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The Library Dividend Technical Report The Library Dividend Technical Report A study of the socio-economic value of Queensland public libraries An independent report by SGS Economics and Planning for State Library of Queensland Project Team This report has been prepared by: Case Study Workgroup SGS Economics and Planning Pty Ltd State Library of Queensland wishes to acknowledge the ACN 007 437 729 generous contributions to this study made by the public library services from the following seven Local Governments: Level 1, 76 McLachlan Street FORTITUDE VALLEY 4006 ~ Brisbane City Council ~ Fraser Coast Regional Council P: + 61 7 3124 9026 F: + 61 73124 9031 ~ Goondiwindi Regional Council E: [email protected] ~ Mackay Regional Council W: www.sgsep.com.au ~ Mount Isa City Council Offices in Brisbane, Canberra, Hobart, Melbourne, Sydney ~ Paroo Shire Council ~ Sunshine Coast Regional Council Images With thanks to Bundaberg Regional Council, Brisbane City Council, Central Highlands Regional Council, Fraser Published in September 2012 by State Library of Queensland. Coast Regional Council, Goondiwindi Regional Council, Hinchinbrook Shire This document has been prepared in good faith on the basis of Council, Isaac Regional Council, Mackay information collected specifically for this research study and as Regional Council, Moreton Bay Regional available in 2011 during the period the research was undertaken. Council, Mount Isa City Council, Northern Peninsular Area Regional Council, Paroo This Technical Report is available on the State Library of Shire Council, Sunshine Coast Regional Queensland website: www.slq.qld.gov.au Council and State Library of Queensland. For more information contact: State Library of Queensland P: 07 3842 9056 E: [email protected] W: www.slq.qld.gov.au © State Library of Queensland 2012 State Library of Queensland acknowledges that this report is based on a concept developed by the State Library of Victoria, and the publication Dollars, Sense and Public Libraries (2011). ISBN 978-0-646-58639-7 Design and Layout Superscript Design and State Library of Queensland [BACK TO CONTENTS] The Library Dividend Technical Report A study of the socio-economic value of Queensland public libraries An independent report by SGS Economics and Planning for State Library of Queensland Socio-economic value of Queensland public libraries 1 Contents EXECUTIVE SUMMARY 4 4 VALUATION TECHNIQUES AND RESULTS ELSEWHERE 28 1 INTRODUCTION 12 4.1 Techniques to Monetise Benefits 28 4.1.1 Contingency Valuation Method 28 1.1 Project Context 12 4.1.2 Financial Savings/Consumer Surplus 29 1.2 Project Objectives 13 4.1.3 Travel Cost Method 29 1.3 Project Methodology 13 1.3.1 Considerations 13 4.2 Available Evidence of Benefits 30 1.3.2 Phasing 13 4.2.1 Aggregate Direct and Indirect Uses 30 4.2.2 Direct Use Benefits: Access to Services 31 1.4 Structure of this Report 15 4.2.3 Direct Use Benefits: Specific Programs 32 4.2.4 Indirect Use Benefits 33 2 PUBLIC LIBRARY SNAPSHOT 16 4.2.5 Non-Use Benefits 34 2.1 Library Services and Facilities 17 4.3 Techniques to Estimate Induced 2.2 Collection 17 Economic Activity 34 2.3 Overall Usage 17 4.4 Available Evidence of Induced 2.4 Programs 18 Economic Activity 35 2.5 Income Sources 19 4.5 Synopsis 35 2.6 Expenditure 19 2.7 Trends in Library Usage and Provisions 19 5 DISTILLED ASSESSMENT FRAMEWORK 36 5.1 Cost Benefit Analysis 36 3 PUBLIC LIBRARY COMMUNITY 5.2 Economic Impact Analysis 38 WELFARE CONTRIBUTIONS 22 5.3 Case Study Library Services 40 3.1 Value of Public Libraries 22 5.4 Scaling the Results 41 3.2 Costs and Benefits of 5.4.1 Cost Benefit Analysis 41 Public Library Services 23 5.4.2 Economic Impact Assessment 41 3.2.1 Costs 23 3.2.2 Direct User Benefits 23 6 Survey Results 42 3.2.3 Indirect User Benefits 24 6.1 Library User Survey 42 3.2.4 Non-User Benefits 24 6.1.1 Usage Frequency 43 3.3 Economic Activity Generated 26 6.1.2 Reasons for Library Use 43 3.3.1 Economic Stimuli (Direct Impact) 26 6.1.3 Primary Activity at the Library 44 3.3.2 Economic Flow-Ons (Indirect Impact) 26 6.1.4 Length of Stay 44 3.4 Synopsis 26 6.1.5 Distance Travelled 45 6.1.6 Induced and Prompted Expenditure 45 6.1.7 Satisfaction with Library Services 45 6.1.8 Benefits of Library Services 46 6.1.9 Public Library Contributions to the Community 47 6.1.10 Best Things about Public Libraries 48 6.1.11 Suggested Improvements to Public Libraries 48 6.1.12 Estimated Financial Value of Library Services 48 6.1.13 Willingness to Pay for Library Services 49 2 The Library Dividend 6.2 Household (Non-User) Survey 50 8 Value Assessment 88 6.2.1 Perceived Benefits of Public Libraries 52 8.1 Cost Benefit Analysis 88 6.2.2 Perceived Characteristics of 8.2 Validity of Results 89 Public Libraries 52 8.3 Economic Impact Assessment 91 6.2.3 Perceived Contribution to Community Culture 53 6.2.4 Suggested Improvements to 9 Conclusions and Recommendations 92 Public Libraries 54 9.1 Conclusions 92 6.2.5 Willingness to Pay for Library Services 54 6.3 Synopsis 55 BibliogRAPHY 94 7 Case Study Results 56 Appendix 1: Library User Survey 96 Case Study Locations 96 7.1 Case Study Selection 56 Response Rates 96 7.1.1 Brisbane City Council Library Services 56 Survey Method 96 7.1.2 Sunshine Coast Regional Council Library Service 58 Survey Instrument 97 7.1.3 Fraser Coast Regional Council Online User Survey Results 103 Library Service 62 Tabulated Results 104 7.1.4 Mackay Regional Council Appendix 2: Household (Non-User) survey 166 Library Service 65 Household (Non-User) Survey Results 166 7.1.5 Mount Isa City Council Library Service 68 7.1.6 Goondiwindi Regional Council Tabulated Results 169 Library Service 70 7.1.7 Paroo Shire Council Library Service 73 7.2 Library Programs 76 7.2.1 Early, Children’s and Family Literacy 76 7.2.2 Young Adult and Youth Literacy 77 7.2.3 Adult Literacy and Training 77 7.2.4 Digital Literacy 78 7.2.5 Multicultural Services and Awareness Programs 78 7.2.6 Home Library Service 79 7.2.7 Other Public Events and Learning Programs 79 7.3 Case Study Results - Cost Benefit Assessment 80 7.4 Case Study Results - Economic Impact Assessment 83 7.5 Synopsis 86 7.5.1 Common Issues 86 7.5.2 Future Advocacy Efforts 86 Socio-economic value of Queensland public libraries 3 EXECUTIVE Public Libraries in Queensland Public library services in Queensland are delivered by local SUMMARY government. Over 20 million visits to public libraries were made in 2010-2011. This equates to 4.7 visits per capita across all of Queensland. If visitation is attributed solely to library members, i.e. 45% of the Queensland population, State Library of Queensland then visitation frequency translates to approximately 10 visits (the State Library) each year per library member. commissioned this study In support of these public library services, the Queensland Government provides significant funding through the to assess the community State Library which contributes approximately $21 million welfare contributions of p.a., supporting some 341 public libraries and Indigenous Knowledge Centres across the state. the state’s public library Nonetheless, Queensland public libraries lag behind other network and the economic Australian states in terms of expenditure per capita. impact these public Research into the socio-economic value of libraries in libraries have on their host Queensland has stemmed from the release of Expanding Horizons: Positioning Queensland Public Libraries for the regional economies. Future 2008-2012 which is currently in a review stage; however, the strategic themes are relevant beyond 2012. Equity of access to library services is a key driver of their value within communities. Public libraries are noted for the commitment to providing library services, at no cost to the consumer, without prejudice. Queensland has a dispersed settlement pattern and is geographically very large. Therefore, equity of access is targeted through careful planning and coordination between the State Library and local government library service managers, and online services. Project Scope & Objectives This project follows State Library of Victoria’s Dollars, Sense and Public Libraries report, which assessed the socio- economic value of public libraries in Victoria. State Library of Queensland desired to undertake a similar analysis of Queensland public libraries, with four high-level objectives: 1. expand the understanding of the value of public libraries to the communities that they serve 2. prove that public libraries contribute economic benefit to the community 3. provide public library managers with tools for assessing the value of specific library services 4. equip public library managers with advocacy materials to ensure future funding decisions are best advocated. This report summarises the processes used and results generated in accordance with the first two objectives. That is, this report documents the value of public libraries to the Queensland community, building on a review of methods and results generated both nationally and internationally, plus significant primary research undertaken as part of this project. 4 The Library Dividend Recommendations under objectives 2, 3 and 4 are made, ~ public library contribution to literacy (including however, the tools and advocacy materials themselves are digital literacy) provided separately. It should be noted that this research is ~ public library facilitation of improved education, based on physical buildings and collections and does not career development and health outcomes. investigate services delivered online. Non-users of public libraries also gain benefits from public library services.
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