Two weeks ago the Planning Assessment Commission (PAC) handed down its decision to oppose a new open cut coal mine at Drayton South in the Hunter Valley.
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A rare decision for the PAC.
Since then mining industry and media commentators have sought to undermine the PAC, criticise its decision, pressure the government to overturn the decision, fuel division in our communities and perpetuate land use conflicts that are unfortunately becoming the norm, rather than the exception, in regional NSW.
It is time for some facts and sensible discussion about the PAC’s decision and the need to protect and grow diverse regional economies to provide prosperity and sustainable long term jobs.
The Decision: After years of submissions from all sides, scientific and other expert technical reports, the government’s independent advisers recommended against the Drayton South open cut coal mine.
Why? Because:
* The economic benefits of one mine did not outweigh the risk of the demise of entire sustainable industries – equine, viticulture and tourism.
* The damage this one mine could cause to our industry, environment and community was irreversible.
* No-where in the world is mining allowed to come within 500 metres of international scale stud operations where over 300 people work, live and raise their families.
* Mining will continue in the Hunter Valley regardless of whether Drayton South is approved or not – as evidenced by recent approvals for the expansion of Mt Arthur Coal Project and other existing mining operations and exploration in the region.
* It is in the public interest to develop a broad and diverse economic base to underpin the future prosperity of the region.
* This one project needed to be balanced against the potential loss of a thriving and sustainable industry which has significance to the region, state and national economies.
* When balanced against these considerations the project was not in the public interest.
These are all strong, carefully considered and compelling reasons.
To suggest the refusal of one mine places the NSW mining industry at risk is patently untrue.
Many mining industry executives have publicly stated that the downturn in the mining industry is due to international commodity markets, Australia’s high cost structure and the high value of the Australian dollar.
Despite the recent approval for its Mt Arthur modification, last week’s announcement by BHP Billiton to retrench another 150 people had nothing to do with approvals processes but was due to the industry’s increasing drive to reduce operating costs.
It is convenient and unfair to blame the NSW Government (ahead of an election) when in reality international commodity markets, the strength of the Australian dollar and high domestic cost structures are driving coal mining decisions.
The industry: The Hunter Valley is the epi-centre of Australia’s premier thoroughbred breeding industry and home to award winning wineries and a growing tourism industry.
It is home to the largest concentration of studs in the world (outside Kentucky USA) and is one of only three international Centres of Thoroughbred Breeding Excellence (alongside Kentucky, US and Newmarket, UK).
Our industry is made up of over 200 stallion and broodmare farms and a strong network of equine supply industries.
This critical industry cluster of equine industries produces half of all thoroughbreds born in Australia and is Australia’s largest and growing exporter.
Our industry is the largest agricultural industry and employer in the region, directly employs over 34,000 people across NSW and contributes over $2.4 billion annually to the NSW economy.
It is important to remember that this one mine at Drayton South jeopardised at least 640 jobs in our industry and put our entire industry, not just two studs, at risk.
The future: The people who live in this region are the victims of a system, which divides communities due to the uncertainty it fosters.
This situation should not be exploited.
At an individual level this was a no-win situation.
Had the decision gone the other way over 640 jobs in our industry would have been at risk.
What we need is a plan for the future – one that provides certainty for all, supports sustainable industries and jobs and gives them the confidence to invest and grow.
In its report the PAC stated that “Both Kentucky USA and Newmarket UK have protection in place to protect the industries from incompatible developments. Similar protection should be provided in the Hunter Valley to ensure not only the survival of the equine industry but also allow it to further develop”.
It is time to learn the lessons of the past, heed the ICAC recommendations to avoid future corrupt practices and bad planning decisions, take a leaf out of international best practice and protect our nationally significant agricultural industries from future development so that they can prosper and provide sustainable job opportunities for hundreds of years to come.