Thursday 19 January 2012

Economics versus living standards.

For the past thirty years the quarry at Bass Point, to the south of Wollongong has lived comfortably with the citizens of this city.  Each year it creates an ever deepening hole as it crushes rock to supply the Sydney building industry with aggregate, screenings and sand.   Eventually, this mine will reach the end of it's life - and that enormous hole will come in very handy to be refilled with waste when we need a new landfill.

The quarry is awaiting permission to expand.   There are two plans being considered - one increasing output from the present 1.5 million tonnes a year to 2.4 million tonnes - and the other to a massive 4 million tonnes.     Either will be warmly welcomed by the Sydney building industry, and the expansion will create more jobs here in Wollongong.

The sticking point is the increase in truck movements.  Expanding the Bass Point quarry will result in truck movements on our roads increasing to a rate of sixty-two per hour, and these will be big trucks which will have to join the queue grinding slowly up Mt Ousley road - which is already near capacity.

Until recently the products from Bass Point were moved by ship.  A  jetty and loading pipeline already exist, but it seems that the ship was fast reaching the end of it's productive life and a decision was made not to spend the huge amount necessary to replace it - so production was switched to road transport.

Economists claim road transport has advantages over shipping, because the trucks can deliver their load directly to where it is needed.   The ship must dock in Sydney and there are unloading costs as the aggregate is transferred to trucks for the short, local delivery.

A different style of thinking needs to apply here.   It seems to be a matter of economics versus living standards - and if the truck option gets the nod - the people of Wollongong will suffer a drop in living standards because of the added traffic problems.

Approval of this quarry expansion should be on the basis of output reverting to ship movement.   The product of this quarry is in short supply nationally, and if it costs a few cents a tonne more to move it in a more friendly manner - then that is the price industry needs to pay to contribute to national living standards.

It seems that the movers and shakers completely ignore living standards in their quest to make profits and lower costs.     This ignorance is like a boomerang.   It has a habit of coming full circle - and hitting the person throwing it behind the ear.

If Bass Point gets it's way and it's product travels by road, further down the track the economy will have to shell out more to widen or duplicate roads.    The right decision now - can pay future dividends !

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