Voting Members Survey

Results for 2012/2013

DR ELIZABETH GIBSON, General Manager CMPA provides an analysis on the Voting Members Survey.

The main drivers behind continuing with the survey (which is in its second year) were to gain an understanding of the future direction of the industry, to establish Member priorities and to direct the Association’s resources accordingly.

The response rate from the Voting Members was lower 29% for 2012/13 down from 39% in 2011/12.

Work Authority

50% of respondents are investigating variations to current Work Authorities compared to 46% in 2011/12. The purpose of the variations being due to a number of reasons:

• Extension of area of Work Authority
• Extend opening hours
• Increase in allowable loads offsite per day
• Sand washing
• To dispute changes government want to introduce
• Concerning rehabilitation and future quarrying positions over the site

44% of respondents are investigating acquiring new Work Authorities compared to 31% in 2011/12. The purpose of the new Work Authority being due to:

• Different product type
• Future resources
• New sales opportunities

Business Activity

The change in the level of business activity anticipated for the financial year 2013/14 reflects a more positive view of the extractive industry health. As shown in the table below there is an anticipated 30 point increase into positive territory in business activity in 2013/14 over 2012/13:

Note that an activity level of 100 indicates that there is a balance between those who respond positively and negatively. A level below 100 indicates that conditions are deteriorating and a reading above 100 indicates that on average conditions are improving.

The reasons given for anticipated business activity were:

• More positive outlook – expected to improve in the second half of 2013/14
• Flood recovery has come to an end
• Expansion into other markets and growth in ability to produce
• Decrease in sales due to lack of government expenditure, however, improved confidence with lower interest rate and exchange rates
• Economy is slowing

It is anticipated that extrapolating for all Voting Members then $66 million in total will be spent on capital purchases compared to approximately $74 million in 2012/13. CMPA was unable to compare these figures with annual production rates due to the data not having been released by Department of State Development, Business and Innovation for 2012/13.

Bottom line factors that will impact on the ability to maintain or improve over the next financial year 2013/14:
– Financial impact: Access to capital of most importance (interest rates
2012/13)
– Market impact: Market competition of most importance (same as 2012/13)
– Employment impact: retention of staff and employees of most importance (same as 2012/13)
– taxes and charges impact: Bond reviews of most importance (carbon
tax 2012/13)
– Government impact: Limited forward planning by government on maintenance and reconstruction work and regulatory approval processes of equal and most importance

The anticipated change in recruitment activity in workforce numbers shows an 11 point decrease on 2012/13 which does not reflect the more positive outlook of the business activity for 2013/14 but is still in positive territory as shown in the chart below. this result may be a reflection of increased productivity.

The chart below shows the change in activity in operational hours which shows that there is an increase of 8 points in operational hour activity in 2013/14 over 2012/13 which is consistent with the business activity, however, it still remains in negative territory.

Environmental resources

96% (compared to 95% in 2011/12) of Voting Members have a site rehabilitation plan in place. A review of the site rehabilitation plan was conducted in the last 12 months by 58% (compared to 65% in 2011/12) that was included in the budget by 58% of Voting Members.

The average percentage of the Work Authority rehabilitated was 10%. There has been an increase in the number of Voting Members with weed management plans from 78% in 2011/12 to 86% in 2012/13.

In extrapolating for all Voting Members, approximately $6.2 million was allocated to rehabilitation in 2012/13 compared to $2.6 million in 2011/12. This included the planting of 113,800 trees (compared to 112,800 in 2011/12).

Government regulation

The change in the percentage of the level of government regulation over the businesses over the last 5 years is depicted in the chart below:

As can be seen, despite the State governments focus on red-tape there has been no decrease in government regulation. No benefit from the results of the change was noticed by 85% (compared with 87% in 2011/12) of Voting Members.

The costs associated with the changes have increased for 53% (compared with 100% in 2011/12) of Voting Members.

When considering whether the government takes into account the financial impact of its regulatory change on the extractive industry, 96% (compared to 97% in 2011/12) of Voting Members believe that it is not taken into account.

86% (compared to 87% in 2011/12) of Voting Members believe that the government has not assisted them in appropriately managing compliance.

The following comments were made:

• Compliance costs are underestimated by government when proposing new regulations
• The government does not understand the burden of compliance.

In 2012/13, 75% (compared to 78% in 2011/12) of Voting Members received a visit from the Department of Primary Industries.

It was found, in general (only 38% of those visited responded), that the visits were worthwhile with the following comments made:

• Good to get positive and negative feedback to help manage our site and systems.
• The inspector was competent in his knowledge of the workings of the quarry.
• Some value with rehabilitation, future planning, weed control and drainage.
• Valuable to the business because of no new requirements being made.

75% (compared to 68% in 2011/12) of Voting Members felt that were being supported by WorkSafe with respect to guidance note material for managers to ensure a safe Work Authority.

There was a slight decrease in the number of site visits down to 57% compared to 60% in 2011/12. 81% (compared to 83%) considered their site visit of value, though one respondent noted that there were variations between inspectors.

The Voting Members were asked whether they had other contact with government and whether this had a positive or negative impact on business performance or cash flow to which 63% (compared to 44% in 2011/12) incurred a negative impact.

The reasons given were:

• Rehabilitation bond reviews
• Work Authority variations
• Aboriginal heritage
• Native vegetation
• EPA has increased yearly discharge licence on site by 700%
• Water Authorities
• Local Councils

The information gathered from this Survey will help the Secretariat to:

• Effectively represent members at all levels of government;
• 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;
• Identify future capital expenditure to assist Associate Members in planning.

That completes the Voting Member Survey for 2012/13. Thank you to all those that took the time to submit the Survey.

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