Economic Evaluation of a Newell Highway Bypass for Dubbo

Economic Evaluation of a Newell Highway Bypass for Dubbo  

Of all the arguments against a bypass for Dubbo, the one claiming that it will cause Dubbo to lose business seems the loudest. Is it really a valid criticism? Is Orange an example of a city whose economy has been affected negatively by adding a bypass? Orange Council recently released information showing that their economy is going from strength to strength. Orange is delighted with its Northern Distributor. So, would Dubbo have reason to be concerned about a bypass? 

Roads and Maritime Services research shows the economic effects of bypasses depends upon the town, with some towns suffering and others not so. Of those that did suffer initially, such as Yass, they usually bounced back within 12 months. Although the bypass in Yass initially resulted in the loss of around 93 jobs, this was because a large chunk of their economy was geared to pass-through traffic on the way to Sydney or Melbourne. Yass responded by building a service centre on the new bypass, which created between 100-120 jobs. The bypass benefited Yass in other ways too. Previously, traffic made the town unsafe and discouraged shoppers. With the congestion gone, Yass' retail district underwent rejuvenation, attracting new business to town.

"Contrary to public perception, tourism only contributes 4.31% of the total value add of the Dubbo Economy. A broad, strong economy is already here. It is not arriving in the next car load of tourists." 

How does Dubbo's economy compare to Yass'? The main industries in the Dubbo area are manufacturing, construction, educational services, agriculture, medical services, transport, retail and business services. Mining is also a sector undergoing growth. Dubbo has some famous tourist attractions, such as Western Plains Zoo, yet tourism only contributes 4.31 % of the total value-add to the city's economy. Less than 7% of employment is reliant or partly reliant upon tourism. Although 4.31 % is relatively small, Dubbo would still not want to lose what contribution. Would it though?

 "Unlike Yass, which is geared to pass-through tourists, Dubbo is a destination town and the average night's stay is 2.3 nights. Taking traffic out of the centre of Dubbo will make the town more pleasant and encourage tourists to stay longer." 

Our tourism is of a different nature to that of Yass. Whilst Yass is geared towards tourists who take rest breaks on the way to somewhere else, Dubbo is a destination town. The average night's stay in Dubbo for Australian tourists is 2.3 nights. The average night's stay for international tourists is a whopping 16.6 nights. Tourists plan to come here more often than they are treating it as a rest stop and are unlikely to be discouraged by a bypass. However, current plans to congest Whylandra and other streets with more Newell Highway traffic (vehicles crossing a bridge at River St would need to pass through the other bridge intersections), the associated road works and the removal of parking spaces along Whylandra, Cobra, Fitzroy and Victoria Streets could discourage pass-through traffic from taking rest breaks in Dubbo. Steve from Pizza Cravings on Whylandra Street is worried about how congestion and loss of parking will affect not only his own business but others nearby. Congestion-at the bridge intersections, that he is sandwiched in between will make it difficult for customers tog et to him and for him to deliver his pizzas on time. 

"The evidence points to a bypass creating new business, construction and employment opportunities and is something that everyone in Dubbo should be pushing for". 

There is every reason to believe that a bypass will increase, rather than decrease, the number of rest stops made by pass-through traffic. At present, Dubbo is very unfriendly for truckers. There are few places to park and no facilities for them to get a shower or dine 24 hours per day. Along the bypass, there will be space for roadhouses and truck stops to be built, as well as other commercial construction opportunities like, hotels, caravan parks and restaurants. This will attract truck drivers and other visitors who currently avoid Dubbo congestion by travelling down the pot-holed Eumungerie to Tomingley Rd. Not only hospitality-geared businesses will prosper, but all those associated with the transport industry, such as truck service centres. 

The Dubbo Region saw a disturbing reduction in the numbers of those employed in transport & warehousing from 2011 to 2016. A bypass will see that trend reverse quickly and increase employment in these sectors. 

Dubbo Regional Council's Economic Profile, 2019. 

"Dubbo's hotels not only cater for tourists but also medical travellers, conference and event attendees and those here doing business". 

Dubbo's hotels play host not just to tourists but may other types of travellers as well. Dubbo has unmatched state of the art conference and venue facilities and these amenities will continue to attract conference business. Dubbo Base hospital has the only maternity ward nearby, since Parkes Hospital closed theirs. Dubbo is the only location offering oncology services in the central west and beyond. The hospital is expanding and will soon cater for even more patients from out of town along with their families. Macquarie Homestay alone is estimating that it will accommodate up to 1000 medical visitors each year. 

"Productivity in the transport industry leads to reduced delivery times and lower transport costs for Dubbo businesses." 

Dubbo's saleyards attract farmers, truckies and stock and station agents every week. We want them to keep coming here to do business and a bypass will help them to enter and leave the industrial areas efficiently without disturbing other parts of Dubbo. Commercial enterprises in North Dubbo that rely on heavy vehicle transport should be able to carry out their business activities unhindered during a flood, using a high level bridge built at Troy. This could save millions of dollars not only for the local economy during flood times, but also much of the economy of Eastern Australia. Large sectors of the economy and many cities and towns rely on the Newell Highway being open for business flood or not. A traffic bypass and greater productivity in the transport industry will also lead to reduced delivery times and lower transport costs. A recent independent report from Deloitte Access Economics shows that implementing more productive truck access on our roads would save a typical family $452 each year (https://www.fullyloaded.com.au/, 23.9.19). 

Stop the River St Bridge Dubbo — Troy Bridge bypass now, not 2040 Coalition. Check out our Facebook page: https://www.facebook.com/StopRiverStBridge/