27
Organisation: Affected property: 273 Simon Welsh Bulleen Industrial Zone Group Incorporated BIZ_Group_Inc_EE As attached. This submission represents 65 businesses and land-owners in the Bulleen Industrial Precinct. Attachment 1: Comments: Full Name: yes Request to be heard?: Submission Cover Sheet North East Link Project EES IAC Attachment 2: Attachment 3:

Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

Organisation:

Affected property:

273

Simon Welsh

Bulleen Industrial Zone Group Incorporated

BIZ_Group_Inc_EE

As attached. This submission represents 65 businesses and land-owners in the Bulleen Industrial Precinct.

Attachment 1:

Comments:

Full Name:

yesRequest to be heard?:

Submission Cover SheetNorth East Link Project EES IAC

Attachment 2:

Attachment 3:

Page 2: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 1

Bulleen Industrial Zone Group Inc

Submission to the Inquiry and Advisory Committee

for the North East Link Environment Effects

Statement

June 2019

1. About the Bulleen Industrial Zone Group Inc

The Bullen Industrial Zone (BIZ) Group is an incorporated body representing the businesses,

employees and land-owners within the Bulleen Industrial Precinct located adjacent to the

Manningham Rd and Bulleen Rd intersection – see highlighted area in Figure 1.

Figure 1 – Map of Bulleen Industrial Precinct

Page 3: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 2

Established in response to the North East Link project, the BIZ Group is comprised of 65

businesses and land-owners. The following organisations/individuals are represented by

this submission.

Admon

Machinery

Coates Hire

Bulleen

MFJ

Constructions

Tara Lawn

Solutions

Ron & Maria

Krupa

Alan Lennox

Motors

F1 IT/EBG Monaco Sound Thompson's

Costume &

Memorabilia

Gallery

Andrew Lewis

Auscrown F1 Smash

Repairs

NCG Air

Conditioning

Topgear Cycles Nathaniel

Marshall

Blain-Air Heating

& Air Conditioning

Heidelberg Hire Nextgen AV Toscano

Plumbing

Peter Mazzei

Boccer Australia Higgins Panel

Beating

Penguin Dry

Cleaners

Ultratune Bulleen Golam Nadli

Brazzale

Superannuation

Pty Ltd

High Access

Group

Poynter Products Watsonia

Publishing

Maria Nakas

Bulleen Art &

Garden

I Got Wood Raxo Machine

Tools

Wonder Pies Tony Parissi

Bulleen Health

and Fitness

Japan Foods

Trading Pty Ltd

Rotor & Drums

Australia

Simon Campi Rob Shed

Caltex Bulleen John Donohue

Auto Repair

Sheen Panel

Service

Jari Castle Nadia Wharton

Campi Property

Services

John Moran

Motors

Sierra Experience Ben Dawson

Cam's

Greenaway

Automotive

Kendon Auto

Electric

Sixth Linstock

Nominee Pty Ltd

Amanda Di

Censo

Choices Flooring

Bulleen

Manningham

Automotive

Mechanical Pty

Ltd

Speedy Shower

Screens

Robert

Gardeniers

CityLife Church Maxx Pro &

ADSG

Swan Plastics Sario Gieco

Climate Control

Insulation

Company

Mega

Investments

Tao's Restaurant Rob Heward

Page 4: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 3

2. Review of the Environment Effects Statement

2.1 Outcome of the Reference Project for the Bulleen Industrial Precinct

The Environment Effects Statement (EES) identifies that, within the Bulleen Industrial

Precinct, “approximately 80 businesses would be displaced due to land acquisition, which

would displace an estimated 770 jobs (rounded)” (Technical Report F – Business, p.70). The

report also notes that “approximately 70 per cent of businesses in the precinct have existing

commercial relationships with nearby businesses. Land acquisition affecting the businesses

would therefore significantly impact supply chains and long-standing commercial

relationships” (p.75). This not only affects displaced businesses but also those which remain.

2.2 Issues with the Risk Assessment

The risk assessment undertaken as part of the EES process is central to the development of

the Reference Project and the assessment of its impacts, as per Figure 2 from EES

documents.

Figure 2 – EES Assessment Framework (4-2, Chapter 4)

Page 5: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 4

We argue that this risk assessment has significantly under-valued the importance of

the Bulleen Industrial Precinct. As a result, the EES has not fully addressed the

severity of impacts relevant to the Bulleen Industrial Precinct and mitigation

approaches appropriate to the true level of impact have not been considered in the

development of the Reference Project.

Three business impact risks are critical for the Bulleen Industrial Precinct:

• Loss of local jobs: BU03 – Permanent acquisition of INZ1 land in Bulleen displaces

businesses and reduces the number of jobs available for workers in this area

• Loss of local services: BU05 – Full acquisition of land results in displacement of

businesses along alignment and therefore reduces availability of local jobs and

services

• Loss of business viability: BU07 – Full acquisition of business land results in

business displacement which reduces business viability

In all three cases, the severity of impact is rated as “Low” (as per Attachment III – Risk

Report: Risk Register), meaning it has been assessed that there is:

• A low degree of impact on an environmental asset, value or use; or

• A low number of impacts on environmental assets, values or uses; or

• Impacts on environmental assets, values or uses of lower significance

Five features of the Bulleen Industrial Precinct, not considered or inadequately considered in

the EES, demonstrate that a) the degree of impact on the asset is, arguably, high or very

high and b) the asset is of high or very high significance1.

2.1.1 Nature of the Workforce and Job Losses

While the EES notes that the Reference Design would displace around 770 jobs, it fails to

investigate the outcomes of such “displacement”. Analysis by the BIZ Group – based on

work by economic consultants, Remplan, for Manningham City Council – suggests that

around 500-600 jobs would be lost (not just displaced) due to the effects on the Bulleen

Industrial Precinct. This comprises:

• Jobs lost in the immediate term due to the closure of businesses upon acquisition

1 The question of the “number of impacts” can be dismissed given the degree of impacts and the significance of the asset. That is, it does not matter if there is one impact or 20 impacts, if that one impact is catastrophic. The displacement of 80 businesses and 770 jobs and the loss of land in the area due to the construction method (cut and cover) means that the Bulleen Industrial Precinct will not exist post construction. In that sense, the impact is absolute.

Page 6: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 5

• Jobs lost in the short-to-medium term due to the effects of relocations, being:

o forced downsizings as businesses attempt to survive having been moved

away from their existing customer bases, resulting in decreased revenue and

competitiveness (e.g. inability to service existing markets efficiently, or

inability to retain key staff), and/or increased operating costs (e.g. transport);

o subsequent business failures due to relocation away from existing customer

bases, particularly where businesses are relocated to areas saturated with

competing businesses – as is likely given the zoning requirements, INZ1, and

nature of many of the businesses (e.g. automotive);

o employees being unable to sustain increased travel in instances where

businesses are forced to relocate well-away from Bulleen – see 2.2.5; and/or

o supply-chain and consumption flow-effects (i.e. loss of jobs in other

businesses that supply to displaced businesses and/or their employees)

The quantum of job losses is significant in itself and comparable with major manufacturing

closures, such as Ford Australia’s closure of its Broadmeadows and Geelong plants.

However, in the Ford case, the resulting 580 jobs lost were spread across the communities

of Broadmeadows and Geelong. In Bulleen, we see “Ford-scale” job-losses being borne by

a single community in Bulleen and its neighbouring suburbs.

The total number of jobs lost from the Bulleen Industrial Precinct is not the only significant

factor; the nature of the workforce (the people holding those jobs) is also important.

Workforce research, conducted for the BIZ Group by Chorus Consulting, found

that the Precinct’s workers are at heightened risk of adverse long-term outcomes from any

disruption to their employment because:

• The combination of age (many aged 45+ yo) and gender (predominantly male)

creates vulnerability for much of the workforce with these factors being significant risk

factors for long-term employment

• The Precinct supports a largely blue-collar workforce with comparatively low wages

and levels of educational attainment. This group is very vulnerable to economic

stress (e.g. periods of unemployment) and, for many, their competitiveness in the job

market is problematic. The concentration of blue-collar jobs in the eastern suburbs is

unusual, making the Precinct something of a rarity from a labour-force perspective

Page 7: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 6

• The overall profile suggests a “settled” workforce – this is not a dynamic workforce of

people moving from job-to-job and being well equipped to deal with “job hunting” and

unemployment. Indeed, among those who have experienced unemployment, a large

proportion were unemployed for an extended period (6 months or more). Such

individuals would still carry the economic and psychological legacy of those

experiences. Many are unsure what relocation of their employer would mean to them

in terms of their ability to sustain employment with that business

Thus, we have a situation of potentially large-scale job losses being borne by a particularly

vulnerable workforce. Neither the scale of job losses nor the profile of the workforce

are analysed in the EES.

Further details of the workforce research can be found in Appendix A.

2.1.2 Contribution to Local Workforce

The EES (Chapter 14 – Business) notes that the business acquisitions in the southern portal

precinct will “affect some 830 jobs and approximately 31 per cent of the current local

employment in the Bulleen statistical area (SA2)”. Nearly all of these jobs (770 approx) are

represented by the Bulleen Industrial Precinct, indicating that the Precinct alone accounts for

around 29% of employment in the Bulleen statistical area.

While this is noted in the EES, it is unclear how this fact is treated in the risk

assessment and, particularly, how the displacement of around one-third of local

employment is constituted as a “low” severity impact.

2.1.3 Community Expectations

The EES Assessment Framework (Chapter 4) notes that “community expectations” may be

considered “when determining the significance of potential environmental impacts”.

Community research, conducted for the BIZ Group by Chorus Consulting, found very high

levels of concern around:

i. the challenges confronting displaced blue-collar workers in finding work. Participants

commented, “It will be harder for them to find jobs elsewhere” or “If they’re older, they

will never find jobs again”.

Page 8: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 7

This created a strong expectation that the State Government will do what it

takes to protect the Bullen Industrial Precinct workers and their employers. All

participants were vehement that the government must do something to save these

jobs; and

ii. the loss of services provided by the Bulleen Industrial Precinct businesses and the

contribution they make to local quality of life. The Precinct’s mix of services –

automotive, gyms, dry cleaners, nursery, etc – was seen as an important feature of

the area, with some participants even describing it as “essential” to have those sorts

of services at a practical proximity

These concerns were raised unprompted by research participants in a wider discussion

about the North East Link and its impacts.

Furthermore, it was found that research participants were very willing to make trade-offs on

parkland and other project features (e.g. budget, travel speeds) to save jobs and

businesses. This indicates the heightened community sensitivity and expectations around

the potential impact on workers and businesses in the Bulleen Industrial Precinct. Put

simply, the research reveals that jobs and services are at the top of local community

expectations when it comes to mitigating the impacts of North East Link.

Evidence for and an analysis of community expectations around business impacts are

absent from the EES documentation.

Further details on the community research can be found in Appendix B.

2.1.4 Gross Economic Value-Add

Manningham Council’s Bulleen Industrial Precinct: North East Link Economic Impact

Assessment (conducted by Remplan) provides an analysis of the value added to the local

economy by the Precinct. It states:

Value-added is a key economic metric which estimates the marginal economic value-added

by an industry … it is one of the best indicators of industries’ contribution to the wealth of a

region. (p.7)

Page 9: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 8

Remplan calculate that the economic value-add of the Bulleen Industrial Precinct

approximately $132m per annum, representing 3.3% of the total value-add for the

Manningham Local Government Area2. This demonstrates that the Precinct, comprising

around 0.8% of all Manningham businesses, provides a disproportionate economic

benefit to the local community. In short, the Bulleen Industrial Precinct is a key driver

of the local economy.

The EES includes no calculation or assessment of the local economic impact of the

displacement of the Bulleen Industrial Precinct.

2.1.5 Irreplaceable Nature of the Asset

“Where do we go?”

This is the question the BIZ Group has been asking since its inception. It is a question to

which we are yet to receive an answer. Indeed, a Relocation Options Study provided to the

BIZ Group by NELP concluded:

• NELP is exploring avenues to identify potential relocation options within 5-10

kilometres of Bulleen

• The work we have conducted so far shows there is limited availability within the City

of Manningham

o Lack of existing industrial zoned land and precincts

o Few industrial and commercial market opportunities suitable for types of

businesses

This led NELP to consider options in other Local Government Areas – despite such areas

not being conducive to the viability of the Bulleen businesses (e.g. removing them from their

customer-base and workforce, placing them in saturated competitive environments,

disrupting business operations and efficiencies, etc). However, even here, there has been

no success. To date, discussions between BIZ Group, NELP and nearby Local

Government Organisations have failed to identify any precincts that could support the

relocation, at any practical scale, of businesses from the Bulleen Industrial Precinct.

The critical problem is a) the limited volume of industrial and commercial land in the region

per se and b) the fact that what land does exist then becomes “very tightly held”.

2 See: https://www.economyprofile.com.au/manningham/industries/value-added

Page 10: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 9

Manningham Council is considering the creation of a new industrial precinct. While the

proposed site (Websters Lane) would only be suitable to a small number of the Bulleen

Industrial Precinct businesses, it lays outside the Urban Growth Boundary and is unlikely to

be rezoned in time to allow for uptake by displaced businesses.

The existing land-use planning and (un)availability of commercial and industrial land in the

region means that, for all practical purposes, not only can the Bulleen Industrial

Precinct not be replicated, but there is currently no solution even for the relocation of

businesses on a case-by-case basis within the region. Put simply, the Bulleen Industrial

Precinct is an irreplaceable asset.

2.3 Conclusion

The Bulleen Industrial Precinct is an asset of high significance:

• It supports 29% of local employment

• It supports a large and vulnerable blue-collar workforce and there is a strong

community expectation of government action to protect that workforce

• It generates a disproportionate benefit to the local economy

• It provides “essential” and highly valued services to the local community

• It cannot currently be replicated or replaced – once it is disrupted, the above benefits

are destroyed

The degree of impact on the Bullen Industrial Precinct is high:

• 500-600 jobs could be lost (not just “displaced”)

• The nature of the workforce means that those job losses place these workers at high

risk of long-term unemployment

• Relocation of these businesses (mostly family-owned SMEs) places them at high risk

of failure due to the removal from their customer-base and workforce, placing them in

saturated competitive environments, disrupting business operations and efficiencies,

etc

• There are currently no solutions for the relocation of businesses in the local region in

any event

Page 11: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 10

The preceding points have not been adequately considered in the EES process. Indeed,

some – such as the scale of job losses, the nature of the workforce, the local economic

benefit of the Precinct, and community expectations regarding local business impacts –

appear not have been analysed at all. This results an inaccurate and under-stated

assessment of the impacts on the Bulleen Industrial Precinct and, in turn, inadequate impact

mitigation strategies in the Reference Project.

The BIZ Group asks that the Inquiry and Advisory Committee re-evaluate the impacts on the

Bulleen Industrial Precinct in light of this submission and re-consider mitigation strategies

that reflect the significance of the asset and the degree of impact as demonstrated herein.

In the following section, the BIZ Group offers, for consideration, some proposed mitigation

approaches.

Page 12: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 11

3. Proposed Approaches to Impact Mitigation

3.1 Interchange Redesign to Significantly Reduce Business Impacts

We believe that there is an opportunity to redesign the Manningham Road Interchange

under a new set of design assumptions and priorities that better reflects the true value and

importance of the Bulleen Industrial Precinct as demonstrated herein. It is our contention

that the current assumptions and priorities underlying the Manningham Rd Interchange

reference design, being based in the risk/impact assessments described in the EES, do not

accurately reflect the significance of the Bulleen Industrial Precinct. Thus, the resulting

reference design inadequately deals with local impacts. We are seeking a redesign that

maximises the number of businesses preserved.

3.2 Creation of Offsets

We seek the urgent creation of a variety of local offsets, recognising that:

i. There is no industrial land available in the local region (i.e. within 5km of the Bulleen

Industrial Precinct) to accommodate the Bulleen Industrial Precinct businesses on

any useful scale

ii. There is no opportunity to create a single, new industrial area to accommodate the

businesses. Therefore, a suite of offset sites will be required to deal with the number

and variety of businesses affected

iii. Works for the North East Link cannot commence at the Bulleen Industrial Precinct

until all affected businesses have been relocated. Thus, expediting any planning

processes needed to create offsets may be necessary to meet the time-lines for the

broader North East Link project

Potential sites include:

• Internal offsets within the Bulleen Industrial Precinct utilising areas not required for

construction

• The Manningham Club at 1 Thompsons Rd, Bulleen

• The Websters Rd ,Templestowe industrial precinct currently being considered by

Manningham Council

• The former drive-in site at the southern end of the Bulleen Industrial Precinct (or, at

least, part thereof)

• The “Greenery” site opposite the Bulleen Industrial Precinct at 4 Banksia Street,

Heidelberg

• Sites within the current Freeway Golf Course adjacent to the Eastern Freeway

Page 13: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 12

We are asking the State Government to call-in and expedite the necessary planning

processes associated with preparation of these sites, as they could fall under provisions

relating to State Significant Projects.

3.3 Fair Compensation

In the event that some businesses and properties still need to be acquired, we seek fair and

equitable compensation.

The extremely low-level of land sales within the Bulleen Industrial Precinct makes accurate

property valuation problematic. Furthermore, the sudden entry into the market of businesses

seeking industrial/commercial land (in an already “tightly held” market) will see a sharp

increase in property prices. Indeed, it is anecdotally reported that local real estate agents

are already telling commercial property owners in the area to hold off selling until after the

compulsory acquisition notices are issued. Even outside these factors, it was reported by

the Australian Financial Review on 22 May 2019 (Melbourne industrial land values up 22.8

per cent in a year) that “the price of a 1.6-hectare Melbourne lot increased 22.8 per cent in

the past 12 months (to March 2019) compared with an average 5.3 per cent increase

recorded nationally across the major capital-city markets”. Similarly commercial rates

reported to be growing strongly. Commercial land is in high demand across Melbourne.

In short, the value of land today in the Precinct (even if it could be accurately determined)

will not reflect the value of land in the local region tomorrow. Thus, compensation should

reflect the cost of replacement land of similar nature: a like-for-like principle.

Similarly, compensation for any business being relocated should reflect not just the historical

commercial performance of that business, but also the commercial obstacles created by

relocation, such as:

• decreased revenue (e.g. due to moving away from an existing, loyal customer-base

and entry to a new market) and competitiveness (e.g. inability to service existing

markets efficiently, or inability to retain key staff); and/or

• increased operating costs.

Page 14: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 13

It is known that failure rates among relocated businesses are high. Compensation needs to

help ensure the commercial sustainability of relocated businesses, noting that many of the

businesses have been in operation for decades, are family-owned, and represent the sole

source of income for those families.

In addition, compensation and support for employees needs to be both expedited (many are

already having to deal with the uncertainty surrounding their future) and fair – reflecting the

vulnerability to long-term unemployment. Active programs to up-skill and place affected

workers in new employment are needed.

3.4 Flexible Relocation Arrangements

Wherever possible, we seek relocation arrangements that would allow businesses to return

to their current location post-construction. It should be recognised that businesses in the

Bulleen Industrial Precinct are not in this location because they are successful, they are

successful because they are in this location. Restoring their position post-construction

should be a priority.

It should also be recognised that two years is insufficient time to relocate a business that has

been in its current location for multiple decades. We ask that a three-year timeframe be

placed on the relocation process from the time of the issue of compulsory acquisition

notices.

4. In Appreciation

The BIZ Group would like to express its gratitude to the Inquiry and Advisory Committee for

its consideration of our submission.

Page 15: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 14

Appendix A – Bulleen Employment Precinct Workforce Survey

An online survey was undertaken to provide insight on the profile of the Bulleen Employment

Precinct (BEP) workforce. Data was obtained for 190 employees. While the survey is

skewed toward employees with the literacies and computer access needed to complete such

a survey (i.e. it over-represents professional/managerial employees), the results still highlight

the vulnerable nature of the BEP workforce. It is reasonable to assume that the additional

jobs lost due to supply chain and consumption flow-on effects would be similar in

profile/characteristics to those described following.

The BEP workforce is characterised by three unemployment risk factors:

1. Demographics

2. Economic Status

3. Sensitivity to Unemployment

Demographics

The combination of age (45+ yo) and gender (predominantly male) characteristics

creates significant vulnerability for much of the BEP workforce

• Approximately 45% of the workforce is aged 45 years or more (see Figure 3).

ACOSS notes in its 2018 report, Faces of Unemployment, that 43% of people

receiving unemployment benefits are aged over 45 years and this share is growing.

This proportion increases to 49% if looking specifically at long-term unemployment.

Being unemployed and aged over 45 years is a significant risk factor to facing long-

term unemployment

• Around two-thirds of the workforce is male (see Figure 4). ABS statistics shows that

over the 5 years from 2011 to 2016, the unemployment rate among men increased

more than the rate among women.

Page 16: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 15

Page 17: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 16

Economic Status

The BEP supports a largely blue-collar workforce with comparatively low

wages/wealth and education levels. This group is very vulnerable to economic stress

(e.g. periods of unemployment) and, for many, their competitiveness in the job market

is problematic. The concentration of blue-collar jobs in the eastern suburbs is

unusual, making the BEP something of a rarity from a labour-force perspective

• Over 40% of the workforce is renting (see Figure 5), giving reduced housing security

and asset wealth to leverage if they find themselves with no income for a period

• The majority of workers live in households with an annual income of less than

$100,000 (see Figure 6), placing most below the median for household income in

Victoria. Indeed, the most prevalent category (30%) was a household income of less

than $50,000pa. Consistent with this, around a third of the workers live in sole-

income households, while a further 46% live in dual-income households (see Figure

7). Even these dual-income households, given the relatively low overall income, are

particularly vulnerable to unemployment for one of the earners

• Around a quarter of the workforce has some or completed High School as the highest

level of educational attainment. The labour market competitiveness of such workers

is extremely problematic. A further third of workers, approx., have a vocational

qualification as their highest educational attainment (see Figure 8). Consistent with

the educational profile of the workforce, over 40% of employees work in

general/unskilled labour, retail or hospitality roles. Around 30% work in skilled

labour, trade or administration jobs (see Figure 9)

Page 18: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 17

Page 19: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 18

Page 20: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 19

Page 21: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 20

Sensitivity to Unemployment

Overall, the profile suggests a “settled” workforce – this is not a dynamic workforce

of people moving from job-to-job and being well equipped to deal with “job hunting”

and unemployment. Indeed, among those who have experienced unemployment, a

large proportion were unemployed for an extended period (6 months or more). Such

individuals would still carry the economic and psychological legacy of those

experiences. Many are unsure what relocation of their employer would mean to them

• The vast majority of workers (around 90%) have permanent jobs (full-time or part-

time) (see Figure 10), and more than half have been with their current employer for

more than 6 years (see Figure 11). Indeed, around a third have been with that

employer for more than 10 years. This is a largely settled workforce

• Around 30% of workers have experienced unemployment in the last 10 years (see

Figure 12), with approximately 40% having been unemployed (and looking for work)

for 6 months or more (see Figure 13). The economic and psychological legacy of

these experiences would be significant even today

• A further indication of the sensitivity of this workforce to the relocation of BEP

businesses is the finding that nearly half of workers are “not sure” if they can or will

remain with their employer should relocation be necessary (see Figure 14). Many

workers are already living with uncertainty

Page 22: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 21

Page 23: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 22

Page 24: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 23

Appendix B – Community Research Report

What We Did

• Two 60-minute focus groups conducted on Wednesday 5 December 2018

• Eight participants in each (16 in total):

o All recruited from within 5km of the Manningham Rd interchange

o Gender: 9 female; 7 male

o Ages: 3x 18-29yo; 9x 30-49yo; 4x 50+yo

o Occupation: 7x professional; 4x admin; 2x retail/sales; 1x retired; 2x other/not

in employment

• Groups explored:

o Quality of life and work issues in the local area

o Attitudes to North East Link

o Awareness of and attitudes toward the Bulleen Industrial Zone issues

What We Found

Local Quality of Life and Work Issues

On the quality of life front, the major issue for participants was traffic and transport. The

ability to simply get around was a concern for all participants. They described having to use

backstreets, while avoiding the major roads – which become unusable and unsafe (e.g.

turning into the major through-roads from a residential side street), especially around peak

times. Public transport is patchy – if you live close to a station, that’s great. If you live any

distance from a station, you have to drive (because the bus is either non-existent or

unreliable) and that adds time into your day.

In this context, a significant contributor to quality of life is the proximity of local retail,

hospitality and services businesses. That is, you don’t have to drive too far to get access

to these businesses. The Bulleen Industrial Zone was raised unprompted in both groups in

relation to this point. Its mix of services – automotive, gyms, dry cleaners, nursery, etc –

was seen as an important feature of the area, with some participants even describing it as

“essential” to have those sorts of services at a practical proximity. 14 of 16 participants were

customers of at least one business in the Zone, many were customers of multiple

businesses.

Page 25: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 24

Other contributors to quality of life were the “ample” local parklands, sporting facilities, and

schools.

In terms of quality of work, all participants describe the local job market as being heavily

weighted toward retail and hospitality. Only three participants worked locally – two in

schools; one working from home in sales. Both groups – unprompted – raised the issue of a

lack of both corporate and “industrial” jobs in the area and saw the Bulleen Industrial

Zone as an important employment hub for trades, engineers and other blue-collar

jobs.

Community Expectations Relating to North-East Link and the BIZ

While, on balance, most participants would be in favour of the North East Link (as a solution

to some of the local traffic problems) there are two major types of concern. Firstly, that it will

actually increase congestion, particularly on the Eastern Freeway. Secondly, and most

importantly, that there is an “unfairness” in the process for residents and businesses.

For participants, there is a sense that, while the Link is needed, they are “feeling the impact”

(especially during the construction process) so the rest of Melbourne gets better roads. This

is added to by a perceived lack of communication and consultation – all participants felt like

they didn’t know enough about the project and the process. They described it as “secretive”,

while consultation being “lip service” because “their minds are already made up”. Most did

not know where to go to get information. There was little to no awareness of the any of the

protest groups, but some “misinformation” was detected in the groups.

This perception of “unfairness” is also seen in the potential impacts on the BIZ businesses.

There is a sense that these businesses (which are valued local service providers –

contributing to their quality of life) are being rail-roaded. One participant summed it up, “It’s

pretty unfair, they’ve been there since the year dot. It’s distressing actually.” Another

commented, “This could bring those businesses down to their knees, [relocation] will

devastate their client base.” Thus, there is a strong sympathy for the BIZ business that is

magnified by the “personal interest” in losing a local convenience that is part of the value of

living in the area.

Page 26: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 25

Critically, there is an unprompted sensitivity to the issue of job losses. As one participant put

it, “It’s local people, local families being impacted”. For many, this concern was amplified

when it was put to the group that many of the jobs potentially lost would be blue-collar: “It will

be harder for them to find jobs elsewhere” or “If they’re older, they will never find jobs again”.

There is a clear, implicit recognition of the challenges confronting “displaced” employees in

the very industries covered by the BIZ businesses. This concern and sympathy for these

workers translates into a significant expectation that the State Government would

prioritise efforts to protect their jobs. All participants were vehement that the government

must do something to save these jobs.

Interestingly, participants were given a series of forced choices: redesigning the interchange

to save as many businesses as possible vs a) increasing the cost of the project, b) slowing

down traffic through the interchange and c) increasing the impact on local parkland,

potentially, including the loss of parkland:

• With regard to cost, there is a strong belief that “the project will blow out anyway”, so

why wouldn’t you save these businesses?

• Impacting the speed through the interchange is a clear “non-issue” – many don’t

believe the Link will operate at the assigned speed limit anyway

• Critically, participants were very willing to make a trade-off on parkland to save jobs

and businesses. Both groups were quick to make the point that there is “so much

parkland in the area anyway”. As one participant summed up the sentiment, “I would

sacrifice a park [to save the businesses], we’ve got plenty of parkland.” In both

groups, participants would rattle off the names of local parks – unprompted – as

evidence that they are well supplied on that front. On the battle of priorities of

businesses/jobs vs local parks: businesses/jobs win hands down. This was

even further strengthened when it was specifically suggested that the impacts may

fall on Banksia Park in the area immediately adjacent to the interchange. Many

described this area as “unusable” anyway and others weren’t aware there was even

a public park there.

Overall, the BIZ jobs and businesses are sensitive to the community because:

iii. There is a genuine empathy for the challenges confronting displaced blue-collar

workers in finding work and this, in turn, speaks to an unfairness in the impacts on

the BIZ (i.e. a perception that the most hurt is delivered upon the most vulnerable).

This creates a strong expectation that the State Government will do what it takes to

protect the BIZ workers and their employers; and

Page 27: Submission Cover Sheets - Amazon S3...Maria Nakas Bulleen Art & Garden I Got Wood Raxo Machine Tools Wonder Pies Tony Parissi Bulleen Health and Fitness Japan Foods Trading Pty Ltd

BIZ Group Inc – North East Link EES Submission June 2019 26

iv. They value the services provided by the BIZ businesses and the contribution they

make to local quality of life

Parks and project budgets, by contrast, simply do not carry the same weight.