MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                                       Noosa Civic Expansion
                         28 Eenie Creek Road, Noosaville and parts of the road reserves of Hofmann Drive and Walter Hay Drive



            Whilst the multiplier analysis relating to employment effects is only a guide, nonetheless it
            remains the case that:
            (a) the proposed development will create ongoing jobs in the centre;
            (b) new jobs will create further 'spin off’ employment throughout the broader regional and state
                economies due to multiplier effects;
            (c) construction of the proposed development will create construction jobs; and
            (d) construction jobs will create further 'spin off’ employment throughout the broader regional
                and state economies due to multiplier effects for a period of time.

3.17        Expenditure Growth
            “The Retail Needs Assessment includes allowance for real growth in per capita expenditure in
            the order of 1.8% per annum, which is considered high.

            Information Required:
            31   Provide further detailed analysis to support the assumption of real per capita
                 expenditure growth of 1.8% per annum, and the extent to which revising this to, say,
                 1% per annum would impact the outcomes of the retail needs assessment.”
            RESPONSE
            In its Retail Needs Response included as Appendix B to this report, Urbis confirms that an overall
            real growth rate of 1.8% is appropriate in light of historic long term trends and the drivers of retail
            spending growth over time.
            The Retail Needs Assessment adopted a rate of 1.1% for food and 2.4% for non-food. In some
            cases the rate of ‘real’ growth is apparent and in others it is not. The adopted growth rates are
            summarised in Table 1.4 of Urbis’ Retail Needs Response.


3.18        Consumer Travel
            “The Retail Needs Assessment assigns monetary values to travel time and environmental
            benefits associated with reduced trip length and or generation associated with an expanded
            Noosa Civic. There are concerns relating to the application of non-standard parameter values to
            the travel time and travel distance savings. For example, the individual travel time of $28.95 per
            hour is based on the average hourly earnings of employed persons in Queensland. Standardised
            parameter values for the value of an individual’s travel time as commonly used in transport
            evaluations are estimated by Austroads at approximately $15/hour (after adjusting for inflation)
            reflecting the need to balance the value of leisure related time against the value of work related
            time and the fact that not all time savings are can be utilised.
            The Assessment calculates a benefit associated with fuel savings using a retail fuel price as the
            parameter value as opposed to the adjusted resource cost of fuel (i.e fuel price excluding excise
            and GST). Austroads offers a range of vehicle operating cost parameter values for use in
            transport economic assessment that can be adjusted for inflation.

            Information Required:
            32   Amended assessment of consumer related travel time and travel cost benefits
                 utilising standard parameters for the value of travel time and vehicle operating costs
                 set by Austroads.”
            RESPONSE
            Urbis advises that standardised parameter values do not accord with accepted theory and other
            studies relating to the value placed on leisure time. Consequently it is not an approach that ought
            to be adopted, particularly as the values adopted by Austroads are highly conservative and there
            are alternative examples which support the approach adopted in the Retail Needs Assessment.
June 2015                                            Cardno HRP                                                           20