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EUROBODALLA SHIRE Rural Opportunities and Constraints Volume 1 Report April 2014

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Page 1: Rural Opportunities and Constraints...Rural Opportunities and Constraints Volume 1 Report RMCG Consultants for Business, Communities & Environment Page 1 Glossary This glossary provides

EUROBODALLA SHIRE

Rural Opportunities and Constraints

Volume 1 Report

April 2014

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Document Review & Authorisation Job Number: 22-E-01 Document Version

Final/ Draft

Date Author Reviewed By

Checked by BUG

Release Approved By

Issued to Copies Comments

1.0 Draft 24.10.13 S McGuinness - S McGuinness Eurobodalla 1(e) For comment

2.0 Draft 24.2.2014 S McGuinness - S McGuinness Eurobodalla 1(e) For comment

3.0 Draft V2 4.3.2014 S McGuinness S McGuinness - S McGuinness Eurobodalla 1(e) For comment

4.0 Draft V3 4.3.2014 S McGuinness S McGuinness - S McGuinness Eurobodalla 1(e) For distribution

5.0 Final 9.3.2014 S McGuinness S McGuinness - S McGuinness Eurobodalla 1(e) For comment

6.0 Final 23.3.2014 S McGuinness S McGuinness S McGuinness Eurobodalla 1(e)

Note: (e) after number of copies indicates electronic distribution

International Standards Certification

QAC/R61//0611

Disclaimer: This report has been prepared in accordance with the scope of services described in the contract or agreement between RMCG and the Client. Any findings, conclusions or recommendations only apply to the aforementioned circumstances and no greater reliance should be assumed or drawn by the Client. Furthermore, the report has been prepared solely for use by the Client and RMCG accepts no responsibility for its use by other parties.

Contact Details: Name: Shelley McGuinness Title: Senior Consultant Address: Suite 1, 357 Camberwell Road, Camberwell 3124 P: (03) 9882 2670 F: (03) 9882 0996 M: 0408 194 993 E: [email protected]

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Rural Opportunities and Constraints Volume 1 Report

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Table of Contents

Glossary 1  

1   Introduction 2  1.1   Background ............................................................................................................................. 2  1.2   Study purpose and scope ........................................................................................................ 2  1.3   Study approach ....................................................................................................................... 2  1.4   This report ............................................................................................................................... 3  

2   Eurobodalla Rural Economy 4  2.1   Overview .................................................................................................................................. 4  2.2   Key economic facts ................................................................................................................. 5  2.3   Policy context .......................................................................................................................... 5  2.4   Stakeholder and community views .......................................................................................... 5  2.5   Opportunities and constraints .................................................................................................. 6  2.6   Principles for policy direction ................................................................................................... 6  

3   Legislative and Policy Context 7  3.1   Overview .................................................................................................................................. 7  

3.1.1   Deferred matters ........................................................................................................... 8  3.2   Community and stakeholder views .......................................................................................... 8  3.3   Opportunities and constraints .................................................................................................. 8  3.4   Principles for policy direction ................................................................................................... 8  

4   Agricultural Industries and Farm Types 10  4.1   Overview ................................................................................................................................ 10  4.2   Industries ............................................................................................................................... 12  

4.2.1   Dairy ........................................................................................................................... 12  4.2.2   Beef ............................................................................................................................ 13  4.2.3   Horticulture and other agriculture ............................................................................... 14  

4.3   Holding size ........................................................................................................................... 14  4.4   Farm types ............................................................................................................................. 15  

4.4.1   Commercial farming ................................................................................................... 15  4.4.2   Sub-commercial or lifestyle farming ........................................................................... 16  

4.5   Policy context ........................................................................................................................ 17  4.6   Community and stakeholder views ........................................................................................ 17  4.7   Opportunities and constraints ................................................................................................ 17  4.8   Principles for policy direction ................................................................................................. 18  

5   Aquaculture 20  5.1   Overview ................................................................................................................................ 20  

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5.2   Policy context ........................................................................................................................ 21  5.3   Community and stakeholder views ........................................................................................ 21  5.4   Opportunities and constraints ................................................................................................ 21  5.5   Principles for policy direction ................................................................................................. 21  

6   Rural Tourism 23  6.1   Overview ................................................................................................................................ 23  6.2   Policy context ........................................................................................................................ 24  6.3   Community and stakeholder views ........................................................................................ 24  6.4   Opportunities and Constraints ............................................................................................... 25  6.5   Principles for policy direction ................................................................................................. 25  

7   Forestry 27  7.1   Timber ................................................................................................................................... 27  7.2   Specialty timbers ................................................................................................................... 27  7.3   Biofuels .................................................................................................................................. 27  7.4   Policy context ........................................................................................................................ 28  7.5   Community and stakeholder views ........................................................................................ 28  7.6   Opportunities and constraints ................................................................................................ 28  7.7   Principles for policy direction ................................................................................................. 29  

8   Other Rural Industries 30  8.1   Extractive industries .............................................................................................................. 30  8.2   Policy context ........................................................................................................................ 30  

8.2.1   Opportunities and constraints ..................................................................................... 30  8.2.2   Principles for policy direction ...................................................................................... 31  

8.3   Equine industry ...................................................................................................................... 31  8.3.1   Policy context ............................................................................................................. 31  8.3.2   Community and stakeholder views ............................................................................. 31  8.3.3   Opportunities and constraints ..................................................................................... 32  8.3.4   Principles for policy direction ...................................................................................... 32  

9   Rural Living 33  9.1   Population .............................................................................................................................. 33  9.2   Rural villages ......................................................................................................................... 33  9.3   Rural residential land ............................................................................................................. 33  9.4   Policy context ........................................................................................................................ 34  9.5   Community and stakeholder views ........................................................................................ 34  9.6   Opportunities and constraints ................................................................................................ 34  9.7   Principles for policy direction ................................................................................................. 35  

10   Environmental Values 36  

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10.1   Overview ............................................................................................................................... 36  10.2   Areas of high conservation value ......................................................................................... 36  10.3   Scenic values and landscapes ............................................................................................. 38  10.4   Policy context ........................................................................................................................ 38  10.5   Community and stakeholder views ....................................................................................... 39  10.6   Opportunities and constraints ............................................................................................... 39  10.7   Principles for policy direction ................................................................................................ 39  

11  Natural Hazards 40  11.1   Coastal acid sulfate soils ...................................................................................................... 40  11.2   Coastal hazard and flooding ................................................................................................. 40  11.3   Climate change ..................................................................................................................... 40  11.4   Bushfire hazard ..................................................................................................................... 41  11.5   Erosion .................................................................................................................................. 41  11.6   Land management issues .................................................................................................... 41  11.7   Policy context ........................................................................................................................ 41  11.8   Community and stakeholder views ....................................................................................... 41  11.9   Opportunities and constraints ............................................................................................... 42  11.10  Principles for policy direction ................................................................................................ 42  

Appendix 1   Legislative and Policy Context 43  Overview ......................................................................................................................................... 43  Statutory Documents ...................................................................................................................... 43  

Commonwealth ..................................................................................................................... 43  State legislation .................................................................................................................... 43  State Environment Planning Policies .................................................................................... 43  Local Directions .................................................................................................................... 46  Eurobodalla Local Environmental Plan ................................................................................. 46  

Non-statutory documents ................................................................................................................ 47  Commonwealth strategies .................................................................................................... 47  State strategies and policy ................................................................................................... 47  Regional strategies ............................................................................................................... 49  Local strategies ..................................................................................................................... 50  

Implications for this study ................................................................................................................ 53  

Appendix 2:   Regionally significant impacts of climate change 54  

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Glossary This glossary provides definitions for terms used frequently throughout this report. Other land use terms used in this report are as defined in the Eurobodalla Local Environmental Plans.

Commercial farm Farm business operated on a full time basis with the farm the primary source of income, commonly intergenerational and have business models based on withstanding risk such as cycles in commodity prices, product demand and the weather. Wealth is typically generated through capital appreciation.

Lifestyle farm, hobby farm, sub-commercial farm

Sub commercial farms operated on a part-time basis with a heavy reliance on off-farm income. In the agricultural industry, they play a minor role in terms of production and value adding, but are significant because of their number.

Rural living / rural residential land

Rural land used primarily for a residential purpose

Niche agriculture Production of a specialty product or service for a limited segment of the market including variations on a common product

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1 Introduction 1.1 Background

Eurobodalla Shire is developing a Rural Lands Strategy to set a clear vision and policy framework for the Shire’s rural areas. The Strategy will establish new planning guidelines for appropriately facilitating and regulating rural land use and development in the context of changing agricultural practices, environmental management and continued rural land use and development. The Rural Lands Strategy will inform a review of the Local Environmental Plan (LEP).

1.2 Study purpose and scope To inform the development of the Rural Lands Strategy, this Rural Opportunities and Constraints Study has been commissioned by Eurobodalla Shire Council to provide an integrated assessment of the economic and natural resource management issues relating to Eurobodalla’s rural lands.

The objectives of the Rural Opportunities and Constraints Study include:

1. A comprehensive analysis of:

§ The current legislative and policy framework as it applies to rural land in Eurobodalla

§ The Shire’s agricultural and resource lands

§ The current and forecast economic opportunities

§ The natural resource management issues of the Eurobodalla Shire’s rural lands.

2. Integrated mapping of agricultural and environmental values and hazards, based on the above analysis and any necessary ground-truthing.

3. An analysis of the mapping to identify the economic potential of the identified agricultural and resource lands, having regard to the environmental assets and constraints, and the infrastructure requirements to realise the economic potential.

4. The identification of principles for developing integrated economic and natural resource management policy directions (as part of the next phase of the Rural Lands Strategy project) to achieve sustainable rural growth over a 20 year time frame.

1.3 Study approach The project was undertaken in a number of sequential steps:

§ A desktop review of the current rural land use circumstances in Eurobodalla for stakeholder comment and feedback

§ Data analysis

§ Mapping in collaboration with the Office of Environment and Heritage

§ Preparation of a draft Rural Opportunities and Constraints Report.

The Rural Lands Strategy Steering Committee provided local landowner and agricultural industry insights to the study. Wider consultation was also undertaken through a workshop of stakeholders from a range of rural industries and targeted consultation.

Prior to this study, Eurobodalla Shire undertook consultation on its Rural Lands Issues Paper. The feedback on the paper was considered in the preparation of this draft Rural Opportunities and Constraints report.

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1.4 This report The findings of the Rural Opportunities and Constraints study are reported in two volumes.

This Rural Opportunities and Constraints Volume 1 report documents:

§ The findings of a desktop review and consultation with key stakeholders including state agencies and the Rural Lands Strategy Steering Committee with regard the current rural land use circumstances in Eurobodalla

§ Community and stakeholder feedback on the Eurobodalla Shire Rural Lands Issues Paper

§ Further research and analysis

§ Principles for developing policy directions in the next phase of the Rural Lands Strategy project.

The Rural Opportunities and Constraints Volume 2 report comprises mapping of agricultural and environmental values across the Shire’s rural land. The mapping will be used in conjunction with principles outlined in Volume 1 to develop policy directions for rural areas in the Eurobodalla Shire as part of the next stage of the Rural Lands Strategy project.

The maps are, by their size, not easy to read. Therefore, maps are also provided in pdf form on a CD and on Council’s website for high quality viewing and the ability to zoom in to view smaller areas.

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2 Eurobodalla Rural Economy 2.1 Overview

The Eurobodalla Shire is located on the south coast of New South Wales. The main population and commercial centres are Batemans Bay, Moruya and Narooma. Rural land is essentially non-urban land and for the purposes of this study is confined to private rural land and does not include National Parks, state forests and community lands (Figure 2-1).

National parks and state forests cover around 72% of the total land area of Eurobodalla. Rural land in private ownership is used for agriculture, private forestry and rural lifestyle and makes up approximately 23% of the Shire.

Figure 2-1 Eurobodalla Shire, highlighting in yellow land considered in this Rural Opportunities and Constraints Study

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2.2 Key economic facts The gross regional product of Eurobodalla is around $1.2 billion and local jobs total around 13,500, with retail trade, construction, accommodation and food services the largest industries1. Most businesses in Eurobodalla employ four people or less and just over 100 businesses employ more than 20 people. The dependence on construction, tourism and small businesses makes the Shire vulnerable to economic and seasonal fluctuations. Economic diversification will be important for the long term sustainability and resilience of the Eurobodalla economy2,3.

The economic importance of productive uses of rural land in Eurobodalla including agriculture and forestry has declined as has employment and the number of businesses engaged in these sectors. In 2011, Agriculture, Forestry and Fishing accounted for 2.7 % of Eurobodalla workers down from 3.2% in 2006 and 4.6% in 2001, however the gross value of production increased between 2006 and 2011.

2.3 Policy context The South East New South Wales Action Plan, Far South Coast Strategic Regional Plan4 South Coast Regional Strategy and Eurobodalla Economic Development Strategy are the key strategic policy documents that outline directions and actions to support economic development and diversification in the region including attracting and supporting key growth sectors such as tourism, renewable energy and fresh food production.

2.4 Stakeholder and community views Feedback on the ESC Rural Lands Issues Paper and views expressed during consultation on this Study indicates that there is general agreement on the long term vision for Eurobodalla’s rural areas as set out in the Rural Land Strategy Project Management Plan, i.e.

§ Facilitate the ongoing rural use of agricultural and resource lands

§ Provide for appropriate economic and development opportunities

§ Identify and manage values and hazards.

However, it is apparent that there is strong divergence in views as to how this vision should be achieved.

Ideas for economic diversification on rural lands such as using biofuels for power generation and tourism linked to agriculture and the natural features of Eurobodalla were identified during the consultation.

1 http://economy.id.com.au/eurobodalla Sourced 13.6.2013 2 Eurobodalla Shire (2006) Eurobodalla Settlement Strategy 2006 - 2031 3 Eurobodalla Shire (2009) Economic Development Strategy 4 Regional Development Australia – Far South Coast (2013) Strategic Regional Plan 2013 - 2018

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2.5 Opportunities and constraints Opportunities § Future infrastructure improvements, such as the rollout of National Broadband Network,

will enable local businesses to improve service provision and encourage new businesses to relocate to Eurobodalla

§ Future improvements to air and road transport infrastructure will improve travel times and access to significant markets

§ Potential for ongoing steady population growth and migration of new skills

§ Potential to build upon tourism and industry branding in the local area and wider region

§ Protection of limited agricultural land for primary production

§ Reduce conflict possibilities between commercial agriculture and urban/rural lifestyle uses.

Constraints § Decline in the critical mass of agricultural land and businesses important for industry

sustainability

§ Costs associated with significant infrastructure improvements

§ Divergence in views on the use and development of rural land with resulting tensions within the Eurobodalla community.

2.6 Principles for policy direction Principle In developing policy directions as part of the next phase of the Rural Lands Strategy project, an agreed, expanded and more detailed vision for the future of rural lands in Eurobodalla should be developed.

Rationale Tourism and construction are the key economic drivers in Eurobodalla while traditional strengths in agriculture and forestry have significantly decreased. Economic diversification, including attracting new industries and diversification of existing industries is important to build resilience within the Eurobodalla Shire economy and provide stable employment opportunities. The current vision, as outlined above, does not provide sufficient detailed direction for the Shire’s rural lands or respond to imperatives for economic diversification as well as changing and divergent community views.

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3 Legislative and Policy Context 3.1 Overview

Federal, state and local legislation, policy and strategies set out a comprehensive framework for considering the future use and development of rural land in Eurobodalla. A detailed review of the policy and strategic context for the Shire’s rural lands is provided in Appendix 1.

In developing its Rural Lands Strategy, Eurobodalla Shire is required to comply with Federal, State and regional legislation and statutory instruments. It is also required to consider the directions of non-statutory strategies and guidelines. Table 3-1 summarises the main statutory and non-statutory documents that provide the legislative and policy context for Eurobodalla’s rural lands.

Table 3-1: Statutory and non-statutory documents

Statutory Documents Non Statutory Documents

Commonwealth

Environment Protection and Biodiversity Act, 1999 National Food Plan

State

Environmental Planning and Assessment Act, 1979 Threatened Species Conservation Act, 1995

Coastal Protection Act 1979 Native Vegetation Act 1993 Fisheries Management Act, 1994

State Environment Planning Policies: 14 Coastal Wetlands 26 Littoral rainforests

30 Intensive agriculture 44 Koala habitat protection 62 Sustainable agriculture

71 Coastal protection Rural lands Mining, Petroleum and Extractive Industries

Local Planning Directions (EP&A Act) Mining, Petroleum and Extractive Industries Oyster aquaculture

Coastal protection Heritage conservation Acid sulphate soils

Flood prone land Planning for Bushfire Protection Implementation of Regional Strategies

NSW 2021 - NSW State Plan South East New South Wales Action Plan

Strategic Regional Land Use Policy NSW Primary Industries Policy – Maintaining Land for Agricultural Industries NSW Tourism Strategy

Regional

South Coast Regional Strategy

South Coast Regional Conservation Plan

Southern Rivers Catchment Action Plan

South East Food Plan

Local

Local Environmental Plan

Development Control Plans

Economic Development Strategy

Eurobodalla Settlement Strategy

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3.1.1 Deferred matters The 2012 LEP covers the majority of land in Eurobodalla. Around 11% of the Shire (46.5% of private rural land) was deferred from the 2012 LEP and this land remains zoned rural under the Rural Local Environmental Plan 1987.

3.2 Community and stakeholder views There is a view amongst some stakeholders and members of the community that there is ‘too much’ regulation, which is a barrier to rural industry development and stifling enthusiasm and innovation due to:

§ The time and costs to comply with regulation

§ Difficulty in understanding the roles and responsibilities of the various statutory authorities

§ Difficulty in navigating the various procedures and processes required to respond to legislation and regulations

§ Preventing agricultural enterprises from changing and diversifying.

There was also a view that more legal support was required to protect the ‘right to farm’ and prevent conflict between agricultural and non-agricultural neighbours. For example, representatives of the aquaculture industry commented that statutory tools providing protection of oyster production areas were very effective in managing environmental risks to the industry.

The exhibition of the draft LEP generated considerable community concern and debate regarding the appropriate zoning of land identified as having high conservation values in the South Coast Regional Conservation Plan 5as well as the data that underpinned the LEP maps and overlays. Volume 2 of this report includes more recent and verified mapping of environmental values.

3.3 Opportunities and constraints Opportunities

§ Potential for improved flexibility and increased opportunities through review of current policy context

§ Development of the Rural Land Strategy based on updated and verified mapping of environmental values.

Constraints

§ Existing legislation can be complex and may inhibit expansion of or change in agricultural activities

§ Costs associated with expanding, changing or diversifying agricultural enterprises, where approvals are required.

3.4 Principles for policy direction Principles The development of policy directions for the future of rural lands in Eurobodalla should comply with relevant statutory requirements, be consistent with the relevant non-statutory plans and guidelines and applied in a manner that supports the vision for the future of rural lands in Eurobodalla.

5 South Coast Regional Conservation Plan (2010) Department of Environment, Climate Change and Water

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Where any statutory requirements are identified as a barrier to achieving the vision for the future of rural lands in Eurobodalla, Council and the community should advocate for appropriate changes to statutory instruments.

Rationale Eurobodalla Shire is required to prepare a Rural Land Strategy detailing land use and development controls consistent with the Federal, State and regional policy context. It will be important for community confidence and acceptance of the Strategy directions that there is an understanding of which components of the Strategy are statutory requirements and the components over which Eurobodalla Shire has discretion.

During development of the Rural Lands Strategy, opportunities should be taken to improve community and stakeholder understanding of the range of statutory instruments with which Council and the community must comply, identify those instruments that are a barrier to achieving the vision for the Shire’s rural lands and where appropriate advocate for changes.

Council could consider supporting programs to assist rural businesses understand and comply with the regulatory framework such as small business training programs or advisory services to assist new businesses understand regulatory requirements and help to set up compliance and reporting systems.

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4 Agricultural Industries and Farm Types 4.1 Overview

Gross value of agricultural production (not including aquaculture and fisheries) in Eurobodalla was worth around $20 million in 20116 up from around $12 million in 200610 and $11 million in 20017. This represents around 0.2% of the NSW gross value of agricultural production8.

The milk and meat commodity groups are the largest by gross value (Figure 4-1). Most meat production comes from cattle. Horticulture includes a mix of orchard fruit, turf production, vegetables and berries.

While the value of production increased, the total number of agricultural businesses fell in Eurobodalla between 2006 and 2011. During the same period there was a reduction in the number of businesses generating less than $350,000 and an increase in businesses generating more than $350,000 (Figure 4-2). This indicates an improvement in efficiency of farm businesses and amalgamation of farm business consistent with the Australian wide trend9 of increase in average farm size with respect to both physical and economic size.

Concentration of output in Eurobodalla is also consistent with the wider observed trend of fewer farms accounting for a larger proportion of total farm output. In Eurobodalla, there are a large number of small farm businesses (as measured by the estimated value of agricultural operations) that in total generate significantly less value of farm output compared to larger farm businesses (Figure 4-3).

Most processing and manufacturing of agricultural produce takes place outside the Shire. Existing processors within Eurobodalla include an abattoir and cheese manufacturing. Given the scale of primary production in the Shire, it is likely that processing and manufacturing in the future will be of niche and tourism related products.

Figure 4-1: Gross value of agricultural production of Eurobodalla commodities10

6 Note: a detailed agricultural census is undertaken every five years. The data from the most recent census in 2011 has been used in this report. 7 URS (2003) Agricultural Diversification Project – Southern: Current Situation for Agriculture in South Coast 8 ABARES (2013) Agriculture, Fisheries and Forestry in the Capital Region of New South Wales, 2013 9 Productivity Commission (2005) Trends in Australian Agriculture 10 Australian Bureau of Statistics 2011 AgCensus

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Figure 4-2 Range of agricultural business size by estimated value of agricultural operations10

Figure 4-3 Distribution of farms by estimated value of agricultural operations10

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4.2 Industries

4.2.1 Dairy In terms of economic value, the dairy industry is the most significant agricultural industry in Eurobodalla, with the gross value of milk production valued at around $11 million in 201110. This represents around 2% of the value of milk produced in NSW. The majority of milk is processed outside the Shire in Nowra and Bega. There is also on farm processing of specialty dairy products, including cheese, in Tilba and Bodalla.

The number of dairy farms has decreased over time, with less than 20 participating in the last AgCensus in 2011. However, Eurobodalla dairy farms are part of a wider dairy region that includes dairy farms in Eurobodalla and neighbouring municipalities of Bega and Shoalhaven. Together these municipalities produced around $72m of milk in 2011 for the fresh milk and dairy produce market11.

The profile of dairy business size in Eurobodalla is typical of the dairy industry (Figure 4-4) with most businesses falling within the medium size range ($350,000 - $1 million) and fewer large (>$1 million) businesses.

Figure 4-4 Size (by estimated value of agricultural operations) of dairy businesses in Eurobodalla10

The results of the National Dairy Farmer Survey12 noted that central and south coast NSW has more dairy farmers unable to expand their business than any other part of the country, citing milk price (46% of respondents), lack of profit (31%) and the price or availability of land (22%) as the main factors limiting their ability to grow their business. Other challenges for the dairy industry include adapting production systems to climate change and increasing energy costs.

It was noted through the consultation that some businesses are addressing these issues by developing vertically integrated businesses, i.e. produce their own milk, process it into a range of products and market it under their own brand, and may also have a tourism

11 Australian Bureau of Statistics, AgStats 2011 provided by Department of Primary Industry 12 Reported in Dairy Situation and Outlook 2013, Dairy Australia

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component to the venture. Land leasing is also being used as a strategy to expand property size as an alternative to land purchase.

Dairy in Eurobodalla is focused in the southern parts of the Shire between Moruya and Narooma. This area is also noted for its rural amenity, attractive villages and proximity to the coast and is very attractive to those pursuing a rural lifestyle. It is important that land suited to agricultural production is clearly identified for agricultural uses and separated from conflicting uses, particularly rural residential and urban settlement. This can assist in avoiding speculative property pricing and provide opportunities for agricultural businesses to expand or flexibly adapt to changing markets and economies.

4.2.2 Beef Meat production, primarily beef is also important in Eurobodalla, generating around $7 million in gross value of production in 2011 representing around 2% of the value of beef produced in NSW. Saleyards are located in Moruya and Bega. A sale is held at the Moruya yards every month with a total of 660 head of cattle passing through the yards in 2011-12, 626 in 2012-13 and 377 in 2013 to the end of January 201413.

Typical of the beef industry in Australian southern states, most beef farms in Eurobodalla are considered small or lifestyle farms, generating less than $100,000 per annum (Figure 4-5). This would include retirees, ex-dairy farmers and lifestyle businesses supported by off farm income. Increasing land values will be a significant impediment to commercial beef businesses looking to expand their operations, particularly those along the coast and in the near hinterland. As noted above in relation to the dairy industry, ensuring land suited to agricultural production is clearly identified for agricultural use will be important to avoid speculative land pricing and provide agricultural business with expansion opportunities.

Figure 4-5 Size of beef businesses (by estimated value of agricultural operations) in Eurobodalla10

13 Pers comm. (2013) R Addison, Property Manager Eurobodalla Shire

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4.2.3 Horticulture and other agriculture Other agricultural businesses in Eurobodalla comprise a mix of horticulture, including vegetables (asparagus, pumpkins, capsicum, tomatoes, carrots, broccoli, onions, beans) and fruit production (nectarines, plums, apples, citrus, berries), flowers and plants for nurseries, and niche products such as venison and goats. Most of these are small in terms of the estimated value of agricultural operations and often there are only one or two businesses in each commodity group.

Horticulture is focused on high quality soils in river valleys that have access to water for irrigation. There is some opportunity for expansion of horticulture in these areas.

Other forms of agricultural production, not well represented in Eurobodalla, include intensive animal production and glasshouse horticulture. These are high value industries that may be viable alternatives to traditional industries on smaller farms. Due to the potential for offsite impacts from these industries, particularly odour and noise, they generally require a buffer from other sensitive land uses such as neighbours and commercial activities, but can be compatible with some industrial uses. They also require higher standards of infrastructure such as a secure and reliable source of high quality water, a reliable supply of three-phase power and access to labour.

4.3 Holding size An analysis of holding sizes on private rural land in Eurobodalla found that:

§ The majority of holdings are less than 10 ha in size

§ A large proportion of the total area of private land is held in a small number of larger holdings.

Figure 4-6 shows the range of holding sizes on private rural land in Eurobodalla. The number of holdings in a particular size range is shown in red text and the total area of holdings in the size range is shown in blue.

There are over 5,500 holdings less than 2ha in area. In most circumstances these will be rural residential properties i.e. used primarily for a residential purpose and have very limited opportunities for a commercial agricultural use.

There are around 1,800 holdings between 5 ha and 50 ha in size. These holdings are likely to include a mix of uses ranging from rural residential through to commercial agriculture. The capability of these holdings to support commercial agriculture in the long term will be influenced by a number of factors including the soil type, availability of water, presence of biodiversity and proximity to agricultural infrastructure such as processing and storage facilities and road networks.

There is an opportunity through the Rural Land Strategy to assess and review in greater detail the attributes of these small holdings and confirm if they have a strong future for commercial agriculture or if there are preferred alternative uses.

There are around 280 holdings greater than 50ha in size. Larger holdings are most suited to the broadacre agriculture that underpins agricultural production in Eurobodalla. There is an opportunity through the Rural Land Strategy to ensure that larger holdings do not become fragmented and provide long term security for the growth and expansion of these industries.

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Figure 4-6 Range of holding sizes on private rural land in Eurobodalla

4.4 Farm types

4.4.1 Commercial farming There are two broad categories of farms in Eurobodalla: Commercial farms and sub-commercial farms. There can be overlap between the two categories, and individual businesses may move between the two categories. The purpose of this discussion is not to elevate a particular category over another, but to clarify the role that each plays in the Eurobodalla economy and community and how these may be considered in the Rural Land Strategy.

Commercial farms are operated on a full time basis, though increasingly, farm income is supplemented by off farm income. While diverse in scale, sophistication and industry type, commercial farms are commonly intergenerational and have business models based on withstanding risk such as cycles in commodity prices, product demand and the weather. Wealth is typically generated through capital appreciation such as in land value, capital improvements, land purchase and reinvestment of profit. Business plans for commercial farms are therefore generally based on long term investment decisions.

Consultation on the Rural Lands Issues Paper and through this study highlighted a number of issues facing commercial farms including:

§ Succession planning. Significant capital is required by the next generation to buy out retiring parents that have their ‘superannuation’ tied up in the value of the farm. The farm may not be able to generate sufficient profit to support more than one family or service increased debt levels.

§ Scale. Declining terms of trade requires that farm businesses increase business scale to generate the same level of income. This can be achieved through increasing the farm acreage or by increasing the intensity of production e.g. moving from broadacre grazing to feedlot production of cattle. Increasing scale requires a significant injection of capital and many farm businesses are not sufficiently profitable to service the associated debt.

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These issues have long been associated with agriculture. Some farm businesses have been able to transition their operations to address succession and scale issues. In Eurobodalla, there are examples of traditional milk producing dairy businesses developing vertically integrated operations that includes processing, branding and direct marketing of product.

Inevitably though some farm businesses exit the industry, seek to subdivide land to generate capital or supplement farm income with off farm income. While these are important and significant issues facing the agricultural industry, it is not an objective of the Environment and Planning and Assessment Act or the purpose of an LEP to resolve financial matters of an individual business or industry. The LEP can support succession and farm transition by:

§ Providing land parcels of appropriate size for farm growth and transfer between farming businesses

§ Providing land parcels that allow for the adoption of efficient management and production practices

§ Avoiding fragmentation of rural land identified for agriculture to ensure that the landscape remains viable for farming

§ Ensure that dwellings in rural areas identified for agriculture are genuinely required for an agricultural outcome

§ Ensure that there is appropriate separation between land use for agriculture and other land to avoid land use conflict including the potential for farm management to be constrained due to impacts on neighbours and speculative property pricing and promote land valued for its agricultural potential.

Other complementary measures are required to assist with intergenerational transition of farms and business growth such as:

§ Assistance with business planning

§ Assistance and support to develop new business ventures

§ Assistance with identifying land for leasing opportunities.

4.4.2 Sub-commercial or lifestyle farming Sub commercial farms sometimes called lifestyle farms or hobby farms (this should not be confused with rural living – see Glossary) are operated on a part-time basis with a heavy reliance on off-farm income. In the agricultural industry, they play a minor role in terms of production and value adding, but are significant because of their number.

It is a diverse group and includes a range of industries and people with varying motivations, goals and skills. Some are motivated by their environmental values or strongly held beliefs regarding the sustainability of their production systems. Some are seeking to develop a commercial agricultural business or developing a niche market or product. Others are in semi-retirement from full time farming or are purely seeking a rural lifestyle. They are not necessarily profit or production driven and choices such as farm location are often based on amenity and environmental values rather than land capability.

Lifestyle farming families can bring a richness and diversity to rural communities and re-energise community networks and institutions. In some cases, a sub-commercial activity can grow in to a commercial scale enterprise.

The lifestyle farm sector does have impacts on the commercial agriculture sector including increasing land values above productive values, particularly in areas of high amenity and

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close proximity to urban centres. This is a barrier for commercial farms in these areas seeking to increase scale and improve efficiency.

The sub-commercial sector generally lacks the scale and continuity of production to support growth or retention of the value chain. The value chain tends to locate where there is greater concentration of output. Some lifestyle farms do undertake small scale processing and value adding.

Gains in the economic development of the agricultural industry will come primarily from commercial farms. Therefore, if there is justification for lifestyle farming, then it should be provided away from areas identified for commercial agriculture.

4.5 Policy context Federal and State Government policies and strategies seek to grow agriculture and capitalise on increased demand for quality-assured food, particularly in the Asian market. These strategies seek to assist agriculture to maintain global competitiveness given that agricultural businesses operate in an economic environment that is unprotected from the global economy, face declining terms of trade and compete with cheaper overseas imports that are not subject to the same production standards as Australian products.

State and regional land use planning and economic strategies seek to support and promote agriculture and require improved environmental outcomes and protection of natural resources including agricultural land, as well as compliance with industry codes and standards.

The Eurobodalla Settlement Strategy recognises the importance of agriculture for its economic value and the contribution it makes to the amenity of the Shire.

4.6 Community and stakeholder views There is strong support for agriculture in the Eurobodalla community. There is a range of views as to the types of agriculture that could be supported from small scale operations producing for niche markets with a focus on local food networks through to more traditional operations.

There is concern as to the future of commercial agriculture in the Shire due to land prices increasing above productive value, declining terms of trade, profit margins being squeezed by high transport costs, lack of strong, competitive local or regional markets for product and little local processing of produce.

4.7 Opportunities and constraints Opportunities § Improving industry confidence and capacity, building upon recent growth between 2006

and 2011 following recovery from the drought

§ Leveraging traditional tourism strengths and further developing nature based tourism to value add to agriculture (noting that this requires new skill sets and business structures)

§ Increasing production of premium products e.g. organic / biodynamic products and associated processing and manufacturing

§ Changing demographics and access to a larger and bigger spending local market

§ Local / regional branding to promote local produce and focus on premium markets and align with tourism initiatives

§ Improved infrastructure, particularly transport infrastructure, would increase the competitiveness of the Eurobodalla agricultural industry

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§ Identify land that is important productive agricultural land and land that could be considered for lifestyle farming

§ Assess and review in greater detail the attributes of small rural holdings and confirm if they have a strong future for commercial agriculture or if there are preferred alternative uses

§ Improvement in agricultural practices to support environmental and economic outcomes

§ Expansion of horticulture

§ Maintaining and promoting separation of land from other non-compatible uses to avoid land use conflict and speculative land pricing

§ As part of development of the Rural Land Strategy review the circumstances, need and decision-making criteria for rural dwelling opportunities.

Constraints § The area of high versatility agricultural land (Agricultural Class 1 and 2) is limited and

therefore growth of high value industries such as horticulture and dairy is constrained

§ There are few areas for further significant agricultural development and opportunities to grow businesses through property amalgamation are decreasing

§ High versatility land is in locations coincident with other significant competing land uses such as tourism and urban settlement along the coastal strip and in close proximity to townships including Moruya and Bodalla. Demand for this land has increased land values14 above agricultural value which may deter agricultural investors

§ Pressure on Council to rezone rural land as farmers retire, smaller farms become less viable or are squeezed out by land use conflict with neighbouring land uses

§ Changing demographics and conflict with lifestyle entrants e.g. approvals for intensification of agricultural production such as feedlots, commercial-scale horticulture (which may have off-site amenity, noise and odour impacts) may be increasingly difficult

§ An increasing proportion of farms are ‘lifestyle farms’

§ High land values in high amenity locations

§ Secondary processing of local produce occurs mostly outside Eurobodalla

§ The local industries and markets are relatively small. To access a larger and more competitive market, produce is transported out of the Shire, and sometimes interstate

§ Value adding to farm produce such as food processing, requires new skills, knowledge and infrastructure

§ Cost of infrastructure improvements required to expand the agricultural industry.

4.8 Principles for policy direction Principles In the development of the vision for rural lands in Eurobodalla, the fundamental principle should be the protection of agricultural land for both commercial and sub-commercial agriculture in Eurobodalla.

For commercial agriculture policy directions should support the long-term commercial agricultural use of productive rural land in the Shire and be sufficiently flexible to facilitate diversification and changes in farm activities. In particular, land uses in rural areas should be managed to support commercial agricultural activities, avoid land use conflict and minimise speculative land pricing.

14 URS (2004) South Coast Agricultural Diversification Project

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For sub-commercial agriculture (lifestyle farms) policy directions should encourage a wide range of small-scale low-impact agricultural activities in appropriate locations having regard to the potential impacts on the growth of commercial agricultural enterprises and the capacity of existing infrastructure and services.

Rationale Agriculture in Eurobodalla is a small, but locally important industry that has played a significant role in the history and settlement of the Shire and continues to be important to the Shire’s identity, amenity and culture.

The Eurobodalla community has expressed strong support for the agricultural industry. In particular there is new and growing support for local food production and development of local food networks as a means to support local agriculture and the local economy.

Economic development in agriculture will come principally from commercial agricultural enterprises. In areas that have the potential to be used productively and profitably in the long term, decision making needs to be based on long term, Shire-wide gains as opposed to short term individual concerns and financial outcomes.

In areas of the Shire where commercial agriculture is less feasible, policies to support lifestyle farming or other activities must have regard to their impact on the potential growth of commercial farms and the existing infrastructure and services in the local area.

In addition to policy directions, there is a range of complementary initiatives that could be considered, including the following:

§ Promoting alternative methods of increasing farm scale e.g. land leasing, share farming. These approaches can also play a role in succession planning. Land leasing enables a retired farmer to remain living on the property and share farming enables a farm manager or second generation farmer to gain entry into a new industry that has high capital start up costs

§ Promote co-operatives or group marketing initiatives for small producers to achieve sufficient scale of production and critical mass to access new markets and investors

§ Establishing brand and product recognition for Eurobodalla produce with links to tourism initiatives such as food and wine trails

§ Promoting access to training and support programs for agricultural producers looking to value add to primary production e.g. food processing, tourism, including planning for business transition, compliance with industry standards and regulations, marketing, assessing the commercial viability of new business ideas

§ Continuing to advocate for investment in infrastructure improvements that will support long-term growth in agriculture in Eurobodalla.

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5 Aquaculture 5.1 Overview

Aquaculture in NSW was valued at $49 million in 2011/12, of which Sydney Rock oyster sales was worth around $28 million. The oyster industry is the largest aquaculture industry in NSW by production value and the fourth largest in Australia. The industry employed around 1,600 people and capital investment was estimated at $268 million in 200615.

Aquaculture in Eurobodalla, primarily oyster farming, was valued at $5 million in 2011-12 down from around $6 million in 2005-06. The value of oyster production in Eurobodalla remained stable between 2005/6 and 2011/12 at 18% of statewide production 16 17.

Production from the Clyde River and Tuross River estuaries has dropped while production from Wagonga Inlet has increased. In 2010/11, the Clyde River estuary, at 11%, was third in the top ten contributors to NSW oyster production. Future growth in production will come from ongoing productivity improvements, particularly in under-utilised leases.

South coast oyster growers have recently launched “Australia’s Oyster Coast”, a marketing initiative covering eight major estuaries between the Shoalhaven and the Victorian border. The launch of the brand which identifies south coast oysters as gourmet products grown in the most environmentally sustainable oyster region in the world follows seven years of work by growers implementing rigorous environmental management systems in each estuary.

The catchments of the estuaries are located in areas where there are other significant competing land uses such as agriculture, forestry, tourism and urban settlement along the coastal strip and in close proximity to townships such as Batemans Bay. It is important to protect estuaries, catchments and groundwater systems from contamination by sewage, agricultural pesticides and fertilizers, urban runoff, disturbance of acid sulphate soils and sedimentation as a result of soil disturbance (e.g. forestry, erosion, extractive industries). Protecting the water quality is therefore critical to protecting the value of the industry and its brand in the market place.

Growers are increasingly looking to value-add to production by: direct on farm to public sales, to restaurants in capital cities and online selling of unopened product delivered by mail.

Figure 5-1 Oyster production (bags)16,17 Figure 5-2 Value of oyster production ($) 16,17

15 Department of Primary Industry (2013) Aquaculture production Report 2011-12 16 Department of Primary Industry (2013) Aquaculture production Report 2005-06 17 Department of Primary Industry (2013) Aquaculture production Report 2011-12

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5.2 Policy context Federal and State Government policies and strategies seek to maintain and grow aquaculture. State and regional land use planning strategies seek to protect the water quality and hydrology of aquaculture estuaries.

The Eurobodalla Settlement Strategy recognises the importance of aquaculture and seeks to maintain and grow the industry by promoting opportunities and facilitating the development of diverse aquaculture enterprises having regard to environmental impacts.

5.3 Community and stakeholder views There is strong support for the aquaculture industry from the community and stakeholders for its economic and cultural importance. The need to protect the catchments and waterways for the long-term sustainability of the industry was also universally supported. Industry representatives noted that the application of the Local Planning Direction – Oyster production, had been critical to protecting water quality in Eurobodalla. The main risk to water quality comes from overflows from sewerage and stormwater infrastructure following high rainfall events.

Industry representatives also noted the strength of the working relationship with Eurobodalla Shire and the Southern Rivers Catchment Management Authority. By working in partnership with the two agencies the industry had implemented a number of programs contributing to protection of water quality through improved land management adjacent to waterways and prioritising of sewerage infrastructure upgrade.

5.4 Opportunities and constraints Opportunities § Leveraging traditional tourism strengths and further develop nature based tourism to

value add to aquaculture

§ Recognition of the clean growing environment and reliable supply of high quality water for most forms of aquaculture

§ Development of the oyster export industry (75% of oysters grown in NSW are sold locally, with the remainder shipped interstate).

Constraints § Need to protect water quality by minimising soil disturbance and contamination from non-

point sources in estuary catchments

§ Cost of infrastructure improvements required to expand aquaculture enterprises.

5.5 Principles for policy direction Principles In the development of the vision for rural lands in Eurobodalla, clear intentions should be articulated for the long-term future of water and land-based aquaculture. This will send a clear signal that Eurobodalla will support investors in commercial aquaculture enterprises.

The development of policy directions must also ensure future development in the estuary catchments does not negatively impact the water quality in oyster production areas.

Rationale Aquaculture in Eurobodalla is of state significance producing 18% of the State’s oysters Essential to the success of this industry has been the water quality of the Shire’s rivers and estuaries. While the industry in Eurobodalla has experienced some decline in the total value

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of oyster production, there is scope for further growth in the industry around tourism and development of a regional brand.

Essential to the growth of the industry will be protection of the water quality and flows of the Shire’s waterways and estuaries. There is a strong policy context and community support for aquaculture and the Rural Land Strategy should seek to implement the objectives and strategies outlined in the relevant planning policies and industry strategies.

To support farmers, there is a range of initiatives that could be considered in the development of the Rural Lands Strategy, including the following:

§ Support for the “Australia’s Oyster Coast” branding and marketing program

§ Support for improved sullage waste disposal infrastructure from watercraft including leisure boats, house boats and commercial tourism boats

§ Support for upgrade of old and ageing sewerage and stormwater systems adjacent to oyster production areas

§ Support for establishment of a hatchery in the south coast region that would contribute to increased reliability of supply.

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6 Rural Tourism 6.1 Overview

A research report recently published by Tourism Research Australia18 determined that there were seven regions that accounted for 21% of total tourism expenditure in Australia, and that have larger tourism industries and a high dependence on tourism. The South Coast region (that includes Eurobodalla) was ranked sixth of these seven regions.

In 2009, visitor expenditure in Eurobodalla was estimated to be around of $325 million19, a substantial increase on the four year average of $272 million to 200720 (Table 6-1). The strong attractors are the coastal areas for family holidays and key experiences include food and wine, nature based and culture and heritage.

The 2012 LEP addressed rural tourism by supporting existing and enabling new land use categories and creating flexibility in development controls.

Table 6-1:Visitation and visitor spend in Eurobodalla, 2006 and 2011

200620 201119

Visitors* (‘000s) 1,169 1,168

Visitor nights# (‘000s) 2,540 2,298

Visitor spend ($million) 272 325

* total number of visitors including overnight and day trips,

# total nights spent by a domestic or international visitors within the Shire

The environmental values of the Shire are emerging as an important attractor for nature based tourism and are increasingly acknowledged as important factor in the Shire’s amenity. In 2006, the total economic impact from expenditure by visitors to the Shire’s national parks and reserves was estimated at around $30 million21. The Eurobodalla Destination Management22 Plan nominated the following attributes that support Eurobodalla’s competitive advantage for tourism:

A significant factor that has helped ensure the conservation and attractiveness of Eurobodalla is that approximately eighty percent of the Shire is Crown Land that has been conserved as National Park or State Forest. Residential development is therefore concentrated around its townships and villages and the landscape is not dominated by urban infrastructure. This is in contrast to other NSW coastal destinations that have experienced

rapid rates of residential development as a consequence of ex-urban population movements from major cities (e.g. Shoalhaven). Other important factors that have helped shaped the attractiveness of the Eurobodalla as a tourism destination include:

§ A coastal and marine landscape that is not dominated by industries such as fishing and boating (e.g. Port Macquarie, Yamba, Coffs Harbour) nor industrial activity (e.g. Wollongong)

18 Tourism Research Australia (2011) Economic Importance of Tourism in Australia’s Regions Phase 2: Large tourism-dependent regions 19 Destination NSW (2011) Travel to Eurobodalla Local Government Area 20 Tourism Australia (2008) Tourism Profiles for Local Government Areas on Regional Australia: Eurobodalla Shire 21 Centre for Agricultural and Regional Economics (2006) Impact of national parks on the regional economies of the NSW Far South Coast. 22 Dr M Wray (2011) Eurobodalla Destination Management plan 2011 - 2020

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§ The establishment of Batemans Marine Park, located between Murramarang Beach and Wallaga Lake on the South Coast, that offers residents and visitors opportunities for leisure and recreational activities

Eurobodalla has an extensive supply of accommodation, including hotels, motels, caravan parks and holiday homes. Occupancy rates (Table 6-2) suggest that there is not a strong case for further supply of accommodation.

Table 6-2: Occupancy rates for Eurobodalla accommodation23

Number of establishments

Occupancy rate

(average over 12 months ending June 2010)

Hotels, motels, serviced apartments 28 42%

Caravan parks 21 60%

Rented holiday homes/units 794 25%

The above data does not distinguish between urban-based or rural-based tourism accommodations, so further research specific to rural-based tourism in Eurobodalla is required with regard to:

§ Product gaps

§ New products such as touring routes and trails that link food, agriculture and nature experiences

§ Principles for identifying rural tourism precincts or locations for development of rural based tourism

§ Uses to be promoted in rural areas and uses to be discouraged in rural areas.

6.2 Policy context State and regional tourism strategies seek to grow regional tourism, with an emphasis on nature based, food and wine and recreation. The South Coast Regional Strategy supports tourism development consistent with the South Coast Regional Tourism Plan 2003-2006 and focused on nature tourism, art, food and wine production, cultural and heritage tourism, tourism market and the short breaks market.

The Eurobodalla Settlement Strategy supports the development of tourism facilities in identified locations where demand may be satisfied and environmental attributes preserved.

While the 2012 LEP facilitated a broader range of rural-based tourism opportunities, than the 1987 LEP, the Eurobodalla Destination Management Plan noted that it is important that tourism is planned and managed to ensure that product offerings and experiences are innovative, continue to diversify and are aligned with the area’s natural resources and lifestyle attributes.

6.3 Community and stakeholder views There is significant interest and general support for developing the rural tourism industry with ideas including agri-tourism, eco / nature based and food trails.

23 Destination NSW (2012) Eurobodalla LGA Tourist Accommodation Profile

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6.4 Opportunities and Constraints Opportunities § Development of nature based tourism in conjunction with the significant natural and

cultural heritage assets of Eurobodalla e.g. bird watching, bicycle and motorbike trails, Indigenous heritage, bush skills, local history

§ Development of tourism attractions in conjunction with agriculture and local food experiences

§ Promotion of Moruya Airport as a means of easy access for tourists, particularly international tourists via Sydney

§ Development of local events that can align and build on food tourism e.g. music festivals

§ Increased use of tourism infrastructure through the winter months and ‘shoulder’ season when the area is still warmer than Victoria, Tasmania etc.

Constraints § Need to maintain and protect the amenity, liveability and natural assets of Eurobodalla

§ Capacity of existing infrastructure and costs associated with any required improvements

§ Limitations based on seasonality and costs associated with upgrading accommodation to be suitable for winter conditions

§ Poor broadband and mobile phone coverage and service.

6.5 Principles for policy direction Principles In developing policy directions for the future of rural-based tourism, the opportunities facilitated by the 2012 LEP should be promoted in appropriate locations where there is infrastructure capacity, in particular to support value-adding to the agriculture and aquaculture industries and to capitalise on the environmental values of the Shire.

Rationale There is strong support in policy and within the community for development of rural-based tourism. A number of ideas have been mooted however there is a lack of information at this stage, particularly market research, to support specific initiatives. Therefore, some research and analysis is required to identify:

§ Product gaps and new products such as touring routes and trails that link food, agriculture and nature experiences

§ Uses to be promoted and uses to be discouraged in certain areas, having regard to the following locational criteria:

− Avoid land identified as productive agricultural land (except where the tourism activity is value-adding to existing agriculture) or for future urban development

− Avoid land that is subject to predictable adverse environmental processes and effects including storm surges, river and coastal flooding, landslip or geotechnical risk (acid sulphate soils) or extreme bushfire risk

− Promote tourism on land:

§ Located in close proximity to existing tourism products and infrastructure nodes

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§ Located in proximity to National or State Parks, coastal parks or ocean beaches or is linked to a touring route or major access route identified in a tourism strategy

§ That provides easy access to a major road, highway or touring route

§ That provides an attractive setting.

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7 Forestry The Forestry Corporation undertakes the majority of forestry production on public land in Eurobodalla and in 2006, forestry and logging on public land was valued at around $3million24. Private native forestry (PNF) can provide an additional source of income for rural landholders. Recent data on the value, extent and management practices of private native forestry in Eurobodalla could not be sourced for this review.

7.1 Timber Private native forests in Eurobodalla are managed and harvested under State legislation for a range of products including fence posts, firewood and saw logs. It was reported anecdotally that the practice is not widespread (PNF Property Vegetation Plans (PVP) cover around 17,000 ha in Southern NSW25 and there are around 40 PVPs across the Southern Rivers CMA region26) and that there is room for improvement in the management of private forests to increase production of higher value timber products. As harvesting of the state resource decreases in the future, there is potential for shortfall in construction timbers and other higher value products to be met from private forestry resources.

Road infrastructure is important in the development and investment in the timber industry. Provision of a road network to a suitable standard will provide assurance that product can be accessed and transported for processing and reduce transport costs. Much of the road network in Eurobodalla is designed and maintained for local access and to service low density grazing. Without additional investment in road infrastructure, forestry on private land is likely to be concentrated in more accessible areas of the Shire with suitable road infrastructure and areas of public land forestry.

7.2 Specialty timbers There are niche markets, attracting higher returns for specialty native timbers. The higher value of these products means that harvesters are willing to harvest smaller parcels of timber. Generally, opportunistic logging of these timbers has occurred when farm businesses require cash flow. Improved silvicultural practices and marketing of these products could provide a steady and reliable source of farm income.

Other specialty timbers include veneers from non-indigenous trees such as maple, cherry, walnut, much of which is currently imported.

7.3 Biofuels Council has identified renewable energy3 as a new industry to promote employment and economic growth. Renewable energy generation relevant to rural land includes solar, wind, geothermal, hydroelectricity and biofuels. Of particular interest to Eurobodalla is utilizing the byproduct and waste material from forestry to generate power. Burning of native forest bio-material in electricity-generating works with a capacity of over 200 kilowatts is prohibited under the Protection of the Environment Operations (general) Regulation 2009. The EPA has prepared a draft amendment to the regulation to the effect that the prohibition does not apply to:

§ Invasive native species cleared in accordance with a property vegetation plan, within the meaning of the Native Vegetation Act 2003

24 ANZIC data sourced from NSW Marine Parks Authority (2006) The estimated economic impact of Batemans Marine Parks on commercial activities. 25 Office of Environment and Heritage (2010) Annual report on Native Vegetation 2010 26 Native Vegetation Act 2003 Public Register (http://www.environment.nsw.gov.au/vegetation/publicregister.htm) accessed 3 October 2013

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§ Certain material resulting from forestry operations carried out on land to which an Integrated Forestry Operations Approval (IFOA) as well as debris from clearing carried out in accordance with a private native forestry property vegetation plan (NB the Integrated Forestry Operations Approvals is currently being remade27).

Adoption of the amendment will expand the potential for energy generation from biofuels. To determine the feasibility of energy generation from biofuel in Eurobodalla, a number of basic factors will require consideration:

§ An important initial step will be to determine the resource availability, as this will provide an indication of whether there is adequate resource over a long enough period of time to justify any capital investment

§ Estimating the amount of energy that could be generated will give some indication of the likely consumers of the power e.g. small scale domestic use, medium scale for domestic and commercial uses

§ Establishing the energy demand profile and whether energy generation from biofuels can match the profile.

7.4 Policy context Private native forestry (harvesting of native timber on private land) sits outside the LEP. It is regulated under the Native Vegetation Act 2003 and the Private Native Forestry Codes 2007 and is administered by the Environment Protection Authority, not Council. Harvesting of timber for the purposes of private native forestry requires approval through a private native forestry property vegetation plan that ensures environmental outcomes are improved or maintained. A private native forestry property vegetation plan is a legally binding agreement between a landholder and the Environment Protection Authority. The Private Native Forestry Code of Practice sets the minimum operating standards for harvesting in private native forests.

7.5 Community and stakeholder views There is a mix of views regarding the harvesting of native vegetation in the Eurobodalla community. Some within the community believe that harvesting of any native timber should not be allowed while others believe that they should be allowed to use and manage native vegetation on their land regardless of its conservation status. Managing the tension between community views and the policy context, which supports forestry, will be important if the industry is to be promoted and further developed in Eurobodalla.

7.6 Opportunities and constraints Opportunities § Build on existing industry skills and capacity to grow the private forestry industry in

Eurobodalla

§ There is scope to increase the area of land managed under PVPs

§ Development of niche timber-related businesses that value-adds to the forestry industry, including, but not limited to a biofuels industry

§ There is an opportunity to expand and maximise private native forestry and production of high value timber products with wider adoption of improved silvicultural practices.

27 http://www.epa.nsw.gov.au/forestagreements/coastIFOAs.htm accessed 3.3.2014

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Constraints § Costs associated with any required improvements to infrastructure to support growth in

the forestry industry

§ Conflict between accessing forestry resources and protecting significant environmental values

§ Tension between some within the community that do not support native timber forestry and the policy context that seeks to support the industry.

7.7 Principles for policy direction Principle The development of policy directions for the future of forestry in Eurobodalla should build upon existing industry skills with a view to facilitating the expansion of private native forestry in appropriate locations using best silvicultural practices.

Rationale Forestry is a relatively minor industry in Eurobodalla. Native vegetation on private land has been utilised opportunistically in the past. There is scope for expansion and improvement in private native forestry and for it to become a diversification strategy for farm businesses. This is supported by policy and legislation.

There a number of complementary initiatives that could be considered to support growth of the native forestry industry including:

§ Silvicultural training aimed at landholders interested in private native forestry

§ Scoping and feasibility of alternative energy generation from biofuels (forestry waste)

§ Assistance for landholders to understand the regulatory and compliance framework.

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8 Other Rural Industries 8.1 Extractive industries

In the Eurobodalla, mining of extractive resources includes sand, gravel, clays, rock and unprocessed materials such as fill for road making. These materials are extracted through a number of methods such as excavating, quarrying and dredging and range in size from large operations extracting many tonnes of material and supply regional demand, to small owner-operator pits which are worked intermittently to supply local demand.

The Shire’s mineral resources are located in distinct belts:

§ A discontinuous belt of dominantly gold occurrences extending along the eastern margin of the shire and includes identified resources at the Bimbimbie Gold Mine, Donkey Hill Mine, Francis Hill, Mogendoura Mine and the Narooma Chief (Easdowns) Mine

§ A broad, elongate cluster of gold-dominated occurrences in the central northern part of the shire. No resources have been identified by recent exploration within this area. However, it is likely that exploration will be ongoing over these prospective areas for the foreseeable future

§ Major deposits of construction sand occur along the coastal plain and bordering the Tuross River.

The Shire has a substantial endowment of pits producing roadbase material for gravel road maintenance, however is not self sufficient in this material. Hard rock aggregate suitable for a wide range of applications is produced from Eurobodalla quarries.

The Eurobodalla Shire is not located on any major coal seams, nor is there any significant oil or gas deposits in the Shire.

8.2 Policy context The Eurobodalla Settlement Strategy seeks to protect identified existing and potential extractive industry sites and major haul routes associated with those sites, encourage sustainable industry practices and avoid conflicts with adjoining and neighbouring land uses.

Protection and management of these resources is provided by the SEPP (Mining, Petroleum Production and Extractive Industries) and industry guidelines. The Strategic Regional Land Use Policy details a process to manage the potential conflicts arising from the proximity of mining and coal seam gas (CSG) activity to land identified as Biophysical Strategic Agricultural Land in some parts of the State.

8.2.1 Opportunities and constraints

Opportunities § Securing a supply of extractive resources and minerals.

Constraints § Maintaining and protecting the amenity, liveability and natural assets of Eurobodalla

§ Potential conflicts between extractive industry and agriculture on important productive land

§ Potential conflicts between extractive industries and residential activity

§ Conflict between accessing resources and protecting significant environmental values

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§ Costs associated with any required infrastructure improvements to expand extractive industries in the Shire.

8.2.2 Principles for policy direction

Principle The development of policy directions should acknowledge the existence of extractive materials in the Shire and the importance of maintaining a secure supply of extractive resources locally, having regard to:

§ The constraints relating to accessing the resource and the need for supporting infrastructure

§ The protection of important productive agricultural land and significant environmental assets

§ Minimising land use conflicts.

Rationale Extractive industries are important for the construction industry and infrastructure provision. While it is important that these resources are protected from land uses incompatible with their continued or future use and possible expansion, resource extraction must also be compatible with the protection of important productive agricultural land and significant environmental assets.

8.3 Equine industry A recent scoping study estimated that the equine industry contributes $36 million to the Far South Coast Region28 economy. The industry comprises horse training, coaching, horse breeding, racing clubs, competitions and husbandry and support services for professional and recreational horse owners. Moruya has the only training cluster or group training facility in the region located adjacent to the racing track.

The report found that industry is robust and there has been growth across the sporting, high performance and racing sectors and there is an opportunity for the region for further growth. Further analysis to more accurately quantify the industry and development of a strategic plan were key recommendations of the study. A working group has been established by the Far South Coast Regional Development Australia (RDA) to progress this matter.

8.3.1 Policy context The Equine Industry Scoping Report prepared by RDA Far South Coast noted that the equine industry on the south coast of NSW is highly unregulated. This compares to other regions of the State where the NSW Government has prepared Strategic Regional Land Use Policies that aim to acknowledge and protect areas of equine industry as critical industry clusters.

8.3.2 Community and stakeholder views The equine industry was raised as an opportunity through the consultation including development of horse breeding facilities and events such as horse trials, gymkhanas, racing, trails rides and eventing.

28 RDA Far South Coast (2012) Equine Industry Scoping Report

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8.3.3 Opportunities and constraints

Opportunities § Potential relocation of some equine industry from the Hunter Region of NSW to the

South Coast, including Eurobodalla

§ Potential growth in the equine-related tourism industry, such as racing, trail riding, etc.

Constraints § Lack of detailed information regarding the equine industry in Eurobodalla

§ Lack of information regarding Eurobodalla’s competitive advantage for development of an equine industry

§ Lack of information regarding the infrastructure needs to support growth in the equine industry and the costs associated with such infrastructure

§ Potential equine industry related skills shortages.

8.3.4 Principles for policy direction

Principle The development of policy directions should explore the opportunities for growing the equine industry in Eurobodalla, identifying the competitive advantages of the local area compared to other regions and the infrastructure needs to support growth in the industry.

Rationale There may be some potential to grow the equine industry in Eurobodalla. Regional Development Australia is undertaking further investigation of the economic impacts, infrastructure requirements and development of a strategy to attract new investment.

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9 Rural Living This section of the report provides some analysis of rural residential uses in Eurobodalla. In this discussion, rural living and rural residential uses refers to rural land used primarily for a residential outcome and is generally undertaken on small rural lots. It does not include dwellings that may be required for agriculture or some other rural industry (which is discussed in Chapter 5).

9.1 Population In 2012, the population of Eurobodalla was estimated to be around 37,000 and projected to grow by approximately 5,500 persons between 2010 and 203129 with an ageing demographic. However, population estimates based on census data do not account for the significant seasonal population change with the total full time equivalent population of Eurobodalla in 2011 approaching 49,00030.

A total of 7,919 people live in rural areas of the Eurobodalla Shire (based on 2011 estimated resident population data). The rural population is an integral part of the Eurobodalla community31 and social fabric.

9.2 Rural villages The rural villages of Nelligen, Bodalla and Tilba historically played an important role in the settlement of the Shire. They continue to be important to the Shire’s amenity and identity and provide opportunities for living in a rural setting. The Eurobodalla Settlement Strategy recommended that small villages be investigated for consideration for rezoning and to facilitate development of small allotments adjoining the villages. The 2012 LEP recognised Nelligen, Bodalla, Central Tilba and Tilba Tilba as villages and the application of the rural village zone extended the supply of rural lifestyle opportunities in these small settlements. Turlinjah and Nerrigundah were identified in the 2012 LEP as large lot residential areas. It will be important that future development in and around these villages protects their amenity and is accommodated such that the green break between villages and towns is maintained.

In 2013 there were 351 lots with 83% of these occupied across the rural villages. The majority of vacant lots were located in the village of Nelligen (source Eurobodalla Shire Council). Therefore, there remains some limited scope for additional residential development within the villages.

9.3 Rural residential land Rural living or rural residential are uses of rural land primarily for a residential outcome The Eurobodalla Settlement Strategy identified (through research by the Australia Bureau of Statistics in 2005) that of a total of 2,327 rural holdings in Eurobodalla Shire, 91% of these accommodate a residential or lifestyle use, covering around 20,235 hectares of land or 6% of total land cover. The Strategy2 also identified that depending on the lot size, there was between 7.5 and 17 years supply of rural residential lots, with additional rural residential opportunities afforded by subdivision of land adjoining urban areas and lot averaging.

The results of the 2013 Eurobodalla Shire Rural Residential Land Monitor indicate that of a total 2,714 rural residential lots, just under 70% are occupied. The Monitor finds that there is a short term supply of land zoned for rural residential purposes of nine years, with a further medium term supply of eight years. This represents sufficient capacity in existing zoned land

29 Eurobodalla Community Profile and Population Forecast website 30 www. seachangetaskforce.org.au/New.html accessed 18.6.2012 31 Eurobodalla Shire Council (2013) Rural Lands Issues Paper

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to accommodate the anticipated growth in demand for this type of residential development into the medium term.

It should be noted that the Land Monitor is only a predictive tool used to estimate the available lot supply. It is not a detailed study of subdivision capacity. Further rigorous assessment is required to determine the actual lot yield potential of specific areas in the Shire.

9.4 Policy context The South Coast Regional Strategy sets out a settlement framework for accommodating forecast population growth. The framework identifies Batemans Bay as a major regional centre and future growth in Eurobodalla will be concentrated here and in the major towns of Moruya and Narooma32. The Eurobodalla Settlement Strategy supports the concept of urban containment such that all settlements are contained within existing settlement boundaries and separation between settlements is maintained33.

The South Coast Regional Strategy does not support further residential or rural residential zoning in the catchments of the coastal lakes and estuaries identified in the Strategy unless it is demonstrated that a neutral or beneficial effect on water quality as measured at the boundary of the proposed new zoning can be achieved. The Strategy also states that existing rural residential zones have the capacity to meet the demands of rural lifestyle housing within the region and that limited areas for additional rural residential must be located on cleared land unsuitable for urban or agricultural use and will only be agreed to by the Department as part of an endorsed growth management strategy or structure plan. The impact on Council’s capacity to extend or augment essential infrastructure will also be a major consideration in provision of future rural settlement.

The Eurobodalla Settlement Strategy seeks to facilitate the orderly and economic development of land identified for rural residential purposes and states that there be no further rezoning of rural land for rural residential purposes as part of the settlement strategy.

9.5 Community and stakeholder views There is general support for the principle of accommodating future population growth on cleared land that is not productive agricultural land.

There is a mix of views with regard to focusing growth in areas where there is established infrastructure and services. Some believed that increasing the population in rural areas will not lead to increased service and infrastructure costs either because residents accept that there will be limited services or because the services and infrastructure are being currently provided anyway and more people won’t increase costs. By contrast, some expressed the view that future population growth, in principle, should be focused to areas where there is established infrastructure and services to maximise efficient use of resources.

9.6 Opportunities and constraints Opportunities

§ Facilitate rural residential development on existing land zoned for this purpose (subject to consideration of environmental constraints and infrastructure capacity)

§ Consider options to provide a wider housing choice, which may attract new residents to the Shire and may contribute to a more diverse workforce including trained professionals

32 Department of Planning (2007) South Coast Regional Strategy 2006 - 2031 33 Eurobodalla Shire Council (2006) Eurobodalla Settlement Strategy 2006-2031

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with skills and capacity to contribute to economic diversification, having regard to the following criteria:

− Avoiding areas identified for commercial and sub-commercial agriculture

− Proximity to towns and settlements

− Utilising existing fragmented land

− Utilising existing infrastructure and services

− Avoiding land of high conservation value or environmental risk.

Constraints

§ Demand for development along the coastal strip can distort settlement patterns and concentrate growth in areas that are both highly sensitive and productive

§ Pressure on productive agricultural land adjacent to existing urban centres and villages

§ Recognition that some land zoned for rural residential development has environmental constraints limiting development capacity.

9.7 Principles for policy direction Principle That the development of policy directions acknowledges the existing short to medium term supply of rural residential land and focuses on opportunities to facilitate appropriate development of that land to accommodate population growth.

Rationale Currently there is an adequate short to medium term supply of land identified for rural residential/environmental living development.

For the longer term, should further land be required, the identification of suitable land for rural/environmental living purposes should be based on:

§ Avoiding areas identified for commercial and sub-commercial agriculture

§ Proximity to towns and settlements

§ Utilising existing fragmented land

§ Utilising existing infrastructure and services

§ Avoiding land of high conservation value or environmental risk.

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10 Environmental Values 10.1 Overview

A number of state, regional and local studies have been undertaken identifying and detailing management objectives for areas of significant environmental values and hazards:

§ Draft New South Wales Biodiversity Strategy – identifies priority terrestrial ecosystems and sets out objectives and actions for investment

§ Southern Rivers Catchment Action Plan56

§ Sensitive Urban Lands Report34

§ South Coast Regional Conservation Plan.

The Shire has undertaken additional biodiversity surveys and assessment including:

§ Eurobodalla Shire Biodiversity Survey35 - a biodiversity assessment of lands zoned as urban expansion (Long Beach, Malua Bay, Rosedale, West and South Moruya, Moruya Heads, Dalmeny, West Kianga and South Narooma)

§ Endangered Ecological Communities Survey and Mapping in Eurobodalla Shire36 - this report describes the results of the re-mapping of vegetation communities found within Eurobodalla Shire which are listed as Endangered Ecological Communities (EECs) under the Threatened Species Conservation Act, in southern NSW

§ Batemans Bay and Clyde River Estuary Management Study37, Moruya/Deua River Estuary Management Study38, Tuross Estuary and Coila Lake Estuary Management Study39, Tomaga River Estuary Management Study40 and Wagonga Inlet Estuary Management Study41 provide an assessment of tidal waterway, foreshore and adjacent land to underpin the Estuary Management Plan.

10.2 Areas of high conservation value The Office of Environment and Heritage in February 201342 prepared a detailed description of environmental assets on rural lands in Eurobodalla drawing on the findings of the South Coast Regional Conservation Plan. Key findings of this work are summarised here:

§ There are 15 listed Endangered Ecological Communities (EECs)

§ 111 threatened fauna species and 98 threatened flora species could occur within the Eurobodalla Shire

§ Eurobodalla Shire includes 3,161 ha of coastal wetlands protected under State Environmental Planning Policy 14, fifteen coastal lakes listed as Important Coastal Lakes and eight wetlands are included in the Directory of Important Wetlands

§ The hinterland and escarpment are well connected. The identification of ‘Wildlife Corridors’ is important to maintain (and in some cases, improve) connections between these areas and coastal habitats, and also up and down the coastal strip.

34 Eurobodalla Shire (2006) Environmental Site Analysis Sensitive Urban Lands in the Eurobodalla Shire 35 ecological (2007) Environmental Study: Eurobodalla Shire Biodiversity Survey 36 ngh environmental (2007) Endangered ecological communities survey and mapping in Eurobodalla Shire 37 WBM Oceanics (2004) Batemans Bay and Clyde River Estuary Management Study 38 Worley Parsons (2009) Moruya / Deua River Estuary Management Study 39 WBM Oceanics (2004) Tuross Estuary and Coila Lake Estuary Management Study 40 AMOG Consulting (2005) Tomaga Estuary Management Study and Plan 41 Nelson Consulting (2001) Wagonga Inlet Estuary Management Study 42 Office of Environment and Heritage (2013) Environmental Assets of the Eurobodalla Shire Rural Lands

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Mapping of environmental values accompanied the South Coast Regional Conservation Plan. The Plan highlighted that the mapping was based on a mixture of field survey data and modelled vegetation at 1:100,000 scale and accurate at the regional scale and therefore recommended that the mapping be groundtruthed and verified before being used at the local scale. The South Coast Regional Conservation Plan outlines a ground-truthing and verification process to improve accuracy at the local scale.

Verification of the mapping of environmental assets of Eurobodalla was undertaken by OEH in parallel with this study. The results of the verification are provided in Volume 2 of this report.

A regional summary of the key threats to areas of high conservation value is provided in Table 10-1.

Table 10-1: Key threats to areas of high conservation value in the Eurobodalla Shire (adapted from the Southern Rivers Catchment Action Plan 2013 – 2023)

Native Vegetation

Threatened Species and Populations

Wetlands and significant aquatic habitats

Substantially un-modified areas

Wildlife corridors

Loss and degradation of remnant vegetation

✓ ✓ ✓ ✓

Invasive plants and animals

✓ ✓ ✓ ✓

Loss and degradation of habitat

✓ ✓ ✓

Altered flow or hydrological regimes ✓ ✓

Water quality decline (sediment, nutrients, pollutants)

✓ ✓

Inappropriate land management practices ✓

Erosion ✓

Disturbance of potential Acid sulphate soils ✓

Climate variability and extreme events

✓ ✓ ✓ ✓ ✓

Urban development ✓ ✓ ✓ ✓

Tourism and recreation use ✓

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10.3 Scenic values and landscapes Scenic values and amenity are identified as an important and distinguishing feature of Eurobodalla and is an important tourism attractor. Important touring routes, including bushland, farmland and coastal drives are identified in the Eurobodalla Settlement Strategy.

The Eurobodalla Settlement Strategy outlines the following directions for scenic landscapes:

§ Ensure that the special and unique scenic characteristics and natural or rural settings of the Nature Coast are retained and protected

§ Recognise that areas with high scenic value are important to residents and visitors and generally also contain ecological importance.

The Tilba Conservation Area is the prime example in the Shire of a landscape with important and historic scenic values, where agriculture, natural values and rural villages together make up a significant economic and tourism asset. Other important scenic areas adjoining Eurobodalla’s major towns have been identified in the Greater Batemans Bay, Moruya and Narooma Structure Plans43.

10.4 Policy context Federal, State and regional policies and strategies provide strong and clear support for protection of environmental values. The South Coast Regional Strategy seeks to:

§ Maintain or enhance the quality and distribution of the Region’s biodiversity

§ Direct urban development away from areas known to be or likely to be important for conservation

§ Protect important natural assets through the land use planning process

§ Improve or maintain the condition of sensitive catchments

§ Protect water quality for town water supply and coastal waterways

§ Protect, enhance and reinstate the values and functions of riparian corridors and coastal wetlands.

The Eurobodalla Settlement Strategy seeks to provide long term protection of water quality and natural waterways, conserve biodiversity including native flora, fauna and natural ecosystems on private lands, and manage and enhance the Eurobodalla Nature Coast values in perpetuity by ensuring that development does not harm or compromise significant environmental values.

In developing local strategies, local environmental plans and development control plans, Councils are required to have regard to the principles and recommendations of a range of State and Federal policies, strategies and legislation, including the following:

§ Relevant State Environment Planning Policies

§ South Coast Regional Strategy

§ South Coast Regional Conservation Plan

§ Threatened Species Conservation Act, 1995

§ Coastal Protection Act, 1979

§ Southern Rivers Catchment Action Plan.

43 http://www.esc.nsw.gov.au/development-and-planning/tools/eurobodalla-settlement-strategy-and-structure-plans access 5.3.2014

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10.5 Community and stakeholder views There is general support for protection of the Shire’s environmental values in the Eurobodalla community and appreciation that protection of these values is important, particularly for the aquaculture, fishing and tourism industry. However, there is a divergence of views as to how this is most appropriately achieved, particularly protection of environmental values on private land. For some, there is a view that management and use of environmental values on private land should be at the discretion of the land owner, while others expressed an opinion that environmental values on private land should be recognised for its broader public benefit.

10.6 Opportunities and constraints Opportunities § Improved agricultural practices to manage environmental values on rural land

§ Potential for alternative land uses on land that has important environmental or scenic values, such as low impact tourism activities and accommodation.

Constraints § Degradation or loss of environmental values due to development

§ Degradation of water quality as a result of catchment land use impacting on town water supplies, river health, estuary health, aquaculture, fisheries and tourism

§ Demand for development along the coastal strip concentrates growth in highly sensitive environments.

10.7 Principles for policy direction Principle The development of policy directions recognises high conservation values mapped in Volume 2 of this report and considers the policy recommendations outlined in the South Coast Regional Conservation Plan.

Rationale Eurobodalla Shire has significant environmental assets that are appreciated for their intrinsic value and amenity and increasingly the economic opportunities they afford through rural based tourism.

Eurobodalla Shire Council has statutory obligations under a number of legislative and policy instruments to protect identified environmental values. The South Coast Regional Conservation Plan provides a guide for how to best protect high conservation value assets through the planning system using a mix of protection, enhancement and restoration actions. The mapping of conservation values accompanying the Plan has been validated and verified consistent with the verification procedures detailed in the Plan.

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11 Natural Hazards 11.1 Coastal acid sulfate soils

Acid sulfate soils are widespread along the margins of the NSW coast, in estuarine floodplains and coastal lowlands. Acid Sulfate Soil Risk Maps44 have been incorporated into the Eurobodalla LEP and a policy applies to all land classified as Class 1 to Class 5 on the maps. The objectives of the policy are to:

§ Manage the disturbance of potential and/or actual acid sulphate soils to minimise impacts on natural waterbodies and wetlands and on agricultural, fishing, aquaculture, urban and infrastructure activities

§ Require special assessment of certain development requiring consent on land identified as being subject to risks associated with the disturbance of potential and/or actual acid sulphate soils.

11.2 Coastal hazard and flooding Parts of Eurobodalla’s coastal environment are subject to coastal hazards and flooding. The coastal zone in Eurobodalla extends a distance of one kilometre landward of the open coast high water mark and one kilometre around all bays, estuaries, coastal lakes, lagoons, islands and tidal waters of coastal rivers to the limit of mangroves.

The NSW Coastal Policy 1997 sets the overall strategic direction for coastal management in NSW and is based on the principles of ecologically sustainable development. One of the policy’s goals is to recognise and accommodate coastal processes and hazards, including a related objective to recognise and consider the potential effects of climate change in the planning and management of coastal development. The NSW Coastal Policy is given statutory effect through State Environmental Planning Policy 71 – Coastal Protection and through a Ministerial Direction to local councils under section 117 of the Environmental Planning and Assessment Act 1979 (EP&A Act).

The State Environmental Planning Policy 71 – Coastal Protection (SEPP 71) also requires that both land use planning and development assessment within the NSW Coastal Zone consider the likely impact of coastal processes and coastal hazards on development and any likely impacts of the development on coastal processes and coastal hazards.

A coastal zone management plan for the Eurobodalla Coast is currently under development.

To address risks associated with flooding, Floodplain Risk Management Plans should be prepared under the NSW Floodplain Development Manual (2005) and the NSW Flood Prone Land Policy (2005). For flood prone land in Moruya, a Moruya River Floodplain Management Plan was prepared in 2004 and a supporting Moruya Floodplain Code was developed in 2012, based on updated modelling of the extent of flood liable land in 2011.

11.3 Climate change The Department of Environment, Climate Change and Water NSW45 (DECCW) have compiled a ‘first pass’ integrated assessment of some of the likely impacts of climate change in NSW. For each of the NSW State Plan regions and for NSW overall, the assessment considers:

§ The likely changes in climate (temperature, rainfall and evaporation) by 2050

44 Office of Environment and Heritage accessed 19.6.2013 http://www.environment.nsw.gov.au/acidsulfatesoil/riskmaps.htm 45 Department of Environment, Climate Change and Water (2010) NSW Climate Impact Profile

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§ Associated physical consequences of these climate changes (sea level rise and changes in run-off, flooding behaviour and fire regimes)

§ The subsequent impacts of projected climate change and associated changes in physical processes on:

- Lands (soils and soil processes)

- Settlements (storm and flood damage)

- Ecosystems (biological communities, individual species and ecological processes).

A summary of the regionally significant impacts on land, settlements and natural ecosystems as a result of climate changes is provided in Appendix 2.

11.4 Bushfire hazard Bushfire is a significant risk to life and property in Eurobodalla with extensive tracts of native vegetation and its proximity to settlements. All developments on land that is designated as bush fire prone have a legal obligation to consider bush fire and meet the requirements of Planning for Bush Fire Protection 2006 and AS3959 – 2009. Identification of bushfire prone land is provided in Volume 2 of this report.

The Rural Fire Service procedures that must be followed to meet these obligations, has introduced impediments to farmers wanting to undertake hazard reduction burning including an additional approvals process and limited time frames for burning.

11.5 Erosion Erosion is a potential hazard in parts of Eurobodalla, particularly on cleared, steep slopes. Land with a gradient of 18o (equates to slope of 25%) or more mapped by the Department of Lands is designated State Protected Land under the Soil Conservation Act, 1938. The purpose of the designation is to regulate removal of trees (under the Native Vegetation Act 2003) on land susceptible to erosion.

Mapping of steep and erodible land is provided in Volume 2 of this report.

11.6 Land management issues A number of land management issues were raised during consultation, that are considered impediments to maximising the agricultural output of Eurobodalla including:

§ Infestations of pest plants and animals including exotic and native species

§ Abandonment of agriculture on rural land resulting in pest infestations and native vegetation regeneration.

11.7 Policy context Federal, State and regional policy and strategies provide strong support for the minimisation of risk associated with natural hazards. The South Coast Regional Strategy seeks to prevent urban development in areas of high risk from natural hazards including sea-level rise, coastal recession, rising water tables and flooding.

The Eurobodalla Settlement Strategy seeks to protect the community, settlements, physical or human infrastructure and the environment from the impacts of natural hazards including climate change, flood, bushfire and acid sulphate soils.

11.8 Community and stakeholder views There was general acknowledgement of the importance of considering the risks posed by natural hazards, including increased risks arising from a changing climate. Some concern

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was expressed regarding the difficulty of complying with the bushfire regulations and balancing bushfire hazard reduction and protection of environmental values.

11.9 Opportunities and constraints Opportunities § Improved agricultural practices to avoid impacts on and from identified natural hazards

and to manage the potential impacts of climate change

§ Improved technologies and production systems may develop as possible adaptation strategies to manage the potential impacts of climate change

§ Potential for increasing suitability of certain agricultural activities due to climate change.

Constraints § Impacts on agricultural activities from exposure to natural hazards

§ Costs associated with mitigating or avoiding natural hazards or the potential impacts of climate change

§ Potential for decreasing suitability of certain agricultural activities due to climate change.

11.10 Principles for policy direction Principle That the development of policy directions has regard to the natural hazards mapped in Volume 2 of this report.

Rationale Natural hazards, including acid sulfate soils, erosion, flooding and bushfire pose a risk to life and property. Consideration of these hazards in the development of the Rural Land Strategy provides an opportunity to ensure that land is used and developed within its capability and that the risk posed by these hazards is avoided or mitigated.

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Appendix 1 Legislative and Policy Context Overview The purpose of this section of the report is to summarise the legislative and policy context for use and development of rural land in Eurobodalla. The Local Environment Plan or LEP is the instrument that sets out how land can be used and developed. In preparing a LEP there are various legislation, policies and strategies that will influence decisions on appropriate uses and development controls.

Statutory Documents Commonwealth Species and ecological communities threatened on a national level are protected under the Commonwealth Environment Protection and Biodiversity Conservation Act (EPBC Act). The Act protects nationally listed threatened species or communities, which might be significantly impacted by an activity or development.

State legislation Environmental Planning and Assessment Act, 1979 The main legislation regulating land use in NSW is the Environmental Planning and Assessment Act 1979 (EP&A Act). The EP&A Act allows plans to be made (environmental planning) to guide the process of development and to regulate competing land uses. The EP&A Act allows two types of environmental plans to be made:

§ Local environmental plans (LEPs)

§ State environment planning policies (SEPPs).

Under the EP&A Act, Councils must consider, in addition to the EP&BC Act, other state legislation. The following state legislation is of particular relevance in development of the Rural Land Strategy:

Threatened Species and Conservation Act 1995 The Threatened Species and Conservation Act, 1995 deals with the listing of species, the declaration of critical habitat, recovery plans, threat abatement plans, licensing, biodiversity certification and biobanking. Councils must have regard to the register of critical habitat under the Threatened Species Conservation Act, 1995.

Native Vegetation Act, 2003 The Native Vegetation Act, 2003 provides for protection of native vegetation and establishes system of property vegetation plans for harvesting of native vegetation on private land.

Coastal Protection Act, 1979 The Coastal Protection Act, 1979 provides for the protection of coastal environments and preparation of coastal zone management plans.

State Environment Planning Policies State Environment Planning Policies (SEPPs) set out principles, objectives and development standards for particular places or types of development. In preparing LEPs, Councils need to consider and be consistent with the directions of the relevant SEPP. SEPPs relevant to the Rural Land Strategy include:

SEPP 14 - Coastal Wetlands This Policy provides additional protection for coastal wetlands by requiring development consent to be obtained before any clearing, draining, filling or construction of levees can take place on a mapped

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wetland. These developments will also require an environmental impact statement and the agreement of the Director-General of Planning and Infrastructure before consent can be granted

SEPP 26 - Littoral Rainforests This Policy seeks to protect coastal rainforests (littoral rainforests) by requiring development consent for development in or adjacent to mapped coastal rainforest areas. An environmental impact statement and the agreement of the Director-General of Planning and Infrastructure may also be required under this Policy.

SEPP No. 30 - Intensive Agriculture Requires development consent for cattle feedlots having a capacity of 50 or more cattle or piggeries having a capacity of 200 or more pigs and sets out information and public notification requirements.

SEPP 44 – Koala Habitat Protection This Policy aims to encourage the proper conservation and management of areas of natural vegetation that provide habitat for koalas to ensure a permanent free-living population over their present range and reverse the current trend of koala population decline.

SEPP 62 – Sustainable Aquaculture This Policy seeks to encourage sustainable aquaculture, including sustainable oyster aquaculture and gives effect to planning provisions detailed in the Sustainable Aquaculture Strategy.

SEPP 71 - Coastal Protection This Policy seeks to protect natural, cultural, recreational and economic attributes of the land in the coastal zone including public access, scenic qualities, biodiversity, wildlife corridors and the impact of coastal processes and hazards on development. Development applications in sensitive coastal locations may require referral to the Department of Planning and Infrastructure for comment.

SEPP (Rural Lands) 2008 This Policy aims to facilitate the orderly and economic use and development of rural lands, reduce land use conflicts, identify land of State agricultural significance and sets out Rural Planning Principles and the Rural Subdivision Principles.

SEPP (Mining, Petroleum Production and Extractive Industries) 2007 This Policy aims to provide for the proper management and development of mineral, petroleum and establish planning controls to encourage ecologically sustainable development.

South Coast Regional Strategy 2006 - 203146 The Regional Strategy is a land use plan that applies to the Eurobodalla, Bega Valley and Shoalhaven local government areas. The primary purpose of the Regional Strategy is to ensure that adequate land is available and appropriately located to sustainably accommodate the projected housing and employment needs of the Region’s population over the next 25 years.

The key aims of the strategy relevant to the Rural Land Strategy are to:

§ Protect high value environments including pristine coastal lakes, estuaries, aquifers, threatened species, vegetation communities and habitat corridors by ensuring that no new urban development occurs in these important areas and their catchments

§ Manage the environmental impact of settlement by focusing new urban development in existing identified growth areas

§ No new rural residential zones will be supported unless as part of an agreed structure plan or settlement strategy

46 Department of Planning (2006) South Coast Regional Strategy 2006 - 2031

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§ Limit development in places constrained by coastal processes, flooding, wetlands, important primary industry resources and significant scenic and cultural landscapes

§ Protect the cultural and Aboriginal heritage values and visual character of rural and coastal towns and villages and surrounding landscapes.

The South Coast Regional Strategy lists the following actions for agriculture:

§ Councils will resist the fragmentation of agricultural land as this can threaten its economic performance and sustainability

§ The location of non-compatible uses in core productive agricultural areas will be limited to allow agricultural land to be used for farming.

The South Coast Regional Strategy outlines the following actions for catchments of coastal lakes and estuaries:

§ Local environmental plans will not include further residential or rural residential zoning in the catchments of the coastal lakes and estuaries identified in the Strategy unless it is demonstrated that a neutral or beneficial effect on water quality as measured at the boundary of the proposed new zoning can be achieved

§ Councils will review the suitability of planning controls in existing urban zones and undeveloped lands in the catchments of nominated coastal lakes and estuaries. Government endorsed estuary management and coastal zone management plans and Coastal Lake Sustainability Assessment must be considered in undertaking this task. In Eurobodalla this includes: Candlagan Creek, Congo Creek, Meringo Creek, Bingie Lagoon, Lake Brunderee, Lake Tarourga, Brou Lake, Mummuga (Dalmeny), Lake Kianga Lake, Nangudga Lake, Nargal Lake, Corunna Lake, Tilba Tilba Lake, Little Lake.

The South Coast Regional Strategy outlines the following direction for the natural environment:

§ New urban land is to be prohibited by local environment plans on land assessed as being of high conservation value; and appropriate planning control are to be incorporated into local environment plans to protect biodiversity values on land of lower conservation value

§ Councils are to work with the South Rivers Catchment Management Authority to ensure that the aims and objectives of catchment action plans are considered in the future management and planning of local council areas

§ Local environmental plans will not include further residential or rural residential zoning in the catchments of the coastal lakes and estuaries identified in the Strategy, unless it is demonstrated that a neutral or beneficial effect on water quality as measured at the boundary of the proposed new zoning can be achieved

§ Councils will consider the Regional Conservation Plan to guide implementation of conservation outcomes

§ Require local environmental plans to protect regionally significant corridors (Indicative Habitat Corridors). Development proposals in these areas will be required to maximize the retention of native vegetation and rehabilitate disturbed areas

§ Require local environmental plans to zone all coastal wetlands identified in State Environment Protection Policy No 14. To achieve environmental protection through zones such as E2 Environmental Conservation or W1 Natural Waterways. Future development in these catchments will need to demonstrate no net impact on the hydrology, water quality or ecology of these wetlands

§ Require local environmental plans to include provisions on land fronting water courses to limit the creation of additional water rights

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§ Local environmental plans will not rezone land within the town water supply catchment and significant aquifers if this has the potential to reduce the quality or quantity of these assets.

The South Coast Regional Strategy outlines the following direction for tourism:

§ Local environmental plans will identify appropriate sites for major tourism development and specific ‘tourism precincts’ will be investigated, consistent with the South Coast Regional Tourism Plan 2003-2006. These sites should focus on: nature tourism, art, food and wine production, cultural and heritage tourism, tourism market, short breaks market

§ LEPs will ensure that appropriate land will be made available to provide a range of tourism experiences and forms of tourism accommodation, including the support of ‘bed and breakfast’ enterprises within residential and rural areas.

South Coast Regional Conservation Plan47 The South Coast Regional Conservation Plan (RCP) provides direction to local government on planning and development decision-making on land (excluding National Parks and State reserves) to maintain and improve biodiversity values including:

§ Identifying areas of high conservation value that will be protected by directing new residential, rural residential, industrial and commercial zonings away from these areas

§ Verifying important wildlife corridors across the region and providing a consistent approach to their protection and enhancement

§ Identifying coastal lakes and estuaries to be protected by ensuring further residential or rural residential zonings are allowed only if a neutral or beneficial effect on water quality can be demonstrated.

The RCP also sets guidelines for the use of BioBanking and biodiversity certification to maintain or improve biodiversity, use of offsets provision as part of approved development, application of Environment Protection Zones and how areas of high conservation value can be identified in LEPs and clauses included for their protection.

Local Directions The Minister for Planning, under section 117(2) EP&A Act can issue directions that local councils must follow when preparing planning proposals for new LEPs. Local directions relevant to the Rural Land Strategy are listed here.

§ Mining, Petroleum Production and Extractive Industries

§ Oyster Aquaculture

§ Coastal Protection

§ Heritage Conservation

§ Acid Sulfate Soils

§ Flood Prone Land

§ Planning for Bushfire Protection

§ Implementation of Regional Strategies.

Eurobodalla Local Environmental Plan LEPs apply either to the whole, or part of, a local government area and divide the area they cover into zones, such as rural, residential, industrial, public recreational, environmental conservation, and

47 Department of Environment, Climate Change and Water (2010) South Coast Regional Conservation Plan

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business zones. For each zone, a LEP will give a list of objectives that indicate the principal intended use for that zone. Each zone also lists the types of development within that zone that are:

§ Permissible without development consent,

§ Permissible with development consent, and

§ Prohibited.

The Standard Instrument for LEPs includes a list of 35 zones from which Councils can choose to reflect the primary use of the land.

The Eurobodalla LEP 2012 covers most land in the Shire apart from land deferred from the LEP 2012 and this land is still under the Rural Local Environmental Plan 1987.

Overlays Planning overlays are used where a number of planning responses are required to manage multiple values on one piece of land. The clauses triggered by the overlays maps, detail matters to be considered in assessing developments. The Eurobodalla LEP 2012 included a number of overlays relevant to the Rural Land Strategy including:

§ Acid sulfate soils

§ Flood planning

§ Terrestrial biodiversity

§ Riparian lands and watercourses

§ Wetlands.

Non-statutory documents Commonwealth strategies National Food Plan48 The National Food Plan sets out key goals to grow our domestic industry and increase the value of food exports through trade reform and international market development, investment in research and development, industry infrastructure and the workforce, adoption of sustainable management practices. The Plan demonstrates a strong commitment to growing the food industry and encouraging investment in primary production and food processing.

State strategies and policy NSW 2021 - NSW State Plan49 and South East New South Wales Action Plan50 The NSW State Plan is the overarching policy direction document for the NSW State Government. Within the context of the State Plan, the South East New South Wales Action Plan outlines a number of actions to be undertaken by Government in the region. Actions relevant to the Rural Land Strategy include:

§ Diversify the economy by attracting and supporting key growth sectors including renewable energy, fresh food production and small business

− Support regional tourism

− Develop a Food Plan for NSW

− Upgrade regional port facilities

§ Improve road safety and freight logistics

§ Regional Transport Plan for Southern NSW

48 Australian Government (2013) National Food Plan 49 NSW Government (2011) NSW 2021 50 NSW Government (2012) South East NSW Regional Action Plan

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− Regional Transport Plan for Southern NSW

− Improve freight logistics

§ Sustainably manage natural resources and biodiversity and identify and better understand the impacts of climate risk and variability on communities, the environment and water sources

− Responding to climate risk and variability

− Support the development of Coastal Zone Management Plans and Emergency Action Sub-Plans

− Protect built assets and public safety from flood hazards (Floodplain Risk Management Plans).

NSW Agriculture Industry Action Plan: Issues Paper51

The Agriculture Industry Action Plan issues paper identifies key challenges facing the agriculture sector over the next 10 years in NSW. The issues paper is the first phase in the development of the Agriculture Industry Action Plan that will set out actions for industry and government to encourage industry growth for the decade to come. The issues paper identifies six areas for consideration:

§ Productivity, profitability and innovation: changing terms of trade, adaptation to increased climate variability, improving business skills, capitalising on export opportunities, innovative technologies, research and development, security of land and water resources.

§ Workforce and skills: education and training, planning for labour force supply and demand, attracting the next generation.

§ Business and regulatory: biosecurity, international industry and workforce regulation, increasing food safety regulations, chemical use and off-site impacts, traceability and accountability of production systems.

§ Investment and ownership: balancing public and private investment, foreign investment and ownership, economies of scale, addressing barriers for investment, land use pressures.

§ Markets and export: managing the impact of global issues on local production, reduced competition in the domestic market segment for food products, capitalising of trade opportunity, globalisation.

§ Connecting with community: broader community awareness and understanding of agriculture, communication of key issues to the broader community and government, capacity to address community concerns about agricultural practices, best practice guidelines and environmental management systems, changing consumer preferences and expectations.

NSW Oyster Industry Sustainable Aquaculture Strategy52 The Sustainable Aquaculture Strategy details State Government strategy for the management and development of aquaculture in NSW and provides the strategic justification for planning provisions implemented by SEPP 62 – Sustainable Aquaculture.

The Industry Strategy highlights the important role of local government in managing estuarine water quality and resolving land and water use conflicts through estuary management planning, land use planning and development control. Water quality is critical to the industry from the point of view of food safety and healthy oyster production. Sources that pose a risk to water quality that can be influenced by the Rural Land Strategy include:

§ Location and density of development within estuary catchments which influences the risk of water contamination from sewerage systems, septic tanks, stormwater runoff, discharge from industrial premises

51 Department of Primary Industries (2013) Agriculture Industry Action Plan: Issues Paper 52 Department of Primary Industry (2006) The NSW Oyster Industry. Sustainable Aquaculture Strategy

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§ Agricultural industry and land management practices including discharge from intensive industries, runoff containing high concentration of nutrients and bacteria

§ Disturbance of acid sulphate soils

§ Changes to estuary hydrology by river flow regulation, increased catchment discharge from development.

The Strategy recommends that the potential impacts on water quality, tidal range and water flow required for oyster aquaculture be considered in assessing development proposal in estuary catchments or foreshore development.

NSW Tourism Strategy (2008)53 The NSW Tourism Strategy outlines the following objective for regional tourism:

Expanding Regional Tourism: Increase visitation to regional NSW by expanded promotion of regional NSW as a tourist destination. Additional support will be provided to regional tourism for capacity & demand building.

Maintaining land for agricultural industries54 The purpose of the policy is to guide the planning system in providing certainty and security for agricultural enterprises over the long term and to respond to future market, policy, technology and environmental changes. Key directions include:

§ Environmental planning instruments should be structured to;

− Promote the continued use of agricultural land for commercial agricultural purposes, where that form of land use is sustainable in the long term;

− Avoid land use conflicts;

− Protect natural resources used by agriculture;

− Protect other values associated with agricultural land that are of importance to local communities, such as heritage and visual amenity;

− Provide for a diversity of agriculture enterprises, including specialised agricultural developments, through strategically planned locations to enhance the scope for agricultural investment in rural areas; and

− Allow for value adding and integration of agricultural industries into regional economies.

§ Conversion of land used by agricultural enterprises to other uses should only take place where fully justified in the strategic planning context.

§ Minimum size of holdings for dwelling entitlement needs to be based on sustainable productive agriculture.

§ Minimising land use conflict. Councils should also consider other approaches to achieving the goal of minimising conflict in agricultural production zones so that farms can operate without unnecessary restrictions

Regional strategies Strategic Regional Land Use Policy55 The Policy was introduced by the State Government in response to the rapid expansion of coal seam gas exploration and seeks to provide greater protection for valuable agricultural land and better balance competing land uses. Strategic Agricultural Land mapping will be undertaken across the State

53 Department of Premier and Cabinet (2008) NSW Tourism Strategy 54 Department of Primary Industries (2011) Maintaining land for agricultural industries 55 Department of Planning and Infrastructure (2012) Strategic Regional Land Use Policy

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and incorporated into regional plans. At the time of preparation of the policy, strategic agricultural land mapping for the South Coast was due in 2014.

Southern Rivers Catchment Action Plan56 The Catchment Action Plan sets out a 10 year strategy, including objectives, strategies and priority actions for natural resource management in south east NSW. Strategies relevant to the Rural Land Strategy include:

§ Support local industries dependent on natural resources to be more profitable and sustainable

§ Support land managers to make well informed natural resource use and stewardship decisions

§ Ensure frameworks are in place to effectively respond and adapt to change

§ Maintain diverse, healthy and connected natural environments

§ Maintain and improve soil conditions to support people and the environment

§ Maintain and improve water security to support people and the environment

South East Food Plan57 The South East Food Plan has identified a number of projects aimed at increasing local food production, improving local food supply systems and increasing local consumption of food. Projects relevant to the Rural Land Strategy include

§ Increase the number of producers and make existing producers more successful. It includes urban and peri-urban areas because there are efficiencies in producing food closest to where most of it purchased and consumed.

§ Advocate ways of increasing the availability and use of quality agricultural land, such as leasing land for small scale agriculture, converting from grazing to more intensive uses, and issues relating to flood plain use.

Local strategies Eurobodalla Community Strategic Plan58 The Eurobodalla Community Strategic Plan sets out a vision for the future of the Shire. Objectives and strategies that seek to achieve the vision and are relevant to the Rural Land Strategy are noted here:

§ The natural environment is healthy, diverse and resilient

− Maintain the diversity of our plants and animals

− Manage and preserve our beaches and waterways

− Identify and protect resource land and adopt sustainable agricultural practices

§ Proactive and responsible planning supports the community and the environment

− Plan for impacts of climate change

− Plan to improve natural and built environments

− Design principles recognise our local character, accessibility and sustainability

− Manage and respond to environmental hazards and risks

§ Our resources are used wisely

− Use our water wisely

§ The economy is competitive and our people skilled

− Help our local economy grow

56 Southern Rivers Catchment Management Authority (2013) Catchment Action Plan 2013 - 2023 57 South East Food Project (2012) South East Food Plan 58 Eurobodalla Shire (2012) Eurobodalla Community Strategic Plan

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− Develop new industries and market places.

Eurobodalla Settlement Strategy59 The Eurobodalla Settlement Strategy outlines directions for settlement planning in Eurobodalla. The directions relevant to the Rural Land Strategy are listed here:

Tourism

§ Provide for tourist-related facilities and associated accommodation in rural areas where such facilities relate to and integrate with the character of the area

§ Ensure that tourist development in rural areas is developed sustainably, has minimal impact on the rural landscape character and is consistent with environmental protection objectives

§ Ensure that tourism development respects the authenticity of landscapes and settlements, and does not dominate or change the character of settlements

§ Support the retention and development of tourist accommodation and facilities.

Agriculture

§ Ensure that productive farmland is protected from eroding influences, such as urban and rural residential development, that potentially threaten farming operations

§ Ensure that the aesthetic values of the rural landscape remain a major asset to residents and an important element of the nature coast backdrop

§ Ensure that planning processes and controls are not an impediment to emerging and diverse agricultural pursuits.

Aquaculture

§ Promote opportunities and facilitate the development of diverse aquaculture enterprises having regard to environmental impacts.

Resource extraction

§ Protect identified existing and potential extractive industry sites and major haul routes associated with those sites

§ Encourage sustainable industry practices and avoid conflicts with adjoining and neighbouring land uses.

Heritage

§ Insert rural landscape character assessment provisions in the new LEP to retain scenic qualities and aesthetic values through the retention of bushland backdrops to towns and villages, and the coastline.

Scenic protection

§ Give equal consideration to indigenous, non-indigenous and natural/ landscape heritage values

§ Retain scenic qualities and rural landscape character.

Hazards

§ Planning for land uses is to take into consideration the potential impacts of climate change on settlements and physical or human infrastructure

§ Management of land is to reduce greenhouse gas emissions and mitigate the impacts of climate change

§ Ensure that only flood compatible development and activities are carried out on flood affected lands

59 Eurobodalla Shire Council (2006) Eurobodalla Settlement Strategy 2006-2031

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§ Enable areas subject to natural hazard to remain unencumbered by activities that would be environmentally detrimental and pose unacceptable community risk

§ Manage bushfire hazard to protect life and property within the context of preserving the biodiversity, scenic values and natural landscapes of the Nature Coast

§ Prevent and minimise the environmental consequences caused by the exposure of potentially acid sulphate soils.

Natural Environment

§ Provide long term protection of water quality and natural waterways in accordance with the NSW Water Quality Objectives and estuary management planning principles

§ Conserve biodiversity including native flora, fauna and natural ecosystems on private lands. Conserve whole ecosystem assemblages to ensure long term survival of icon species and the systems that are likely to support those species

§ Conserve, manage and enhance the Eurobodalla Nature Coast values in perpetuity by ensuring that development does not harm or compromise significant environmental values.

Rural residential

§ Make best use of available rural residential land having regard to environmental constraints, market demand and proximity to urban settlement

§ Facilitate the orderly and economic development of land by ensuring that rural residential land is developed to an appropriate dwelling density

§ Facilitate sustainable rural settlements having regard to the carrying capacity of the land and the capacity of Council to extend or augment essential infrastructure

§ Recognise indigenous values associated with the land and protect significant sites, values and landscapes.

Development Control Plans The EP&A Act allows a local council to make development control plans (DCPs). DCPs deal with particular aspects of LEPs in more detail than the LEP. DCPs are not environmental planning instruments and are not legally binding and LEPs and SEPPs take priority over a DCP.

There is currently no specific rural DCP. Some rural land in the Tilba area may be subject to the Tilba Villages and Conservation Area DCP and subdivision of rural land covered by the RLEP 1987 is subject to the Rural Subdivision DCP.

Eurobodalla Economic Development Strategy60 The Eurobodalla Economic Development Strategy reviews the current circumstances and trends in the Shire’s economy and outlines a range of goals and actions to address weakness and realise economic opportunities. Actions relevant to rural land include:

Focus on building employment opportunities in addition to those seasonally generated

§ Support employment generating development applications

§ Look for new industry opportunities creating ‘new’ jobs, especially in businesses selling to customers outside the Shire.

Economic Development and Employment Lands Strategy61 The Economic Development and Employment Lands Strategy is a plan for growth of employment land in Eurobodalla over the long-term. The strategy identifies locations for future employment lands. Some of this land is located in rural areas e.g. Moruya North, Mogo, Dalmeny and Bodalla. It will be

60 Eurobodalla Shire (2009) Economic Development Strategy 61 Eurobodalla Shire (2011) Economic Development and Employment Lands Strategy

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important that the Rural Land Strategy is consistent with the directions of the Economic Development and Employment Lands Strategy Eurobodalla’s Destination Management Plan 2011 - 202062 The Destination Management Plan sets out a long term plan to increase the yield from tourism. The Plan notes the importance of the tourism industry in the South Coast Region, (that includes Eurobodalla), which was ranked sixth of the seven regions in Australia that accounts for 21% of total tourism expenditure in Australia. The strength of the region is the coastal location and National Parks with key experiences and activities revolving around the beach and nature. Significant factors that differentiate Eurobodalla from other coastal regions are:

§ High proportion of Crown land has protected the areas attractiveness and concentrated urban development and infrastructure

§ Coastal and marine landscape that is not dominated by industrial activity or fishing and boating activity

§ Limitations on building heights

§ Batemans Marine Park offering leisure and recreational activities.

The report recommends developing strategies to:

§ Retain the authenticity of towns and villages

§ Respect and protect residential amenity and community values

§ Continue to respect and preserve the natural environment

§ Balance and plan for residential and tourism development

§ Support the development of nature based properties

§ Consider population growth and residential amenity.

Implications for this study This review of federal, state and local legislation, policy and strategies sets out a comprehensive framework for considering the future uses and development of rural land in Eurobodalla.

62 Wray, Dr. M (2011) Eurobodalla Destination Management Plan: 2011 - 2020

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Appendix 2: Regionally significant impacts of climate change Impacts Description

Impacts on land

§ Rising sea level is likely to increase coastal recession § Coastal dune erosion and soil decline are likely to increase § Salt water from increased sea levels is likely to affect sub-soils on the

coastal plain § Sheet and rill erosion are likely to increase and gully erosion is likely to

increase in summer but decrease in winter § Increased erosion is likely on stream banks near the coast and in the

immediate hinterland § Acidification is likely to decrease across the region § Problems of acid sulfate soils are likely to increase in the short term but

decrease in the longer term § Increased erosion of sodic soils is likely § Soil nutrient levels are likely to decrease in salinized coastal areas and

tablelands § Mass movement of soil is likely to increase in localised areas § Changes in dryland salinity are difficult to predict

Impacts on Settlements

§ Rising sea level is likely to increase the threat of saltwater intrusion and erosion to many settlements near estuaries and beaches

§ Community assets, residential property and associated infrastructure are virtually certain to be at risk from inundation or recession

§ Sea level rise is likely to threaten some properties § Most property boundaries referenced to the high water mark will change § Flood risk in coastal areas is virtually certain to be exacerbated, and

elsewhere the risk is likely to be variable § Flooding from urban streams is likely to increase § The degree of change in the risk of flooding of property above tidal influence

cannot yet be determined § Major infrastructure such as highways and airports in the coastal zone will

more likely than not be affected by sea level rise and flooding § Some water supply and sewerage systems are likely to be threatened

Impacts on ecosystems

§ Increased bushfire frequency and intensity, particularly in the alpine and sub-alpine zone, are very likely to cause major changes to ecosystems

§ Sea level rise is likely to threaten some estuarine communities § Inundation and saline intrusion are virtually certain to impact on low-lying

coastal ecosystems § Climate change is likely to reduce shorebird habitat and reduce shorebird

numbers § Lower primary productivity is likely to change many ecosystem processes § Climate change is likely to increase stress on fragmented and degraded

ecosystems and on threatened species § Changes in rainfall patterns are likely to intensify seasonality, increase

grazing pressure from native herbivores, and alter plant communities.