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WELCOME
suratbasin.com.au Thursday, May 26, 2016
From the editor
SNAP OF THE MONTH
The future of water security in and around the basin
Matthew Newton
◗ CUTE CRITTERS: Bumper the Red-Necked Wallaby and Bruiser the Eastern Grey Kangaroo (background) go for a stroll. The pair are looked after by the Maranoa Wildlife Caring and Education Centre. PHOTO: BLAKE ANTROBUS
Contents
IN THE NEWS
Geothermal steams ahead ........................................................ 5 Ebbs and flows - CSG water and farming ..............................6-7 Surat Basin a buyer’s market................................................... 10 Ladies can be tradies................................................................. 11 A ‘dam’ good plan..................................................................... 15 Federal Election coverage .........................................................16 Debt and Drought taskforce ..................................................... 17
RURAL NEWS
Cotton R&D funding .................................................................18 Export opportunities abound ................................................... 19
OPINIONS
............................................................................................. 20-21
PLACES AND FACES
Ag Export Forums ....................................................................22 TSBE Enterprise meeting ....................................................... 23 Women in Energy .................................................................... 24
The team
The Surat Basin News publishes every month and will be delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle. It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities thought the booming region. Surat Basin News is a necessity. It was born out of a passion for Australia’s fastest growing communities – a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, will be a must read for anyone associated with the exciting Surat Basin. ONLINE: Surat Basin News has gone online to ensure our readers in every corner of the country has the latest news sent directly to them. Go to: www.suratbasin.com.au. PURCHASE FROM: Newsagents in Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope. VISION: Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region’s future while profiling the colourful characters.
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ADVERTISING TEAM Bobbie Gorring, Chinchilla Phone 4672 9930, email advertise@suratbasin.com.au Greg Latta, Roma Phone 4672 9927, email Greg.latta@romawesternstarnews.com Nicole Boyd-Taylor, Dalby Phone 04672 5500, email nicole.boyd-taylor@dalbyherald.com.au EDITORIAL
Matthew Newton, Chinchilla
Phone 4672 9926, email matthew.newton@chinchillanews.com.au
SURAT BASIN NEWS 12 Mayne Street, Chinchilla Q 4413 PO Box 138, Chinchilla Q 4413 The Surat Basin News is published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street, Chinchilla Q 4413 The Surat Basin News is printed by APN Print Warwick
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HELLO and welcome to the May edition of Surat Basin News. Water is the word on everyone’s lips this month, and for those in rural areas there never seems to be enough of it. Prompted by an overheard discussion at a recent cutting horse event Chinchilla, you will find on pages 6 and 7 a look at how some of our farmers are putting treated Coal Seam Gas water to use on their farms, as well as their assessments of how successful the scheme has been. Regardless of the scheme’s shortcomings, I think it’s a magnificent example of how government policy can be used not just for the development of new industries, such as Coal Seam Gas, but for the betterment of existing industries. If the government hadn’t been adamant that water taken from the ground during CSG activities be re-used, it would literally be sitting in evaporation ponds, helping no one. We’ll chalk that one up as a win for common sense. If you turn to page 15 there is some interesting news on the proposed Nathan Dam on the Dawson River. As far as I understand, this is an idea which was first announced by former Queensland premier Ted Theodore back in the 1920s. As we all know, dams can take a long time to transition from paper to reality. In this case, more than 90 years, and counting. Councillor Ray Brown rightly points out that a dam the size of Nathan would be capable of securing town water supplies across the Western Downs for decades to come, in addition to providing water for industry. Whether the water will be priced at a level accessible by irrigators is another matter, but regardless, the job-creation potential of such a project is massive. Moving on through the paper, page 10 draws an interesting comparison between housing and rental prices across the main towns in the region. The people with eyes on the figures reckon this is where the buck stops in terms of prices, so hopefully we can start reporting some good news on improving property values in the near-distant future! Now, the other big news this month is of course the announcement of - you guessed it - the Federal election campaign. Bruce Scott has retired from politics after 26 years, meaning LNP candidate David Littleproud (Yes, that last name is familiar - son of former State MP Brian Littleproud) is firm favourite to succeed him. Bruce has had a long and distinguished career in parliament and while I’ve never met the man, having only been in the region for the past six months, we at the Surat Basin News wish him all the best for the future. Is there a life after politics? Bruce, perhaps we’ll catch up in six months time and find out. As for the election, a number of candidates are vying for the seat of Maranoa, and you can find a run-down of who’s running for what party on page 16. And in between those pages there’s plenty of industry news and familiar faces, so I’ll leave it at that. Until next month,
3
IN THE NEWS
Thursday, May 26, 2016 suratbasin.com.au
Future bright for Kogan solar farm
◗ COLD FEET: Exergen CEO Trevor Bourne speaking at a TSBE evening in September last year.
PHOTO: FILE
Wilkie Creek Coal Mine
Sale of Wilkie Creek to Exergen falls through Dreams of producing ‘three million tonnes of coal per year’ go up in smoke THE sale of a Surat Basin coal mine that promised to create hundreds of new jobs has collapsed. Peabody had announced in July last year that it was selling the Wilkie Creek coal mine to clean coal aspirant Exergen. However, it has been revealed this week that the deal has fallen over. Peabody said the sale process had been terminated, with reports that Exergen was not able to get the finance needed to purchase the mine. Exergen had announced last year that it was looking to employ 120 new workers to run the mine once it re-opened. Attempts to contact the company have failed. Peabody Energy filed for chapter 11 bankruptcy in America on all its Australian mines last month. The Wilkie Creek mine is currently in care and maintenance mode, and a Peabody Energy spokeswoman said progressive rehabilitation work continued to occur at the site. Seventy jobs were cut from the mine in September 2013, with
production reduced by 30%. Sekitan Resources was the wholly-owned subsidiary of Exergen which had entered into conditional agreement with Peabody for the acquisition of the mine. At a Toowoomba and Surat Basin Enterprise evening in Chinchilla in September last year, Exergen CEO Trevor Bourne said the future of the coalmine was looking “bright”. Trevor Bourne told the Chinchilla forum that “sekitan” was the Japanese word for coal. “That’s relevant because our major customer will be Japanese,” Mr Bourne said. Mr Bourne said Sekitan intended to bring Wilkie Creek back into operation very quickly. He said Wilkie Creek had 600mt of resources while it had also obtained the licence to Horse Creek near Chinchilla which had 500mt. “So we have over a billion tonnes of coal between the two assets,” he said. “Our plan is for three million tonnes per annum, up to five million and even greater if we are successful.” Former billionaire Nathan Tinkler also launched a bid to buy the mine in 2014 for $80m but the sale was called off .
WORK is progressing on getting a massive solar farm proposed near Kogan shovel-ready. The Origin solar farm development has the potential to provide up to 200MW of power, which would make it one of the largest in the country if built. In February 2016, Origin awarded RCR Tomlinson Ltd and Early Contractor Involvement (ECI) a contract to provide design and engineering expertise for the Solar Farm. Earlier this month, Origin made an application to the Federal Department of Environment for an important regulatory approval under the Environment Protection and Biodiversity Act (1999). The Darling Downs Solar Farm received development approval from the Western Downs Regional Council in December 2015 and was short-listed in January 2016 to progress to the next stage of the Federal Government’s Australian Renewable Energy Agency (ARENA) large-scale solar photovoltaic (PV) funding initiative. Origin’s project team has progressed the detailed funding application to ARENA, which is due mid-2016. Pending successful grant funding from ARENA and receipt of final investment decision by the Origin Board, construction is expected to commence in early 2017. Origin’s solar investment isn’t limited to the Surat Basin, however. Earlier in May, Origin entered into an agreement with leading global solar company Fotowatio Renewable Ventures (FRV) to purchase solar power from the proposed 100MW Clare Solar Farm in north Queensland. The Power Purchase Agreement (PPA) for Clare follows the signing of a PPA with FRV in March for the solar generated by the 56 MW Moree Solar Farm in northern NSW. As well as utility scale solar, Origin is building Australia’s largest solar canopy at Westfield Marion in Adelaide, a 263 kilowatt solar array on the roof of the Royal Australian Mint in Canberra and is planning to build a 3 MW system on the roof of the new Tonsley technological precinct in Adelaide.
◗ BRIGHT SPARK: Work is progressing on Origin’s proposed solar farm at Kogan. PHOTO: CONTRIBUTED
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LIFE IN THE BASIN
suratbasin.com.au Thursday, May 26, 2016
“The balance between farming and industry has gone to-and-fro over the years, but now oil and gas is dominating.” — David Bowden
◗ MARANOA MAN: Roma’s David Bowden is a former real estate agent, author, and community volunteer.
PHOTO: MATTHEW NEWTON
People profiles: David Bowden
Writing his own adventure in Roma SOME might think being a staunch member of the Labor Party in the middle of the blue-ribbon safe federal seat of Maranoa might be a lonely existence. But not Roma’s David Bowden. He’s been around the region since he was born – and isn’t going anywhere soon. “I live in Roma but was born in Mitchell,” David said. “Mum and dad had a property in Amby then moved to Muckadilla, and I went to Downlands College.” He was a classmate of retiring Maranoa MP Bruce Scott and got on well, but “we just chose to go different ways”. “The Labor Party has always had a presence in Roma – I joined at 19 years of age,” he said. “I received life membership of Labor from Kevin Rudd – even before Bob Hawke got his – though that was simply due to timing of national conferences.” Membership goes up and down, David says. “It grew a lot during the last (state) election at Warrego, but has tailed off a bit now,” he said. “It goes up and down – but needs some re-building (now). “You’ve always got to have a presence to ensure the Senate vote, as the House of Reps vote will go conservative.” And Roma would miss his mighty presence as a volunteer and community historian and supporter if he did go. “I volunteer with the Muckadilla Whistlestop Community Association, and am part of the Roma Family and District Society,” David said. “I have also been a member of Toastmasters international since 1972 – I was district governor for a time, for all Queensland, the Northern Territory and northern NSW – and am
a member of two writers groups.” The Roma Bowls Club is also made frequently well aware of his champion prowess with the bowl. As a former real estate agent, David still has his licence “and I still do some auctioneering”. He’s even written three books on the region. “The first was co-written with Jim Allen, while the second was
◗ HAPPILY MARRIED: Roma’s David and Lynn Bowden celebrated 50 years of marriage earlier this year. PHOTO: TOM GILLESPIE
about Muckadilla history,” he said. “The third book covered the Anzac history of servicemen and women in the region. “They are each about 250 pages – the last took three years to write, while the other two were written in 18 months and eight months. The last book was much more specific in detail.” David said he remembers the beginnings of the oil and gas industry in the Surat Basin – because he worked in it. “Changes to the region have been big. And back in ‘65 I worked for an oil drilling company – I saw the lead-in to what is going on today,” he said. “Overlaying that I operated sheep and cattle properties. “The balance between farming and industry has gone to-and-fro over the years, but now oil and gas is dominating. “It has all generally been for the betterment of the community, but when pop-up shops took business away to the likes of Brisbane during the boom, it left a lot of local businesses in difficulty. “Things have settled down now; I think people have reverted back to normal family business. “But we lost some of the good businesses – they had to go big then reduce their operations and it took its toll. “But we had the meatworks once – they went – but that’s always been the story in Roma: ups and downs.” But always there’s a feeling of optimism around the region, David reckons. “It will always have its ups and downs,” he said. “We will be staying in Roma for the foreseeable future, but we have a unit we bought on Sunshine Coast – we go there for a week or so when we can – and will eventually live there.”
5
IN THE NEWS IN THE
Thursday, May 26, 2016 suratbasin.com.au
Clean energy generation
Geothermal project: More than just hot air
◗ GEOTHERMAL: Preliminary reports indicate further savings of $15 million over 20 years if Maranoa Regional Council’s major assets in Roma and Mitchell ran off geothermal energy. PHOTO: CONTRIBUTED
A UNIQUE way of cutting electricity costs is shaping up to be much more than just a pipe dream, if the preliminary reports are anything to go by. A pre-feasibility review completed by Local Government Infrastructure Services (LGIS), the Local Government Association of Queensland’s business arm, suggests the construction of two geothermal power plants – one in Roma and one in Mitchell – could save Maranoa Regional Council approximately $20 million in electricity bills over a 20 year period. The cost of building two power stations would sit at around $5.3 million. Cr David Schefe, council spokesperson for geothermal energy, said the issue with building a geothermal power plant in Mitchell is that most of council’s assets were in Roma and Ergon wouldn’t let council use their transmission line. “So part of this would be putting in our own network to run power to all council’s major assets: Bassett Park, the saleyards, the airport, council offices and main depots,” Cr Schefe said. He said there was pressure on local governments across the state to operate more efficiently, and that geothermal energy was one way to save money. “I think a lot of people are excited by the fact council have taken the initiative to look at clean, green energy, which is quite a popular thing, and is trying to be more sustainable as we move forward,” he said. Cr Schefe said he expected to see the finished concept design by early in the next financial year.
APPEA slams Lazarus’ interim gas report THE interim report of the Senate Select Committee on Unconventional Gas Mining confirms that the inquiry did not identify any factual or scientific evidence to support the fear campaign peddled by industry opponents, according to the Australian Petroleum Production and Exploration Association (APPEA). “Despite Senator Lazarus’ best efforts to inflame the debate, the committee report contains no evidence to support his headline-seeking attacks on the industry,” APPEA Chief Executive Dr Malcolm Roberts said. “Contrary to Senator Lazarus’ claims, there is no ‘genocide’ in Queensland. “Most Senators acknowledge that the claims made against the industry are flimsy and anecdotal. They also acknowledge the industry’s positive economic contribution.
“A compelling body of evidence from leading scientific institutions and independent experts shows that a properly regulated unconventional gas industry does not threaten the environment or public health. “Unfortunately, the inquiry’s Chair, Senator Lazarus, has shown that he is not interested in the facts.” Senator Lazarus described his recommendations as “robust and courageous” and said the report highlighted the the high levels of confusion, concern and frustration surrounding the operation of unconventional gas mining in Australia”. “I expect the resource sector will attack me and my recommendations,” he said. “At the end of the day they are concerned about profits, their industry and increasing market share.”
◗ SLAMMED: APPEA has taken aim at Glenn Lazarus’ interim report on Unconventional Gas Mining. PHOTO: LUKAS COCH
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IN THE NEWS
suratbasin.com.au Thursday, May 26, 2016
CSG Beneficial Reuse Scheme
The ebbs and flows of CSG Three years after farmers began using treated CSG water, the Surat Basin News checks in to see how the scheme is working out.
I
t was the first evening of the Southern Queensland Cutting Horse Association Chinchilla Show several months ago when two men sitting in the stands were talking farming. The man on the right leant in to the man on the left after a lengthy conversation and said: "But I’ll tell you what, those blokes who are on Coal Seam Gas (CSG) water, I’d like to know how they’re doing." "Yep," the man continued. "That CSG water must be like having a licence to print money."
G
reg Bender, who farms a 2000 acre patch of earth called Burradoo, just south of the Chinchilla Weir, laughs and shakes his head when it’s put to him like that.
"I wouldn’t say it’s a licence to print money," he said, chuckling. "It’s a licence to turn it over. It’s definitely been financially rewarding for us since it’s come on stream, but it’s been a lot of work and a lot of risk too." To say the availability of treated CSG water through Queensland Gas Company’s (QGC) beneficial re-use scheme has transformed Mr Bender’s farming practices would be an understatement. Originally a dry-land cropping set-up where he might have planted one crop every 18 months, Mr Bender now has 1800 acres of irrigation at his disposal. "It’s been three pretty solid years of building ditches, levelling paddocks and installing pipelines and pumps," Mr Bender said. "It was alright for the first 12 months because you didn’t have the country – but then after the initial 12 months all of a sudden you’ve got another 1000 acres of irrigation and you’re growing all these crops, so you’ve created all this extra workload just to grow the crops and then you’re still trying to do the
development work as well." Mr Bender put in for and signed a contract with QGC for up to 4800ML/year across two properties, though it is unlikely he will ever actually receive those volumes of water. Teething problems at QGC’s Kenya Water Treatment Plant meant the water allocations were inconsistent at first. "It was just up and down; one month you’d get 100% and then all of a sudden the allocation might get halved for the month at a day’s notice," Mr Bender said. Since then the allocations have become more consistent, though it is unlikely the scheme will ever reach its full potential. Mr Bender estimates he has pumped about 6000ML in 32 months, or about 2400ML/year. With the madness of the early years behind him, Mr Bender is now seeing the fruits of his labour. Where once Burradoo’s main crop was cotton, with single paddocks harvested once every two-three years, now he’s got a continual cash flow. “Nearly every month we’re selling something because we’re
◗ Greg Bender on his Hopeland property, 'Burradoo'. Access to treated CSG water has transformed the operations on his farm.
PHOTO: MATTHEW NEWTON
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IN THE NEWS
Thursday, May 26, 2016 suratbasin.com.au
water use
T
reated CSG water is piped from the Kenya Water Treatment Plant along a 20km pipeline into the Chinchilla Weir. To date Sunwater have delivered a total of 45,186ML since operations began in 2012/13. So far this year, the pipeline has carried an average of 52ML per day. The pipes are capable of supplying up to 100ML per day. Some of that water is taken direct from the pipeline, as in the case of farms like Nine Mile Lucerne, on the Chinchilla-Tara Road. The remainder enters into the weir. The CSG water accumulates in the weir over the course of the month, before it is let out in flows for other users downstream of the weir to take their allocations. While downstream releases of irrigation water cease when the weir water level drops below a certain point, treated CSG water must be released, regardless. A Sunwater spokesperson explained this was because the purpose of releases from the Beneficial Use Scheme is to provide regular scheduled water supply for agricultural production including irrigation and stock water. Farmers on the CSG water scheme run the risk of being fined $160 per megalitre if they do not use all of their allocation each month.
◗ Don Bell beside his pivot, installed to take advantage of treated CSG water and grow feed for his cattle.
D
ownstream of the weir on the banks of the Condamine sits ‘Lallalindi’, Don and Lorraine Bell’s 840 hectare cattle property. While other farmers on the scheme already had irrigation infrastructure in place, the Bells had to start from scratch. In 2012, Mr Bell bought and installed a pivot in preparation for the supply of CSG water. “The pivot’s been in for about four years, but we went two years before we started getting water. The pivot just sat there. It was a most expensive bird roost,” he said. “That was one of the big issues from my point of view. We had to have our system ready to go when they started reverse osmosis on the water, and it was supposed to happen in 2011 or 2012, and it didn’t. “So everybody had to have their systems all ready. So here it was sitting there ready to roll and we didn’t get any water for two years because (QGC) took longer to build their RO plant than what they thought it would.” These days, Mr Bell, like the rest of the farmers on the scheme, is receiving about half the allocation he thought he would. That’s okay in the winter when he doesn’t use as much water, but the hotter summer months are a squeeze. The pivot waters about 35 hectares, half of which is under improved pasture with Rhodes Grass and the other half under forage sorghum and burgundy bean. “It gives us a lot more flexibility in what we do because we’ve got that feed that can be produced nearly all the time - the problems are that sometimes in summer time we don’t get enough water for what we want to do,” he said. “It would be better if we had more water... at the moment I’m only watering half of my area because our water is down, and then if they cut us back even more it’s going to make it more
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difficult.” Because the Bells are only receiving half their total allocation, lack of water storage facilities becomes an issue - something which would be useful in the winter time. But water storage costs money. “We didn’t want to go back into too much debt at our age,” Mrs Bell said. “None of our boys are probably going to come back onto the farm so we didn’t want to set ourselves up with a big debt. It was a bit of a trial, really, to go ahead and do what we’ve done.” Mr Bell said that because they weren’t irrigators before signing onto the scheme, they didn’t have a storage, nor did they think they could afford to install one. “150ML storage will cost $150-200,000 probably and we already had used enough money to set (the pivot) up down there,” he said. “We’re actually looking into it at the moment. We’ve got some people giving us some technical advice on how we can go about building a storage and making our system a little more efficient.” Despite the ongoing issues with supply, Mr Bell said the pivot had given him more flexibility. In the past, there have been plenty of times where the Bells have had to sell their cows due to drought. He now runs 250 head of cattle, but in the past has had to cut his herd back during the dry. During a period of severe drought in 2006, he had 32 cattle on the property. “It was so dry the truck got bogged in the sand,” he recalled. Mr Bell hopes that with the CSG water allocation, that won’t happen again. “It doesn’t drought-proof you, but you can deal with the dry times a bit easier,” he said.
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growing crops all year round,” he said. The almost guaranteed supply of water has given Mr Bender the confidence to hedge his bets and take advantage of good commodity prices long before it’s time to harvest. “There’s a lot of marketing opportunities... we forward sold a crop of cotton six months ago because we knew we had the water to grow it and the price was good,” he said. “Where’s when you haven’t got the water it’s always in the back of your mind that I’m not game to forward sell it just in case. “The classic at the moment is these chickpeas - you’ve heard them all talking about how chickpeas are going to be an all-time high this year? Well we haven’t grown chickpeas in probably 10 years and we’re probably going to grow half the farm under them now, because we can.” There are other benefits too - Mr Bender has had to put on three full-time employees to keep up with the increase in work and with all the pumping going on, machines need maintaining more often. Another positive he didn’t factor into his plans is that with so much country under irrigation, any time there’s a rainfall event even a small one - the run-off goes straight into his dam. “It’s been a huge benefit to us,” he said. “We were probably a bit lucky because we were already existing irrigators and we had a lot of machinery and had built a channel down to the river based on the fact that we might be able to pump water with a flood harvesting licence.” Mr Bender said he looked at the figures and took a gamble, which it now seems will pay off. “If it was as good as what they said it was, it would have been absolutely brilliant, but I mean, some water is better than none. That’s all I looked at. I probably was a bit fortunate that I went holus bolus and worked out that’d be the maximum amount of water I could use per year and put in for it.”
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8
DOWN TO BUSINESS
suratbasin.com.au Thursday, May 26, 2016
Technology now plays a big role in the bodyworks business. Jobs like chassis straightening and paint mixing are all done with computers.
More than 80 years of business at Col Wilkie Bodyworks
Wilkies keeping it in the family
FOR a family business to have not only survived but prospered in 80-plus years of trading, they have to be doing something right. After all, just keeping up with technology over that vast period would be a major challenge in itself. So Col Wilkie’s Bodyworks smash repairs and car painting business is a force to be reckoned with, showing initiative from the word go by even starting such a car service business when the main mode of transport back in 1935 was the horse and buggy. A few changes of shift have taken place over those 80 years, when Ben was a one-man band in the workshop, with his son Col and wife Gail picking up the reins in 1968 and buying the business. Col’s son Steve has since bought the business with his wife Kerri Crisp as office manager. "I’m the third generation," Steve said. "I started my apprenticeship here in 1997, so that’s coming up 20 years." The business hasn’t changed in what they do – but there has been huge advancement how they do it, in repairs and paint
◗ WORKING HARD: Spray painter Damien Thompson on the job at Col Wilkie Body Works.
since the early days. "We do smash repairs, all big and small jobs – and everything in between." A lot of the guesswork has gone from making a smashed car revive its good looks these days, Steve said. "Computers play a big role now in this business, with chassis straightening – and the paint mixing is all computerised now. "Everything (in this business) has a computer involved now."
PHOTO: NEV MADSEN
Steve said the business has also employed strict environmental controls on its use of materials. "We use only water-based paint now as well as low-VOC primers," he said. With about 20 staff on board, the company can handle just about anything in good time, with courtesy pick-up service in the Toowoomba region.
a 3rd generation trusted family business. est: 1935
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9
Thursday, May 26, 2016 suratbasin.com.au
15th & 16th Jun TOOWOOMBA
e 2016
SHOWGROUND
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po.com.au
EXPO GOOD FOR BUSINESS SEE MORE – LEARN MORE
Discover the latest in technology for all areas of business and industry - software innovation, engineering design and manufacture, transportation and vehicle services, safety, training and human resource management, plus a whole lot more. Learn more, see more, experience more. Meet representatives from the Gasfields Commission plus attend the Industry Forum highlighting the massive infrastructure program taking place in the Toowoomba and Surat Basin Regions. The Expo takes place in Toowoomba, which is the gateway to the Surat Basin and all points west but more importantly it is the gateway to the most amazing infrastructure building program of any area in Australia’s history. The new international airport on the Western side of the city opened in 2015 and the airport business park is filling fast. With the two billion dollar second range crossing and associated projects now underway plus recent announcements about increased mining and energy activity in the Surat Basin, business activity is at an all-time high. The Surat Basin Expo is perfectly timed for businesses to take advantage of the opportunities across the region by exhibiting and connecting with the thousands of delegates that visit the event each year. Business is very competitive at the moment so you need to promote harder and more often to get your share. Exhibitor sites are still available – contact us today to find out more.
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10
IN THE NEWS
suratbasin.com.au Thursday, May 26, 2016
◗ BUY ‘EM UP: Raine and Horne real estate agent Athol Cleland outside a recently sold Roma property.
PHOTO: MATTHEW NEWTON
Real Estate in the Surat Basin
Surat Basin is a buyer’s market Housing prices across the region holding steady or falling as resource sector slow-down eases off IT’S certainly a buyer’s market in the Surat Basin, with median house prices either falling or holding steady in Roma, Chinchilla and Dalby during April. An investigation into realestate.com.au has found Dalby is actually one of the cheapest places to buy a house in south-west Queensland. At just $260,000, Dalby is more than $20,000 cheaper than Chinchilla ($285,568) and Roma ($283,000). Fitzsimmons Real Estate principal Andrew Fitzsimmons said the market was certainly suited to buyers. “I think it’s definitely a good time to buy, but rents are down as well,” he said. “Every market has seen a drop in prices. The slow-down in the resource sector has helped with that. “It’s all about affordability – you want to have that and the thing Dalby has over other [towns] is we’ve got a good solid industrial base.” Roma is the most expensive town out of the three to rent at
$345 per week, with Chinchilla ($250) and Dalby much cheaper for renters. But Raine & Horne Roma’s Sharon Goodhew said not only was that average a little inflated, but the price had actually been quite stable. “Our rental market is far more stable compared to Chinchilla and Miles,” she said. “They’re definitely very much higher but from an investor’s point of view we’re maintaining that price. “When you consider you were paying double that for basic rental properties four years ago, the price is solid.” LJ Hooker Roma agent Katie Coomber agreed with the sentiment put forward, saying lower house prices were not a bad thing for locals. “It has come back to realistic price range – the average family on normal wages couldn’t afford it [a few years ago] so it’s good to see locals wanting to buy in the town. “It’s good the locals can secure a home so they can stay in Roma. I don’t think we’re going to get any lower.” Ms Goodhew said locals wanting to invest in a new home could be hindered by major lenders requiring much larger deposits on a home loan. “Our only issue is the banks requiring that 30% deposit which does hinder some investors,” she said. “I’m pretty sure we’re an at-risk postcode. The banks require a
Carp busted in the Balonne River CARP numbers were low again at this year’s Surat Carp Buster and the organisers wouldn’t have it any other way for this increasingly popular weekend fishing competition. More than 200 people took to the banks of the Balonne River in Surat on the May long weekend to remove 124 carp weighing just over 100kgs from the river. Queensland Murray-Darling Committee Biodiversity and Pest Technical Officer Lisa Sutton said sustained efforts by the local fishing club to target carp while restocking native fish were clearly paying dividends.
The Surat Carp Buster was the final in the 2015/2016 QMDC Carp Buster Fishing Series with Paul Broughton of Tingalpa, Queensland, catching the most fish again this year. The Carp Buster Fishing Series cash prize pool was open to anglers who supported the series by registering in two of the three events at Mungindi, Millmerran and Surat. In total 480 anglers caught 802 carp weighing 730kgs. The Carp Buster Fishing Series was supported by QMDC through funding from the Australian Government’s National Landcare Programme and the Queensland Government State Regional NRM Investment Program.
higher deposit than they would for a house in Toowoomba. “We’ve got a lot more people selling than buying and they are more cautious.” Lower house prices could also be attributed to the unease in both state and national economies right now, according to Mr Fitzsimmons. “I’d say there are plenty of buyer opportunities but I think there are bigger forces at play with the Queensland economy,” he said. “Interest rates are going down and it makes people think twice about buying or selling. “People have good cash reserves but they’re holding onto them because there’s uncertainty.”
STATE OF THE MARKET Median House Prices ■ Roma – $283,500 ■ Chinchilla – $285,568 ■ Dalby – $260,000 Average Rental Prices ■ Roma – $245/week ■ Chinchilla – $250/week ■ Dalby – $270/week
Thursday, May 26, 2016 suratbasin.com.au
11
IN THE NEWS
Sky Muster starts making connections THE launch of services on NBN’s Sky Muster satellite network could mean faster internet for the Western Downs. Minister for Communications Mitch Fifield and Minister for Regional Communications Fiona Nash officially launched NBN’s commercial Sky Muster broadband service earlier this month. The new high-speed offers download speeds up to 25 megabits per second (Mbps) and upload speeds up to 5 Mbps. “The Australian Government has invested $2 billion in two advanced Ka-band satellites and a network of ground stations that make up the Sky Muster service,” Minister Fifield said. “The remoteness of our continent and its islands is no longer a barrier to broadband connectivity thanks to NBN’s Sky Muster.” NBN launched its first satellite, Sky Muster 1, in October 2015, with the second satellite on track for launch later this year. Eligible customers can now contact their local internet service provider to order a broadband connection over the orbiting satellite. Each service requires a professional installation of a new receiver dish and indoor modem. Equal priority will be given to new customers and current NBN Interim Satellite Service users migrating to Sky Muster. Around 5000 users per month will be connected in the early months of the roll-out before scaling up to 10,000 installations per month later this year. The satellites have unprecedented throughput capacity, but that capacity is still finite. For more information, visit www.nbnco.com.au or phone 1800 687 626.
◗ LADIES CAN BE TRADIES: Emma Filler-Cottee is hoping to reshape not only attitudes toward trades, but also help people improve their skills. PHOTO: JESSICA BAHR
Promoting women in the workforce
Ladies can be tradies Room for improvement in the world of women working in trades, says Dalby tradie
◗ MUSTER IN THE SKY: An artists impression of the Sky Muster satellite. PHOTO: CONTRIBUTED
IN TODAY’S society, many steps have been made toward furthering gender equality, fighting gender norms and improving old-fashioned attitudes. However, according to 26-year-old Emma Filer-Cottee, in the world of women working in trades, there is still significant room for improvement. Mrs Filer-Cottee qualified as an electrician a year ago . Throughout her time as an apprentice she was met with a lot of surprise and doubt due to her gender. “It took me quite a few years to actually get an apprenticeship and was met with a lot of surprise,” she said. “At one place they sat me at one desk and all the boys at another desk across the room and they sat talking to the boys while I got ignored. “I got told a lot that physically, I wouldn’t be able to do the job. So you get told ‘no’ a lot, but you’ve just got to keep trying.” Inspired by groups such as She Skills in Brisbane and SALT in New South Wales, Mrs Filer-Cottee is hoping to start up a local
network for like-minded women. She first became inspired about two years into her apprenticeship. “I would be talking to people at TAFE and they were quite shocked that a woman was doing this, and I got a bit annoyed that it was so shocking, because it really shouldn’t be,” she said. “I’m not just into promoting women in trades, it’s women in the workforce as a whole. Just because you’re a woman shouldn’t mean you’re limited.” Mrs Filer-Cottee is also hoping to start improving general handy skills of not only women, but also boys and men in the area and one day hopes to hold local workshops. She is currently in the process of firming up plans and seeking funding. As the plans progress, she plans to make updates via local Facebook pages and through her local paper, The Dalby Herald. To contact Mrs Filer-Cottee please email darren.emma5@bigpond. com.
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suratbasin.com.au Thursday, May 26, 2016
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Thursday, May 26, 2016 suratbasin.com.au
14
IN THE NEWS
suratbasin.com.au Thursday, May 26, 2016
Toowoomba/Brisbane services expand
Murrays celebrates 12 months in Surat Basin
◗ ON A ROLL: Murrays Coaches has celebrated 12 months they commenced daily coach services into the Surat Basin. PHOTO: CONTRIBUTED
has announced the expansion of their Toowoomba to Brisbane timetable, with daily services commencing as of Monday, May 16. Murrays have also launched the free Loyalty Club which has the added benefits of receiving every sixth trip free when you travel with Murrays Coaches. "We commenced the Queensland Express service 12 months ago to provide the people in the region safe, reliable and an affordable coach service. I am pleased that the local region are
supporting the Murrays service allowing us to expand our timetable," Owner/Chairman of Murrays Coaches Ron Murray said. "Launching our free Loyalty Club to our Toowoomba/Brisbane service also gives travellers extra benefits when travelling five times and getting the sixth trip free. We are rewarding the local passengers for their loyalty." For new timetable and information about the Murrays Loyalty Club, visit www.murrays.com.au or call 13 22 51.
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MURRAYS Coaches may have just celebrated 12 months since they commenced daily coach services into the Surat Basin, but they have been servicing the region for much longer than that. It’s been just over two and a half years since they brought their transport services to the Surat Basin at the request of QGC, and since then they’ve grown locally - leasing a depot and workshop facility in Chinchilla and employing local drivers. Murrays regularly help out at community events and with organisations, said Murrays Coaches Queensland manager Justin Cannon. "We’re participating in a lot of the shows out here and have been involved in the Watermelon Festival, we’ve been involved in the Chinchilla Show, we’ve been up recently in Wandoan and Dalby and Miles for their shows, so we’re very engaged in the local community wherever we can, getting involved and providing support," he said. Murrays also sponsor the Chinchilla Bulldogs, providing their transport when they head off for away games. With State of Origin just two weeks away, Mr Cannon said fans should keep their eyes peeled for the Queensland State of Origin Coach, which he said should prove to be quite a hit with youngsters, as it was last year. To celebrate their first year in the Surat Basin, the company
Contact us now 1800 623 312 I www.mainmark.com Mainmark Ground Engineering Pty. Ltd. QBCC Act Licence No. 1316403
15
IN THE NEWS
Thursday, May 26, 2016 suratbasin.com.au
Damming the Dawson River
Nathan a ‘dam’ good idea for industry ◗ WATER FUTURE: Sunwater's John Kelly speaks about the Nathan Dam proposal at TSBE's May Enterprise Evening. PHOTO: MATTHEW NEWTON
the Federal Court. “SUDAW were the proponents for the construction of the dam at the time. They were required to do some further assessments which they elected to not do and hence the momentum stopped. “In 2006 the Central Queensland Water Supply Strategy was released and that identified the dam as a possibility for providing for future water supplies in the area.” Mr Kelly said Sunwater had since become the proponent for the dam and was working through its business case, parallel to the amended EIS. The proposed Nathan Dam would be upstream from Nathan Gorge on the Dawson River and if constructed have a storage capacity of some 880,000ML. The dam would cover approximately 13,000 hectares and have a spillway sitting 80m above the riverbed level. Sunwater’s Woleebee Creek pipeline, which currently supplies treated CSG water to the Glebe Weir, could be reversed and used as part of the dam’s pipeline infrastructure to supply water
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to Western Downs townships like Chinchilla, Warra and Dalby. Speaking to Mr Kelly during a Q&A session after his presentation, Western Downs Regional Councillor Ray Brown said $2 billion in federal funding for water infrastructure projects was up for grabs, so long as the funding was matched at a State level. “For the Western Downs, it would give six towns town water supply reliability for the next 50-100,” he said. “It also supplies six existing power stations without any issues. We know the water will be too expensive for agriculture, but for the lifeblood of industry in our region, coal washing facilities and particularly feedlots, this has got huge potential ahead of us. “Will you help promote John, through your CEO to the State Government to make a commitment to a project like this?” Mr Kelly agreed wholeheartedly: "As an engineeer I’d love to build a dam and that’s the one I’ve got my eye on,” he said. “I’m a small fish in a big pond but I’m more than happy to do all I can to make it a reality... hand on heart I will do my best.”
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SUNWATER is hoping to have its amended Environmental Impact Statement (EIS) for the ambitious Nathan Dam project on the Dawson River ticked off by the Federal Environment Minister by the end of the year. The proposed dam would supply water to townships and industry in the Western Downs. The state-owned water infrastructure provider submitted additional information to the Office of the Coordinator General in April and is hoping to receive comments by the end of this month so that the EIS can be finalised, Sunwater’s John Kelly told Toowoomba and Surat Basin Enterprise’s (TSBE) May Enterprise Evening. The EIS for the Nathan Dam was originally published in 2012 but Sunwater was required to provide additional information after the submissions process raised additional issues. The Nathan Dam was first proposed in 1922, Mr Kelly said. “It gained quite a bit of momentum in the 90’s due to increasing water demands in the region and drought,” he said. “The purpose of the dam is to supply water to irrigated crops and other developments. At the time the proposal was approved by the Minister for Environment and Heritage but there was an application for a review of that decision and that was upheld by
16
FEDERAL ELECTION 2016
suratbasin.com.au Thursday, May 26, 2016
Bruce bows out after 26 years “I HOPE one day that people may judge that what I have given as the Member for Maranoa has been adequate.” With that, Maranoa MP Bruce Scott sat down for the final time after a speech in Canberra, 26 years after he first walked into Parliament House. Mr Scott, who was first elected to the seat in 1990 after a career in agriculture, spoke on his life and career last Wednesday in his valedictory speech. He also discussed his first trip overseas to the former USSR, and had no idea the tragedy that was unfolding back home. “I had been appointed to do something overseas at that time. I was visiting what was called in those days the USSR. I was behind the Iron Curtain,” he said. “So I knew nothing of the fact that my electorate was under water. John Kerin, the agriculture minister at the time, had sent me to do a genetic comparison trial between Australian merinos
LNP candidate David Littleproud
THE odds-on favourite to win the seat of Maranoa has promised to not take his constituents for granted if he is indeed elected. A Nationals member since 1998 said he would place telecommunications and road and rail infrastructure as his top priority if he won the seat. “We don’t take anything for granted – the proof in that is Bruce [Scott, MP] has been able to get $1.2 billion over the last few years for this electorate,” he said. “Basically telecommunications, building on what we’ve done and improving the mobile black-spot program [will be my goals]. “We’ve achieved 19 towers and coupled with the NBN, there will be 68,000 households and businesses that will have the NBN within the next 18 months, through FTTN or through the Skymuster satellite that’s gone online.” Mr Littleproud also praised the current budget in its support of small businesses.
Retiring Maranoa MP Bruce Scott reflects on two and a half decades in federal politics and Russian merinos.” Having served in what is the largest federal seat in Queensland, and one of the biggest in Australia, Mr Scott joked about the enormous size of his electorate. “When the sun is rising Warwick, it will be 56 minutes before it rises in Birdsville, and yet it only takes 24 hours to go around the world,” he said. “But stretched across that vast land are mineral wealth, agricultural wealth and enormous opportunity.” Among his achievements across a career of more than two decades, Mr Scott also held the portfolio of Veterans’ Affairs
Minister during the first term of Prime Minister John Howard. “It was a huge privilege to have been appointed a minister by John Howard and Tim Fischer, as Deputy Prime Minister,” he said during his speech. “I never saw myself as the Minister for Veterans’ Affairs but rather as the veterans’ minister, because it was their voice that I needed to bring to cabinet to make sure that we were, as we often said, looking after the veterans. “We had to deal in those early days with the issue of PTSD. It was not really recognised as a war-related injury.” Mr Scott also spoke on Roma, a town close to his heart. “I acknowledge the great support that I have had from people in my home town of Roma,” he said. Mr Scott said he would be supporting the new LNP candidate David Littleproud during the election campaign. To read the full speech, go to parlinfo.aph.gov.au.
ALP candidate Dave Kerrigan
One Nation candidate Lynette Keehn
GROWING up in the hometown of the historic 1891 Shearers’ Strike meant ALP candidate Dave Kerrigan had both his political and moral views shaped early on. “My father and the men I worked with when I left school were so important to me (through the way) they treated everyone equally and had a lot of respect for others,” Mr Kerrigan said. “That’s all any Australian asks for – fairness and decency.” As large tracts of the Maranoa region stare down the barrel of drought, it feels more evident than ever to Mr Kerrigan that the basic right of a fair go to people in rural Queensland is once again being quashed, which is why he has decided he needs to step up. “When governments and politicians make promises to drought affected areas and then back flip on funding promises it’s devastating to these communities,” he said. “It’s very hard for the State Government to roll out services when there’s continual cuts to the budget. “People in country Queensland have been let down over the years.”
ONE Nation’s Queensland Senate candidate for the Maranoa is Lynette Keehn. Mrs Keehn grew up breeding Murray Grey cattle in Victoria before moving to Queensland in 1987. Mrs Keehn said she expected to come under personal attack for joining One Nation, and was prepared to wear the stigma if it meant getting the party’s message out. “I want to bring attention to infrastructure, water storage, and I want to see the elderly treated with the dignity they deserve. They’re our pioneers, they built this country and they need to be recognised for that,” she said. So, what are the policies of One Nation? Its eclectic mix of policies put it in direct opposition to the political goals of Islam, the United Nations and the CSG industry. Pensioners would benefit from a $100 per week increase to their fortnightly payment. One Nation would also crack down hard on illegal immigrants, as well as those who use false passports or overstay their visas to stay in the country.
TOOWOOMBA
KAP candidate Rick Gurnett
CHARLEVILLE based Rick Gurnett said major parties no longer represent regional areas. “Being a member of KAP means you represent your community, and representing the interests of the Maranoa,” he said. “The LNP have failed the Maranoa electorate and it is time they were held accountable.” Mr Gurnett said if he is elected, he will make it his mission to try and fix all the things that need fixing. “I have a million and one ideas on what needs to be done in order to properly represent the electorate,” he said. “Both the government and the opposition have a born to rule mentality.” When quizzed on what he hopes to achieve from this campaign, Mr Gurnett names telecommunication and the internet as one issue that is close to his heart. “Stopping foreign ownership is also something that must happen.”
Greens candidate Katherine Hompes FROM family in Roma and Eromanga, to living in Quilpie and Mt Isa as a teenager, Katherine Hompes has strong ties to western Queensland. She believes her experience in regional and remote communities has provided her with real insight into the issues faced in Maranoa. “Given the importance of agriculture in the Maranoa, my primary campaign platform is around supporting and protecting our farmers and regional communities against mining and coal seam gas companies,” she said. “Farmers need to have a right to have a say in what happens on their land, and a right to continue producing without fear of contamination of the land or water. “A few issues out here are of incredible importance, including transitioning to a Clean Energy Economy and the effects of global warming are already starting to be felt, and the demand for coal is falling rapidly.”
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IN THE NEWS
Thursday, May 26, 2016 suratbasin.com.au
Debt and Drought report released
◗ Administrators of Linc Energy have recommended the company be liquidated.
PHOTO: CONTRIBUTED
Administrators recommend company be liquidated
A ROYAL commission should be established to investigate the financial conduct of the banking sector, according to the recommendation of the Rural Debt and Drought Taskforce Report, released this month. The recommendation is one of 14 the Taskforce made as part of their investigation into matters of rural debt and drought over earlier this year, which the report states will “stabilise then reinvigorate our primary industries and... strengthen our rural communities throughout Queensland.” Another recommendation of the report is to establish a Rural and Industries Development Bank, the scope of which would include the capacity to offer suitably tailored rural loans to businesses along the supply chain, industry development, and a commercial lending ability - including recapitalising for restocking and replanting. The report showed that rural debt across Australia has spiralled to almost $70 billion as of last year, while the net value of farm production sits around $15 billion. “There is little doubt that following deregulation in 1983-84 the banks, in pursuit of market share in the face of
Report: Linc owes $289m ‘‘
These communities are slowly dying...
ADMINISTRATORS say Linc Energy owes creditors $289 million and have recommended the company be wound up. Linc was put into voluntary administration in April, shortly after it was committed to stand trial on five charges of wilful causing serious environmental harm at its trial Underground Coal Gasification (UCG) plant in Hopeland. The report found the company had failed due to proceedings brought against the company by the Queensland Department of Environment and Heritage Protection (DEHP) - “affecting its ability to raise fresh capital” and also because of the cost of
defending itself against the charges. The drop in global oil prices, the unwillingness of major shareholders to participate in any proposed restructure and recapitalisation of the company and the DEHP’s moves to increase the amount of the financial assurance held for rehabilitation of the Chinchilla UCG Facility from $3.6 million to $29.4 million were also mentioned as reasons why the company was placed under administration. The administrators suggested a second creditors' meeting, due to be held on May 23 in Brisbane, be postponed for 45 business days to allow for further discussions.
heightened competition, made loans based on security levels offered by existing equity but without sufficient regard to the capacity of clients to repay,” the report stated. Taskforce chair, Member for Mt Isa Rob Katter said that for four years now, both State and Federal Governments had ignored the “deep set structural problems that have affected rural towns”. "This report is as much as about the people in the towns as it is on the farms, these communities are slowly dying because progressive Government haven't been forward thinking in their policy approach," he said. To read the report in full, head to: daf.qld.gov.au/ruraldebttaskforce/final-report.
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RURAL NEWS Federal Government announces multi-million dollar boost for cotton research as the election campaign swings into gear ahead of the July 2 polling day.
suratbasin.com.au Thursday, May 26, 2016
Nitrogen R&D funding announced
Ginning up support from cotton
◗ COTTONED ON: Bruce Finney, Executive Director of Cotton Research and Development Corporation, presents Barnaby Joyce with a memento at the Dalby Cotton Ginnery. PHOTO: ALASDAIR YOUNG
BARNABY Joyce came to Dalby spread the word recently – and the word was “cotton”. Supported by the Minister for Regional Development Fiona Nash, and tailed by LNP hopeful for the seat of Maranoa David Littleproud, Joyce announced a multi-million dollar boost to research and development. He said the Federal Government was set to help growers ‘cotton on’ to the benefits of nitrogen use. Nitrogen is critical for Australian agriculture, as it improves soil quality, crop yields and farmgate returns. To explore this, a $5.9million R&D project shall be run by the Cotton R&D Corporation (CRDC). Deputy Prime Minister and Minister for Agriculture and Water Resources Barnaby Joyce said part of the Coalition’s plan for jobs and growth was giving farmers the tools they need and that round two of the Rural Research and Development for Profit Programme would be highly beneficial for cotton growers. “Those who work the land already know their soils are their greatest asset, and are always looking for ways to protect and improve it so they get greater returns for their efforts,” Mr Joyce said. “This project will give us important information on how best to use fertilisers to address specific crop requirements and, in turn, increase profits for growers. “In the spirit of getting the best bang for everyone’s buck, the grant will be matched by more than $9.7million in cash and in-kind contributions by CRDC and its partner organisations.”
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RURAL NEWS
Thursday, May 26, 2016 suratbasin.com.au
Food Leaders Australia forums highlight export opportunities in Asia for producers in the Western Downs
Opportunities abound in China
Producers keeping an eye on exports CHINA’S demand for Australian produce was on the menu for Western Downs agricultural producers who attended a series of Agriculture Export Opportunities forums hosted recently by Food Leaders Australia (FLA) and supported by natural gas company QGC. The forums, held in Tara, Wandoan and Chinchilla on April 26-27, were well attended and focused on assisting attendees identify and maximise emerging opportunities with Chinese consumers. Chief executive officer of FLA Dr Ben Lyons said it was great to see a solid number of agricultural producers in the Western Downs region turn out to hear more about export opportunities to China. “It’s been a fantastic two days out west providing guidance to Western Downs farmers on the opportunities for their business in China with participants walking away with vital information necessary to further explore their export potential,” Dr Lyons said. Richard Holy, general manager at global logistics company DB Schenker, discussed the importance of effective transport
◗ PRIME OPPORTUNITY: Dr Ben Lyons, CEO of Food Leaders Australia (FLA), discusses export opportunities to China with interested Western Downs agricultural producers. PHOTO: TSBE
and logistics systems in order for businesses to connect with Asian markets. In particular, Mr Holy highlighted the importance of rail in order for long term transport efficiencies to facilitate export opportunities. Speaking on behalf of the Hong Kong Trade Development Council, Director Bonnie Shek gave guests an insight into Hong Kong’s role as a gateway to Asia, particularly China. “Being located in the southern tip of China, Hong Kong has got very easy access to the Chinese market, and also to many of the other major markets in Asia,” Ms Shek said. Ms Shek noted that there were a number of characteristics of the Hong Kong market that were quite attractive to Australian
exporters, including very low trade barriers, open and transparent regulations with no grey areas, efficient world-class logistics systems and regularly upgraded infrastructure to support these systems. The forums mark the official beginning of the Western Downs Eastern Opportunities project, a new partnership between FLA and QGC. As a part of the project, an expression of interest process will now be undertaken with forum attendees to select up to 10 companies to participate in a targeted trade mission to China later this year and to gain expert, tailored coaching and advice to help build their export readiness over the next 12 months.
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20
OPINION
suratbasin.com.au Thursday, May 26, 2016
Taking a tour of the CSG industry ANN LEAHY
Member for Warrego
WELCOME to the May edition of the Surat Basin News. It has been a busy month across the Surat Basin and I was delighted to host a visit of my parliamentary colleagues for a briefing and inspection of some of the Santos operations near Roma. Gold Coast and metropolitan LNP Members of Parliament, travelled to Roma to see multi-well sites, pipelines, a gas well being drilled and inspected the Santos Hub at The Bend. There was a comprehensive briefing on the coal seam gas industry and they were able to see how cattle production was integrated with CSG operations. An interesting aspect of the trip was the importance of the CSG industry to not just the local economy, but also the economies in other electorates. For instance, a company that makes gear boxes in the Electorate of Albert employs 400 staff and supplies these gear boxes to the Surat Basin companies and internationally. I would like to thank Santos and their staff for helping
Getting connected TYSON GOLDER Mayor of Maranoa Regional Council
organise the inspections and for sharing their knowledge of the industry with my parliamentary colleagues. The MPs also received a briefing at the Roma Saleyards about the value of cattle production and beef exports to the south-west region. It is not every day that urban Members of Parliament have the opportunity to see a cattle selling facility on the scale of the Roma Saleyards. Some members have expressed an interest in coming back on
◗ OUT AND ABOUT: Ann Leahy on tour with parliamentary colleagues. PHOTO: CONTRIBUTED
Western Downs means business
Change of leadership PAT WEIR
Member for Condamine
Cr Paul McVeigh, Mayor
Western Downs Regional Council
HELLO everyone, another month has passed and winter has finally arrived. With no rain in sight, hopefully just when you think it’s not going to rain, it does. One development on the LNG front that I’ve found particularly interesting this month, is the Queensland Department of State Development GasFields Commission Review’s suggestion of an ombudsman to perform a dispute resolution role. This could mean that land access issues could be resolved without the need for legal representation. After having discussions with landholders frustrated by breaches of agreements with LNG companies, I personally think the establishment of an ombudsman for the resource sector is an excellent idea. On the whole, I believe land owners would like to be left to run their properties with the least amount of stress possible. If the other tiers of government can input a model that ensures the gas companies are doing the right thing, and therefore being made accountable for their actions, it can only be a good thing. If there was a body similar to the telecommunication ombudsman, I think our land owners would definitely feel more at ease. I have logged a matter with the above-mentioned ombudsman after not having much satisfaction with a telephone company. I was promptly contacted by a high level representative from the telephone company who agreed that I had a problem, and fixed it immediately. This fixed the issue and the telecommunications ombudsman did not even need to be involved. If there could be this kind of governing body for the resource sector, this would see the forming of better relationships between landowners and LNG companies – which would ultimately be a positive outcome for all involved.
sale day and I will be delighted to help them grow their understanding of our agricultural industries. I met last Parliamentary Sitting with the Resources Council. The Resources Council collects data in relation to the numbers of jobs and value of the resources industry in our region. This is important information for businesses, chamber of commerce’s, local governments and the people who live in the Surat Basin. For instance in 2014-2015 financial year the Resources Industries advises their direct contributions in the Warrego Electorate were $81 million in wages paid to 509 full-time employees, $441 million spent on goods and services purchased locally and community contributions benefiting 798 local businesses while only using 0.1% of the land mass in the Warrego Electorate. They estimate the flow on benefits include local spending and employment of 5184 full-time employees and an additional value add of $491 million through sourcing local business and employees local spending. I have requested further information and break downs of data in the Warrego Electorate from the Resources Council and look forward to sharing this with Surat Basin readers.
WITH the Western Downs and Surat Basin regions continuing to see positive growth in our energy, manufacturing and agriculture sectors, the next four years for Western Downs Regional Council will be an exciting time for me and my fellow Councillors as we share in the commitment of building a stronger region and achieving great outcomes for the future of our communities. Western Downs means business, and this council is ready and well-positioned to capitalise on the future growth of our great region. Investor confidence in the Western Downs continues, with people investing and businesses expanding, showcasing a positive sign of better things to come. These opportunities are already knocking on our front door, with the region experiencing our third wave of energy development as renewable energy follows in the footsteps of coal and CSG in the Surat Basin. We’re excited to see solar energy projects in the pipeline such as the Origin Energy Darling Downs Solar Farm Project, highlighting the continuing strength and diversity of our region and economy. This council is looking towards the future, and our commitment to assisting developers fast-track their applications demonstrates our willingness to facilitate major development activity that brings economic benefit to the region, as well as placing the Western Downs on the forefront of progress and renewable energy alternatives. The building of relationships and partnerships across all our sectors as well as with neighbouring councils to continue to maximise on opportunities and promote our regions will be key to the future of our communities.
SINCE my last contribution to the Surat Basin News there has been a change in leadership for the LNP in Queensland. I would like to take this opportunity to congratulate the new LNP leadership team, with Tim Nicholls as the Opposition Leader and Deb Frecklington as Deputy Leader. The Shadow Ministry has several new faces including Dale Last as Agriculture spokesperson and Dr Christian Rowan as spokesperson for the Environment, Heritage Protection, National Parks and the Great Barrier Reef. Andrew Cripps remains as the Shadow Minister for Natural Resources and Mines and Ian Walker the Shadow Attorney-General. I would also like to acknowledge the hard work and dedication by both Lawrence Springborg and John-Paul Langbroek over the time they have been involved in the conservative side of politics in Queensland. Their invaluable contribution and achievements for the prosperity of this state should be appreciated and recognised by all Queenslanders. There have been several funding announcements of late that will greatly benefit the Surat Basin area. Oakey Beef have obtained funding for a major upgrade of rail facilities through to western Queensland. The project will allow for the upgrading of two sidings and the reopening of the line that runs adjacent to the Oakey Beef facility. In the recent budget the Federal Government committed $594 million to an inland rail network connecting Brisbane to Melbourne. This project has been on the drawing board for over 20 years, making the announcement of funding for rail land acquisitions a positive breakthrough. Getting our freight off the road and back on to the railway network will benefit rural Australia and provide an efficient low-cost transport option to markets and ports on the Eastern sea board.
Report offers a more positive outlook WHILE the last 12 months have brought some uncertainty to those working within the resource sector, the recent 2016 Major Projects Report – Queensland Engineering Construction Outlook report offers a more positive outlook. While perhaps a little optimistic, the report predicts that the Surat Basin will once again reign supreme as work stabilises as construction at the Gladstone LNG project comes to an end, with an upswing in the industry forecast for 2017-18. This will be dependent on a number of things, including investment decisions by state and federal government, particularly regarding new transport infrastructure. Of course, most of us by now are aware of the announcement in the recent Federal Budget of an additional $594 million of
BEN LYONS TSBE CEO
funds being allocated to the vital Inland Rail Project – a much welcomed addition. Infrastructure such as the Inland Rail project, and other major projects such as the Brisbane West Wellcamp Airport and the Toowoomba Second Range Crossing, greatly increase our ability to move freight and open doors to opportunities for our region and global trade, particularly with Asia. Not only are our high quality minerals and energy resources
sectors, as well as our abundant agriculture sectors, set to greatly benefit, but also our manufacturing, tourism and education will also reap the benefits. These benefits will bring opportunities for local investment and construction activity as interest rolls in. To better understand what this increased connectivity will mean for our regions and our key sectors and industries, TSBE will next month host our Enterprise Evening in Toowoomba focused on the region’s burgeoning position as an Inland Transport and Logistics Hub to Australia. The event will be held on June 23. To book tickets, please visit the website www.tsbe.com.au/events.
21
OPINION
Thursday, May 26, 2016 suratbasin.com.au
A medical lifeline CHRIS LAMONT APPEA Director
MORE than five years ago Queensland natural gas companies sat down to work out ways to meaningfully contribute to communities in the areas in which they operate. As a result the Surat Gas Industry Aeromedical Service (SGAS), in partnership with Careflight Queensland, was scheduled for take-off. Arrow Energy, Origin Energy, QGC and Santos invested more than $35 million in partnership with Careflight to minimise impacts from gas industry operations on public medical services while providing emergency care for industry workers operating in remote areas. Two medically configured Bell 412 helicopters based at Roma and Toowoomba service an area that’s roughly 270,000 square kilometres, is spread across eight council boundaries and has a population of nearly 210,000 people. The helicopters can accommodate up to two patients at a time. Each are staffed by one full time emergency doctor, two pilots and two paramedics representing one of only a few fully integrated emergency retrieval teams in the nation. They are permanently on call to provide round the clock emergency care, providing a medical lifeline to the Surat Basin every day of the year. And they’re making a difference. There have been 550 emergency retrievals since its inception; from serious motor vehicle and farming accidents and venomous snake bites to urgent hospital transfers. In recent months for example, a 19-year-old woman was airlifted by CareFlight’s SGAS following a single vehicle accident near Rolleston in Central Queensland and a 53-year-old man was hospitalised after a serious sawmill accident near Roma. The service is saving lives and has been replicated via more industry funding in Gladstone for an aeromedical evacuation service that supports LNG workers on Curtis Island and the wider community. Since 2011 gas companies have contributed $177 million towards community projects in regional Queensland from charity work and sporting club upgrades to hospital services and public amenities. It’s an investment in the future and one that will benefit communities where our employees live, work and raise their families for decades to come.
Gas legacy helps build Basin’s economic future
Turnbull’s war against workers
RAY BROWN
DAN MCGAW
ETU South West Queensland State Organiser
IF THE Turnbull government is re-elected we will see a full scale attack on construction workers in Australia. This will happen on a number of fronts but of particular worry to the construction unions is the re-introduction of the Australian Building and Construction Commission (ABCC). This is a taskforce with a set agenda of crucifying construction workers and bashing unions. Instead of attacking working class people why doesn’t the government focus on the real issues of the industry? While spending $33 million per year on funding the FWBC whose only purpose is to persecute workers and their unions the Turnbull Government is doing nothing about. Why isn’t there an investigation into; ■ 1. Companies going bust and owing workers $137 million annually in unpaid wages and super? ■ 2. The exploitation and abuse of the 1.2 million temporary visa workers currently in Australia? ■ 3. The widespread use of sham contracting arrangements that employers use to get around paying for people’s leave and super? ■ 4. Addressing the huge number of deaths in the industry? During the last ABCC, the number of deaths on construction almost doubled. In contrast, following the abolition of the ABCC in 2012 the number of deaths fell significantly. Malcolm Turnbull has no policies and no ideas about how to ensure decent jobs and a future for our country. Since he became prime minister he has done nothing to stop the rise in unemployment, the temporary work visa rorts or the tax dodging by his mates in big business.
GasFields Commissioner
THE Warrego Highway provides a vital transport corridor for the many different industries and economy of the Surat Basin region. Agriculture, energy and tourism remain heavily dependent on this key transport artery that has been transformed over the past five years thanks to the significant contributions from local, state and federal governments and the onshore gas industry. The total contribution to road infrastructure in the Surat Basin by the onshore gas industry over the five-year period between 2010-2015 is estimated at $360 million. Roads typically make up 70 percent of local government budgets, so this additional money provided through road infrastructure agreements negotiated between Councils and the onshore gas industry has provided a welcome boost. This road funding will provide long term benefits for the community and industries like agriculture and tourism. Over the past five years, local councils across the Surat Basin have also leveraged innovative funding agreements with the onshore gas industry to upgrade other key community infrastructure and services which will also have legacy benefits. As of June 2015, the onshore gas operators in the Surat Basin have collectively contributed an estimated $247 million towards water, sewerage, hospitals, housing, community centres, airports and other infrastructure. In my own Western Downs Council Region there have been thirty-seven (37) individual projects to upgrade local water, sewerage and waste facilities. Some of these projects have been direct funding partnerships with industry and others funded through State royalty programs. But the onshore gas industry’s contributions are not limited to just hard infrastructure. There have been significant and ongoing contributions by industry to a range of community clubs, events and activities across the region. For me after 26 years as a local councillor and the last three years as a Gasfields Commissioner, I remain adamant that local governments – the elected representatives of the local community – have a central role to play in creating and maintaining partnerships with all industries in the region to leverage long term benefits for their community.
Law makers must support science over scaremongering AN UNCONVENTIONAL gas industry that is properly regulated is safe, for both environment and people. That’s what the science says. It is an evidentiary truth backed by some of the world’s leading experts including the Obama Administration’s Environmental Protection Agency, Geoscience Australia and New South Wales Chief Scientist Mary O’Kane - to name but a few. Unfortunately, science has been omitted from public debate around unconventional gas here in Queensland. And there has never been a truer case of this omission than in the Senate Select Committee on Unconventional Gas Mining. Those of us in the industry saw the inquiry as an opportunity to lay down the facts. An opportunity to demonstrate the science and provide comfort to residents living in the gas heartlands – like those of you who call the Surat Basin home.
MICHAEL ROCHE
Queensland Resources Council CEO
With a double dissolution fast-forwarding the federal election, the interim report for this inquiry was released Wednesday May 4, two months ahead of schedule. Regrettably, it became clear in the report that committee chair Senator Glenn Lazarus is either very confused or worse is simply out to confuse others for his own political pursuits. Importantly however, there is clear dissent amongst the committee members, with most senators confirming that this fear mongering is not supported by science. In fact, what the interim report demonstrates is the
importance of the gas industry. You see, in 2014-15 the gas industry contributed more than $22 billion to Queensland. It also spent $9.6 billion with some 3,700 plus local businesses and community organisations – of which the Surat Basin is a very large beneficiary. The inquiry interim report also acknowledges the benefit to landholders via the more than 5,000 conduct and compensation agreements struck in Queensland since 2010. Queensland’s current onshore gas industry laws and regulations are world leading, even praised by the International Energy Agency in its latest World Energy Outlook Report. The industry absolutely supports a process that allows the community to voice concerns but we call on the decision makers to put the facts first. Something Mr Lazarus and his anti-industry comrades have failed to do.
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PLACES AND FACES
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◗ Cillian Rouse and Don Shaw at the TSBE May Enterprise Evening at the Club Hotel in Chinchilla.
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IN THEP NEWS
View the last edition The latest news online online Read our last issue at www.suratbasin.com.au
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suratbasin.com.au Thursday, May 26, 2016
Surat Basin News Published by Chinchilla Newspapers Pty Ltd 12 Mayne Street, Chinchilla, Q 4413 Printed by APN Print Warwick General manager: Erika Brayshaw
Women in Energy: Emma Smith
Smith leading the charge at Kogan THE UK, Germany, France and Japan – these are just some of the countries Emma Smith has worked in as a project manager coordinating maintenance, service and warranties for turbines in the power generation sector. Now, she has brought her experience to the major overhaul underway at CS Energy’s Kogan Creek Power Station near Chinchilla. Since joining CS Energy in 2015, Emma and her team had been preparing for the 56-day overhaul of Kogan Creek, which commenced on April 8. As the Specialist Project Manager, Emma leads the CS Energy team that oversees the overhaul major contractors – Mitsubishi Hitachi Power Systems, Siemens and Australian Laboratory Services – as well as CS Energy employees involved in the works. At the overhaul’s peak, there was approximately 500 contractors on site, which included more than 400 contractors and the power station’s permanent workforce of 72 people. Emma has previously managed maintenance and service on gas turbines when she worked for Siemens in Europe and Australia. Siemens also manufactured the turbine at Kogan Creek Power Station, which is coal-fired, and at 750 megawatts is the largest single generating unit in Australia. “Turbines are like most equipment and machinery; they need regular service and maintenance to keep them operating safely and reliably,” Emma said. “What appealed to me about joining CS Energy was the opportunity to work on more complex projects.” The Kogan Creek major overhaul includes both the turbine and the ‘balance of plant’, which is essentially the other major components of the power station such as the boiler. “I like the pressure and excitement of a project and working with people at different levels of a business. It’s rewarding when everything comes together,” she said. Emma is originally from Lincoln in the UK and moved to Australia with her husband in 2011. Prior to her roles at CS Energy and Siemens, she worked in BMW UK’s service department.
◗ IN CHARGE: Kogan Creek Power Station general manager Phil Matha with specialist project manager Emma Smith. PHOTO: CONTRIBUTED
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