14 SOCIO ECONOMICS - ntepa.nt.gov.au...14.2.4 Cultural heritage 14.2.4.1 Aboriginal heritage An...

Project Sea Dragon

Core Breeding Centre and Broodstock Maturation Centre, Bynoe Harbour

Draft Environmental Impact Statement

PART B ‐ ENVIRONMENTAL ASSESSMENT 14‐264

14 SOCIO‐ECONOMICS

14.1 TERMS OF REFERENCE ADDRESSED IN THIS CHAPTER

This chapter describes the potential social and economic impacts of the Project relating to:

Community (including traffic use)

Economic benefits

Workforce

Matters raised during community consultation and

Cultural heritage.

Studies undertaken for the Project include an economic assessment (commercial in confidence: ACIL Allen

2016), workforce planning (commercial in confidence: IMS 2016) and Project Sea Dragon Dundee Consultation

Report (Creative Territory 2016). A copy of the consultation report is provided in Appendix 12.

Table 14‐1 summarises the requirements from the ToR for the Project of relevance to socio‐economics and

references where they have been addressed.

TABLE 14‐1 TERMS OF REFERENCE

Terms of Reference Sections

4.5 Socio‐economic

Environmental objective

To monitor and manage the intended and unintended social and economic

consequences, both positive and negative, of the Project.

Chapter 14

4.5.2 Assessment of risks

Assess the risks of the Project not realising its projected economic and social

benefits.

Chapter 6

Document the economic and social impacts (including to local tourism, recreation

and amenity values) of the Project, both positive and negative, on nearby

populations in the region and more broadly.

Section 14.4

Provide for appropriate contingencies during project feasibility and planning

stages to manage expectations of the community, local business owners and

residents who may be affected if the Project does not proceed.

Section 14.5

4.5.3 Mitigation and monitoring

Describe how the Proponent proposes to manage any identified and emergent

economic or social risks from and to the Project, or its associated workforce.

Section 14.5

Chapter 15

Describe how potential local and regional business and employment

opportunities related to the Project will be identified and managed

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Terms of Reference Sections

Include mechanisms for monitoring, mitigating, reporting and managing any

identified potential social or economic impacts

Provide a stakeholder communication plan that provides for updates and

opportunities for the community to raise any concerns during planning,

construction, operation and decommissioning phases

14.2 SOCIAL AND ECONOMIC OVERVIEW

14.2.1 Population and communities

14.2.1.1 Population

The estimated resident population of the Northern Territory, as at 30 June 2015, is around 245,000 people with

the majority of the population concentrated around the capital city of Darwin (see Table 14‐2), and the central

Australian town of Alice Springs. Population profiles show around 27 % of the individuals that live the Northern

Territory identify themselves as being of Aboriginal decent (ABS 2015).

The Dundee region is home to around 800 residents and a large number of weekenders. The population is

estimated to grow to around 1,200 each weekend. It is also a popular destination for tourists, with the

population swelling to more than 2,000 people on public holidays and long weekends.

TABLE 14‐2 POPULATION ESTIMATES

Location Population (2014) Population growth per year

Northern Territory 245,000 Average 1.6% up to 2015 then reducing to 0.4% from 2015

Darwin 142,258 Average 1.5% up to 2015 then reducing to 0.4% from 2015

Unincorporated Top End region

9,500 ‐

Dundee region 800 56.6% in total over the last six years

Source: (ABS, 2015 cited in Seafarms 2016b)

14.2.1.2 Community

The community in the Dundee region is characterised by:

Low cultural diversity, with low proportions of language other than English at home (7.9 %) or were

overseas born (14.4 %)

Low income levels ($604 median weekly household income) and high unemployment levels (25.5 %) and

Large retired community and an ageing population profile, with a median age of 48 years old.

The high environmental value of Bynoe Harbour and Dundee Beach area is the significant factor in the

attraction of residents to the region. The area has a low level of development with much of the area in a less

urbanised condition. ‘Life‐style’ sized blocks (i.e. 1 – 3 ha) that constitute Dundee Beach and the surrounds

enable people to enjoy semi‐rural or ‘natural’ values.

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There are a number of community groups associated with the Dundee Beach region including:

Dundee Progress Association

Dundee Social and Recreation Club

Dundee Volunteer Bushfire Brigade and

Milne Volunteer Bushfire Brigade.

Another key stakeholder within the community is Amateur Fishermen’s Association of the Northern Territory

(AFANT).

Retail outlets in the area include a small store and fuel at The Lodge of Dundee and at the Sand Palms

Roadhouse. The majority of goods and services would likely be obtained from larger urban centres in the wider

area such as Darwin or Coolalinga.

14.2.2 Economics

Growth in Northern Territory Gross State Product (GSP) is variable due to the small size of the economy and

the comparatively large impact of major projects and global market conditions. Over the decade to 2014‐15,

the GSP of the Northern Territory grew by an average annual compound growth rate of 4.1% a year. In

comparison, the Gross Domestic Product of Australia grew by an average of 2.7 % a year over period 2005‐06

to 2014‐15. The value of the GSP of the Northern Territory is currently $23.1 billion (2014‐15). The Northern

Territory Government forecasts economic growth in the Territory as moderate from current levels of 4.5 % in

2014‐15, where it is forecast to remain for 2016‐17.

In terms of the value of industry contribution, the main industries in the Northern Territory are the

construction; government and community services; and mining industries. Together, these industries account

for about half of the Northern Territory’s total economic value. The largest employers are the community

services; construction; and retail and wholesale trade industries.

14.2.2.1 Commercial fishing and aquaculture

The commercial fishing industry in the Northern Territory includes the harvesting of wild catch fisheries,

aquaculture, and the processing of catch. The industry is largely made up of the capture of snapper,

barramundi and shark. The catch of crustaceans is dominated by prawns and mud crabs. The value of total

fisheries production in the Territory was estimated at $55 million in 2014‐15. The fishing industry is in decline

mainly as a result of falls in the production of aquaculture but also in the wild catch of fish and crustaceans.

In 2013‐14 the estimated value of the prawn catch by the Northern Prawn Fleet Commonwealth managed

Fishery increased by just under 4 % to $10.9 million. The value of production in 2015‐16 is estimated to

increase further to $11.4 million (DPI and Fisheries 2016). Output from the Northern Prawn Fleet for 2013‐14 is

estimated at 0.7 tonnes which is a 3% increase on the previous period (DPI and Fisheries 2014).

Commercial fishing within Bynoe Harbour includes mud crabs and is closed to commercial Barramundi fishing.

A pearl oyster licence exists within Bynoe Harbour with the oyster beds located to the north of the Project site.

14.2.2.2 Tourism

Tourism is an important component of the Northern Territory economy contributing 4.0 % of the GSP in

2013‐ 14. It is also one the largest employers in the Northern Territory providing around 8,000 jobs or 5.7 % of

employment (NT Treasury 2015). Much of this employment is in regional areas where there is limited economic

diversification and few opportunities.

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In 2014‐15 there were nearly 1.5 million visitors to the Northern Territory and total visitor expenditure was

nearly $1.5 billion. There was a very strong growth in the number of visitor nights in the Territory in 2014‐15 of

over 30% however long term projections of visitor growth are expected to remain at more conservative levels.

Over the five years to 2019‐20, the average number of visitor nights is expected to grow by around 4.3% a year.

This growth is in keeping with forecasts of most other jurisdictions in Australia and is consistent with the five‐

year Australian average annual growth rate of 4.4% a year (Tourism Research Australia 2015).

Fishing is the main activity that attracts to tourists and local residents to the area with land and sea‐based

fishing and crabbing activities available. At Dundee Beach, there is a boat ramp located near The Lodge of

Dundee and a large number of people fish from the beach, creeks and rivers from Patterson Point in the north

to the Finniss River mouth in the south. In the Bynoe Harbour area, access to fishing is via numerous boat

ramps and land‐based fishing areas on creeks, rivers and the beach (refer Figure 1‐2).

There are also a number of commercial fishing charters based in Dundee Beach and charter operators based in

Darwin that utilise the area.

Tourism accommodation businesses local to the area include:

Sand Palms Roadhouse, Bynoe: Situated on the Fog Bay Road about 30 kilometres west of the Cox

Peninsula Road;

The Lodge of Dundee: Situated at Dundee Beach; and

Crab Claw Island Resort: Situated 10 kilometre to the north off Fog Bay Road (refer Figure 1‐2).

14.2.3 Employment and workforce

There is a large workforce in the Northern Territory of nearly 122,000 people of which around 6,000 are

currently seeking work. This equates to an unemployment rate in the Northern Territory of around 4.2 %

(2015) which is consistent with the five‐year Northern Territory average of 4.1 %.

The three main industries of employment in the Northern Territory are the public administration and safety

industry with 21 % of total employment, the health care and social assistance industry (10 %) and the

construction industry with 8.2 % of total employment.

The level of skills in the Northern Territory are high and reflective of a diverse and mature economy. Fifty‐seven

% of the Northern Territory working age population aged 15 and over hold a qualification.

The unemployment rate in the broader Finniss statistical area which includes the Project area is approximately

8% (ABS 2011) which is higher than the unemployment rate across the whole of the Northern Territory.

There are very limited opportunities for employment in the area with tourism generating the largest demand

for staff. Several residents are self‐employed and are able to work from home. The majority of employed

residents work closer to the Darwin region and return to Dundee Beach on the weekend.

14.2.4 Cultural heritage

14.2.4.1 Aboriginal heritage

An archaeological survey of the Project site was completed in late 2002 in association with the proposed

development of the Suntay’s land‐based aquaculture facility. All areas except for the access route, were

surveyed on foot, in transects that were at the most 150 metres apart. The access routes along Point Ceylon

were surveyed on foot and the track from Fog Bay Road to the base of Point Ceylon was surveyed by 75 %

pedestrian and 25 % vehicular transects. The majority of the area surveyed had been burnt in the dry season

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and new vegetation had started to appear. Ground visibility over these areas ranged from 70 ‐ 90 %. Small

patches on the end of Point Ceylon, mostly vine thickets, had not been burnt and visibility was lower at 30‐

40 %.

A shell scatter of approximately 40 Telescopium telescopium was located half way along a fifty metre chenier

ridge that runs south and parallel to the eastern side of Point Ceylon. The ridge is situated on the western side

of the mouth of mangrove lined tidal inlet and has been used as an access track for the launching of boats

through the mangroves into the inlet. The site is located approximately 100 metres south of the proposed

development. This area will not be affected by the development.

Further away from the Project site, a large artefact scatter and quarry site is located on the north of Indian

Island (Guse 1994). Stone artefacts were located for a kilometre along the top of a siltstone/conglomerate cliff.

Artefacts included flakes, cores retouched flakes, bifacial points, axe fragments and ochre. Also in the area

were shell scatters, consisting mainly of Nerita sp. The presence of a high percentage of bipolar cores in an area

close to a quartz quarry, suggested that there had been a long term occupation at the site.

An Aboriginal Areas Protection Authority (AAPA) Authority Certificate (C2016/059) has been issued for the

Project proposed works and uses specified on the certificate and within the subject land of NT Portion 3192. No

recorded or registered sacred sites (as defined under the Sacred Sites Act) are located within the Project site.

The closest registered site is approximately 2.5 kilometres to the north west of the Project site. No restricted

works areas are specified in conditions of C2016/059.

There are no current claims under the Native Title Act over the site (National Native Title Tribunal 2016). The

former DLPE advised that Native Title is considered to be extinguished over the area due to provisions relating

to exclusive rights to land within previous leases issued over the parcel (Seafarms 2016a).

The Larrakia people’s Kenbi Land Claim encompasses traditional lands on the northern side of Bynoe Harbour

and Indian Island (excluding the Project site).

14.2.4.2 Non‐Indigenous heritage

The main European activity, beside pastoral pursuits in the area was tin mining. High grade tin was found at

Bynoe Harbour in 1888. The Leviathan mine was located approximately 20 km south east of Indian Point and

other tin mines, such as Hang Gong, Lees and Bells Mona, and a gold mine, the Golden Boulder, were located

approximately 25 km east of Ceylon Point and commenced operation around the turn of the century (Seafarms

2016b).

Around the 1990’s, an experimental Barramundi farm was established at Point Ceylon. Farm infrastructure

including concrete foundations, earth wall ponds and a dump site remain. This remaining infrastructure is of

relatively contemporary activities and, therefore, does not hold any historical significance.

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14.3 METHODOLOGY

14.3.1 Economic assessment

The baseline economic environment for the study area has been identified utilising publically available

quantitative economic data (e.g. 2011 Census data). The areas assessed included both spatially and

economically important areas such as the Dundee region and the Northern Territory.

This baseline data was used to complete economic modelling or Computable General Equilibrium modelling.

For this analysis, ACIL Allen’s Computable General Equilibrium model, Tasman Global, was used to estimate the

impacts of the construction and operation activities associated with the whole of Project Sea Dragon. Three

regions were modelled:

The Kununurra region (as defined by the Australian Bureau of Statistics SA2 area)

The Northern Territory

Western Australia.

The model analyses scenarios built on a dynamic set of variables, with the approach illustrated in Figure 14‐1.

The economic analysis which informs this impact assessment thus considers, based on informed modelling, the

change expected to occur should the Project meet its economic potential – that is, the difference between the

reference case (i.e. no Project), and the situation should the Project proceed as planned.

FIGURE 14‐1 TASMAN GLOBAL SCENARIO ANALYSIS

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14.3.2 Workforce planning

A workforce planning and development analysis has been undertaken for the Project (IMS 2016), which informs

the local workforce analysis. This is complemented by the Project’s economic impact assessment. Both

documents consider the availability of employment resources and provide guidance to Project Sea Dragon in its

workforce planning. It should be noted that the workforce planning report is confidential; however, relevant

findings and recommendations are cited herein.

14.3.3 Community consultation

14.3.3.1 Consultation activities

Formal consultation with the local community was initiated in early 2016. Consultation was undertaken by

Creative Territory on behalf of Seafarms. Consultation focused on residents and landowners in the Dundee

area, encompassing Dundee Beach, Dundee Forest, Dundee Downs and Bynoe Haven. The consultation process

identified a number of key stakeholders including residents and landowners, local clubs and associations, local

retail businesses and community groups.

A total of 67 individuals were reached 55 were permanent residents, 11 were weekenders and one was a

visitor (Member for Daly, Gary Higgins). Consultation activities included:

Distribution of a Project flyer outlining the proposal and inviting local residents to the Australian Day Fun

Day

Australia Day Fun Day function – Saturday 23 January 2016 at the Dundee Social and Recreation Club (42)

Australia Day Fun Day function – Tuesday 26 January 2016 at The Lodge of Dundee (4)

An impromptu visit Friday 29 January 2016 at The Lodge of Dundee (9)

Personal contact with individuals (7) and

Contact via email or Facebook (5).

The intention of this consultation was to inform the local Dundee area of the potential BMC and CBC Project

and seek their views related to the Project.

In addition, as part of the environmental impact assessment process:

The referral of the Project under the EPBC Act was available to the public for comment on the Department

of the Environment and Energy website and

The draft ToR and NOI for the Project were available to the public for comment on the NT EPA website.

Matters raised by the community are incorporated into the ToR by the NT EPA where appropriate.

14.3.3.2 Matters raised during consultation

Key matters raised during consultation are categorised in Figure 14‐2. Overwhelmingly, people want

reassurance that fishing will not be negatively impacted by any development at the site. Refer to Appendix 12

for further information on the consultation undertaken to date.

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FIGURE 14‐2 ISSUES RAISED BY NUMBER OF PEOPLE

0 5 10 15 20 25 30 35 40 45 50

Access to site

Fire management

Road placement

Boat water access

Water discharge quality

Work opportunities

Fishing

Issues Raised

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The key matters raised and Seafarms’ response is summarised in Table 14‐3.

TABLE 14‐3 COMMUNITY CONSULTATION

Issue Number of people that raised the issue

Response

Fishing

Concern was raised about the potential for the project to have a negative impact on fishing and crabbing activities in the area.

50 The proposal will not impact upon fishing and crabbing access at all. Only the land area itself will have limits on access.

The daily water release rate at full scale will be 11,000 m³/day. This is equivalent to approximately 0.1% of the tidal volume flushed through Wheatley Creek during a spring tide and around 0.55% of the volume during a neap tide. In other words, at most, the additional water volume being released into Wheatley Creek will be around half of one percent of the volume that currently passes through the creek.

There will be no release of any elements that do not occur naturally in the local environment.

Levels of total nitrogen and total phosphorous will not exceed the Water Quality Guidelines in the receiving environment.

No anti‐biotic, anti‐parasitic or anti‐fouling agents will be released into the environment.

All cleaning products used in the tanks (i.e. chlorines) are biodegradable and all water will be held in the settlement ponds until the products have fully broken down.

An assessment of water quality impacts is included in Chapter 11.

Both the BMC and CBC facilities will be fully biosecure and will be managed in accordance with the Project Sea Dragon Biosecurity Manual. The biosecurity strategy for Project Sea Dragon is premised upon developing a domesticated and selectively bred population of animals that has been screened for a suite of known pathogens, satisfying the ‘Specific Pathogen Free’ condition. Unscreened animals will not be used within the production system.

In the event of a disease outbreak within the production system, any diseased prawns identified will be euthanised and disposed of either through incineration or licenced landfill offsite.

To prevent the accidental escape of prawns from the CBC and BMC into the surrounding environment, filters will be placed over all outlets to the settlement ponds prior to release. The channels/pipelines which lead to the release point also present a harsh environment in which any escaped prawns are unlikely to survive.

Work opportunities

Strong interest in future work opportunities, particularly from the ‘weekenders’ who live in Darwin during the week and see the

18 To support the development of the Stage 1 Legune Grow‐out Facility a workforce of 27 will be required to be employed at the CBC and BMC, including managers, a geneticist, various technicians, administrators and aquaculture workers.

At full scale production there is estimated to be a workforce of 40 at the CBC and BMC.

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Response

opportunity to move permanently to the region as well as young local residents who have limited opportunity for local work at present.

Seafarms would welcome applications from appropriately qualified local workers.

The workforce is expected to come from a mixture of sources, including:

directly employed staff, self‐accommodated in the Dundee Downs areas and/or accommodated nearby; and drive‐in/drive‐out from Darwin environs

local contractors, self‐accommodated in the Dundee Downs areas and/or accommodated nearby; and drive‐in/drive‐out from Darwin environs

local indigenous people

fly‐in/fly out (this option is likely to be the exception but for specialist expertise)

temporary work skilled visa (sub‐class 457) program for selected specialist expertise.

Refer to Section 14.4.2 for further information.

Discharge water quality

13 of the residents enquired

about the quality of discharge water

11 No significant impact on discharge water quality – see response to “fishing” above and results presented in Chapter 11 for details.

Road placement

The siting of the access road is of interest to residents in the immediate facility

10 The access road is located within an existing road reserve that was incorporated into the subdivision. Section 2.5.5 provides further information on the location and design of the road.

Fire management

Fire management was

canvassed by residents involved

with the Dundee Volunteer Bushfire Brigade.

5 Fire risk will be managed in accordance with the Bushfire Act 2009. Management will include vegetation clearing to maintain firebreaks around shared boundaries, internal fence lines and other facility assets. Bushfire risk will also be mitigated through construction of onsite fire‐suppression infrastructure, as well as consultation and ongoing liaising with the nearby Dundee Volunteer Bushfire Brigade.

Access to site

Three residents identified themselves as currently accessing the site on a regular

basis. One resident has a fisherman’s shack located at Point Ceylon and two others also said they used this shack

3 For the security of infrastructure assets on site, and for biosecurity purposes, access to the land area will be restricted to personnel working on site and will not be open to the public.

A biosecurity fence will be erected at the entrance to the site.

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Response

and the surrounding land on a regular basis. A number of other residents said they fished and hunted from the land area.

The social impact assessment has drawn upon and incorporates the findings of the economic impact

assessment undertaken for Project Sea Dragon (as detailed in Section 14.3.1) and the workforce development

assessment prepared by Integrated Management Services Pty Ltd (IMS 2016).

14.3.4 Stakeholder consultation

Seafarms has also undertaken consultation with other stakeholders within the community regarding the whole

Project Sea Dragon and, as part of that, aspects of the CBC and BMC Project. The stakeholders engaged to date

are detailed in Table 14‐4.

TABLE 14‐4: STAKEHOLDER CONSULTATION

Organisation Date

Environmental Defenders Office 02 February 2016

Northern Territory Cattlemen’s association 22 April 2016

Larrakia Development Corporation 22 April 2016

AFANT, including the Board 19 April 2016

Northern Land Council Ongoing

14.3.5 Paspaley consultation

The intake pipe alignment has been designed to avoid the adjacent Paspaley oyster leases in Bynoe Harbour.

Seafarms have discussed the implications of such proximity with Paspaley. Paspaley have been encouraging of

the proposed development and see potential for future shared use of infrastructure. Paspaley have also shared

local water quality data with Seafarms and allowed Seafarms to anchor water quality loggers to their

infrastructure. Seafarms will continue to liaise with Paspaley as the project progresses.

14.4 ASSESSMENT OF POTENTIAL IMPACTS

The risk assessment examined the potential impacts, both positive and negative that the project will have on

key social and economic features of the region. The level of risk posed to socio‐economic values by each source

of impact was assessed using standard qualitative risk assessment procedures, which have been described in

Chapter 6 (Risk assessment).

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14.4.1 Construction

14.4.1.1 Population and communities

Accommodation for construction personnel will be sought in the Dundee Beach area, which is a 30‐minute

drive from the Project site. This will provide economic benefits to the local guest house or property rental

businesses which are important for employment in the local area.

Construction activities will occur during the dry season which is considered to be the peak period for tourism.

The demand for accommodation from both the construction work force and tourists will put short‐term

pressure on current supply.

Tourist levels fluctuate considerably with the weekend being the busiest period. The construction workforce,

however, will be accommodated in the area during the week and will likely return to Darwin during their

rostered days off. There will be some overlap where both the tourist and workforce are utilising Dundee Beach.

Land based access to Point Ceylon will be closed to public access from the commencement of construction.

Those utilising the area for recreational activities such as camping, hunting and land‐based fishing will not be

permitted beyond the site office. It is assumed that restricting access will only affect small numbers of

individuals. There will be no impediments to boat based fishing.

A Northern Territory Government road count station located on Fog Bay Road, approximately two kilometres

west from Cox Peninsular Road, details the current road usage from 2006 to 2015 and is shown in Table 14‐5

(DoT 2015). The average annual daily traffic (AADT) for 2015 for Fog Bay Road is 373. It is anticipated that a

total of 630 truck movements will be required for the construction phase with truck access peaking at 150 truck

movements a week or 25 truck movements a day. Another 264 vehicle movements will be required for the

movement of personnel during the eight month construction phase with buses driving in and out from the

Dundee region and managers/supervisors driving in and out from both Dundee and Darwin (Table 14‐6). The

volumes of traffic estimated over the eight‐month construction period are unlikely to impact on the

communities use of the road due to the current low utilisation and additional capacity available (DoT 2015).

TABLE 14‐5 CURRENT ROAD USAGE OF FOG BAY ROAD (AADT)

Direction 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Inbound 91 105 108 113 119 109 143 155 175 183

Outbound 93 105 107 112 118 124 145 157 176 190

Both 184 210 215 225 237 233 288 312 351 373

TABLE 14‐6 CONSTRUCTION PHASE TRAFFIC SUMMARY

Construction Period Truck/wk Car/wk Bus/wk Total Vehicle/wk

Month 1 10 18 0 28

Month 2 150 24 6 180

Month 3 150 24 6 180

Month 4 120 24 6 150

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Construction Period Truck/wk Car/wk Bus/wk Total Vehicle/wk

Month 5 90 24 6 120

Month 6 90 24 6 120

Month 7 10 48 0 58

Month 8 10 48 0 58

The construction of the Project will not impact on environment values outside of the Project site. Clearing of

vegetation may be visible from some vantage points when in Bynoe Harbour but this is unlikely to impact on

the amenity of the wider region.

14.4.1.2 Economics

Construction of the Project is anticipated to commence in Quarter 3 of 2017 with commissioning of Stage 1 and

first stock in Quarter 3 of 2018. Stages 2 and 3 are proposed to commence between 2019 and 2021. It is

anticipated that the final stage of the BMC, Stage 4, will be completed by 2023; however as detailed elsewhere

this timetable is contingent upon the timing and development of the grow‐out centre at Legune Station. The

additional construction activity associated with the Project will have a noticeable effect on the real income of

residents in the Northern Territory as there will be increased demand for labour and goods and services and

this will boost local incomes.

The principal financial contributions of Project Sea Dragon as a whole and the Northern Territory component of

this during construction are summarised in Table 14‐7.

TABLE 14‐7 PROJECT FINANCIAL ASSUMPTIONS – CONSTRUCTION

Item Project Sea Dragon ‐ NT Only Full Project Sea Dragon (includes NT and WA

Capital expenditure $524 million $2.14 billion

14.4.1.3 Employment and workforce

There is sufficient skilled construction labour available in Darwin for the construction of facilities at the

Proposal site. During the peak of the construction phase of the project it is estimated that a maximum of 40

personnel will be employed. This will include a range of construction trades such as builders, earthmoving,

plumbing and electrical.

Each four phase of construction is expected to last approximately eight months.

The workforce planning has determined that there are sufficient numbers of skilled Indigenous construction

personnel (and Indigenous construction companies) to make a substantial contribution to the Project’s

construction (IMS 2016). Indigenous employment will be supported by Cross‐Cultural Awareness Training to

improve cultural understanding and communication between Indigenous and non‐Indigenous team members.

14.4.1.4 Cultural heritage

The shell scatter on the eastern side of Point Ceylon is located approximately 100 metres south of the Project

site boundary. The site boundary will be demarcated with flagging tape along this section to ensure that no

construction activity occurs in the vicinity of the scatter – and will be considered a no‐go zone. The location of

the scatter and associated no‐go zone will be included in the training and site induction for all site personnel.

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In the event of an unexpected discovery of artefacts or other matters of cultural significance all work in the

immediate area will cease and the Department of Tourism and Culture notified. In the event of an unexpected

discovery of human remains then the police will also be notified in the first instance. Further detail is provided

in Chapter 15.

14.4.2 Operation

14.4.2.1 Population and communities

Approximately half of the operational workforce will be accommodated onsite in staff accommodation while

the remaining workforce, or those who reside in the area, will be accommodated locally in the Dundee region.

Commuting daily from Darwin will not be permitted due to safety concerns associated with fatigue when

returning to Darwin after completing a shift.

Operational traffic will be mainly associated with staff movement from the Dundee region. Table 14‐8

summarises the expected monthly traffic requirements for the operational phase of the Project. Approximately

16 light vehicle and bus movements are required within a 24‐hour period (accounting for day/night shift

change). Light vehicle movements are associated with personnel who are self‐accommodated within the region

whilst bus movements are associated with personnel accommodated in company supplied accommodation. It

is noted that Drive in – Drive out (DIDO) personnel are also likely to commute to Darwin on their rostered days

off.

Water supply trucks will deliver water during the dry season to supplement onsite rainfall capture. An

additional 51 trucks will access the site during the months between April and October.

If removal of waste prawns by a suitably licensed contractor is the preferred option for dealing with the dead

prawn waste stream (see Chapter 12), then at Stage 1 this would add one truck per month, and at full scale this

would increase to one truck per week.

The volumes of traffic estimated during construction are unlikely to impact on the communities use of the road

due to the current low utilisation and additional capacity available (DOT 2015).

TABLE 14‐8 OPERATIONAL PHASE TRAFFIC SUMMARY

Truck/m Light Vehicle/m Bus/m Total/m

Staff 0 420 28 448

Deliveries Feed 1 0 0 1

General 0 56 0 56

Water* 7 0 0 7

Fuel 8 0 0 4

Other 4 0 0 4

Prawns Founder stock 0 1 0 1

Broodstock 7 0 0 7

TOTAL 27 477 28 528

* water truck deliveries will be required predominantly April to October.

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Access to the Project site will be fenced for biosecurity and to protect infrastructure. Therefore, the land area

would be closed off to local residents or tourists who might currently occasionally use this area for fishing or

hunting. Considering the extensive areas available to the public outside of the Project site, this is considered to

be a negligible impact to the existing community or attractiveness of the region to visitors. There will be no

impediment to boat based fishing around Point Ceylon.

Community consultation identified that potential impacts to fishing and crabbing activities was the highest

cause for concern along with impacts associated with the release of the water used to grow the prawns into

the environment and the seawater intake pipeline infrastructure. Detail on how the Project will minimise

impacts to local water quality and fish habitats is provided in Chapter 10 and Chapter 11.

The Project has been designed to minimise impacts on the environment, public facilities and users of the area.

For example, seawater intake pipe alignment has been designed to avoid the adjacent oyster leases in Bynoe

Harbour, and use of HDPE liners and settlement ponds will improve the water quality of water leaving the site.

The Project will not impact upon existing formalised boat access to the water or boat movement within the

Harbour.

14.4.2.2 Economic value of the facilities

It is noted elsewhere and in detail that the facilities proposed here are part of an integrated production system.

However, to aid insight this section shows how an economic value of the production of these facilities might be

imputed.

A hypothetical case in which Project Sea Dragon proceeds with procurement of broodstock from the wild as

opposed to the development of a domesticated population can be constructed. Such a case is not realistic

given sustainable fishing constraints associated with wild northern prawn populations, but is useful as a means

of the economic value of production from these facilities compared with a ‘no action option’. Noting that the

CBC and BMC Facilities are required for the development and maintenance of the domesticated population, a

separate design of facilities for the ‘no action’’ case has not been done, but one assumption would be that wild

caught broodstock would be transported immediate to the commercial hatchery and therefore this

development would not occur.

The major economic consequence of obtaining broodstock from the wild is that no breeding program takes

place and the benefits of genetic selection (selective breeding) are lost. The value of this loss can be calculated

by assuming a productivity benefit of selective breeding as anticipated over the course of the project period. In

this case a range of productivity gains due to selective breeding have been assumed based on expert opinion

from CSIRO scientists and other international science experts. These are shown below in Table 14‐9.

TABLE 14‐9 PRODUCTIVITY OF SELECTIVE BREEDING

Assumed percentage improvement in growth rate

as a result of selective breeding

Resultant average weekly growth

(g/week))

Prior to year 7 After year 7 At year 7

Wild caught 0 0 1.2

Breeding A 5 2 1.61

Breeding B 10 2 2.03

Breeding C 15 2 2.78

Project Sea Dragon




The economic benefits of the investment in breeding can now be expressed in terms of Net Present Value

(NPV) to the entire project (Table 14‐10). For this illustration we have simply assumed the difference based on

the full scale sized project comprising 10,000 ha of grow‐out ponds at the Legune Grow‐out Facility and

therefore the CBC and BMC operating at maximum capacity. Given the staged nature of the project the ‘actual’

NPV would be less than illustrated. Included in this example is the sensitivity of NPV to a range of risk discount

rates from those typically associated with a mining project that employs standard technologies to riskier

‘greenfield’ projects.

TABLE 14‐10 CALCULATION OF NPV ASSOCIATED WITH THE CBC AND BMC

NPV at 20% discount

rate ($m)

NPV at 15% discount

rate ($m)

NPV at 10% discount

rate ($m)

Wild caught ‐405 40 1,550

Breeding A 569 1,557 3,512

Breeding B 1,318 2,945 5,879

Breeding C 2,355 4,382 8,331

One additional observation is that a selective breeding program has an additional economic benefit; namely a

reduction in volatility of earnings. This arises as a consequence of domestication and breeding through:

a narrower distribution of harvest sizes (i.e. less variability in growth rate), and

the ability to screen for disease and potentially introduce disease tolerance/resistance.

All things being equal, an earnings stream with lower volatility is worth more than an equivalent average

earnings stream with higher volatility. In valuation such riskiness is expressed through the discount rate with a

lower discount rate being used for lower volatility earnings. Thus this effect is captured horizontally in the

table. In this example, the cash‐flow benefit of the breeding program conducted at the proposed facility to the

project as a whole is illustrated by the cells within each column.

14.4.2.3 Economic benefits of Project Sea Dragon

The CBC and BMC form only one component of the wider project and as such the economic benefits of the

breeding program cannot be assessed in isolation. Economic modelling informed by forecasting for the whole

Project Sea Dragon, found that over the period 2017‐2032 the Project Sea Dragon will result in increases to real

economic output as follows:

capital investment of an estimated $411 M

recurrent operating expenditure averaging $125 M at full production, including a significant level of local

spending on support services

prawn production valued at an average of $195 M/year at full production

a construction workforce of 444 full time equivalent (FTE), of which 385 are likely to be sourced from the

NT and 59 from Kununurra

an operating workforce of 334 FTE, including 206 from the NT and 88 from Kununurra and

nominal tax revenues to Australian governments totalling $50 M over 15 years to 2032.

Project Sea Dragon




The modelling also found:

an increase in the real GSP of the NT by a cumulative total of $502 M over the period to 2032

an increase in the real income of the NT by $350 M over the same period and

an average annual increase in employment of around 161 FTE jobs per year.

Nationally, this equates to an increase in Gross Domestic Product (GDP) of $903 M by 2032, an increase in

national real incomes by $1,478 M and an average annual employment increase of 284 jobs per year.

These discounted present values are equivalent to:

1.5 % of Northern Territory’s current GSP (2015)

0.04 % of Australia’s current GDP (2015).

The economic impact analysis also found that the Project “has the potential to underpin economically and

socially beneficial investments in the broader region [including] new and expanded prospects for local

businesses, a range of skilled and less skilled employment opportunities, diversification of the economy,

training and education opportunities, and improvements to local road infrastructure which will benefit a range

of industries including the pastoral, tourism [and] recreational fishing industries as well as local residents” (ACIL

Allen 2016).

14.4.2.4 Employment and workforce

An assessment of potential direct jobs was undertaken for the pre‐feasibility assessment undertaken by the

Proponent and Table 14‐11 provides guidance for potential direct jobs that would be created onsite.

TABLE 14‐11 OPERATIONAL ROLES

Unit Position title Skill level Minimum

Education

Achieved

Experience

(Years)

FTE

positions

Stage 1

BMC BMC Manager High BSc 7 1

BMC Assistant Manager High BSc 5 0

BMC Technicians ‐ Health, Water

Mgt, Grow out

Skilled TAFE 3 2

BMC Junior Technicians Skilled TAFE 0 2

BMC Warehouse & Facility

Supervisor

Semi‐skilled Experience

(& tickets)

3 1

BMC General Labour Unskilled Y10 0 1

BMC Electro Mechanical Technician Skilled TAFE 5 3

BMC Electro Mechanical Assistants Skilled TAFE 0 2

BMC Administrator Skilled Experience 2 1

CBC CBC Manager High BSc 7 1

Project Sea Dragon




Unit Position title Skill level Minimum

Education

Achieved

Experience

(Years)

FTE

positions

Stage 1

CBC Technicians ‐ Health, Water

Mgt, Grow out

Skilled TAFE 3 2

CBC Technicians ‐ Tagging &

Measurement

Skilled TAFE 3 1

CBC Junior Technicians Skilled Y12 0 2

CBC Warehouse & Facility

Supervisor

Semi‐skilled Experience 3 1

CBC Hygiene & Sanitation Workers Semi‐skilled Y12 0 2

CBC General Labour Unskilled Y10 0 2

CBC Electro Mechanical

Technicians

Skilled TAFE 5 1

CBC Electro Mechanical Assistants Skilled Y12 0 0

CBC Administrator Skilled Experience 2 1

CBC Geneticist Specialist PhD 7 1

Darwin has a large pool of highly skilled workers ranging from experienced and qualified managers and

supervisors, university graduates, experienced craft tradespersons and skilled manual workers. However, skills

specifically relating to prawn farming are likely to be limited. The expected prawn farming skills shortages will

be addressed through the development of a formal customised aquaculture‐specific training program that

satisfies the Australian Quality Training Framework (AQTF). Additional, operational personnel may be sourced

internationally.

The majority of the workforce is expected to come from Darwin with the technical specialists likely to be

sourced both from Australia and overseas. The expectation is that the construction workforce will be drive‐in

drive‐out (DIDO) through the utilisation of a compressed roster. Fly‐in fly‐out (FIFO) employment is not the

preferred method of employment and will only be offered by exception to specialist construction personnel. A

DIDO workforce will permit personnel to return to Darwin on their rostered days off.

The project will generate significant employment for the region and flow‐on benefits to local businesses by

using the Industry Capability Network (ICN) as a gateway to maximise opportunities for business, service

providers and training and education institutions. Many of the skilled employment opportunities (breeding and

hatchery operations) are expected to be located in the environs of Darwin. Further jobs in management,

administration and logistics are also to be located in Darwin. A significant number of the proposed jobs will

provide opportunities for indigenous people.

There are a number of well‐developed training providers in Darwin that will be able to participate in the project

development and in the ongoing operations phase. A significant opportunity is the ongoing Research and

Development work that will arise from the breeding program and other productivity initiatives. Project Sea

Project Sea Dragon




Dragon will seek to enter into a formal arrangement with universities to progress this Research and

Development opportunity.

The Project will create direct and indirect employment. Indirect employment is the number of workers

employed as a result of the additional expenditure by the Project in the economy which generates enough

demand to create additional jobs. The proximity of the facilities to Darwin will also present opportunities for

businesses located in Darwin.

The employment benefits from the Project are important as it is located in a remote area with limited existing

economic opportunities. The Project workforce will have a number of positions not requiring a high level of

skills or work experience. These positions are particularly important for local regional people, many of whom

do not have a large amount of skills or work experience. The Project also allows local people to gain

employment on a major project and in an industry which is not currently represented in the region.

14.4.2.5 Cultural heritage

No impacts to cultural heritage are anticipated during the operational phase of the Project as no further land

disturbance will be required.

14.5 MITIGATION AND MONITORING

As part of the environmental impact assessment process, the EIS will be on public exhibition for four weeks and

the community are invited to submit comments to the NT EPA for consideration. Seafarms will respond to the

NT EPA as part of the Supplement reporting process.

In addition, the following mitigation measures will be implemented to address potential impacts arising from

the Project:

A Stakeholder Communication Plan will be implemented that provides for updates and opportunities for

the community to raise any concerns during the project’s lifecycle:

Community information sessions to understand community concerns and provide information

Consultation with adjacent land users to provide information on the project, potential effects and

proposed management measures

Wider consultation across the Northern Territory including key stakeholders such as the industry and

environmental organisations as part of the larger Project Sea Dragon and

Transparent monitoring and availability of results, including regular publishing of baseline data and

operational data will be provided to regulators i.e. water quality results.

The key issue raised within the ToR was identification of any ‘emergent’ socio‐economic issues – these being

issues that change or emerge due to changes in during the life of a project. The intention is to address the fact

that social issues can change or emerge due to changes in the economic and social conditions as a result of the

project (which may not be identified during the scoping stage).

During operations, the proponent undertakes to offer twice ‐yearly community information and consultation

sessions and to maintain a ‘complaints’ or ‘grievance’ log as a mechanism to record and capture concerns. Such

matters coming forward are expected to be addressed at the time any matters are raised, with the community

consultation sessions offering a regular opportunity to update and review. Key project milestones particularly:

at the planning and commencement of each Stage, major refurbishments, and (if applicable) decommissioning.

Routine operations are expected to be steady‐state, with very low negative social impact.

Project Sea Dragon




A Social Impact Management Plan will be implemented prior to construction commencing, including:

The proponent anticipates that an Industry Participation Plan will be agreed to between the

company and governments and this Plan is intended to ensure, not only that the Proponent

meets expectations in relation to local contracting and procurement of products and services, but

also that high standards of probity and principles of competitive neutrality are properly adhered

to.

Development implementation of a short‐term accommodation strategy to manage the capacity of

local hotels and likely project demand. This strategy will include monitoring of potential

displacement of rooms usually utilised by the tourist industry. Identify measures to manage the

impacts on local services, e.g. by providing additional temporary accommodation.

A workforce plan will be prepared to manage all aspects of human resources including, but not limited to

human rights and labour law, equitable opportunities, and women in the workforce. This will be a

component of the wider Project Sea Dragon Workforce Plan. This may include:

Key Performance Indicators (KPIs) around inclusion of locally based employees and indigenous

employment program

KPIs for contractors regarding Indigenous and local employment

Support for Indigenous employment by Cross‐Cultural Awareness Training to improve cultural

understanding and communication between Indigenous and non‐Indigenous team members and

Collaboration with relevant recruitment providers to increase the available local labour pool, e.g.

through shared planning and training programs.

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