MCU14/0106 & OPW15/0001 Compiled Information Request Response

                                                                                  MCU14/0106



Issue –Target Closure
5,400m2 of additional DDS floor space is proposed and has been indicated to be a Target
store. This will likely see the closure of the Target Country (1,360m2) at Noosa Junction
and represent an adverse impact in the order of $4.5M - $5M on Noosa Junction. The
capacity for a centre to relet or reconfigure a large tenancy may be limited.

Information Required
27     Provide comment on the potential impact of the closure of the Target Country on
       Noosa Junction (in favour of Target relocating to an expanded Noosa Civic).
28     Provide comment on the extent to which the Target Country tenancy at Noosa
       Junction could be relet or reconfigured.
29     Demonstrate whether a net community benefit would result from the closure of the
       Target Country at Noosa Junction closed as a result of a new DDS at Noosa Civic.

Issue – Employment Effects
The Retail Needs Assessment estimates direct and indirect employment effects associated
with construction and indirect effects associated with operation utilising input-output
multipliers from 1996-97.       Input-output tables represent inter-industry transactions.
Changes to structural relationships will change these transactions. There has been
significant change in industry structures over the past 15-20 years (e.g. widespread
adoption of internet and email). As such, the estimates based on 1996-97 input-output data
are not applicable. More recent input-output multipliers can be calculated from input-output
tables supporting the National Accounts.

Information Required
30     Amended estimates of direct and indirect employment effects associated with
       construction and operation employment generated from input-output multipliers
       based on more recent National Accounts data.

Issue – 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.

Issue – 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




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