100% FIFO concept slammed by Moranbah investors
The concept of making Queensland's Moranbah a 100% fly-in, fly-out town has angered investors, who argue that it isn’t a flexible option and that there is plenty of accommodation for workers to live in the town.
Moranbah, once an investor favourite town gracing hotspot lists around the country, saw capital gains soaring and high rental yields to the tune of 20% before plummeting in recent times and leaving investors the area struggling.
The area has been the subject of much debate, and has recently been labelled a hotspot again with resources spending expected to be significant.
However, within a new proposal from BMA to expand underground mines and create a new development is a 3,000-room mine camp for all of the construction and operational workforce.
Property Observer was provided with a letter sent to Deputy Premier and Minister for State Development, Infrastructure & Planning Jeff Seeney by a Real Wealth Australia client, who lost a tenant due to forced changes and who is calling out for there not to be an enforced 100% FIFO workforce.
The investor, who had attempted a FIFO lifestyle before choosing to live in Moranbah themselves to be with their family every day, wrote to Seeney that the majority of workers traditionally drive in from Mackay, Rockhampton and other areas.
“There are hard working families in the regions who are financially suffering due to the jobs that are being lost to the region via the down turn and reduced employment opportunities because of FIFO. There are families who have purchased homes that are now worth less than the purchase prices. Some of them need to leave town to secure work and they can't rent out their places. Some people are going bankrupt, honest hard working people who have tried to build up some assets so that they can avoid dependance on government. By approving FIFO you are basically kicking these people in the guts,” the investor wrote.
In the letter, they quoted comments made by Seeney to the ABC.
"I don't believe there are enough opportunities for people to live in Moranbah and that's why we've been working with the Isaac Regional council to develop places like the Belyando estate and we've been prepared to invest into infrastructure," Seeney was reported as saying.
"Since we came to power, we've tried to work with the council to ensure there are extra opportunities provided for people to live locally, but unfortunately we haven't had the co-operation from the council that we would have liked."
Irritated at these claims, the investor pointed to the following:
There are currently 359 Vacant Houses in the communities of Moranbah and Dysart that are affordable and many have been vacant for months
There are 100's of approved development applications in Moranbah / Dysart for new properties which have been stalled due to the mining down turn and the FIFO policies that are being approved. Values have dropped so much that it is no longer viable to continue these developments
That BMA owns a large block of land at the end of Mills Avenue, which during the 2011 mining boom remained untouched, yet BMA claimed there was a "shortage of accommodation" in the town which helped them to fuel their debate for 100% FIFO at Caval Ridge and Daunia
Council wants to grow the town and have always been accommodating for developers and investors in the region. Their commitment to the Belyando Estate is hard evidence that they want to accommodate more people.
Isaac Regional Council’s Mayor Anne Baker is against the proposal for a 100% FIFO workforce in the area, saying that it threatens the wealth of all of regional Queensland.
"It is reasonable to represent our residents and stand up when we facing the long-term failure of our regional communities, and it's bigger than that, no one in Central Queensland is safe, particularly Mackay and Rockhampton,” said Baker.
"If the Queensland government condones 100% forced FIFO work practices at Red Hill they are effectively allowing BMA to cut jobs in the region and lay the foundation for regional decline."
Baker said that the council is “not naïve enough” to expect the full amount of employment numbers to be sourced locally, but said that a forced 100% FIFO threatens all of regional Queensland.
"As I have said before, our vital and well established mining regions must be strong, healthy communities. Our communities need population and economic growth, small businesses need confidence and we need community sustainability,” she said.
The median price in Moranbah is currently $382,500 for a house, with a median weekly asking rent of $500, according to RP Data.
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