Bega Valley
Economy
What the results tell us for Bega Valley
The fishing fleet at Eden: Fishing is an
important part of Bega Valley's economy
The economy in the early 2000's showed an upswing following a more difficult time in the 1990's. The outlook for industry was good, particularly for business services and manufacturing. Retail was the major employer.
Households were benefiting from local employment and higher incomes.
The reporting period covered the commencement of the Commonwealth's Goods and Services Tax (GST), but as only limited post-2001 data were available, effects can not be gauged in this report.
In the absence of figures for the exact reporting period, we have reported the economic pattern over the decade to 2001, the time of the latest Census figures and a midpoint in the reporting period. The focus is on local content and potential.
A growing economy
Gross Regional Product for Bega Valley Shire rose from $499.3 million in 1991 to $584.4 million in 2001 (in 2001 dollars)—an annual increase of 1.6% (Regional Statistics, NIEIR, 2003). The median annual increase in Gross Regional Product for the local government areas in the Australian Capital Region was 1.7%.
Local employment is good for both the economy and the wellbeing of the resident population. Table 1 shows that since the mid-1990's, local enterprise has returned benefits directly to shire householders by way of jobs and growth in real household incomes (see About the data).
| Composite growth | 1991 | 1996 | 1998 | 2001 |
|---|---|---|---|---|
| Growth* | -1.0% | -1.0% | 1.1% | 1.0% |
*50% of per annum growth in real average household income+ 50% of per annum growth in the proportion of population that is employed; Source: NIEIR (2003) YourPlace
The main industries were, in general terms, business services and manufacturing, followed by tourism and hospitality services (see Table 2). Total value of industry output in 2001 was $1,157.4 million.
| Industry | Value $million |
|---|---|
| Mining | 0 |
| Agricultural | 89.6 |
| Manufacturing | 217.4 |
| Business services | 240.6 |
| Tourism and hospitality services | 100.1 |
| Retail | 97.9 |
| Other output | 294.5 |
| Government/Education | 117.4 |
| Total | 1,157.4 |
Source: NIEIR, YourPlace (2003), Regional Statistics for Bega Valley Shire Council
In recent years, the shire's industry and business development has progressed rapidly in the areas of technology and communications, tourist facilities, the retirement industry, light engineering, boat building and new transport facilities. Commercial fishing based at Eden generates 9000 tonnes of seafood worth $15.5 million each year. Dairy products worth more than $100 million are produced in the Shire, with rapid growth in exports. Significant building projects at the Bega Cheese Limited Cooperatives North Bega site occurred in the shire including a very large packaging and cutting plant. These projects have supported the growth in activity at the Cooperative. Timber and value-added forest products generate $70 million annually (see the Capital Region Development Board website)
Building approvals
Development and building approvals have long been an indicator of economic activity. Growth in the shire in this regard has been steady particularly late in the reporting period. The number of new residential dwellings has continued to grow especially in 2003 and 2004. Residential alterations and additions continued throughout the reporting period to be a large component of building activity in the shire.
The non-residential building sector showed significant growth for the two years compared in Table 3 below. The 2000–04 reporting period as a whole, however, saw sustained growth across the sectors in the non residential areas especially in regard to works at Bega Cheese and with respect to aged-related development projects such as Mariner Park in Tura Beach and Oaks Retirement Village at Bega. Bega Cheese in particular undertook significant building projects in 2000, 2001, 2003 and early in 2004.
| Category | 1991–1992 | 2001–2002 | % Change |
|---|---|---|---|
| No. of new res buildings | 302 | 279 | -7.60% |
| No. of alts/adds to res buildings | 124 | 137 | 10.50% |
| No. of new non-res buildings | 11 | 15 | 36.40% |
| No. of alts/adds to non-res buildings | 7 | 15 | 114.30% |
| Total no. of buildings (res & non-res) | 44 | 446 | 0.50% |
| Total value of residential building $'000 | $32,421 | $49,129 | 51.50% |
| Total value of non-res building $'000 | $3,281 | $21,690 | 561.10% |
| Total value of building (res & non-res) $'000 | $35,702 | $70,819 | 98.40% |
Source: The Australian Capital Region Development Council (2004) p.96
By comparison, the numbers of dwellings approved in the remaining years of the reporting period continued to increase—with 381 development applications approved in 2002–03, 338 approved in 2003–04 and 353 in 2004–05.
Nursing home building projects in Bega and Tura also formed part of the non-residential building growth in the reporting period, as did service club extensions, and renovations at local hospitals. Significant building projects in the aged-care industry were completed in 2000, 2003 and 2004 at the Oaks Retirement Village in Bega and at Mariners Park in Tura Beach.
Local employment
While business services and manufacturing generate most money in the shire, the top five employers in 2001 were retail; accommodation, cafes and restaurants; health and community services; agriculture, forestry and fishing (mostly in agriculture) and manufacturing (Table 4).
| Industry | Males | Females | Persons |
|---|---|---|---|
| Retail Trade | 918 | 1,032 | 1,950 |
| Accommodation, Cafes and Restaurants | 465 | 638 | 1,103 |
| Health and Community Services | 237 | 839 | 1,076 |
| Agriculture, Forestry and Fishing: | 735 | 303 | 1,038 |
| Manufacturing: | 644 | 268 | 912 |
| Education | 240 | 496 | 736 |
| Property and Business Services | 326 | 393 | 719 |
| Construction | 484 | 87 | 571 |
| Wholesale Trade | 260 | 138 | 398 |
| Transport and Storage | 267 | 107 | 374 |
| Government Administration and Defence | 199 | 120 | 319 |
| Personal and Other Services | 159 | 146 | 305 |
| Cultural and Recreational Services | 109 | 74 | 183 |
| Finance and Insurance | 57 | 115 | 172 |
| Communication Services | 70 | 25 | 95 |
| Electricity, Gas and Water Supply | 50 | 8 | 58 |
| Not stated | 26 | 21 | 47 |
| Non-classifiable economic units | 6 | 19 | 25 |
| Mining | 7 | 0 | 7 |
| Total | 5,259 | 4,829 | 10,088 |
Source: Australian Bureau of Statistics (2003) Catalogue No. 2006.0
The Australian Capital Regional Development Council identified a growth of 26.8% in retail employment numbers in the shire in the ten years 1991–2001 (Australian Capital Region Development Council; 2004:96).
Consistent with the types of industry and development that are predominant in the shire, some 82% of the labour force was employed in the private sector in 2001 (Australian Bureau of Statistics (2003) Catalogue No. 2004.0 'Usual Residents Profile').
The consistent growth in the total number of employed persons (shown in Table 5) is attributable mainly to the strong growth in part-time employment in the 20 years to 2001, which offset the fluctuations in the numbers employed fulltime.
| Employment category | 1981 | 1986 | 1991 | 1996 | 2001 |
|---|---|---|---|---|---|
| Employed persons (number) | 7,827 | 8,913 | 10,090 | 10,247 | 11,215 |
| Persons employed full-time (number) | 5,740 | 6,381 | 6,348 | 6,211 | 6,291 |
| Persons employed part-time (number) | 2,087 | 2,533 | 3,165 | 3,776 | 4,565 |
Source. NIEIR (2003), Population Profile for Bega Valley; Note: Data may not add up (see About the data)
The rate of annual growth in the ratio of employed persons to resident population was strongest between the years 1996 and 1998, but still positive at the time of the last Census (see Table 6).
In 2001 some 47 of every 100 working-age residents in Bega Valley Shire were employed (Table 6). This ratio declined from 51 in 1986, but stayed consistent from 1998. The median for the Australian Capital Region was 56. Those not in the workforce include spouses, children, people on some sort of benefit or support such as unemployed, age pensioners, disability pensioners and people on independent incomes.
Numbers in employment in 2001 translate to 36% of the total usual resident population. The median for the Australian Capital Region was 41%.
This figure will be critical over time: the numbers employed per 100 population will reduce as the 'baby boomers' accept early retirement or move through the workforce. Productivity will be largely dependent on those employed in the workforce and the value of their outputs (see also Population). How much of that value is kept in the local economy will also be a critical issue for the long-term sustainability of the community.
The decline in the ratio of employed persons to the resident population (in Table 6) may be indicative of the ageing population and of Bega Valley Shire being one of the 'sea change' councils in the region to attract increasing numbers of retirees, thus advancing 'retirement' as one of the shire's growth industries (see Population).
| Category | 1986 | 1991 | 1996 | 1998 | 2001 |
|---|---|---|---|---|---|
| Percentage annual growth* | -0.9% | -0.8% | 0.3% | 0.2% | |
| Ratio of employed persons to resident population** | 0.51 | 0.48 | 0.46 | 0.47 | 0.47 |
* Growth in ratio of employed persons to resident population; ** 18 to 65 years; Source: NIEIR (2003) YourPlace
Recent drop in unemployment
Consistent with a return to higher levels of employment, the rate of unemployment in the shire dropped in 2001 relative to the high rates of 1986, 1991 and 1996 (Table 7). At 9% in 2001 though, this is still substantially higher than for Australia as a whole at the same time (6.4%) (Australian Bureau of Statistics Year Book Australia 2002).
| Unemployment Category | 1981 | 1986 | 1991 | 1996 | 2001 |
|---|---|---|---|---|---|
| Unemployment rate (%) | 8 | 11 | 13 | 13 | 9 |
| Unemployed persons (number) | 716 | 1,109 | 1,463 | 1,468 | 1,160 |
Source: NIEIR 2003 YourPlace
Income low but growing
Incomes reflect the improvement in local industry output and in recent employment figures. Average household income in 2001 was $36,959, showing estimated annual growth of 1.8% since 1998 (Table 8).
| Category | 1986 | 1991 | 1996 | 1998 | 2001 |
|---|---|---|---|---|---|
| Annual growth in average household income | -1.0% | -1.1% | 1.9% | 1.8% | |
| Average household income, 2001 dollars | 37,614 | 35,736 | 33,763 | 35,042 | 36,959 |
Source: NIEIR (2003) YourPlace, Population Profile
About the data
Table 5—Data may not add up because of the number of employed people who did not state full-time or part-time employment.
Gross regional product (the regional equivalent of the national measure of gross domestic product) does not necessarily have uniform impacts for households in the local government area as employees don't necessarily share in the increased value created by an industry.
A Household Growth indicator of the change in average household income and the change in the percentage of the population that is employed was used by National Economics—the National Institute of Economic and Industry Research— to obtain a more useful measure of economic growth at the local level. This indicator captures the incomes generated through equity participation at the local government level. Calculations are retrospective to the previous Census data; therefore, 1991 change relates back to 1986 figures. Further details are available from National Economics National Institute of Economic and Industry Research, 2003, YourPlace Indicators Technical Documentation, pp23–24.
Australian Bureau of Statistics Catalogue No. 2006.0, Working Population Profile is based on place of employment, excludes overseas visitors and is applicable for Journey to Work Study Areas and aggregates of these.
References
Australian Bureau of Statistics (2003) Catalogue No. 2004.0, Usual Residents Profile
Australian Bureau of Statistics (2003) Catalogue No. 2006.0, Working Population Profile
Australian Bureau of Statistics (2002) Year Book Australia 2002, last updated 11 March 2003
Australian Capital Region Development Council (2004) Working On Our Future Together Canberra, ACT August, page 96
Capital Region Development Board: http://www.capitalregion.org.au/bega_valley.htm last accessed 2 November 2005
National Institute of Economic and Industry Research (2003) State of the Regions 2003—Your Place, Tables: 'Regional Statistics for Bega Valley Shire Council', http://www.nieir.com.au/.