standards and the ongoing maintenance of the BAL-29 dimensioned APZ, to ensure the buildings will not be impacted by consequential fire within combustible materials used, stored or accumulated within the APZ.

The development site, within the context of its location in the broader landscape, cannot be considered as being at high risk from the impacts of bushfire.

THE ASSESSMENT

Figure 3.2.2 (Indicative BAL Contour Map – Post Development) provides an indication of the potential or achievable BAL Ratings for this site, subject to offsite vegetation management in the Shire Road Reserves. It is expected that the potential BAL-40 or BAL-FZ impact (Refer to Figure 3.2.2) will be contained within the front/rear/side setbacks of a lot with road frontage that provides for hazard separation (as prescribed in a local planning scheme or the Residential Design Codes).

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 121 22 Element 2: Siting and Design of Development

Intent: To ensure that the siting and design of development (note: not building/construction design) minimises the level of bushfire impact.

Compliance: How the proposed Will be able to achieve the intent of the element at a later development achieves the intent of planning stage by fully meeting all applicable acceptable Element 2: solutions.

ASSESSMENT (COMPLIANCE) STATEMENTS For each applicable acceptable solution, the following statements present the results of the assessment of the proposed development/use against the requirements established by the Guidelines (WAPC 2017 v1.3) and apply the interpretation guidance established by the Position Statement: Planning in bushfire prone areas – Demonstrating Element 1: Location and Element 2: Siting and design (WAPC Nov 2019).

Acceptable Solution: A2.1: Asset Protection Zone

Position Statement - Section 5.3.2 - Provided that Element 1 is satisfied, the decision-maker may consider approving lot(s) containing BAL-40 or BAL-FZ, where:

A. Lot sizes provide sufficient area to accommodate a building and an APZ to achieve BAL-29 or below (such as lots zoned rural, rural residential, or residential R5 or below). Sufficient area should also be provided for incidental objects/structures, such as sheds, garages and water tanks, to be built on the lot within BAL-29 or below, or

C. BAL-40 or BAL-FZ is contained within the front setback of a lot(s) with road frontage that provides for hazard separation (as prescribed in a local planning scheme or the Residential Design Codes),

The BAL rating of a lot is defined by the highest BAL rating applied through the BAL assessment, not the lowest BAL rating that can be achieved. This is necessary to ensure decision-makers understand the actual risk posed to those lots and allow the imposition of appropriate development control restrictions.

THE ASSESSMENT

Figure 3.2.2 (Indicative BAL Contour Map – Post Development) provides an indication of the potential or achievable BAL Ratings for this site, subject to offsite vegetation management in the Shire Road Reserves. As no building site has been identified as part of this proposal, the indicative BAL Rating for the development (Pre and Post Development) is BAL Flame Zone. However, it is expected that future buildings on the lot can be surrounded by an APZ that will ensure the potential radiant heat impact of a bushfire does not exceed 29 kW/m2 (BAL-29). Element 2 will need to be demonstrated at subsequent stages of the planning process.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 122 23 Element 3: Vehicular Access

Intent: To ensure that the vehicular access serving a subdivision/development is available and safe during a bushfire event.

Compliance: How the proposed By fully meeting all applicable acceptable solutions development achieves the intent of established by the bushfire protection criteria (Guidelines Element 3: v1.3 WAPC 2017)

ASSESSMENT (COMPLIANCE) STATEMENTS For each applicable acceptable solution, the following statements present the results of the assessment of the proposed development/use against the requirements established by the Guidelines (WAPC 2017 v1.3).

Acceptable Solution: A3.1: Two Access Routes

Peake Street is a short cul-de-sac of approximately 100m in length. Peake Street and O’Brien Street provides options for travel in two different directions.

Acceptable Solution: A3.2: Public Road

The construction technical requirements established by the Guidelines and/or the local government can and will be complied with.

Acceptable Solution: A3.3: Cul-de-sacs (including a dead-end road)

Peake Street is a short cul-de-sac of approximately 100m in length. The construction technical requirements established by the Guidelines and/or the local government can and will be complied with. These requirements are set out in Appendix 2.

Acceptable Solution: A3.4: Battle-axe

N/A

Acceptable Solution: A3.5: Private Driveways

The construction technical requirements established by the Guidelines and/or the local government can and will be complied with. These requirements are set out in Appendix 2.

Acceptable Solution: A3.6: Emergency Access Way

N/A

Acceptable Solution: A3.7: Fire Service Access Routes

N/A

Acceptable Solution: A3.8: Firebreak Width

The development site will comply with the requirements of the local government annual firebreak notice issued under s33 of the Bush Fires Act 1954. Firebreaks to be installed prior to subdivision clearance.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 123 24 Element 4: Water

Intent: To ensure water is available to the subdivision, development or land use to enable people, property and infrastructure to be defended from bushfire.

Compliance: How the proposed By fully meeting all applicable acceptable solutions development achieves the intent of established by the bushfire protection criteria (Guidelines Element 4: v1.3 WAPC 2017)

ASSESSMENT (COMPLIANCE) STATEMENTS For each applicable acceptable solution, the following statements present the results of the assessment of the proposed development/use against the requirements established by the Guidelines (WAPC 2017 v1.3).

Acceptable Solution: A4.1: Reticulated Areas

A reticulated water supply is available in this area. A hydrant was located opposite the site on Peake Street. The technical requirements established by the Guidelines and/or the local government can and will be complied with. These requirements are set out in Appendix 3.

Acceptable Solution: A4.2: Non-Reticulated Areas

N/A

Acceptable Solution: A4.3: Non-Reticulated Areas – Individual Lots

N/A

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 124 25 6 RESPONSIBILITIES FOR IMPLEMENTATION AND MANAGEMENT OF THE BUSHFIRE PROTECTION MEASURES

Table 6.1: BMP Implementation responsibilities

Developer (Landowner) Subdivision No. Implementation Actions Clearance

Note: Planning approval may be conditioned with the requirements:

1. To place certain notifications on the certificates of title and the deposited plan, regarding the existence of this bushfire management plan and the obligations it creates; and

2. To provide certification of the implementation of certain bushfire protection measures established by this bushfire management plan.

Condition (as per Code F1 of Model Subdivision Schedule, WAPC April 2020):

Information is to be provided to demonstrate that the measures contained in Section 1 6 of this Bushfire Management Plan have been implemented during subdivisional works. This information should include a completed ‘Certification by Bushfire Consultant’ from the bushfire management plan.

Condition (as per Code F2 of Model Subdivision Schedule, WAPC April 2020):

A notification, pursuant to Section 165 of the Planning and Development Act 2005, is to be placed on the certificate(s) of title of the proposed lot(s) with a Bushfire Attack Level (BAL) rating of 12.5 or above, advising of the existence of a hazard or other factor. Notice of this notification is to be included on the diagram or plan of survey 2 (deposited plan). The notification is to state as follows:

“This land is within a bushfire prone area as designated by an Order made by the Fire and Emergency Services Commissioner and is/may be subject to a Bushfire Management Plan. Additional planning and building requirements may apply to development on this land.” (Western Australian Planning Commission).

Condition (as per Code F3 of Model Subdivision Schedule, WAPC April 2020):

A plan is to be provided to identify areas of the proposed lot(s) that have been assessed as BAL-40 or BAL-FZ.

A restrictive covenant to the benefit if the local government pursuant to section 129BA of the Transfer of Land Act 1893, is to be placed on the certificate(s) of title of 3 the proposed lot(s) advising of the existence of a restriction on the use of land within areas that have been assessed a BAL-40 or BAL-FZ. Notice of this restriction is to be included on the diagram or plan of survey (deposited plan). The restrictive covenant is to state as follows:

“No habitable buildings are to be built within areas identified as BAL-40 or BAL-FZ”. (Local Government).

4 Construct the public roads and cul-de-sacs to the standards stated in the BMP.

5 Construct the private driveways to the standards stated in the BMP.

6 Install the reticulated water supply (hydrants) to the standards stated in the BMP.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 125 26 Table 6.2: BMP Implementation responsibilities

Landowner (Developer)

No. Implementation Actions

Prior to sale and post planning approval, the entity responsible for having the BMP prepared should ensure that anyone listed as having responsibility under the Plan has endorsed it and is provided with a copy for their information and informed that it contains their responsibilities. This includes the 1 landowners/proponents (including future landowners where the Plan was prepared as part of a subdivision approval), local government and any other authorities or referral agencies (‘Guidelines’ s4.6.3).

Table 6.3: Ongoing management responsibilities for the Landowner/Occupier.

Landowner/Occupier - Ongoing No. Ongoing Management Actions

Comply with the Local firebreak notice issued under s33 of the Bush Fires Act 1954.

This may include specifications for asset protection zones that differ from the Guideline’s APZ 1 Standards, with the intent to better satisfy local conditions. When these are more stringent than those created by the Guidelines, or less stringent and endorsed by the WAPC and DFES, they must be complied with. Refer to Appendix 1.

Maintain vehicular access routes within the lot to the required surface condition and clearances 2 as stated in the BMP.

Ensure that any builders (of future structures on the lot) are aware of the existence of this Bushfire 3 Management Plan and the responsibilities it contains regarding the application of construction standards corresponding to a determined BAL.

Table 6.4: Ongoing management responsibilities for the Local Government.

Local Government - Ongoing No. Ongoing Management Actions

Monitor landowner compliance with the Bushfire Management Plan and the annual Firebreak 1 and Fuel Load notice.

Where control of an area of vegetated land is vested in the control of the local government and that area of land has influenced the assessed BAL(s) of the subject site(s) – and the BAL has been 2 correctly assessed and considered all reasonable and likely future expectations for changes in vegetation classification - there is an obligation to consider the impact of any changes to future vegetation management and/or revegetation plans with respect to that area.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 126 27 APPENDIX 1: TECHNICAL REQUIREMENTS FOR ONSITE VEGETATION MANAGEMENT

A1.1 Requirements Established by the Guidelines – Standards for Asset Protection Zones (Source: Guidelines for Planning in Bushfire Prone Areas - WAPC 2017 v1.3 Appendix 4, Element 2, Schedule 1 and Explanatory Note E2.1)

DEFINING THE ASSET PROTECTION ZONE (APZ)

Description: An APZ is an area surrounding a building that is managed to reduce the bushfire hazard to an acceptable level (by reducing fuel loads). The width of the required APZ varies with slope and vegetation and varies corresponding to the BAL rating determined for a building (lower BAL = greater dimensioned APZ).

For planning applications, the minimum sized acceptable APZ is that which is of sufficient size to ensure the potential radiant heat impact of a fire does not exceed 29kW/m² (BAL-29). It will be site specific.

For subdivision planning, design elements and excluded/low threat vegetation adjacent to the lot(s) can be utilised to achieve the required vegetation separation distances and therefore reduce the required dimensions of the APZ within the lot(s).

Defendable Space: The APZ includes a defendable space which is an area adjoining the asset within which firefighting operations can be undertaken to defend the structure. Vegetation within the defendable space should be kept at an absolute minimum and the area should be free from combustible items and obstructions. The width of the defendable space is dependent on the space, which is available on the property, but as a minimum should be 3 metres.

Establishment: The APZ should be contained solely within the boundaries of the lot on which the building is situated, except in instances where the neighbouring lot or lots will be managed in a low-fuel state on an ongoing basis, in perpetuity.

The APZ may include public roads, waterways, footpaths, buildings, rocky outcrops, golf courses, maintained parkland as well as cultivated gardens in an urban context, but does not include grassland or vegetation on a neighbouring rural lot, farmland, wetland reserves and unmanaged public reserves.

[Note: Regardless of whether an Asset Protection Zone exists in accordance with the acceptable solutions and is appropriately maintained, fire fighters are not obliged to protect an asset if they think the separation distance between the dwelling and vegetation that can be involved in a bushfire, is unsafe.]

Schedule 1: Standards for APZ

Fences: within the APZ are constructed from non-combustible materials (e.g. iron, brick, limestone, metal post and wire). It is recommended that solid or slatted non-combustible perimeter fences are used.

Objects: within 10 metres of a building, combustible objects must not be located close to the vulnerable parts of the building i.e. windows and doors.

Fine Fuel Load: combustible dead vegetation matter less than 6 mm in thickness reduced to and maintained at an average of two tonnes per hectare (example below).

Example: Fine fuel load of 2 t/ha (Image source: Shire of Augusta Margaret River’s Firebreak and Fuel Reduction Hazard Notice)

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 127 28 Trees (> 5 metres in height): trunks at maturity should be a minimum distance of 6 metres from all elevations of the building, branches at maturity should not touch or overhang the building, lower branches should be removed to a height of 2 metres above the ground and or surface vegetation, canopy cover should be less than 15% with tree canopies at maturity well spread to at least 5 metres apart as to not form a continuous canopy. Diagram below represents tree canopy cover at maturity.

Tree canopy cover – ranging from 15 to 70 per cent at maturity

(Source: Guidelines for Planning in Bushfire Prone Areas 2017, Appendix 4)

Shrubs (0.5 metres to 5 metres in height): should not be located under trees or within 3 metres of buildings, should not be planted in clumps greater than 5m2 in area, clumps of shrubs should be separated from each other and any exposed window or door by at least 10 metres. Shrubs greater than 5 metres in height are to be treated as trees.

Ground covers (<0.5 metres in height): can be planted under trees but must be properly maintained to remove dead plant material and any parts within 2 metres of a structure, but 3 metres from windows or doors if greater than 100 mm in height. Ground covers greater than 0.5 metres in height are to be treated as shrubs.

Grass: should be managed to maintain a height of 100 mm or less.

The following example diagrams illustrate how the required dimensions of the APZ will be determined by the type and location of the vegetation.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 128 29 APPENDIX 2: TECHNICAL REQUIREMENTS FOR VEHICULAR ACCESS

Each local government may have their own standard technical requirements for emergency vehicular access, and they may vary from those stated in the Guidelines.

When required, these are stated in Section 5.1 of this bushfire management plan.

Requirements Established by the Guidelines – The Acceptable Solutions (Source: Guidelines for Planning in Bushfire Prone Areas WAPC 2017 v1.3, Appendix 4)

VEHICULAR ACCESS TECHNICAL REQUIREMENTS - PART 1

Acceptable Solution 3.3: Cul-de-sacs (including a dead-end road)

Their use in bushfire prone areas should be avoided. Where no alternative exists then the following requirements are to be achieved:

 Maximum length is 200m. If public emergency access is provided between cul-de-sac heads (as a right of way or public access easement in gross), the maximum length can be increased to 600m provided no more than 8 lots are serviced and the emergency access way is less than 600m in length;

 Turnaround area requirements, including a minimum 17.5m diameter head to allow type 3.4 fire appliances to turn around safely;

 The cul-de-sac connects to a public road that allows for travel in two directions; and

 Meet the additional design requirements set out in Part 2 of this appendix.

Acceptable Solution 3.5: Private Driveways

The following requirements are to be achieved:

 The design requirements set out in Part 2 of this appendix; and

Where the house site is more than 50 metres from a public road:

 Passing bays every 200 metres with a minimum length of 20 metres and a minimum width of two metres (ie combined width of the passing bay and constructed private driveway to be a minimum six metres);

 Turn-around areas every 500 metres and within 50 metres of a house, designed to accommodate type 3.4 fire appliances to turn around safely (ie kerb to kerb 17.5 metres);

 Any bridges or culverts are able to support a minimum weight capaShire of 15 tonnes; and

 All weather surface (i.e. compacted gravel, limestone or sealed).

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 129 30 VEHICULAR ACCESS TECHNICAL REQUIREMENTS - PART 1

Acceptable Solution 3.8: Firebreak Width

Lots greater than 0.5 hectares must have an internal perimeter firebreak of a minimum width of three meters or to the level as prescribed in the local firebreak notice issued by the local government.

VEHICULAR ACCESS TECHNICAL REQUIREMENTS - PART 2

Vehicular Access Types Technical Component Public Private Emergency Fire Service Cul-de-sacs Roads Driveways Access Ways Access Routes Minimum trafficable surface (m) 6* 6 4 6* 6*

Horizontal clearance (m) 6 6 6 6 6

Vertical clearance (m) 4.5 4.5 4.5 4.5 4.5

Maximum grade <50 metres 1 in 10 1 in 10 1 in 10 1 in 10 1 in 10

Minimum weight capaShire (t) 15 15 15 15 15

Maximum cross-fall 1 in 33 1 in 33 1 in 33 1 in 33 1 in 33

Curves minimum inner radius (m) 8.5 8.5 8.5 8.5 8.5

* A six metre trafficable surface does not necessarily mean paving width. It could, for example, include four metres of paving and one metre of constructed road shoulders. In special circumstances, where 8 lots or less are being serviced, a public road with a minimum trafficable surface of four metres for a maximum distance of ninety metres may be provided subject to the approval of both the local government and DFES.

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 130 31 APPENDIX 3: TECHNICAL REQUIREMENTS FOR FIREFIGHTING WATER

Reticulated Areas

[Source: Guidelines for Planning in Bushfire Prone Areas WAPC 2017 v1.3, Appendix 4, Element 4]

The Water Corporation’s ‘No 63 Water Reticulation Standard’ is deemed to be the baseline criteria for developments and should be applied unless local water supply authority’s conditions apply.

The requirement is to supply a reticulated water supply and fire hydrants, in accordance with the technical requirements of the relevant water supply authority and DFES.

Key specifications in the most recent version/revision of the design standard include:

 Residential Standard – hydrants are to be located so that the maximum distance between the hydrants shall be no more than 200 metres.

 Commercial Standard – hydrants are to be located with a maximum of 100 metre spacing in Industrial and Commercial areas.

 Rural Residential Standard – where minimum site areas per dwelling is 10,000 m2 (1ha), hydrants are to be located with a maximum 400m spacing. If the area is further subdivided to land parcels less than 1ha, then the residential standard (200m) is to be applied.

Figure A4.1: Hydrant Location and Identification Specifications

201109 - Lot 30 Peake Street, Cowaramup (BMP - SA)_v1.0 131 32 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.4 BARRETT STREET AND RENDALL CLOSE WEIRS ENVIRONMENT MANAGEMENT PLANS

Attachment 1 – Rendall Close Weir Environment Management Plan

Attachment 2 – Barrett Street Weir Environment Management Plan

Attachment 3 – YourSay Survey Results

132 THE SITE

MARGARET RIVER The Margaret River Precinct Plan identified the Randell Close Weir as a special place for the community. The recreational area is popular for swimming, paddle boarding, canoeing and picnicking. The Margaret River and its foreshore areas are registered Aboriginal sites and hold important spiritual value for the Indigenous traditional owners; the Wadandi and Piblemen people. 1 1 Facilitating access to this unique location is resulting in a number of management issues including localised erosion, surface runoff from the extensive hard stand areas, trampling and disruption to the fringing vegetation and resulting weed control issues. 4 5 SUGGESTED MANAGEMENT ACTIONS 1. Remove the existing rock work and re-install along with large flat boulders adjacent the weir. Extend this stonework to cover the exposed Water Corporation pipe. The 4 upslope side requires A14 geotextile to prevent sediment loss. Topsoil with rhizomes will 4 3 be added behind the boulders. Add new rock work at the toe of the bank in front of eroding access point where personal powered water craft enter the river and embed additional rocks up the slope to provide periodic stable footholds. The upslope side 2 will require A14 geotextile to prevent sediment loss. Add topsoil with rhizomes behind the boulders.

2. Cut the existing posts to 0.5 m and cap with large recycled jarrah sleepers (or steel 8 equivalent) to provide a resting point for canoes, paddleboards and/or towels.

3. Top dress the existing grass and weedy area between the post and rail fence and the path.

4. Plant three 45 L WA Peppermint between the path and the river, using linear root barrier 6 between the Water Corporation infrastructure. 7 5. Control kikuyu and other weeds in the regeneration areas and plant with endemic plant species.

6. Strategically place boulders to restrict bike access and revegetate the bank

7. Use a combination of rocks and revegetation downslope of Water’s Edge to stabilise the compacted clay slope. Undertake minor re-contouring of the track to divert surface run off at strategic locations using small spoon drains.

8. Install a sign directing pedestrians and cyclists to a shared entry point at the north end.

Rendall Cl Weir Plan View 1:200@A2

Anigozanthos flavidus Baumea juncea Lepidosperma effusum

PRELIMINARY

Rendall Cl Weir Environment Management Plan

Date: March 2021 N Revision: B Drawing: RW_01 Image 1. Artist Impression - Proposed revegetation planting and planting of Agonis flexuosa. Image 2. Artist Impression - Placement of boulders and additional understorey planting Scale: 1:200 @ A2 Granite boulders to reduce erosion. Post and rail to protect water corp assets 133 MARGARET RIVER

2 1

Image 1. Artist Impression - Local granite boulders to reduce erosion risk and provide informal seating (1. On plan) 6 5 3 4

7

8 Barrett Street Weir Plan View 1:200@A2

THE SITE The Margaret River Precinct Plan identified Barrett Street Weir as a special place for the community. The recreational area is popular for swimming, paddle boarding, canoeing and picnicking. The Margaret River and its foreshore areas are registered Aboriginal sites and hold important spiritual value for the Indigenous traditional owners; the Wadandi and Piblemen people. REVEGETATION PLANT SPECIES - proposed revegetation species for area 6 Facilitating access to this unique location is resulting in a number of management issues Image 2. Artist Impression - Post and rail extended to protect foreshore. Bike including localised erosion, rutting of the carpark, trampling and disruption to the fringing racks added. Revegetation and weed control vegetation and resulting weed control issues.

SUGGESTED MANAGEMENT ACTIONS PRELIMINARY 1. Install large flat boulders adjacent pump house and boardwalk and back fill with coarse filter rock to provide seating and an area to rest personal powered watercraft. 2. Install large flat topped granite boulders in front of failing Jarrah retaining wall. 3. Cap existing posts with large recycled Jarrah sleepers (or steel equivalent) and re-locate the three easterly posts to Location 4 and cap similarly [Refer image 2 artist impression for Barrett Street Weir reference]. Environment Management Plan

4. Maintain 2.8 m vehicle access between post and rail fences. 5. Install two bike racks between the Pump Station and Post and Rail fencing. N 6. Control Kikuyu and regenerate with endemic plant species. Date: March 2021 7. Use a combination of rocks and 3 m lengths of timber to define boundary of carpark. Revision: A Consider bollards and or wheel stops to further define parking areas. Drawing: BW_01 Anigozanthos flavidus Baumea juncea Lepidosperma effusum 8. Undertake minor re-contouring of the access road to divert surface run off at strategic locations using small spoon drains. Scale: 1:200 @ A2 134 Have your say

SURVEY RESPONSE REPORT 22 May 2021 - 20 June 2021

PROJECT NAME: Draft Landscape Plans: Barrett Street Weir and Rendall Close Weir

135 Have your say : Survey Report for 22 May 2021 to 20 June 2021

SURVEY QUESTIONS

Page 1 of 6 136 Have your say : Survey Report for 22 May 2021 to 20 June 2021

Q1 Do you support the Rendall Close Weir Plan

0 (0.0%)

1 (14.3%) 0 (0.0%)

1 (14.3%)

6 (85.7%)

6 (85.7%)

Question options Yes Unsure No

Mandatory Question (7 response(s)) Question type: Radio Button Question

Page 2 of 6 137 Have your say : Survey Report for 22 May 2021 to 20 June 2021

Q2 Please tell us why...

carolmgaby I want to encourage wildlife and 6/04/2021 03:53 PM peaceful use. So as close to natural as possible

Still-hoping Heavy and uncontrolled usage has 6/04/2021 04:35 PM caused a lot of degradation which needs attention. I’m glad it’s getting some love and the planning looks good.

Hannahguy2401 The plans look like they will improve 6/08/2021 08:34 PM access to the area and also to the environment

Jane Hilton Both Randall Close & Barrett St. 6/08/2021 10:17 PM Weirs are areas I enjoy regularly and both are suffering significant degradation. However, I don’t like the choice of plantings...I’d like to see revegetation using plants endemic to these specific locations. (Correct me if I’m mistaken, but I don’t recall these species growing here?)

underdewoods No comments on this plan. 6/18/2021 10:13 AM

Joan Sharpe There is little landscaping at present. 6/18/2021 05:26 PM The area is bare and uninviting with weeds and erosion. It is better to plan now before the area becomes further degraded

Mandatory Question (6 response(s)) Question type: Essay Question

Page 3 of 6 138 Have your say : Survey Report for 22 May 2021 to 20 June 2021

Q3 Do you support the Barrett Street Weir Plan

0 (0.0%)

0 (0.0%) 0 (0.0%)

0 (0.0%)

7 (100.0%)

7 (100.0%)

Question options Yes No Unsure

Mandatory Question (7 response(s)) Question type: Radio Button Question

Page 4 of 6 139 Have your say : Survey Report for 22 May 2021 to 20 June 2021

Q4 Please tell us why...

carolmgaby Also happy to reduce erosion and 6/04/2021 03:53 PM encourage quiet and peaceful use of this site

Still-hoping As above. In addition, there needs to 6/04/2021 04:35 PM be some rubbish and dog management at both sites. Off leash dogs and littering are problems. Also don’t think the river is at all an appropriate place for powered watercraft.

Hannahguy2401 The plans appear like they will 6/08/2021 08:34 PM improve the environment there but also increase access to the area

Jane Hilton As per above... 6/08/2021 10:17 PM

underdewoods In general agree with proposed 6/18/2021 10:13 AM works to manage impact on the area.However, more needs to be done addressing Erosion and Sedimentation controls from Barrett Weir gravel road. Specifically: • Necessary to control run-off from the gravel road down the hill, that is causing erosion and sedimentation. • Currently run-off flows down the road and westwards at the bottom of the hill, joining onto the walk / cycle path, which is causing erosion of the pathway, and carrying sediment ultimately into the river. . • Further to the west along the path (approx. 50m), the erosion feature // water then enters a cut towards the river, where it creating an erosion cut. • Requirement should address: o Construct appropriate erosion and sedimentation control features, such as berms, diversion structures and settlement areas (i.e. sedimentation basin) for drainage coming off the Barrett Weir gravel road, primarily at

Page 5 of 6 140 Have your say : Survey Report for 22 May 2021 to 20 June 2021

the bottom of the hill to direct flow appropriately and minimise sediment deposition into the river. o Recommended that berms are also placed in the road to slow water velocity down the hill and reduce erosion and sedimentation.

Joan Sharpe There is little landscaping at present. 6/18/2021 05:26 PM The area is bare and uninviting with weeds and erosion. It is better to plan now before the area becomes further degraded

Mandatory Question (6 response(s)) Question type: Essay Question

Page 6 of 6 141 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.5 SUBMISSION OF THE SUSTAINABILITY REFERENCE GROUP MEETING MINUTES

Attachment 1 – Sustainability Reference Group Council Update – July 2021

Attachment 2 – Sustainability Reference Group Instrument of Appointment and Delegation

142 Council Update – Sustainability Reference Group July 2021 Members Paula Cristoffanini (Chair) Ingvar Anda Naomi Godden Amanda McCluskey Pauline McLeod (proxy) Jeff Thierfelder Nick Dornan Crispin Underwood Lyn Serventy Peta Goodwin Laura Bailey Ray Swarts Pam Townshend Nicola Ledger

Group Dynamics

Acknowledgement of Country Each meeting is started with an acknowledgement of the Wadandi and Pibelmen people as the traditional owners of the country.

Code of Cooperation Members agreed to respect the Code of Cooperation during discussions to ensure that interactions remain respectful at all times.

Meeting Frequency It was agreed that meetings should be held 6 times a year on a Tuesday from 5-7. Actual meeting dates were 27th October 2020 7th December 2020 – cancelled with consultation conducted via email instead 23rd March 2021 25th May 2021 21st July 2021

Defining Sustainability The group is made up of a diverse range of perspectives on sustainability. It was decided that rather than the group agreeing to a shared definition of sustainability they would bring their diversity of perspectives to each issue as it arose.

143 Topics covered

Local Planning Strategy Matt Slocomb gave a presentation on the draft strategy with a focus on the sustainability related issues and initiatives. The group discussed some of the key planning issues and how they are being or could be addressed through the strategy and scheme. Members were encouraged to engage in the formal consultation process.

Community Strategic Plan 2040 The group were encouraged to attend the workshops and provide input into the Community Strategic Plan 2040. Stacey Hutt is bringing the draft to the groups next meeting in July for an in-depth discussion around the sustainability aspects.

Climate Action Plan The Climate Action Plan was finalised following a period of public comment. Feedback from the group included that the targets should be more ambitious and that additional actions should be included.

Environmental Management Fund The group discussed expanding the Environmental Management Fund Guidelines to include sustainability. These changes were incorporated into the latest round of funding.

There was also a session to discuss the projects that applied for 2021/22 funding with members invited to undertake a review of the applications, score them and provide advice to the officers.

144

Sustainability Reference Group

Instrument of Appointment and Delegation

September 2019 NAME The Reference Group shall be known as the Sustainability Reference Group (SRG).

ROLE OF THE REFERENCE GROUP To promote sustainable environmental practices within the Shire of Augusta Margaret River and across the community and to provide a forum for community representatives, Councillors and Shire officers to focus on sustainability issues.

OBJECTIVES OF THE REFERENCE GROUP a) Strive to increase community engagement on sustainability and environment related initiatives.

b) To provide technical expertise on environmental issues including:

; • Transport and air quality; • Biodiversity; • The built environment; • Community information and engagement to increase sustainable practices; • Land and waterway degradation; • Water quality and conservation; • Waste management; and • Power generation and conservation.

c) Identify opportunities to increase real and sustainable behaviour change in residents, businesses and other members of the community (including tourists) to improve sustainability outcomes.

d) To provide guidance on Shire initiatives and projects with the objective of achieving outcomes which are: 1) Environmentally responsible; 2) Socially and culturally sound; and 3) Economically viable.

MEMBERSHIP The Council appoints to the Reference Group those categories of membership outlined below. Membership of the Reference Group shall, unless otherwise specified, be for a term ceasing at the date of the Local Government election in the year the Shire’s Local Government elections are held, after which time the Council may appoint members for a further term.

SUSTAINABILITY REFERENCE GROUP

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov145.au

Membership of the Reference Group shall be: a) The Shire President, if desirous in participating and one Councillor of the Shire of Augusta Margaret River; OR Two Councillors of the Shire of Augusta Margaret River; (one Councillor shall be Chairperson, one shall be Deputy Chairperson); b) A deputy in the absence of the President or other appointed delegate; and c) Up to twelve community members with interest and expertise in environmental matters, appointed by the Council.

The Shire’s Sustainable Development Directorate will provide advice and administrative support to the Reference Group.

The Shire shall ensure ensure that minutes of the proceedings are kept and that business is conducted in accordance with the Instrument of Appointment and Delegation and the following general administrative framework:

i. The role of a Reference Group is to provide the Shire’s Administration with its views and/or proposals relevant to the Objectives for which the group was established. ii. A Reference Group has no decision making powers and does not have any authority to act on behalf of the Shire. In operation, the group cannot direct employees, call tenders, award contracts, expend monies, direct volunteers or do anything which is the responsibility of the Shire. iii. Reference Group meetings will be conducted in an informal manner, providing opportunities for ideas to be raised and general discussion. The view and proposals of a Reference Group are to be recorded on the Minutes and retained in the Shire’s record keeping systems. iv. Reference Group members either collectively or individually are not authorised to speak on behalf of the Shire or provide comment to the media or other persons, in respect of any item under consideration, unless authorised by the Chief Executive Officer.

ROLE OF THE CHAIRPERSON The Chairperson and Deputy Chairperson shall be Councillor representatives and will be decided by Council. The Chairperson will preside at all meetings.

The Chairperson shall ensure that the Reference Group operates in accordance with the Instrument of Appointment and Delegation at all times.

CONDUCT OF MEETINGS Meetings a) At the first meeting after convening, the Reference Group shall determine a Schedule of Meeting dates for the reminder of the year. b) Additional meetings may be convened at the discretion of the Chair.

Agendas and Minutes a) The Director Sustainable Development will determine the Agenda for each meeting. Members may submit items for consideration and listing on the agenda. b) All meetings shall be confined to items listed on the agenda. c) The Director Sustainable Development will be responsible for ensuring preparation and accuracy of the minutes. d) Items considered at the meeting will not be voted upon. The minutes will record consensus agreement on actions and any points of agreement / disagreement. They will not reflect verbatim discussion on issues or matters discussed during debate. e) Minutes of the meeting will be prepared by the Responsible Officer and distributed to members within five (5) working days after the meeting.

SUSTAINABILITY REFERENCE GROUP

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov146.au

CONFLICT OF INTEREST Whilst the financial, proximity and impartiality interest provisions of the Local Government Act 1995 do not apply to the Shire’s Reference Groups (as it is not a Council appointed committee approved under section 5.8 of the Local Government Act 1995 and does not have any legal status), all members need to be aware that any conflict of interest needs to be disclosed to ensure probity is maintained at all times.

DELEGATED POWERS The Reference Group has no delegated powers. The meeting minutes, views and proposals of reference group meetings are to be presented to Council by Shire staff for noting bi-annually.

Document and version control table

Strategic outcome Key Result Area 5:Effective governance and corporate leadership.

Responsible Directorate Governance

Authority of original issue Council

Date of original issue 13 September 2017

Contact officer Governance Officer / Council Support

Date of next review September 2021

Document No. N139482

Version Date issued Brief description 1.0 13/9/2017 Initial Issue

1.1 8/11/2017 Amendment to membership wording (OM2017/260)

1.2 11/09/2019 Review and major amendments in line with reestablishment as a reference group

1.3 11/12/2019 Amendment to membership (OM2019/253)

SUSTAINABILITY REFERENCE GROUP

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov147.au SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.6 LOCAL PLANNING POLICY 2 – DESIGN REVIEW – FOR FINAL ADOPTION

Attachment 1 – Draft Local Planning Policy 2 – Design Review

148

Local Planning Policy 2 Design Review

March 2021

This policy was adopted by Council to set governing principles in Localplace Planningthat align Policiesthe strategic are guidelines direction ofused the toorganisation assist the localwith [insertgovernment in making decisionsrelevant strategic under the goal Scheme. from Corporate In considering Plan]. an application for planning approval, the local government must have due regard to the relevant Local Planning Policies.

This policy is established in accordance with Division 2 of the Deemed Provisions of Local Planning Scheme No.1. Objectives Introduction The purpose of this policy is to augment the Shire’s development assessment process and projects by providing design input from an independent panel of design experts. The Shire is part of a South West Joint Design Review Panel, which will operate in accordance with the process outlined by the State Government Design Review Guide - Guidance for local governments (the Design Review Guide), as augmented by the adopted Terms of Reference. Application Applies to development or Shire projects that meet the threshold set out at Part 2. Objectives 1. Ensure higher quality built form outcomes and an improved public realm through Design Review of development applications and Shire projects. 2. Outlines the types of applications that will require design review. 3. Set out the weight afforded to the advice provided by a Design Review Panel. 4. Establish process for fees and charges. Interpretations “Design Review” means an independent and impartial evaluation process in which experts on the built environment assess the design of a proposal. “Design Review Panel” means a selected panel of experts who undertake a design review of a proposal. “Terms of Reference” means the adopted Terms of Reference that establishes the role and functioning of the South West Joint Design Review Panel.

LOCAL PLANNING POLICY 2 DESIGN REVIEW

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov149.au

Policy 1. Design Review process 1.1 The Shire is to establish and maintain a Design Review Panel to undertake Design Review for matters outlined at Part 2. 1.2 The establishment and operation of the panel is to occur in accordance with an adopted term of reference. 1.3 The Design Review Panel shall assess proposals against the design principles of State Planning Policy 7.0 Design of the Built Environment (WAPC, 2019). 1.4 The Design Review Panel performs an advisory function and the decision maker shall give due regard to the panel’s advice. The Design Review Panel does not report on compliance with the Scheme or policies with the exception of design guidelines or similar; 1.5 The Shire encourages proponents to undertake Design Review early in the design concept stage, prior to the submission of a development application.

2. Threshold 1.1 Design Review will be required for the following matters:

a) New developments and large-scale additions which may impact on the streetscape within the Town and Village Centres zones; b) Proposals that meet the mandatory requirement to be determined by the Joint Development Assessment Panel; c) Lage scale development outside of the town centre and village centre zone which may impact the landscape character or sense of place within the Shire; d) Any relevant scheme amendment, structure plan, policy, precinct plan, local development plan, design guidelines or Shire works project referred by the Director of Sustainable Development and Infrastructure; e) Any other proposal referred to the panel by the Director of Sustainable Development and Infrastructure;

3. Fees and Charges 3.1 No charge will be incurred by the proponent for up to two design reviews, provided at least one of those occur prior to lodgement of a development application; 3.2 The proponent shall reimburse the Shire for the sitting fees of DRP members for all subsequent DRP meetings; 3.3 Fees are to be paid to the Shire in accordance with Council's adopted schedule of fees and charges.

Document and version control table

Strategic outcome Liveable, sustainable and well-designed places that are inclusive for all cultures and demographics

Responsible Directorate Sustainable Development and Infrastructure

Authority of original issue Council

Date of original issue [Council meeting date DD/MM/YYYY]

Contact officer Planning Services

Date of next review [1-3 years from last review]

LOCAL PLANNING POLICY 2 DESIGN REVIEW

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov150.au

Document No. [Synergy Document No.] File No. [Synergy File No.]

Version Date issued Brief description 1.0 [TBD] Initial Issue

LOCAL PLANNING POLICY 2 DESIGN REVIEW

Shire of Augusta Margaret River 41 Wallcliffe Road, Margaret River 6285 | T (08) 9780 5255 | F (08) 9757 2512 | amrshire.wa.gov151.au SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.7 SUSTAINABLE ECONOMY STRATEGY

Attachment 1 – Sustainable Economy Strategy

Attachment 2 – Background to Sustainable Economy Strategy

Attachment 3 – Overview of Public Feedback on the Draft Strategy

152

Sustainable Economy Strategy 2021-2025

153

Acknowledgement of Country The Shire of Augusta Margaret River would like to acknowledge that we are on Wadandi and Pibulmun country whose ancestors and their descendants are the traditional owners of this country. We acknowledge that they have been custodians for thousands of years 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 First Nations people share fairly and equitably in the future development of the Shire’s economy.

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Foreword: message from the Shire President

Council is committed to supporting a sustainable and prosperous future for our residents and local businesses, a future that balances and integrates the need for environmental protection, social wellbeing and economic prosperity. This means protecting the Shire’s pristine environment and cohesive community through ensuring that economic development is well planned and sustainable into the future. An intergenerational approach is required to ensure long lasting prosperity is created, not just short-term financial gain at the expense of the environment or community wellbeing. Economic development activities should improve community outcomes as a key purpose. In governing the Shire’s strategic direction, Council has a vital role to play through this Sustainable Economy Strategy, setting a clear Cr Ian Earl economic vision and adopting the policy settings that will foster a sustainable future. Shire President Our community was hard hit during the height of COVID-19 lockdowns, and we have all seen first hand the need to build resilience into our economy. Resilience is a key focus of this strategy, which emphasises the need for investment into the health of the environment, development of talent and opportunities for our community members and creation of the right conditions for creative and entrepreneurial thinking to meet future challenges and needs. Despite the dramatic disruption and changes to tourism over the last 12 months, the Margaret River Region remains a sought after tourist destination known principally for its premium wine, quality produce, associated fine dining and world class surfing. An integral part of the experience is the natural environment, a key drawcard which impresses itself upon all who spend time here. Safeguarding the region’s environment is a serious responsibility for all stakeholders and the Council has an important function to play in ensuring it is at the core of the Shire’s approach to economic development. This Sustainable Economy Strategy broadly covers the sphere of influence the Shire has to facilitate and foster sustainable economic development. It identifies priority areas for action over the next four years to build on the region’s strengths and to tackle the complexities evident in a seasonal, tourism-focused economy. Although we are a small, regional Local Government area, we have a talented and passionate community, innovative and invested small businesses and abundant natural assets. We aspire to be a leader in sustainable economic development and this strategy is an important step in this direction.

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Contents

Introduction 5 Purpose of the strategy 5 How this report was developed 6 What’s in this report? 6 Relationship with key Shire documents 7 Discussion: Economic development 8 Discussion: Why “sustainable” economy? 10 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 Discussion: Climate change and the economy 23 Goal 5: Successful livelihoods 24 Goal 6: Local ownership 25 Summary of Strategies 27 How to read the Strategies 29 Sustainable Economy Strategies in detail 30-43 Discussion: What is “regenerative” agriculture? 44 Alignment 45-47 References 49-51

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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; Mike Salvaris, Director of the Australian National Development Index

• Circulation to the community via YourSay and inclusion of community feedback

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 paper to the Sustainable Economy Strategy.

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Relationship with other key Shire documents

Community Strategic Plan 2036 The Shire’s Community Strategic Plan is a statutory document that outlines a 20-year vision for the Shire, and is informed by significant community consultation. The Sustainable Economy Strategy is one of the strategies that will help achieve the community aspirations identified in the Community Strategic Plan. The five goals of the Community Strategic Plan (below) are consistent with the goals of the Sustainable Economy Strategy.

CSP Key Result Areas Sustainable Economy Strategy Goals

Valuing, protecting and enhancing the Healthy ecosystems natural environment

Welcoming, inclusive and healthy Broad and inclusive wellbeing communities

Ensuring sustainable development Vibrant townsites

Economic resilience Vibrant and diverse economy Successful livelihoods

Effective leadership and governance Local ownership

Local Planning Strategy 2036 (draft) The Local Planning Strategy 2036 (LPS 2036) is a statutory document that sets a vision for the size, look and feel of the Shire’s neighbourhoods, towns and natural areas over a 10 to15-year period. It sets a strategic direction on the layout and location of land use – such as commercial, rural, and residential – and sets policies and objectives on the many factors that impact the way we relate to place. For example, the LSP 2036 considers broad factors such as landscape amenity, environmental conservation, habitat protection, potential impacts of sea level rise, housing diversity and affordability, opportunity to reduce car- dependence, and more.

Where the LPS 2036 provides rules and boundaries that mostly manifest in the built form and landscape of the shire, the Sustainable Economy Strategy identifies opportunities to fund, educate, incentivise, and collaborate for improved outcomes in our livelihoods and the way these interact with the environment.

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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 • ecological services underpinning the economy

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

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• providing grants, or submitting grants on behalf of the region

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, Department of Biodiversity, Conservation and Attractions, and more. 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.

Figure 1: Gross World Product Figure 2: Global Mean Estimates based on land and ocean 10 data (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 1: 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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Augusta Margaret River brief history The Shire is part of the traditional lands of the Wadandi and Pibulmun people, who have lived in the region for at least 50,000 years. The Augusta Margaret River region is The Shire was one of the first areas regarded by many as a uniquely beautiful settled by Europeans in Western Australia. and inspiring part of the world, with a In May 1830 Governor Stirling led a party reputation for being clean and green. The of settlers to the mouth of the Blackwood suite of rural industries is set against a river and declared a townsite, naming it backdrop of limestone cliffs, underground Augusta in honour of Princess Augusta cave systems, temperate forests, rugged Sophia. The Wadandi Pibulmun people, beaches, ancient granitic gneiss whose connection to country extends back formations, fragrant coastal heathlands, tens of thousands of years, had their own and verdant farmland. name for Augusta - “Taalinup”, meaning place of the Knob Sedge Reed.

The region has its economic roots in Today the Shire is filled with place names Aboriginal land management, and then harking back to the various histories of its dairy and logging, which later diversified to people: the Indigenous Cowaramup and agriculture, viticulture, wine-making, and Kudardup, the English Augusta and then a burgeoning tourism industry. On Margaret River, the French Cape Mentelle the back of the first commercial grape and Point Freycinet, and the Dutch Cape vines being planted in 1967 by Tom Leeuwin. Together, the community is Cullity, of Vasse Felix, the region has seen high growth in both visitors and residents supported by a vibrant and diverse (Figure 2). This growth has, in turn, economy, nested within a unique natural spurred the construction industry and environment held in high regard by locals related trades. and visitors.

Figure 2: Population growth in the Shire

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Main industries

The main industry sectors are listed below, and further detail is available in the Background Paper to the Sustainable Economy Strategy:

• 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 sustainable 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 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.

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• 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 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] 20 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 production systems, ecological services, create challenges for the health and social cohesion, energy generation, resilience of our economy. Broad trends, infrastructure and transport systems. such as consumer shift to experiences Just like in an ecosystem, diversity is key over products, can radically change to resilience when subject to broader economies over time, and sudden shocks, shocks. Diversity of industry creates a such as an oil crisis, pandemic or large variety of employment opportunities fluctuating commodity prices, can change to suit the range of qualifications, skills, economies very quickly. Resilience is the and natural propensity of residents. ability to withstand, absorb, or bounce Diversity also creates a more interesting back from shocks and adapt to changes. and engaging place to live in. A major concern for economic resilience is Examining economic leakages through around climate change (see discussion existing imports can help identify over page). In a carbon-constrained opportunities for new local industries, future with greater climatic volatility, and which can mature to provide local within the ecologically defined limits to employment, and greater self-sufficiency scale of the economy we can work in services and other industries. towards resilience of living wages, food

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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Discussion: Climate Change and the economy The Shire Council declared a “Climate Emergency” in 2019, and now has an ambitious target of net zero emissions by 2030 to play our part in keeping global temperature increases to a minimum.

Economy-driven climate change Economic activity exacerbates climate An increase beyond 1.5 degrees is change through greenhouse gas expected to have extremely serious emissions (e.g. through fossil fuel consequences including loss of land consumption, long-distance supply from sea level rise, loss of biodiversity, chains, ruminant animals) and reduced impacts on health and well-being, loss capacity to store and sequester of water resources and other impacts. carbon (e.g. through soil destruction, land-clearing).

has economic impacts we canthe mitigate through actions like: Climate change Economic activity has the impacts the economy potential to reverse warming, through destructive with activities that regenerate 2.2.4 Active transport weather events, the carbon cycle. This can be 3.1.1 Regenerative agriculture reduced rainfall, supported by the consumption temperature extremes, choices we make, where we 4.1.5 ECO Certification and threats to choose to invest, and the way biodiversity. we produce things. 5.1.1 Buy local 5.2.2 Divestment

5.2.5 Environmental funding

6.1.2 Electric fleet

7.1.3 Business training

See details of strategies on and we will need to adapt pages 30-43

Even if global efforts curb climate change to the most optimistic projection (an increase of 1.5°c by the year 2100) it is still expected that there will be an increase in severe weather events, sea level rise, and a drying climate in the For more information south-west. Our economy will need to actively plan for this and adapt, Further detail can be found in the Shire’s Climate looking for opportunities. Action Plan 2030, which outlines the action areas to move towards zero emissions by 2030.

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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 local ownership of businesses, capital, and energy infrastructure yields significant benefits to the community, including:

• Higher multipliers: Locally-owned serve local markets and thus want to businesses generally contribute more position themselves as centrally as to the economic multiplier, with possible, occupying small spaces in spending circulating many times in the mixed land use town centres, which local economy before leaking out. has a positive impact on the sustainability of town design. • More reliable: anchored in the community, locally-owned businesses • Better social impacts: Small and tend to produce wealth for many years local economic activity tends to also without being tempted to shift be accompanied by meaningful social operations elsewhere to increase the exchanges, and local-business rate of return. economies encourage entrepreneurialism and civic culture • More dynamic: A community made more than their absentee-owned up of smaller, locally-owned counterparts. Local businesses give businesses tends to have a distinct back to the community in which they sense of place, celebrating its are nested. uniqueness and diversity. These small, locally-rooted businesses tend to

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 / banking that leak from the Shire opportunities, Shire’s Investment Policy

Indicators:

The indicators for each goal are not perfect – they are broad pointers for which there is data available, providing an indication but not a definitive statement. There is opportunity to capture the data for these indicators in an annual “report card”, gauging the trends towards achieving a sustainable economy. With the Western Australian government currently considering a wellbeing index there may be opportunities to align local indicators with these and even pilot the index locally.

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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: 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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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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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

Rationale

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

1.3.1 Participate in and promote a 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 workshops and capacity building in 2022-2023 Sustainable sustainable agricultural practices, 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

3.2.4 Continue engaging with First Nations  Ongoing Executive people and Traditional Owners to ensure fair Leadership participation in the economy

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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 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, including  Economy exploration of local gift card

5.1.2 Ensure Shire purchasing policies and procedures are equitable and effective,  Ongoing Finance Services

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enabling local businesses to provide contract services for the Shire

5.1.3 Encourage 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 Economy, review of CCSP5: Investments Policy 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 • Explore opportunities for development of a local payment gateway to facilitate online payments and generate revenue for local benefit

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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 infrastructure. The types of infrastructure base that underpins the smooth running of developed heavily influence the sort of the economy. Physical infrastructure economic activity that can take place in a includes things like roads and freight assets, region, and have a profound impact on how energy distribution, and irrigation channels – this activity affects the social and assets that directly support the productivity of environmental fabric of the region. the economy. It can also include digital

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 Transition Shire fleet away from fossil Infrastructure, fuel-dependence by implementing relevant  2021-2022 actions from the Climate Action Plan Fleet Manager

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 6.3.5 Monitor accommodation availability for seasonal workers, and continue to explore  Planning and Ongoing options for non-resident workers’ Development accommodation

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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 to the most sustainable resources and production to minimise (or eliminate) energy sources possible. Climate change waste, and seek to use resources and is a major risk factor in our communities inputs at a sustainable and replenishable and economies, and circular economy rate. As highlighted in the Discussion: practices are a direct way to mitigate Why “Sustainable” Economy section, against these effects. unreasonable demands on natural The Shire can show leadership in this regard, resources – whether it be timber, oil, coal, and help create an environment that supports or groundwater – destabilise essential community and businesses to also be leaders services we require for our wellbeing. in sustainability. The Shire can continue With a growing population, both globally partnering with Wadandi and Pibulmun people, whose long history of caring for and in the Shire, it is important that we country provides valuable insights in the model and promote efficiency of natural ongoing stewardship of our environment. resource use, actively support the regeneration of ecosystems, and transition

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 symbiosis” 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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What is “regenerative” agriculture? Since Europeans first arrived in the south- This approach looks for the win-win: how to west and began farming in a landscape and build soil health, bring biological systems climate so different from their origins farmers back to life, nurture the water cycle, promote have had to innovate, experiment, and learn biodiversity, draw down atmospheric carbon, how to farm this country. Some of these enhance nutrient density in food AND build approaches have failed (e.g. over-clearing of profitability for the farmer. the wheatbelt has led to problems with These might be small, niche farms within the dryland salinity) but others have succeeded in Shire, or they might be large commodity producing abundant food in harmony with the farms, like some of the dairies in the Scott environment. As managers of large River Region. Within the Shire there is a landholdings, farmers hold a unique place in helping look after the environment. huge range of approaches and scales, with farmers exploring different practices from cell- “Regenerative agriculture” is a relatively new grazing to biological pest control. Promoting term for an approach that many farmers the successes, sharing the lessons, and would consider old as time: understanding trialling new ideas can improve the wellbeing the environment and being sensitive to the of the land and the farmers who are often its land so as to preserve the assets that make stewards. farming possible into the future.

“We don’t care whether you subscribe to carbon farming, no-till, conservation agriculture, zero-waste, sustainability, biological farming, polyculture farming, holistic management, mob grazing, silvopasture, regenerative, organic, biodynamic, , spray-free or anything in between. We believe the future of global agriculture demands a push towards landscape restoration, efficiency, zero waste, ethical production and restoring ecosystem function. We will support this transition however we can.” - Regen Farming News

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Alignment

Sustainable Economy CSP 2036 key result areas SWDC Strategic Plan UN Sustainable Development Goals Strategy goals priorities Healthy ecosystems Valuing, protecting and n/a enhancing the natural environment

Broad and inclusive wellbeing Welcoming, inclusive and healthy Highly skilled and industry communities ready workforce Aboriginal economic development

Vibrant townsites Ensuring sustainable Thriving, diverse and creative development communities

Economic resilience Vibrant and diverse economy Industry ready infrastructure and land

Successful livelihoods Vibrant and diverse economy Fulfilling and sustainable jobs

Local ownership Effective leadership and n/a governance

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The Shire of Augusta Margaret River is seeking to transition to a prosperous economy that enhances social and environmental integrity. This mirrors strategies and plans at a state, national, and international level.

Shire of Augusta Margaret River

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.

Western Australian Plans

Clean State: A Clean State Plan Government of Western for WA Jobs Australia: Green Jobs Plan Opportunity to create 204,215 clean The Green Jobs Plan is focused on jobs is demonstrated in the Clean providing employment opportunities

State plan for WA Jobs, which makes for people in the regions whose jobs the point that for every million dollars’ have been affected by COVID-19, worth of investment far more jobs are providing training and employment in

created in low-carbon industries than conservation initiatives. fossil-fuel based areas.

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.

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National Plans

Climate Council: Clean Beyond Zero Emissions: The Million Jobs

Jobs Plan Plan The Clean Jobs Plan focuses The Million Jobs Plan, published in June 2020, on occupations and regions reiterates the opportunity to reboot Australia’s hardest hit by COVID-19, and economy following COVID-19 through prioritising outlines how “76,000 new jobs investment in clean, low-carbon technologies. The for Australians can help rebuild plan identifies the need for Government and private our economy now and tackle investment, speaking to growing appetite amongst climate change”. 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 Economy Environmental Elements of Sustainable Events Strategy (2019) Sustainability Strategy (2016) Local Planning Strategy Climate Action Plan

Overarching Sustainability Policy (2018)

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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References

[1] WALGA, “Economic Development Framework,” 2019.

[2] R. Costanza, “Changes in the global value of ecosystem services,” Global Environmental Change, vol. 26, 2014.

[3] WWF, “Living Planet Report - 2018: Aiming higher,” WWF, Gland, Switzerland, 2018.

[4] M. Shuman and K. Poole, “Growing Local Living Economies,” Business Alliance for Local Living Economies, Bellingham, 2011.

[5] E. Connolly, D. Norman and T. West, “Small Business: An Economic Overview,” Reserve Bank of Australia, 2012.

[6] R. Sudmeyer, A. Edward, V. Fazakerley, L. Simpkin and I. Foster, “Climate change: impacts and adaptation for agriculture in Western Australia,” Government of Western Australia: Department of Agriculture and Food, 2016.

[7] Curtin University and Perth NRM, “Food Security Plan for Western Australia,” 2019.

[8] “Affordable Housing Strategy,” Shire of Augusta Margaret River, 2015.

[9] J. Parilla and S. Liu, “Talent-Driven Economic Development: A new vision and agenda for regional and state economies,” Metropolitan Policy Program at Brookings, 2019.

[10] “Sustainable Development Goals,” [Online]. Available: https://sdgs.un.org/goals.

[11] E. Connolly and J. Bank, “Access to Small Business Finance,” Reserve Bank of Australia, 2018.

[12] R. Considine, H. Dalton, D. Perkins and N. Powell, “Mental Health and Wellbeing in the Shire of Augusta Margaret River,” Lishman Health Foundation, 2019.

[13] WAPC, “Augusta-Margaret River Regional Land Supply Assessment,” Government of Western Australia, 2016.

[14] “Tax incentives for early stage investors,” [Online]. Available: https://www.ato.gov.au/Business/Tax-incentives-for-innovation/In-detail/Tax- incentives-for-early-stage-investors/. [Accessed 4 October 2019].

[15] University of New England and Mobium Group, “Australian Organic Market Report 2018,” Australian Organic, 2018.

[16] Coriolis, “Premium Agri-Food Market Opportunity,” Department of Agriculture and Food, 2016.

[17] Department of Agriculture and Food, “Report Card on Sustainable Natural Resource Use in Agriculture,” Government of Western Australia, 2013.

[18] Shire of Augusta Margaret River, “Business Survey Report 2019,” 2019.

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[19] Bankwest, “Bankwest Future of Business: Focus on Agriculture,” 2019.

[20] F. Hoyle, “Managing Soil Organic Matter: A Practical Guide,” Grain Research and Development Corporation, 2013.

[21] SC Lennon & Associates, ARC Centre of Excellence for Creative Industries and Innovation, “Creative Industries Statistical Analysis for Western Australia,” Department of Culture and the Arts, Government of Western Australia, 2013.

[22] Department of Water, “The Effects of Climate Change on Streamflow in South-West Western Australia: Projections for 2050,” Government of Western Australia, 2010.

[23] Australian Bureau of Statistics, “ABS Labour Force Survey,” 2019.

[24] [Online]. Available: https://www.environment.gov.au/climate- change/government/emissions-reduction-fund. [Accessed 10 9 2019].

[25] Department of Agriculture and Food, “Scott Coastal Plain a Strategy for a Sustainable Future,” Department of Agriculture and Food, Government of Western Australia, Perth, 2001.

[26] Tourism WA, “Shire of Augusta-Margaret River Visitor Fact Sheet,” 2019.

[27] Tourism WA, “International Market Profiles,” [Online]. Available: https://www.tourism.wa.gov.au/Research-Reports/Facts-Profiles/Pages/International- Visitor-Profiles.aspx#/. [Accessed 25 October 2019].

[28] Australian Bureau of Statistics, “Australian National Accounts: Cultural and Creative Activity Satellite Accounts, Experimental, 2008-2009,” 2014.

[29] Australian Government, “Health Care and Social Assistance jobs on the rise,” 10 September 2018. [Online]. [Accessed 5 November 2019].

[30] CSIRO, “Australian National Outlook 2019,” 2019.

[31] Australian Bureau of Statistics, “3222.0 Population Projections, Australia, 2017 (base) - 2066,” 2018. [Online]. Available: https://www.abs.gov.au/AUSSTATS/[email protected]/mf/3222.0. [Accessed 6 November 2019].

[32] Australian Bureau of Statistics, “3105.0.65.001 - Australian Historical Population Statistics, 2016,” 2019. [Online]. Available: https://www.abs.gov.au/AUSSTATS/[email protected]/Lookup/3105.0.65.001Main+Features1 2016?OpenDocument. [Accessed 6 November 2019].

[33] K. Schwab, “The Fourth Industrial Revolution: what it means, and how to respond,” 14 January 2016. [Online]. Available: https://www.weforum.org/agenda/2016/01/the- fourth-industrial-revolution-what-it-means-and-how-to-respond/. [Accessed 8 November 2019].

[34] Department of Jobs, Tourism, Science and Innovation, “Western Australia Economic Profile October 2019,” 2019.

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[35] National Institute of Economic and Industry Research (NIEIR), 2019. [Online]. Available: https://home.id.com.au.

[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.

Acknowledgement for icons from the Noun Project ‘Farming’ by Eric Milet ‘Hands love’ by Abeldb ‘Local SEO’ by Visual Language ‘Street performer’ by Jakub Caja ‘Grass’ by Hamish ‘Inclusive’ by Yu Luck ‘Sustainability’ by DPIcons Strong Chain Артур Абт ‘Wind Farm’ by Lizzy Gregory

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Background paper 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; Mike Salvaris, Director 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 Pibulmun 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 2) 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 affordability 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 online. 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

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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. 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. 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.

Business collaboration in the shire 1 (What on earth could they have to offer me?!)

2

collaborative Less 3 (We occasionally

catch up)

4

collaborative

More More 5 (We work together all the time)

Figure 6: Survey results for the question "How well do you feel you collaborate with other local businesses?" 11

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Impacts of 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.

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 (8). 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.”

The pandemic has affected not only the availability of supplies, but also the availability of labour. Agriculture and tourism, both important industries in the shire, rely upon the seasonal workforce of backpackers and itinerant workers who mainly come from overseas. The combination of closed borders and housing shortages has led to ongoing shortages of workers, forcing existing employees and business owners to work unreasonably long hours and reduce their services.

The Shire has partnered with ten other local governments in the south-west to explore a Designated Area Migration Agreement to help bring in overseas workers for positions where it is demonstrated that the local workforce is insufficient. The Shire has also worked with existing campgrounds and accommodation providers to allow expanded accommodation capacity, so long as it is for workers rather than tourists. It is hoped that the combination of gradually eased border restrictions to the eastern states, increased local campground capacity, continued promotion to residents of renting out rooms, significant increases in the local housing stock soon to enter the market, some industry-specific initiatives to build their own worker’s accommodation (currently being explored), and potential migration agreements can help solve the worker shortages.

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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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 (9). 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 (10) Key opportunities for value-added produce from agriculture in the south-west region, as identified by a thorough Department of Food and Agriculture study (10), 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 (11).

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 (12). Soil Organic Carbon contributes to the soil’s ability to retain moisture (13), 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 have voiced 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% (14); • A reliable source of affordable A grade Agricultural Lime (15); • 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 (15); • 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 (16) 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 (17). 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). The COVID-19 pandemic has brought an additional challenge to the agricultural sector – a shortage of itinerant workers who traditionally play a valuable role in the seasonal demands of growing food and grapes. 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

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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 (14). Extending this idea to the development of a Certificate in 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 (18), and there is huge potential for production of both organic and premium food products in Western Australia (10). 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 (18). 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 (12). 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 (19). 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 (20), 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 (12). 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 (21). 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 (22).

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 COVID-19 pandemic has brought an additional challenge to the tourism sector – a shortage of itinerant workers who traditionally play a valuable role in the seasonal demands of food and accommodation, tour bus driving, and guides. 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 (23), 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 eco- tourism and sustainable wine tourism destination. The Margaret River Busselton Tourism Association has also been exploring the region becoming a “”, a UNESCO recognised geographical areas where sites and landscapes of international geological significance are managed with a holistic concept of protection, education and sustainable development. 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.

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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. 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

$30,000,000

$20,000,000

$10,000,000

$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” (24). 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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$3.1b

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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

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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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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 (17) 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” (25). 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% (25). 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 (46).

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 (26). 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 (27). 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 (28). 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” (28) 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 (29). 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 (30).

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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 (31):

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 Includes 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 • 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 (32) (33) in recent years include:

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, (32). 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

Technological change New and emerging technologies will continue to disrupt given ways of doing things. The stuff of sci-fi movies is readily becoming the reality of today, with rapid development in areas like artificial intelligence, autonomous vehicles, blockchain, drones, additive manufacturing (3D printing), Internet of Things and Smart Cities, precision medicine, and mass data collation and analysis (34). This suggests the need for ongoing debate, responsiveness, creativity, and accountable governance. It also highlights the importance of training opportunities responsive to a rapidly changing world.

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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 (32), with levels of distrust in Australia’s key institutions only 4 percentage points away from the world’s least trusting country – Russia (35).

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” (35); • 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.

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 (36) (37). 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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Changing consumer expectations Within Australia and many developed with increasing efficiency of production, countries there is a shift in consumer has led to less material intensity per unit of habits, with a rising demand for services GDP, a positive sign for overtaxed natural and experiences over products. Part of systems. this trend may be attributable to social Another consumer trend is the increasing media, with status derived from demand for corporate social responsibility “Instagrammable” experiences over – it is increasingly becoming a necessity products. Services are an area that small, rather than an option. This is evidenced in local business can often compete well in. the rise of B-Corps, organic produce, Demand for experiences can also serve ethical superannuation funds, impact the local economy, where sense of place investment, green bonds, free-range delivers the very uniqueness and produce, and more. authenticity consumers are searching for. The shift away from products, coupled

COVID-19 The impacts of the COVID-19 pandemic are still being felt in the local economy, as discussed on page 12. The pandemic’s effects had an uneven impact on different sectors, with the biggest impact on high-contact industries such as hospitality. This effect has also seen an uneven impact across different countries, with those containing a larger proportion of high-contact sectors being more exposed to the pandemic recession. This asymmetry of impact also extends to long-term productivity decreases, which tend to be significantly more pronounced in developing economies than developed countries (38).

The long-term outcome of the pandemic is unknown, but presents an opportunity to think about the “new normal” we want to return to. This may include further consideration of supply chain resilience, and finding the right balance between lowest cost of production in long supply chains and security and sustainability of localised supplies. It may also include a stronger focus on mitigating and building resilience to other shocks, most notably the ecological threats of climate change, habitat fragmentation, and biodiversity loss.

Key opportunities identified by CSIRO (39) most relevant to the shire include:

• Decarbonisation, renewable energy, hydrogen industry • Healthy food, alternative protein sources, sustainable production chains, traceability and provenance • Local, sustainable and bespoke manufacturing

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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.

Which best describes your business? 30

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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

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

25

20

15

10

5

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?

70

60

50

40

30

20

10

0

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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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37. —. 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. 38. International Monetary Fund. World Economic Outlook: Managing Divergent Recoveries. Washington DC : s.n., 2021. 39. CSIRO Futures. COVID19: Reovery and Resilience. Canberra : CSIRO, 2020. 40. Connolly, Ellis, Norman, David and West, Tim. Small Business: An Economic Overview. s.l. : Reserve Bank of Australia, 2012. 41. 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. 42. WAPC. Augusta-Margaret River Regional Land Supply Assessment. s.l. : Government of Western Australia, 2016. 43. 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/. 44. WALGA. Economic Development Framework. 2019. 45. 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. 46. Australian Bureau of Statistics. Australian National Accounts: Cultural and Creative Activity Satellite Accounts, Experimental, 2008-2009. 2014. 47. Steffen, W. et al. Compound Costs: How Climate Change is Damaging Australia's Economy. s.l. : Climate Council of Australia, 2019. 48. 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. 49. Department of Jobs, Tourism, Science and Innovation. Western Australia Economic Profile October 2019. 2019.

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263 Overview of public feedback on the draft Strategy

The draft Sustainable Economy Strategy was developed with significant input from community groups, business peak bodies, and experts. The draft was then circulated for final feedback from the community over the month of May 2021. The consultation was advertised via newspaper ads, Facebook posts, and direct emails to key peak bodies for promotion to their audiences. In total, during the submission period there were 56 downloads of the draft Sustainable Economy Strategy, 10 downloads of the background paper, and 5 downloads of the 2019 Business Survey. The Shire received 11 responses to the survey, 6 of which agreed with the direction, 4 of which were unsure, and 1 that did not agree with the direction. The main changes made to the strategy in response to the feedback are: 1. Addition on page 7 about alignment with other key Shire strategies to clarify relationship with the Local Planning Strategy. 2. Additional historical background added to page 12. 3. Addition of an infographic / discussion piece on page 23 about climate change and the economy. 4. Bust out box on page 25 explaining the limitations and opportunities of goal indicators 5. Addition under Strategy 3: Talent development: 3.2.4 Continue engaging with First Nations people and Traditional Owners to ensure fair participation in the economy. 6. Addition of a potential future project under Strategy 5: Local and regenerative investment, exploring opportunities for development of a local payment gateway to facilitate online payments and generate revenue for local benefit. This approach has been successfully implemented by the Bristol Pound, as they transition out of their traditional model of providing a local currency. 7. Addition under Strategy 6: Infrastructure for a sustainable economy: “ 6.3.5 Monitor accommodation availability for seasonal workers, and continue to explore options for non-resident workers’ accommodation” 8. Addition on page 44 of a discussion piece about regenerative agriculture. 9. Addition on page 45 of alignment with SWDC’s Strategic Plan With the inclusion of these changes it is conceivable that some of the submissions expressing uncertainty around the direction of the strategy would now agree with the direction. Some minor additions were also made to the Background Paper, notably greater discussion of the impact of COVID-19 on accommodation shortages and itinerant workers (page 12).

264 Survey responses

Live Agree Why? What changes would you like to see? Shire Comments within with Shire? direction? Yes Yes A lack of recognition in the Strategy that the Recognition of the importance of a sustainable The strategy currently has a very clear attraction, use and management of the national natural environment both land and ocean based is focus on environmental protection as a environment both terrestrial and marine are crucial for our success and use. Key factors such key underpinning for future economic key responsibilities we have and should have a as climate change (rainfall decline, more severe wellbeing. focus on to achieve economic , community and weather situations and bushfires) and increased Adding a bust-out box with a environmental sustainability disturbance by the people and their actions require conspicuous focus on climate change greater recognition in the document. mitigation and adaptation will help clarify the Shire’s efforts in this space. Proactive management of bushfire mitigation and disturbance by the threats such as disease, weed, feral animal and changes to water in the landscape should be recognised as a priority for the community to be continually focused on Yes Unsure While I applaud the emphasis on sustainability p.7. refers to 'enabling infrastructure' , whereas As an economic strategy there is a and the environment, there needs to be greater economic development, economic growth, needs to requirement to look at economic recognition that this is first of all a community. address all infrastructure opportunities. Even those who live here The economy needs to fit within the p.8 refers to state agencies that have an influence primarily for lifestyle reasons need community. on the shire's economy should include Department economic opportunities (aka For example, a large part, I would suggest the of Environment (without it we would like have sent opportunities for livelihoods and the majority, of the community in the shire lives our groundwater to Perth and had a coal mine - material foundations for a life of here, not because of economic opportunities major economic impacts), Department of Mines & wellbeing). (indeed, have consciously turned their back on etc. The strategy could provide further clarity them), but for the somewhat over-used term p. 10 I like the opening description of a sustainable around the contradiction between growth 'lifestyle'. To many, in one way or another, that economy. and sustainability and clarify the role of lifestyle includes the ocean, the beach. Yet not p.16 while it refers to 'vibrant townsites', it makes no the Shire. one mention of the ocean or the beach in the reference to other facilities, which to many people draft. And why should an economic report (people who spend money in the economy) are far mention the ocean? Many who work and live more important than the townsite, and therefore here love and use the ocean, yet already important to the economy. simply finding a parking spot at a surf break or p.18 water efficiency. recognising this is not a shire a beach is difficult or simply impossible, and responsibility, the shire should advocate for careful with a fast growing population/economy management of groundwater (in 2008 or 'impossible' will be the norm. To many this may thereabouts we almost lost 45 Gl/y to the WC). seem trite, but given the difficulty and the p.21 again, townsite centric. environmental impact of materially expanding p. 26 'infrastructure' needs to be expanded beyond beach parking, and the almost religious zeal that with direct economic benefit. many have in respect of the ocean, this could

265 be taken as an example of limits of growth, the limits of sustainable growth. I'd stress, this is simply used as an example.

266 Yes Yes I like the incorporation of the circular economy Need to have and include a commitment to monitor In the interests of brevity further detail so we have a focus on Avoiding waste keeping and review the strategy particularly around the around budgeting, timelines and things in use and regenerating the actions and how they are being implemented. resourcing will need to be documented environment. Interim review should be undertaken after two years outside of the strategy. Initial scoping and major review after 4 years. Use state of shows that most of these actions can be environment style approach and try to develop both undertaken within the annual resourcing quantitative and qualitative measures. It is about of the Sustainable Economy area, but how to measure progress. some of the actions will require comprehensive project plans to be Alignment with Strategic Community Plan and other developed to fully grasp resourcing strategies is referenced at back of the strategy and requirements. needs to be upfront. Ask how this strategy is going Local certifications for sustainability have to help deliver the Strategic community Plan. Are previously been considered, and it is felt the vision statements the same or connected in a that aligning with existing certifications hierarchy? Also how does it link to the local planning would be a better approach. This is strategy for example? Do some Council strategies captured in action 7.1.3 Encourage overlap or even work against each other? Have a businesses to undertake sustainable matrix of goals business training, auditing and certification. Should investigate how strategy links to State It is anticipated that auditing and Government regional economic development certification for sustainability will be a strategies. Look at what the SW Regional funding priority for upcoming Sustainable Development Commission are saying in their Economy Grants. Strategic Plan. This line of sight State to local Government approach might help when seeking Providing further clarity in the front end of State Government support o0r funding. the strategy around its relationship to the Local Planning Strategy and other key Some actions included in the strategy are at a documents will help the reader higher order and you need to consider how you are understand the role of this strategy and going to implement by establishing more specific its place. actions that have budget or resource allocations. Indicators are a very challenging thing to develop in such a complex system. Under talent development could look more at Exploration is currently under way to look education and promotion. Could work with business at opportunities for aligning local to develop a local certification of best practice and indicators with the Australian National also set up an annual award for best performance Development Index, a project with a categories of the sustainable economy. For focus on Wellbeing. example, eliminate waste, keep products in use and Alignment with SWDC’s new strategic recycle, and regenerate nature. plan needs to be added.

An area where considerable potential for Exploring best practice opportunities for improvement is in the construction and development reusing Construction and Demolition industry. It seems that in infrastructure development waste in a circular economy could be materials are wasted and sent to landfill and not further articulated, particularly in action recycled. Council could lead by example in its own 7.2.2.

267 construction projects. Council could also look to develop policies encouraging better waste and recycling on building and subdivision projects.

268 No Unsure A Sustainable Economy Strategy needs to be Identify and recognise large landholdings on the This is an area of concern related to the balanced with the Social and Environmental edges of the Margaret River townsite such as in Local Planning Strategy. It is understood imperatives together with the diversity of Burnside where housing diversity, alternative that the proponent has made housing options, choices and affordability. The housing accommodation, boutique land submissions and deputations to WA Draft Economic Strategy appears to be focused development and built form should be incorporated Planning Commission concerning the on taking the Shire towards an environmental into the Strategy. Refer to my written submission. rezoning of their parcel of land. These protectionist with an emphasis on protecting changes were not supported, in line with the environment at all cost at the expense of the Leeuwin Naturaliste Subregional others. Strategy, which provides the following guidance: “State Planning Policies 2.5 (Rural planning) and 3 (Urban growth and settlement) and the South West Regional Planning and Infrastructure Framework (2015) are not generally supportive of the expansion of rural residential and low density residential beyond that already identified in the local planning strategies”. If supported, this would introduce a number of new residents into a predominantly agricultural area, would greatly increase the risk of land use conflict and could have operational impacts on the surrounding agricultural uses. The site is not contiguous with any established Rural Residential areas and would be immaterial in terms of catering for expected population growth, given most of the future demand is capable of being met within the urban growth areas around the existing inland settlements of the Shire. Finally, there are possible visual impacts associated with the development of the site, detracting from the views rural landscape along the inland side of Caves Road which is an important element contributing to the character of the Shire. Notwithstanding, the submission makes comment on the need for affordable housing, and this is considered within the strategy.

269 Yes Yes The goals and strategies as listed in the In general I really like the document and can not Considerations were given to the document, if progressed, would certainly really find much to fault or anything to add. It seems establishment of a local currency but the support a sustainable local economy. relatively concise for such a comprehensive experience of places like Bristol suggests The background material at the beginning of document. they may not be as beneficial as other the document supports well the need for a The one thing I might have expected to be efforts to keep money circulating locally. sustainable local economy and was very useful mentioned is investigating the feasibility of Other efforts include “Buy local” and informative. establishing a local currency. campaigns utilising fiat currency, and I also found it informative the degree to which local payment gateways for online the Shire has on-going initiatives in many of the payments. Another rationale behind strategic directions listed in the document. local currencies is to aid access of underprivileged community members to purchasing opportunities. The simplest system is either a Time Bank (e.g. Ithaca Hours) or a Local Exchange Trading System (LETS). The track record within the Shire for LETS includes three disbanded attempts, though the longest running of these was a well-regarded initiative that built community and inclusivity. The availability of “cheap credit” seems to undermine the appeal of alternative currency systems, which potentially play their strongest role during times of high interest rates and/or depression. Add into the strategy exploration of a local payment gateway.

270 Yes Yes It is a good start to helping our Shire begin to While the strategy is good it is currently underdone A number of key actions within the think through what we mean by a sustainable in explaining the connection between the natural strategy are specifically about either future? environment and what could be a sustainable future maintaining/improving long-term that doesn't continue to erode the very values that environmental health or about improving our current prosperity relies upon. Currently the industry operations to result in improved strategy does not address the issue of cumulative environmental outcomes. These include impacts on our finite natural resource base, with no actions: way of addressing multiple impacts over time across • 5.2.5 Ongoing investment in the economic sectors (we only address each region’s environmental assets through development one at a time and not the cumulative the Environmental Management Fund impact of change occurring). The strategy mentions and Environmental Stewardship long-term economic health multiple times but does Grants not address how we can maintain long-term • 4.1.5 Undertake assessment and environmental health at the same time. There are improvement of sustainability high level references to policies to safeguard performance of Shire’s holiday parks environment but throughout there is a much stronger and camping grounds towards ECO emphasis on the economic and social benefits the Certification strategy can achieve. For this to be a truly • 4.1.1 Work with MRBTA and other sustainable economy strategy all three (social, stakeholders towards ECO economy and environment) must be dealt with Destination Certification for the equally, and an explicit link where there is a reliance Margaret River Region, growing and on one that must underpin the development of the protecting the region’s environment others. While this strategy currently includes Healthy and brand name Ecosystems as its first goal the indicators are • 1.3.2 Continue to host sustainable modest compared to the economic indicators, and business networking events requires more depth in explaining how we must increasing awareness of sustainability maintain natural values to underpin our future and climate change issues and sustainability and prosperity. I would like to see showcasing local solutions and ideas tourism brought forward as a "main industry" to • 7.1.1 Implement circular economy account for more than just accommodation and food grants program for assisting business (even if this means expanding the system the investment in new practices, new strategy is based on). equipment, adoption of sustainable This strategy is a useful document to help the Shire behaviours to begin to translate some aspirations into real Perfect indicators for each of the goal actions on the ground. I would like to see the areas are elusive, so the strategy strategy include actions for the Shire to provide attempts to find proxies for which there is ways and means to drive towards reduction in available data to best capture the overall consumption of our natural resources rather essence of each goal area. The than what we see now which is massive indicators for Healthy Ecosystems are no development that cannot be classed as sustainable less robust or diverse than for the other in the long term. goals. The Sustainable Economy strategies in detail at the Tourism is currently the only industry that back of the document are good and need to be has its own strategy area so is already implemented by the Shire. I would like the Shire to given high visibility in the strategy. provide a timeline and a budget for this to happen,

271 and for these to be living documents that are In the interests of brevity further detail adapted and grown with the community. around budgeting, timelines and Overall this is a useful strategy that we need to build resourcing will need to be documented upon through greater local involvement, and I outside of the strategy. Initial scoping encourage the Shire to have the courage to get shows that most of these actions can be going and start some of them to show how they undertaken within the annual resourcing work and to build confidence that it is not window- of the Sustainable Economy area, but dressing but in fact a true commitment to a more some of the actions will require sustainable economy for our Shire. comprehensive project plans to be developed to fully grasp resourcing requirements. The comments related to cumulative impact and driving a reduction in overall consumption of natural resources gets to the heart of the sustainability challenge: continued growth is not compatible with sustainability. The main drivers of growth – from population growth to consumerism to increasing numbers of second properties as holiday homes – is beyond the scope of Local Government or this strategy. The strategy could provide further clarity around the contradiction between growth and sustainability and clarify the role of the Shire. Circular economy principles aim to keep materials in circulation indefinitely through reuse and recycling, but consideration of an educational component could be given to look at consumerism and reduced consumption. Yes Yes The SES is a comprehensive document No changes required. Noted covering all relevant aspects of moving towards a circular and sustainable economy in the AMR Shire.

Yes Unsure Although the strategy recognises that the The contribution and support of all Sustainable The strategy does not wish to alienate Agriculture Sector “…accounts for more than Agriculture operations in the AMR Shire should be agricultural producers and will seek to 15% of the Shire, more than any other sector”, clearly included. While Regen Ag is an exciting and outline an interpretation of “regenerative the focus on agriculture in this strategy seems positive form of farming, it is likely that the majority agriculture” or reframe the topic around to be on regenerative agriculture and niche and of farmers who are producing sustainable “sustainable agriculture”. At the same organic operations. However, it is likely that agricultural products would feel excluded from this time, it should be noted that the strategy the bulk of that 15% actually comes from strategy. There is no reason why all scales of aims to identify opportunities and points

272 commodity operations such as dairies (of which Sustainable Agriculture (from small-batch of intervention to build greater the largest dairy operations in WA reside in the biodynamic to sustainable commodities) shouldn’t environmental and social wellbeing into AMR Shire), beef and sheep operations. Many be represented in this strategy. We have a great the functioning of our economy, and not of these farms still have good, environmentally farming community and history and produce some all agricultural processes can be said to sound farming practices but do not identify with wonderful products in this area and all sustainable achieve this. Indeed, the article referred ‘Regen Ag’. These operations also produce farming operations should be supported and to specifically makes the point that the more food than can be consumed within the celebrated. This also includes the supporting third agricultural revolution has resulted AMR Shire, which doesn’t seem to align with industries such as trucking companies, seeding in significant and compounding the strategy’s emphasis on a ‘circular contractors, fertiliser contractors, shearers, vets, environmental and social deterioration. economy’. This group of the farming harvest contractors, agricultural suppliers, Therefore, while wanting to ensure that community most likely would relate to the agronomists (and many more) – that all contribute to all sustainable agricultural efforts are statement in the background report that says, the local economy. honoured and supported, the strategy “In addition to the very tangible, resource- makes no attempts to celebrate every related challenges in this industry, farmers aspect of the agricultural endeavour, nor within the community have expressed a sense every aspect of the economy at large, of exclusion, isolation, and lack of recognition with its multiple ensuing sustainability (16). They do not feel valued as members of crises. the community, and that they have been written There is some misunderstanding around out of the narrative of the area with the the concept of a “circular economy”, emphasis on wine and tourism (4)” which the strategy on pg 17 seeks to elucidate. The common conflation of A study that looked at the development of “circular economy” with “localised agriculture in relation to society makes economy” is understandable, but reference to the different stages of capital incorrect. Circular economy specifically agriculture growth and states that “The refers to production processes that keep transformation of agriculture in the twentieth materials in circulation, rather than being century has been identified as the third in a disposed of after their use, and that are sequence of agricultural revolutions, the first of driven by renewable energy. Farming which concerned advances in farming practices operations embody a circular approach and pre-dated the Industrial Revolution…The to varying degrees: both a traditional pre- second of these agricultural revolutions mechanised farm utilising animal labour occurred in the nineteenth century and and inputs and a modern, largescale primarily involved progress in the area of dairy farm utilising solar power to drive a fertiliser and soil chemistry…However, it is the Z-filter for redistributing animal effluent third agricultural revolution…related to could be seen as examples of circular mechanisation, genetic improvement of plants practices. Efforts to rebuild soil carbon and intensive use of agro-chemicals.” (The and microbiology to retain water in the Role of Biotechnology in the Agro-Food soil profile and unlock underutilised System and the Socialist Horizon, Liodakis, phosphorous already present in the soil 2003). As the needs of society have could also be seen as circular models, developed so has agriculture and some of the negating the need for high quantities of advances that have been made have resulted industrial inputs. in great economic, social and environmental Support for agricultural industries as a benefits. We can see that Regenerative whole is given particular focus in the Agriculture is definitely part of this ‘third

273 agricultural revolution’, but then again, so is Scott River Region through action 6.2.1 mechanisation and technology. The strategy Participate in steering group to explore shouldn’t exclude these industry developments. infrastructure investments in line with the Scott River Sustainable Economy There are also a number of different Strategy. interpretations of ‘Regenerative Agriculture’ and neither the strategy or the background Bust out box on regenerative agriculture report outlines which interpretation they are clarifying the meaning. Consideration of referring to. There is also much emphasis in additional actions to support farming the strategy on a ‘circular economy’. In their community, including ways to honour livelihood traditional farmers have been and recognise their contribution to the practising a circular economy of emulating community. nature’s approach to waste, input and energy for decades and will continue to do so as this is vital to their economic bottom live and sustenance.

With the strategy as is, the AMR Shire risks further alienating the section of their farming community who don’t identify with ‘Regenerative Agriculture’. This is the direct opposite of the purpose of the strategy, that “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.”

While there is a considerable section dedicated to the Agriculture sector in the background, there is a clear absence of Agriculture in the main report. There are only 4 references in the strategy’s actions and the focus again is on Regen Ag and circular economy. This leaves a real gap for farmers that don’t fit into either space.

While there is definitely a place for Regenerative Agricultural operations, small- batch producers, organic growers and niche markets, there is also a place in the AMR Shire for the medium-large sustainable farm

274 producing commodity food-products. This isn’t recognised in the strategy.

Yes Unsure I have come into this Strategy late and have From the section above, I would be willing to The availability of affordable clothing and not had sufficient time to fully absorb the participate in the further stages of the development other items tends to fall outside the background papers and the proposed strategy; of the Strategy, if there is such an opportunity. I am scope of Local Government operations having recently retired to our farming property from this district originally and would like to see and is met partly through market after a long-term health professional career. greater recognition of the history that sustained the responses (such as the opening of The Background Paper and work undertaken district for the many early years. Education was affordable clothing outlets) and through appear to be comprehensive - well done. I always a significant focus in the district and I community-driven endeavours such as particularly appreciate the references to applaud the suggestions for addressing education op-shops; the Lions Shed; clothing opportunities for innovations, housing such as in farming (mention of local agricultural swaps; soup kitchen; community food affordability and that there is a recognised certificates) and please include olives. pantry; Swap, Shuffle, Shares, etc. The need to sustain the agricultural forestry and A key area that needs addressing is around the Shire can play a role in supporting these farming sectors; i.e. while we celebrate our facilities that will help the community to stay in their groups, and historically has done so tourism, there are underlying industries that are homes as they age. People now in their fifties need through the provision of funding, the basis of our economy. the opportunity to look ahead and be able to stay in peppercorn leases, etc. This is currently My concerns relate to how the populations will the district without needing to move to areas that capture in the strategy under action 5.2.4 be sustained; this needs a cross section of all have assisted living. Deliver grants program to support ages and needs that include access to retail I agree that the health care sector in the Shire is capacity of community groups to deliver especially around everyday items such as lower than the national average; while it is low there valuable social and environmental clothing (and I am not referring to boutique is also a need for greater coordination of health and services. clothes that are abundant). community services on a long-term approach. Ageing in place is considered in the Sustainability of our local population is key to the Shire’s Age Friendly Community Plan, economy. with the primary recommendations focused on improving supply of suitable homes close to services. This mostly relates to Planning. Provide additional detail in the History section of the strategy. Yes Yes Brilliant document. Articulates the philosophy 1. More recognition of Wadandi/Undalup Association While a “Centre of Excellence in and goals. Paves the way for some good in partnerships Sustainability” could be a worthy initiatives. Works across Shire sections. 2. Strategy 4 - include Geotourism - already a focus development for progress towards a CONGRATULATIONS for MRBTA and has the potential to encourage sustainable economy, previous excellent interpretation of our unique geology, conversations with management at the landscape and environment. TAFE campus suggest that it is fully 3. The tertiary campus is underutilised. Can the utilised, with very little spare capacity. Shire encourage/lobby a university (not just TAFE) The Undalup Association has provided to base more tertiary students here? A Centre of some commentary on the strategy and Excellence in Sustainability? (the Centre of the Shire seeks to work closely with them Excellence in Albany is good).

275 4. Focus on re-use of building materials. regularly, but greater mention could be 5. Recognise the Giant Light Steps Environmental given in the strategy. Stewardship Alliance (Shire already represented) as The Shire does not currently see a potential focus for promoting sustainable practices Geotourism as a priority focus, but could across all sectors. provide some reference to it in the 6. Recognise potential of the Witchcliffe background paper. to model the principles in this strategy and to attract The Shire’s Local Planning Strategy, tourists interested in sustainable living. The Shire currently being reviewed by State could pro-actively encourage sustainable Government, includes a number of developments in the future (this one took 10 years to provisions to encourage sustainable get through local and state approval processes) development. These include 7. Understanding that Shire is not responsible for sustainability performance measures public transport, can it take a proactive lobbying role based on a sliding scale that mandates to improve public transport between population fewer requirements on smaller dwellings centres and between attractions (coast etc) or help and greater requirements for larger to facilitate a business proposal (possibly dwellings. Measures are to include such subsidised) for a circle-route mini-bus? This was things as rainwater tanks plumbed to the very popular idea at the climate summit. Needed for house, solar PV systems, heat recovery aging residents and disabled as well as visitors. systems, and low energy hot water 8. Action for Shire staff induction in this Strategy - systems. A proposal by the Shire to across all levels and sections - so everyone increase the thermal performance of all understands the role of their section. Maybe in new dwellings (+1 star) is currently conjunction with Climate Action Plan. under consideration by the State 9. Offer Living Smart Course for Shire employees. Government. Witchcliffe Ecovillage will hopefully serve to be an exemplary model of sustainability, but the fast- tracking of rezoning of agricultural land for development – no matter the sustainability justification – is not being considered in any of the Shire’s strategies. Public transport is discussed in action 6.1.3 Advocate for improved public transport services with a focus on low carbon technologies, but more clarity could be added on the services in question. Staff inductions on sustainability are under development. Living Smart courses are available for all community members, including Shire staff, but consideration could be given to running a course specifically for Shire staff.

276 Clarify public transport for transport between population centres, attractions, and potential for circle-route minibus. More recognition of Undalup and Wadandi partnerships.

Yes No At an emergency summit staged by the WA Address seasonal worker accommodation shortages The Shire is aware of worker shortages, Good Food Guide last month, local restaurants and most of the response has up until indicated they were running at 50% capacity now been in the Planning area and due to labor shortages. Vineyards are having working directly with industry. It does fruit go to rot because they cannot get labor. I deserve some discussion in this strategy personally witnessed a pre-dawn carpark raid though. by AMRS rangers at Gracetown last month booking campers. 7 rangers and 4 vehicles So far the focus has been on increasing undertaking 530am raids on car parks in supply by working with existing military fashion. That cannot be cheap? Where campgrounds and accommodation in this strategy has the AMR Shire addressed providers rather than becoming a the issue of accommodation for seasonal supplier ourselves. The Shire has limited workers. Why has the shire not leased resources, being a rural local farmland central to the region and installed government with a small rates base and power, wastewater and potable water supplies a large area to manage, and this does for workers to camp at for a small fee as one not lend itself to establishing a new example? Why isn't dormitory accommodation workers campsite. Existing constructed creating local jobs for another? campgrounds have been given provision This constricting issue has no mention in this to expand their offering so long as the strategy. What is the shire doing to provide increased capacity is for workers rather infrastructure to accommodate much needed than tourists. New housing stock is, by seasonal workers? I see nothing. its nature, something that takes some time to come online and after the current flurry of construction activity (in large part prompted by government stimulus packages) there may very well be a large supply of rentals and a drop in rental prices. It is very hard to predict.

Worker shortage is a complex issue that is partly related to accommodation but also significantly impacted by closed international borders and the loss of this itinerant worker force. The Shire has been partnering with other South West local governments to explore a Designated Area Migration Agreement that may help facilitate international

277 workers to fill roles that are unable to be filled by local workers.

It is hoped that the combination of gradually eased border restrictions to the eastern states, increased local campground capacity, continued promotion to residents of renting out rooms, significant increases in the local housing stock soon to enter the market, some industry-specific initiatives to build their own worker’s accommodation (currently being explored), and potential migration agreements can help solve the worker shortages.

Discussion around the impacts of COVID and housing shortages on seasonal workers will be brought into the strategy, alongside consideration of the Shire’s current response and options.

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279 SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 28 JULY 2021

11.2 Sustainable Development and Infrastructure

11.2.9 SUBMISSION OF SUSTAINABLE ECONOMY REFERENCE GROUP MEETING MINUTES

Attachment 1 – Sustainable Economy Reference Group – Minutes 12 December 2019

Attachment 2 – Sustainable Economy Reference Group – Minutes 9 June 2020

Attachment 3 – Sustainable Economy Reference Group – Minutes 30 March 2021

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Sustainable Economy Reference Group

MINUTES

FOR THE MEETING TO BE HELD THURSDAY, 12 December 2019 IN MAINBREAK, WALLCLIFFE ROAD, MARGARET RIVER COMMENCING AT 2:00PM

282 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 12 DECEMBER 2019

ROLE OF THE REFERENCE GROUP To workshop with Shire Officers recommendations on policy, programs and projects to support the Augusta Margaret River community to transition to 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.

OBJECTIVES OF THE COMMITTEE 1. To recognise the fundamental importance of a healthy natural environment as the most importance base for supporting sustainable economic activity in the Shire and to ensure that economic activities conducted in the Shire do not damage or denigrate the natural environment. 2. To provide a forum for key stakeholder representatives to participate in developing a sustainable economy and provide relevant advice to Council 3. To foster the creation of sustainable livelihoods and enterprises which reduce inequality and social disadvantage. 4. To foster the creation of sustainable livelihoods and enterprises which are climate resilient. 5. To foster the transition from the linear economy (take, make, dispose) to a regenerative circular economy (reduce, reuse, recycle). 6. To develop strategies for Aboriginal and Culturally and Linguistic Diverse communities to fully participate in sustainable economic activity. 7. To foster economic vibrancy in towns, villages and hamlets and assist local businesses to remain viable and successful. 8. To develop strategies to achieve the Shire’s Vision 2036 and the key objectives of the Sustainable Economy Strategy.

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283 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 12 DECEMBER 2019

TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO. 1. DECLARATION OF OPENING ...... 4 2. APPOINTMENTS ...... 4 3. ATTENDANCE ...... 4 5. DISCLOSURES OF INTEREST ...... 4 6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ...... 5 6.1 SUSTAINABLE ECONOMY REFERENCE GROUP MEETING HELD 12 DECEMBER 2019...... 5 7. REPORTS / PROJECTS ...... 5 8. UPCOMING EVENTS ...... 6 9. NEW BUSINESS ...... 6 10. NEXT MEETING ...... 6 11. CLOSURE ...... 6

Sustainable Economy

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284 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 12 DECEMBER 2019

Reference Group Meeting

1. DECLARATION OF OPENING 2:05PM

2. APPOINTMENTS

3. ATTENDANCE Committee Members Margaret River Chamber of Commerce & Industry: Ms Melissa D’Ath Cowaramup Business Association: Ms Jill Turton Lower South West Growers Group: Ms Barbara Dunnet Margaret River Regional Producers Association: Ms Kat Lombardo Nature Conservation Margaret River: Dr John Cresswell Representative of the Digital Economy: Mr Tony Fletcher Transition Margaret River: Ms Britta Sorenson Margaret River Wine Association: Ms Amanda Whiteland Creative Corner: Mr Peter Griffyn South West Development Commission: Mr Jack Carlsen

Councillor Representatives Shire President, Cr Ian Earl, Chair Cr, Pauline McLeod

Shire Staff Sustainable Economy Officer (SEO): Mr Saul Cresswell Director of Sustainable Development: Mr Dale Putland

Apologies Margaret River Regional Environment Centre: Mr Ray Swarts Just Home Margaret River: Ms Geraldine Clarke Registered Accommodation Providers, MR Region: Ms Debbie Noonan Margaret River Community Centre: Ms Lyn Moorfoot Augusta Chamber of Commerce and Industry: Ms Andrea Lindsay Margaret River Busselton Tourism Association: Mr Steve Harrison

5. DISCLOSURES OF INTEREST

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285 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 12 DECEMBER 2019

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 6.1 Sustainable Economy Reference Group Meeting held 15 August 2019

7. REPORTS / PROJECTS

7.1 Sustainable Economy Strategy Update on where the strategy is currently at. The Shire provided relevant organisations with an analysis of their sector, and is seeking feedback from their groups regarding the challenges and opportunities identified. It was felt that now was a good time to provide the draft of the full strategy for input from the group. The strategy will be provided by email, and hardcopy for those who need it, by early January. Feedback is sought by early February.

7.2 Choose local campaign Update from MRCCI on their sticker campaign. Update from Transition Margaret River – they will be kicking off in February 2020 with a stakeholder meeting. In November 2020 they will catalyse a Love Where You Live month. The Shire sought input from the group on ways their organisations could get on board, ideas for making the campaign more successful, and ideas for adding value to the website. Sustainable Economy Officer’s ideas for the website included educational materials, business featurettes, business promotions (e.g. mid-week restaurant specials), links to other relevant local information such as the Rotary Directory, and local content to bolster local pride, such as the Wine Unearthed podcast. Britta suggested the website could have, in addition to the business featurettes, consumer featurettes. She also suggested good news/good deed stories, an e-magazine, podcast, and forum for getting local information (e.g. “Where can I…? Who’s the best…?). She also suggested reaching out to schools to help them explore this topic and provide content. Jack suggested a call to action, which could be some kind of pledge, such as the Palau Pledge. He also suggested a section of the website for industry, such as a business to business procurement page. Another idea was around incentives for buying local, such as accumulating points that go towards a prize, discount, etc. Peter said that the site could consolidate disparate blogs, events etc from various other sites, relevant to the theme of buy local/choose local/love local. He also suggested coupons and deals.

7.3 Main Street Makeover Saul provided a summary of the upcoming redevelopment, with the tender being awarded to Busselton’s BCP the day prior. He spoke to the marketing campaign, and sought ideas from the group around how to their organisations could participate in activating the Margaret River main street to make it more vibrant and attractive during the construction period. Current ideas include:  Murals through Emergence Creative  Street art through Emergence Fringe  South West Street Performers Festival  Hardhat Happy Hours  Main Street Loyalty cards 5

286 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 12 DECEMBER 2019

It was felt, given the time pressure, that the best way to get ideas from the group around activation would be via email. Tony raised the question of using this group for such detailed thinking, and Dale suggested that going forwards the SERG meetings should start with the bigger picture items, and finish with the more detailed items. Mel highlighted the need for events organisers to be kept in the loop around the redevelopment, and encouraged to still use the main street. She suggested a communication/media package for event coordinators. Peter then updated the group on the latest figures from the main street wifi network, which accounts for all phones up and down the street – not only those that have logged into the network, and not only those that have wifi turned on. The numbers have grown since the same time last year.

7.4 Scott River Strategy Saul informed the group about the Scott River Economic Strategy, and advised that a consultant has now been appointed to begin the work on the strategy. Peter Backshall, from MarketTrade, will be undertaking the strategy, and a meeting will be organised between him and the Scott River Strategy Steering Committee. It was suggested that he present to SERG and provide an opportunity for their input.

8. UPCOMING EVENTS

General discussion around upcoming major events, with consideration from the group sought around how their organisations can get involved, and opportunities for leveraging events for greater social and economic benefit.

 Movies at Cape Mentelle Dec, January & February  Lunar Circus Training School 6-16 January 2020  Augusta Outdoor Movie Festival 18 January 2020  WA Circus Festival 18-20 January 2020  Night Markets 20 Dec, 24 January, 21 February  Sunday Sundowners (Cowaramup) February 2020

9. NEW BUSINESS – Barbara queried whether the Terms of Reference for SERG accounted for all needs, and Dale suggested the group consider these Terms and bring any suggestions back to the next meeting.

Peter suggested the Shire look at a Digital Economy Strategy, or ensure that this is built into the Sustainable Economy Strategy currenlty under development.

Kat mentioned that the recent Night Markets were virtually waste free, and that she undertook a lot of community education that evening. She suggested a Shire staff member come and provide education at future markets.

10. NEXT MEETING The group discussed ongoing meeting frequency, with more frequency adding to member’s existing time pressure but allowing the group to be more effective. It was decided to trial meeting every six weeks, commencing meetings at 1pm. Next meeting will be in early February 2020.

11. CLOSURE 3:45

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AGENDA

FOR THE MEETING TO BE HELD TUESDAY, 9 JUNE 2020 IN MAINBREAK, WALLCLIFFE ROAD, MARGARET RIVER COMMENCING AT 10:30AM

288 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 9 JUNE 2020

ROLE OF THE REFERENCE GROUP To workshop with Shire Officers recommendations on policy, programs and projects to support the Augusta Margaret River community to transition to 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.

OBJECTIVES OF THE COMMITTEE 1. To recognise the fundamental importance of a healthy natural environment as the most importance base for supporting sustainable economic activity in the Shire and to ensure that economic activities conducted in the Shire do not damage or denigrate the natural environment. 2. To provide a forum for key stakeholder representatives to participate in developing a sustainable economy and provide relevant advice to Council 3. To foster the creation of sustainable livelihoods and enterprises which reduce inequality and social disadvantage. 4. To foster the creation of sustainable livelihoods and enterprises which are climate resilient. 5. To foster the transition from the linear economy (take, make, dispose) to a regenerative circular economy (reduce, reuse, recycle). 6. To develop strategies for Aboriginal and Culturally and Linguistic Diverse communities to fully participate in sustainable economic activity. 7. To foster economic vibrancy in towns, villages and hamlets and assist local businesses to remain viable and successful. 8. To develop strategies to achieve the Shire’s Vision 2036 and the key objectives of the Sustainable Economy Strategy.

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289 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 9 JUNE 2020

TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO. 1. DECLARATION OF OPENING ...... 4 2. APPOINTMENTS ...... 4 3. ATTENDANCE ...... 4 5. DISCLOSURES OF INTEREST ...... 4 6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ...... 5 6.1 SUSTAINABLE ECONOMY REFERENCE GROUP MEETING HELD 12 DECEMBER 2019...... 5 7. REPORTS / PROJECTS ...... 5 8. UPCOMING EVENTS ...... 6 9. NEW BUSINESS ...... 6 9.1 Title ...... ERROR! BOOKMARK NOT DEFINED. 9.2 Title ...... ERROR! BOOKMARK NOT DEFINED. 10. NEXT MEETING ...... 6 11. CLOSURE ...... 6

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Sustainable Economy Reference Group Meeting

1. DECLARATION OF OPENING

2. APPOINTMENTS

3. ATTENDANCE Committee Members Margaret River Chamber of Commerce & Industry: Ms Melissa D’Ath, Annie McFie Lower South West Growers Group: Ms Barbara Dunnet Margaret River Regional Producers Association: Ms Kat Lombardo Transition Margaret River: Ms Veronique Florec Margaret River Wine Association: Ms Amanda Whiteland Creative Corner: Mr Peter Griffyn South West Development Commission: Mr Jack Carlsen Just Home Margaret River: Ms Geraldine Clarke Margaret River Regional Environment Centre: Mr Ray Swarts Margaret River Busselton Tourism Association: Ms Jenny Lee

Councillor Representatives Cr, Brian Daniel Cr, Pauline McLeod

Shire Staff Sustainable Economy Officer (SEO): Mr Saul Cresswell Director of Sustainable Development & Infrastructure: Mr Nick Logan

Apologies Representative of the Digital Economy: Mr Tim Kerr Registered Accommodation Providers, MR Region: Ms Debbie Noonan Margaret River Community Centre: Ms Lyn Moorfoot Augusta Chamber of Commerce and Industry: Ms Andrea Lindsay Nature Conservation Margaret River: Dr John Cresswell Cowaramup Business Association: Ms Jill Turton

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5. DISCLOSURES OF INTEREST

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 6.1 Sustainable Economy Reference Group Meeting held 12 December 2019

7. REPORTS / PROJECTS

7.1 Presentation on Sustainable Economy Strategy After an intensive focus on the Main Street redevelopment and a trying time amid the pandemic, there has been renewed focus and attention given to the Sustainable Economy Strategy. The Sustainable Economy Officer presented an overview of the key findings, principles and strategies in the current draft strategy, and provided a copy of the full document for every member of the SERG to take away. Feedback was sought regarding: • the general approach and direction • whether the principles capture the key sentiment felt amongst your groups and in the community • whether the strategies capture all opportunities and needs in the local economy • amendments or additions to actions listed under the strategies

Jack Carlsen queried the objective of “Local ownership”, suggesting that hinting at inclusivity rather than ownership might be a better approach. Cr Brian Daniel raised the question of how outcomes of the strategy would be measured.

7.2 Local-Is-More campaign update Sustainable Economy Officer unveiled the website and sought feedback from the group regarding any further ideas to bolster the campaign. Ideas incorporated from last meeting included a Pledge, and eNewsletter sign up. Discussion around best ways to implement incentives for buying local, such as accumulating points, or hosting coupons and deals. Ideas for future consideration include: • development of a complementary currency/local gift voucher • development of a local Online Marketplace: presentation by Peter Griffyn A question was raised about how Augusta fit in, and it was explained that the branding was deliberately broad enough to encompass all townsites. Barbara asked how the agricultural community fit in, e.g. Nillup Store. Jack raise the question of metrics around “local”, and suggested we aspire to meet goals (e.g. 50% local procurement). Veronique asked how you know when you are “local”, what metrics and data do we have, and what are the barriers to choosing local and how to address these.

7.3 Online Marketplace – Presentation by Peter Griffyn Peter provided a presentation via Zoom on the online marketplace he has been developing over the pandemic period: Assisting local businesses to have a greater online presence and sales avenue can help with their resilience and competitiveness. A well-designed online marketplace has two components: 1) A local marketplace, consolidating all of the various existing and new online offerings from within the region, and predominately targeting local residents and perhaps visitors; (2) An outreach component that populates existing transnational platforms (such as eBay, Amazon, etc) with offerings from the local marketplace, primarily targeting buyers from any region or country who are searching for a particular category of commodity and where shipping or distance won’t be an issue.

7.4 Discussion: COVID-19 – Lessons for our local economy and pivoting to a new normal A number of meeting attendees had to leave at this point, and the discussion opened up for a broad consideration of the impacts of COVID-19 on the local economy. The Sustainable Economy Officer

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292 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 9 JUNE 2020 gave an overview of the Shire’s Community Care Fund, and some attending organisations who received funding spoke briefly to their initiatives. Veronique stated that in WA we got lucky, but it is important not to rely on luck alone. She said we’ve seen what the weak spots are, e.g. housing, workers accommodation, and we need a focus on resilience. Melissa stated that vacancy rates on the main street in Margaret River were at an all time high.

7.5 RED grants Very brief discussion of RED grants and their relevance to Peter’s online marketplace. It was suggested that the RNIF grants would be more suitable. Barbara mentioned that Southern Dirt had submitted a funding application for an online marketplace for food products – retail and wholesale.

9. UPCOMING EVENTS With the uncertainty of event cancelations due to COVID-19 discussion about upcoming events was skipped.

10. NEW BUSINESS – Cr Pauline McLeod raised again the possibility of Peter Backshall, consultant for the Scott River Economic Strategy, provided a presentation on his findings.

11. NEXT MEETING Decided to determine this via email.

12. CLOSURE

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AGENDA

FOR THE MEETING TO BE HELD TUESDAY, 30 MARCH 2021 IN MAINBREAK, WALLCLIFFE ROAD, MARGARET RIVER COMMENCING AT 1:00PM

294 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 30 MARCH 2021

ROLE OF THE REFERENCE GROUP To workshop with Shire Officers recommendations on policy, programs and projects to support the Augusta Margaret River community to transition to 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.

OBJECTIVES OF THE COMMITTEE 1. To recognise the fundamental importance of a healthy natural environment as the most importance base for supporting sustainable economic activity in the Shire and to ensure that economic activities conducted in the Shire do not damage or denigrate the natural environment. 2. To provide a forum for key stakeholder representatives to participate in developing a sustainable economy and provide relevant advice to Council 3. To foster the creation of sustainable livelihoods and enterprises which reduce inequality and social disadvantage. 4. To foster the creation of sustainable livelihoods and enterprises which are climate resilient. 5. To foster the transition from the linear economy (take, make, dispose) to a regenerative circular economy (reduce, reuse, recycle). 6. To develop strategies for Aboriginal and Culturally and Linguistic Diverse communities to fully participate in sustainable economic activity. 7. To foster economic vibrancy in towns, villages and hamlets and assist local businesses to remain viable and successful. 8. To develop strategies to achieve the Shire’s Vision 2036 and the key objectives of the Sustainable Economy Strategy.

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295 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 30 MARCH 2021

TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO. 1. DECLARATION OF OPENING ...... 4 2. APPOINTMENTS ...... 4 3. ATTENDANCE ...... 4 5. DISCLOSURES OF INTEREST ...... 4 6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ...... 4 6.1 SUSTAINABLE ECONOMY REFERENCE GROUP MEETING HELD 9 JUNE 2020 ...... 4 7. REPORTS / PROJECTS ...... 5 8. UPCOMING EVENTS ...... ERROR! BOOKMARK NOT DEFINED. 9. NEW BUSINESS ...... 6 9.1 Title ...... ERROR! BOOKMARK NOT DEFINED. 9.2 Title ...... ERROR! BOOKMARK NOT DEFINED. 10. NEXT MEETING ...... 6 11. CLOSURE ...... 6

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Sustainable Economy Reference Group Meeting

1. DECLARATION OF OPENING 1:07pm 2. APPOINTMENTS N/A 3. ATTENDANCE Committee Members Margaret River Chamber of Commerce & Industry Mel D’Ath Margaret River Regional Environment Centre Peta Goodwin Nature Conservation Margaret River John Cresswell Creative Corner Stuart McMillan Transition Margaret River Veronique Florec Margaret River Wine Association Amanda Whiteland, Ely Jarvis Digital Economy representative/SWDC Tony Fletcher Margaret River Busselton Tourism Association Steve Harrison

Councillor Representatives Cr Brian Daniel

Shire Staff Sustainable Economy Officer Saul Cresswell Director Corporate and Community Services James Shepherd

Guests Surfing WA Mark Lane, Sana Pickering

Apologies Just Home Margaret River Geraldine Clarke Augusta Chamber of Commerce Andrea Lindsay Cowaramup Business Association Jill Turton Lower South West Growers Group Barbara Dunnet Margaret River Chamber of Commerce & Industry Annie McFie Margaret River Regional Producers Association Kat Lombardo

5. DISCLOSURES OF INTEREST

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING 6.1 Sustainable Economy Reference Group Meeting held 9 June 2020 Confirmed: Mel D’Ath Seconded: Veronique Florec

7. UPCOMING EVENTS Surf Pro (2 May-12 May) – Mark Lane and Sara Pickering from Surfing WA spoke to the group about the upcoming event, and how they recognise both the positive and negative impacts of the event on the community and environment and attempt to reduce the latter but increase the former. This year they are working with the Youth Advisory Council on a Youth Summit 4

297 SHIRE OF AUGUSTA MARGARET RIVER SUSTAINABLE ECONOMY REFERENCE GROUP 30 MARCH 2021

promoting “healthy habits”, with events at the Youth Precinct from 3-5:30pm each afternoon from 3-7 May. Mark put to the group that their approach is to engage with the community and if there’s a way to leverage off this world-class event just get in touch. If businesses in town wanted to live stream the event then Surfing WA could get some signs made up to promote this. Cowaramup Easter Fair (4 April) – Jill was an apology and unable to speak for this event. Margaret River Ultra Marathon (1 May) - noted Readers and Writers Festival (14-16 May) - noted Amanda questioned which events were on the list, wondering how far ahead we were considering, and alerted the group to the inaugural Fine Vines Festival. The group then alerted a number of events until it was decided to share with the Reference Group the link to the margaretriver.com events page. Emergence Creative (9-11 June) – Tony Fletcher spoke to this being a broad event with opportunities for engagement. Experiential Travel Summit (14 June) – noted Open Studios (11-26 Sept) - noted Fine Vines Festival (14-25 October) – Amanda spoke briefly to this event.

Tony questioned the purpose of Events as a standing item – to discuss each event or to look at events in general and what their sustainability challenges might be? He highlighted that there were ongoing issues for events organisers since COVID, who risked losing their upfront investment if the event was cancelled. He said TWA was not supporting them and insurance would not cover their events. What could be done to provide them greater security? Mel stated that ratepayers should not underwrite events.

8. REPORTS / PROJECTS

8.1 Presentation on Sustainable Economy Strategy Saul provided a brief overview of the draft strategy that (sent was an attachment for reading prior to the meeting). The overview will look at how the goals capture the range of sustainable economy considerations, what the indicators are seeking to show, and how the strategies will support the local economy. Members of the Reference Group had read the document and the group was broadly supportive of it. It was suggested that some of the actions that at first may not seem like economic development actions (such as a wayfinding program in town sites) have pop out boxes that explain the rationale behind the thinking. Saul explained that the rationale was given in much more detail in the Background paper but there could be opportunity for some pop out boxes, in particular for those actions that don’t have an immediate and obvious economic relationship. Amanda raised that action area 4.1 came across quite negative and didn’t honour the contribution of tourism and could be reworded. Saul reworded from “Seek to mitigate the social and environmental impact of tourism on the region” to “Manage the impact of tourism on the region to enhance environmental and social outcomes”. Peta raised the name of the “Thank a Volunteer” event, saying it didn’t capture the important role that volunteers play in the community and felt a bit condescending, as though thanking them for finding something to do with their excess time.

8.2 ECO Destination Certification Saul provided an overview of the initiative, update on progress so far, and gave a hardcopy of the printed brochure out.

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8.3 Shire Grants Program The group briefly looked at the grants available, closing 20 April. Amanda asked about the changes to the EMF grant, and Saul explained that the objectives had been broadened to capture a wider sustainability focus rather than just on ground NRM outcomes.

9. NEW BUSINESS Veronique suggested that the Reference Group workshop the ECO Destination criteria at the next meeting, looking at opportunities to support their fulfillment. Cr Daniel suggested that the meetings could be an opportunity to have presentations from experts and case studies presented for the benefit of the Reference Group attendees, such as a circular economy expert.

10. NEXT MEETING TBC – AIM FOR WITHIN NEXT TWO MONTHS 11. CLOSURE 2:31pm

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