CMPA Survey

SURVEY DEVELOPMENT

GAVIN MOREIRA, CMPA Administration Officer.

THE main drivers behind developing of the Members Survey were to gain an understanding of the future direction of the industry, to establish Member priorities and to direct the Associations resources accordingly.

Development of the survey took a few months, dating back to March. Initial meetings were held with Bob Beaumont and Peter Day to gain a perspective and a reason why the association needs to conduct the survey and to put together a structure of topics.

The research then went global on the World Wide Web to try and find a survey conducted by quarry associations or similar industries around the world. This was to help develop questions that would create realistic and usable outcomes for our members. Once a structure of topics and questions were drafted feedback was sought from both Management and Associate Committees and other members of the association.

Information gathered from the survey was to help the Secretariat to:

• effectively represent Members at all levels of government;
• provide government with a better understanding of the significant impacts they have on the industry;
• provide government with a better understanding of the economic importance of our industry;
• provide relevant services to Members in education, training and business operations and management and
• identify future capital expenditure to assist associate members in planning.

Thank you to all members who invested their time to ensure the CMPA stays relevant to your business needs.

Survey results sing same old tune

TOM MCKENNY, Industri Communications provides his opinion on the results of the CMPA Members Survey.

THE recently completed CMPA business confidence survey results are in and much of the data reinforces commonly held perceptions of the industry as well as charting a gradual decline in industry health.

First things first – respondents represented 40% of the total CMPA membership and were predominately involved in basalt or sand and gravel quarrying operations.

Work Authorities (WA) and Government regulation of the industry presented one of the most interesting results. Of the respondents, almost 100 per cent agreed the introduction of government regulation that had an impact on their business had increased over the past decade.

This is a result that clearly contradicts the line trotted out by elected politicians, the opposition and political aspirants alike, that they are here to assist business and cut red tape. More tellingly is that almost 100 per cent of respondents noted that the increase in red tape had had no significant benefit to the industry – other than adding to the burden of already swelling operating costs.

Importantly, all respondents agreed that the financial impact of increased red tape on operating costs had not been accounted for by Government. That is, Government of all persuasions fail to understand the financial impact of added regulation.

Just half of the respondents passed on the additional costs to customers and almost 100 per cent agreed the Government had provided no assistance in appropriately managing the increasing bureaucratic burden.

The impact of increased red tape also presented a more concerning outcome. Almost unanimously, CMPA members felt that the increasing regulatory burdens imposed in the past decade left them with no option but to work within their current WA approvals. That is current WA extensions, expansion or otherwise would not be sought. That is an unfortunate portent for the future of the industry.

DPI data confirms the downward spiral the industry is dealing with. There are 876 WAs in place as at 30 June 2011 there were just 17 applications in train for a WA approval – a sure indication that the barriers to entry are too high, or the requirements to expand are too burdensome and costly.

• 97% of members believe the Government does not take into account the financial impact of its regulatory change upon the industry
• 91% of members feel that regulatory burdens put in place over the last ten years, have left them with no option but to work within their current WA approvals
• 86% of members feel the Government has not assisted them in appropriately managing regulatory compliance
• Only 48% of members have passed on any new regulatory compliance costs in the sales price of their goods and services

HIGH COSTS, LOW SUPPORT

While considered regulation contributes meaningfully to delivering safe work environments and the like, the cost of red tape is not being reflected by improved government support services according to survey respondents. A majority of sites had DPI site visits in the past 12 months but just half of those visits were seen to be “of value”.

One respondent commented that the DPI had “no idea regarding rehabilitation costs and only inspected for regulatory compliance and were not experienced in assisting with solutions to problems.”

Contrary to the DPI, site visits by WorkSafe inspectors were felt to be of value by a large majority of respondents. However conflicting feedback was noted.

One respondent noted that WorkSafe gave management and employees a clear direction while another commented that inspectors always found something wrong no matter how good the site was and every site visit cost money; they were only inspected for regulation compliance and that WorkSafe were not experienced in assisting with solutions to problems.

Regulatory impact on business financial performance was also noted with regards to Aboriginal Heritage surveys, Native vegetation requirement, local planning, ground water management and bond reviews.

Increasing quarry bond requirements lead directly to pressure on working capital with banks holding back finance needed to service bond securities.

DPI data correlates the survey findings with the value of rehabilitation bonds in the extractive industry in 2000 being valued at $22.8 million.

However, just a decade later bonds on the extractive industry had increased to a value of $72 million (2010). By comparison bonds on the mining sector in Victoria in 2010 were valued at just $103 million.

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