The forestry industry will create 234 jobs on Kangaroo Island and contribute more than $41 million to its economy annually, according to an economic impact report prepared by EconSearch. Source: Timberbiz
A comparison with other agriculture on the island shows plantation forestry will generate a three-times greater return, more than double the number of jobs, and more than three times the household income per hectare.
Kangaroo Island Plantation Timbers commissioned EconSearch to assess the economic impact of the proposed Smith Bay deep-water wharf on the KI, SA and national economies.
The full report will be available as part of the company’s Environmental Impact Statement, which is being prepared and will be released for public consultation.
The report says forestry will create 163 direct jobs and 71 indirect jobs on the island.
“Some of these numbers are higher than we had previously anticipated. It has been an exhaustive process for EconSearch, using their experience as well as the complex modelling prepared by our Director of Operations Graham Holdaway,” KIPT Managing Director John Sergeant said.
The report finds that while Kangaroo Island has lower unemployment than the rest of SA, it also has a lower average income, a steeper decline in school enrolments, lower building approvals and its population is ageing more quickly.
The total value of KI exports in 2015-16 was $302 million, of which tourism represents $110 million or 36%.
Agriculture exports were worth $106 million and fishing and aquaculture were worth $12 million.
From a much smaller land footprint than other agriculture, forestry will contribute about $60 million in exports.
“There are just under 100 people who are unemployed on Kangaroo Island, and given the high labour force participation rates it is likely that many of the jobs created will be taken by people currently not living on Kangaroo Island,” Mr Sergeant said.
It is likely that at least 60% of the jobs (140 FTE) will go to people who will move to Kangaroo Island. Assuming an average household size of 2.4 persons, this means an increase in population on the Island of around 336, the report says.
“A strong benefit of jobs in the forestry industry is that they will not be seasonal like tourism and agriculture. These are jobs all year round, which will improve the resilience of the local economy,” Mr Sergeant said.
“The indirect jobs will be spread over a wide range of industries, such as retail, services, teaching, medical and government agencies.
“They will create demand for housing, improve the ratepayer base for local government and provide participants for all of the island activities, such as sports clubs and volunteer organisations.”
Jobs in forestry will range from tree-planting, forest and road maintenance to harvesting teams, transport, logistics, administration and materials handling.
Head office functions such as accounting, payroll, IT and environmental management will also be sources of job growth for the island. The construction phase for the Smith Bay wharf is expected to create 22 jobs on Kangaroo Island and 89 total in South Australia.
