2016 Annual Report
Wandoan details
Wandoan has been characterized by those we interviewed as historically a ‘quiet, close knit little town’ in a geographically widespread area. They recalled a rise in economic activity in 2008 with commencement of the Wandoan Coal Project and drilling of some CSG wells. This activity was followed by a period of growth between 2010 and 2014. During this period, Xstrata (now Glencore) purchased 40,000 hectares of grazing land nearby for coal development.
Changes to Wandoan's Population
Wandoan town resident population had been decreasing steadilyfor over a decade from 450 people in 2001 to 320 people in 2012. Since 2012, that decline has been reversed with small increments of growth from 2013 to 2016. That is despite nearby activity by the coal and CSG industries. While the town population was decreasing, the number of non-resident workers (NRW) increased markedly. In 2014, with both coal and CSG projects, the NRW workforce in town rose to the equivalent of more than 70% of the town's permanent population. This change in the composition of the population was cited in interviews as having caused a ‘shock’ to longer–term residents.
In 2016, with the construction of the QCLNG Phase 2 project Charlie underway, the number of NRWs in town more than doubled. In 2016, there were two NRWs for every resident.
The sale of properties to Xstrata Coal - Glencore for the Wandoan Coal project caused several families to leave Wandoan, which was said to have impacted on school enrolments and school funding. An influx of coal-related workers did occur, but they were mainly single males and housed in custom built 'duplexes'.
In late 2013, the coal project was put on hold, just as CSG development was increasing nearby. So, the coal workers left and CSG workers arrived. These inflows and outflows were reported in our interviews as affecting the community’s sense of wellbeing and town identity.
Employment in Wandoan
The unemployment rate in Wandoan increased in 2016 although remains well below the Queensland rate. Unemployment has been increasing since reaching its lowest point in 2012-13.
Unemployment in Wandoan has historically been lower than the Queensland average and traditionally steady. Unemployment was low during coal mining activity in 2008 and then began rising again (when the State figure was falling in 2009-10). Interviewees felt that this rise in unemployment in 2008-2010 reflected the uncertainty around the Wandoan coal project, the impact of the global financial crisis, and the local flooding and reconstruction in the region.
Those interviewed expect unemployment to remain low and stable - even with CSG activity on Project Charlie and potentially on the Wandoan coal project. Our interviewees indicated that a certain proportion of the unemployed leave town in search of work, while another proportion remain in the district as long-term unemployed.
Income in Wandoan
The average personal taxable income in Wandoan decreased notably in 2014-15 (latest ATO data). The number of wage earners increased, after a drop in 2013-14, but the total amount earned was less than in the previous year. As both the number of wage earners and the unemployment rate increased, this suggests that jobs have been created. But as the total amount of wage earning did not rise with the number of jobs, this suggest those jobs created may be lower paid jobs, or that others may be taking wage cuts.
Total business income for non-primary businesses also declined in 2014-15, but not by as much as it declined in the previous year (from a peak in 2012-13 to 2013-14). Those interviewed suggested that key workers earning higher wages remained in town. They explained that some low-income earners were among the first to leave town. Others remained and were among the first to return to the ranks of unemployed.
Business in Wandoan
Interviewees stated that some Wandoan businesses had benefited from the ‘CSG boom’, including hotels and motels. Business incomes and wage and salary earnings rose significantly between 2010 and 2013. Casual workers did not have to leave town to find work, they added. However, some businesses closed. Certain investments in town businesses were described as not realising their full potential, with reduced opportunities to do work with the CSG industry.
The closure of local bank branches is a cause for concern among local people, community organisations and businesses for a number of reasons. Those who are forced to go to a major centre to do banking will stay and shop there, and local businesses lose the custom. Community organisations deal mostly with cash and often require cash floats for functions. These services are needed locally.
Housing in Wandoan
House prices and rents have fallen significantly since 2014 and continued to fall in 2016. Housing development approvals in the Miles-Wandoan area increased from around 10-20 per year to 120 in 2013 and 160 in 2014. These dropped back to 60 in 2015 and right back to less than 10 in 2016.
Many of the new houses built were said to be custom-designed for shared accommodation, sometimes with 4 ensuited bedrooms.
From 2015 onwards, the high number of vacancies - anecdotally reported to be above 50% - has been a source of local concern, which is further increased by service providers such as local banks closing.
House sale prices peaked in 2012-13 with high demand during CSG construction and the expected Wandoan coal project. A lack of affordable housing was stated by several interviewees to be the biggest impact of CSG development (and, one would presume, coal development). It was blamed for causing families in the lower socio-economic groups to leave town. Some businesses chose to subsidise workers’ rents, as occurred in other nearby towns. Both sale prices and rents have since continued to drop back to ‘affordable’ levels. However, interviewees expressed concerned that there are now ‘a lot of empty houses and duplexes’ – including those constructed by the CSG industry for their staff.
Crime in Wandoan
The overall crime rate decreased substantially in 2016, almost back to historically low rates (now at half the Queensland rate).
Rates of offences have varied in Wandoan over the years, although significant increases were seen after 2010 - mostly in traffic, theft, good order and drugs offences.
Local police data shows that reported traffic offences per 1,000 residents rose significantly from 2012, reaching several times the Queensland average. Police vigilance and detection of offences increased over the period. By late 2014, these numbers remained well over the Queensland average but were decreasing by 2015 and have dropped back furhter in 2016.
Transport strategies of the CSG companies were implemented. They involved buses for workers to and from camps and multi-occupant car trips. These measures can be attributed with helping to reduce the number of road traffic and related traffic offences recorded after 2013.
The rate of drug offences rose significantly above the Queensland average. That corresponds with a rising rate for the detection of road offences. Interviewees explained that when someone was stopped for a traffic offence, a vehicle search might occur. The searches were picking up local drug users, whose habits had been tolerated in the past.
The rate of good order offences rose significantly above the Queensland average, as well. With the cooperation of the CSG companies, severe penalties were imposed on CSG workers for breaching good order laws. Additionally, workers were largely relocated to camps outside the town, as noted above.
Outcomes for Wandoan
Wandoan interviewees - in 2017 - describe their town as the “tail of the dog”. That is, changes in global markets for coal and gas caused local effects that rippled through larger communities such as Dalby and Chinchilla, but the effects were felt proportionally in a more profound way in the smaller town of Wandoan. There is uncertainty expressed about the extent to which CSG development will provide business benefits to the community, given that worker camps are distant from the town centre. The Wandoan community was described in the interviews as seeking alternatives that provide long-term manageable growth. They view the town as traditionally reliant on the agricultural industry (cattle and timber milling).
See the Wandoan booklet for more information
The statistical data and more detailed perspectives from the Wandoan interviewees are available in the Wandoan booklet. The booklet includes data to 2015 data, and interpretations from UQ researchers.
We would like to thank members of the Wandoan community for their cooperation, and the gift of their time. We hope that we have done justice to their contributions to this investigation.
The UQ ‘Cumulative Impacts’ Research Team.