Goulburn could recapture its wool industry heyday if the findings of a research report are followed through.
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The document, commissioned by Regional Development Australia Southern Inland, predicts $2.6 million in annual net savings if wool sales and showroom facilities are relocated from Yennora to Goulburn. Savings included rental of broker offices, the wool showroom and broker travel.
But there’s also opportunity for a wool museum, education and training facility, offering wider tourism and economic benefits.
The expiry of a head lease at Yennora in December, 2017 is driving the push. But so too are RDASI, industry brokers, sellers and growers, Goulburn Mulwaree Council and local politicians. The group has met several times in Goulburn. RDASI co-deputy chair Ben Maguire says there’s clear momentum.
On Thursday, RDASI released its report, ‘Toward a New Wool Selling Future in NSW.’ It contains a financial analysis by Deloitte of relocation options.
“We see it as Goulburn returning to its heyday but what makes it is a strong economic case,” Mr Maguire said.
“Once we have that, and I think we do, the other benefits such as tourism and education will flow. Engagement of the next generation of the wool industry is a key challenge and you can’t do that unless you showcase the sector.”
The report seizes on growing ructions about whether Yennora is the “most appropriate and cost effective option.”
“The amount of wool being offered through Yennora is significantly less than in the past when Brisbane, Goulburn and Newcastle sale centres were closed and centralised to Yennora during the 1990s and up to now,” the report states.
“...Yennora is one of the most expensive commercial property rental zones in NSW and possibly Australia.”
That means less return to shareholders, Mr Maguire says. But more importantly, sellers and brokers wanted decentralisation, the report stated. Competition is looming from Melbourne to consolidate all wool selling there. But Mr McGuire said this “completely ignored” the fact that northern NSW and Queensland didn’t want to engage with that option.
RDASI found that Goulburn was ideally located with a rich wool growing and selling history, cheaper land and rental and remained the largest store handling and warehousing facility in NSW. In addition, owners of the new freight rail hub off Braidwood Road could offer “seamless transfer” to ports.
A total 12,000 square metres will be needed and several options are being considered. These include a greenfield site or development of either Australian Wool Handlers’ sites in Goulburn. Developer Mike Agnew presented plans for the AWH Hume Street site, including a museum, at RDASI’s last round table meeting.
The report recommends formation of a reference group, comprising industry members and peak bodies, to advance the case. Mr Maguire admits there’s more work to do. Producers needed to understand the potential and lobby decision makers for support, he said.
“There is absolutely wide industry support for this,” he told The Post.
“I understand there are some decisions to be made by stakeholders but we just feel there is a good, strong business case for this move.”
Hume MP Angus Taylor is on board.
“We have to convince producers that the savings are there and there’s more work to do with buyers and sellers,” he said.
“...But I’ll be doing all I can to convince key players that this is a great place to come. I think it’s a fantastic location.”
Mr Taylor said Goulburn’s land prices and cost of living were major drawcards in themselves.