Gold Coast Waterways in Crisis

by Jeni Bone on 5 May 2008 A dredging solution is no closer for the Gold Coast, which needs to come up with $18m for remediation of its waterways, or risk losing $220m in tourism and recreational boating revenue, as well as falling property values in the next 20 years.

Following the third and final meeting of the stakeholders in the 'Gold Coast Waterways Access Needs Study', the findings will be tabled by consultants GHD and channeled into a broader Queensland Marine Infrastructure study.

After 12 months vigorous debate and study, there is still no time line on the implementation of sorely-needed dredging and reclamation of the Gold Coast’s canals and waterways, leading some participants to lament that by the time something is eventually resolved, it will all be too late for the tourism and recreational industries of the region.

Those involved in discussions were the Gold Coast City Council, Qld Small Craft Council, Qld Charter Vessel Association, Marine Industry Association, Volunteer Marine Rescue, Qld Transport, Marine Safety Qld and Marine Gold Coast and Marine Qld.

The aim of the study was to identify channel dredging needs within the district between Coochiemudlo Island in Moreton Bay and Southport Yacht Club on the Broadwater.

It was introduced last year by the former Minister for Transport, Paul Lucas with the intention of presenting it to Cabinet before December 2007.

It is now May 2008 and stakeholders are no closer to formulating a plan for prioritizing the areas, estimating costs and devising recommended revenue raising options for a 20-year dredging proposal, which has an approximate price tag of $40m over that time.

But due to delays, extreme buck passing and complacency by government, there is no date in sight for work to commence. Some of the main proponents, who wished to speak anonymously, estimate there will be severe economic penalties to the Gold Coast of around $220m in lost earnings over the next 20 years.

The insurance industry lent its voice to the dredging debate, one company presenting figures that show shoaling and damage to boats currently costs $1.3m in payouts per annum, or around $5,000 to $10,000 each claim, running at one or two claims per week.

Industry figures estimate the total insurance payouts stand at $4m each year from incidents on Gold Coast waterways.

Gold Coast Tourism provided statistics on visitation that indicate at least 30% of visitors spend time on the Broadwater and waterways, spending around $97 per person per day.

The property industry showed that there are 7,000 waterfront properties in the vicinity of the Gold Coast waterways, many of which are used for boating, and further silting will lead to a dramatic decline in values and demand for such properties, as well as an increase in rates.

Dredging could prove a boon for the region, from the government down to private contractors. Said one member of the committee: 'The Chinese have sent delegations here who mentioned they are looking for sand for construction and industry. We need to have the foresight of our sister-city Dubai and get an action plan together to take advantage of these offers.'

The state government made its position patently clear, said one member of the discussion panel. It is not looking to provide any extra funding.

'The government at every level does not take the marine industry in south-east Queensland seriously. They may speak about its value and economic potential, but on the Waterways plan, there’s no urgency.'

From the previous meeting, the estimates placed the budget required for immediate reparation works at $15m, but that did not take in to account the Seaway, which requires some $2m. Thus, the total forecast for immediate response is around $17m, and subsequent maintenance each year of around $2m.

At the latest meeting, stakeholders made a 'wish list', an ideal plan for remediation of the Gold Coast’s waterways.

First on the list and termed 'Priority Dredging Year 1', are the South Channel Seaway, North Channel, Coomera River, Nerang Rover, Labrador Channel, South of Wave Break Island and West of Crab Island – in all a $6.5m project, including $3.9m in maintenance dredging.

Year 2 would see the Lower Reaches of the Coomera River and North and South arms of the Main Channel taken care of, at a cost of about $4.8m. Year 3, Main Channel, Eastern Channel and additional maintenance costing around $6.1m.

The three-year scheme would be budgeted at $18m and is just 'catch up work', according to one committee member, who points out that it has been nine years since any significant dredging work has been carried out. Thereafter, it would cost $2.8m in annual maintenance.

The next and most important aspect of discussions covered the three potential revenue streams: Queensland Transport via registration and licensing, the Department of Natural Resources from income gained from seabed leases, and the EPA, derived from building approvals and dredging royalties.

It’s estimated the 2007/8 revenues from the Department of Transport stand at $300m, $3m of that from the Gold Coast. There is also the $545,000 in revenue from the Marina Levy Fee, which was originally earmarked for dredging when it was introduced 18 years ago by the Gold Coast Waterways Authority.

In terms of additional marina berths planned for the Gold Coast in the next few years, there are more than 1600 on the drawing board. Some suggest an increase in the marina berth levy and a contribution from the Gold Coast City Council which could raise as much as $3.2-$3.5m per annum.

Other ideas included a contribution from the marine insurance industry, a $5 increase in annual recreational and commercial boating fees and a surcharge on water based public transport, as in Sydney – if the Gold Coast ferry service gets the green light through bureaucracy.

According to an industry pundit, closely involved in the Waterways plan, John Mickel, the Qld Minister for Transport, Trade, Employment and Industrial Relations, 'has no interest in public transport options for the Gold Coast'.

'Even though a ferry service is likely to take 1600 cars off our roads, he has expressed no interest in fast-tracking it. We are just dealing with bureaucrats who do not understand the needs of our industry.

'John Goddard, general manager of Southport Yacht Club, is quite right when he says it’s just a matter of time. In five years, it will be very clear the serious impact – economic and cultural – of not dealing with these issues now.'