Disappointment and Silver Linings

THE news of 158 people being laid off at the meat works has been a blow to the local community.

JBS is the largest employer in Scone and impacts are expected across the local economy.

Council has expressed their concerns for the workers and the community, while the response from some local business owners is a mix of concern and cautious optimism.

Mayor Wayne Bedggood, said he was disappointed that JBS had to announce they were laying off staff and shared their concern for the employees, their families and the local economy.

“We have met with JBS and while we understand the change in the cattle market has impacted their business, we are concerned about how this will impact our local community,” said Mayor Bedggood.

“The changes at the plant will impact local retail, the housing market and have a range of flow on affects to our whole community,” he said.

“They have assured us they will continue to run a sustainable business in Scone and they have continued to invest into the plant, especially focusing on environmental concerns.

“Our main concern is the workers and their families and we have told JBS we are open to ideas for how Council may assist,” Wayne Bedggood said.

The local real estate market is expected to suffer the brunt with two agents offering their insights.

Pat Gleeson, owner of Pat Gleeson Real Estate said it is a tough blow, but Scone is resilient place.

“The town is a bit wounded at the moment and anything that adds to it will be difficult,” said Mr Gleeson.

“But the secret t Scone is that there has always been a good mix in the economy,” he said.

“The mining downturn was tough, but prices haven’t gone back to where they were before the boom and could you imagine if we were in a drought right now?

“We’d all be on our knees, so we are lucky we have had a good season and Scone has other sectors,” Pat Gleeson said.

Mac Dawson, sales executive at Dawson and Dawson Realty, which has a lot of rental business said it will impact the investment market.

“Since the end of the mining boom, houses have started selling for more realistic prices, but this could negatively impact on the rental investments,” said Mr Dawson.

“If there are two or four people per house, there could be up to 50 houses without tenants and that will impact on the rental market,” he said.

“It lowers the prices for investment purposes and it makes Scone less attractive to invest in, not to mention all thee flow on to local businesses, schools and across the community.

“The meat works has given some security during the mining down turn and I know of a few guys who went to work up there when they were laid off from the mines, but that safety net is not there now,” Mac Dawson said.

Rob Baker investment advisor and co-owner of Ausure in Scone said the news of the lay-offs was disappointing, but the local economy had some silver linings.

“Scone is lucky enough to have a few industries to support the local economy,” said Mr Baker.

“The Magic Million sales yielded record investment, the rains have been good, it’s never looked greened and cattle prices are high,” he said.

“There has been the ripple from down the valley with the mining downturn, but the news of Rio divesting its interest in Bengalla and Mt Pleasant changing hands may be encouraging signs in the region for jobs.

“For the companies investing in those mines, it will be a major focus of their business and it probably means they will be developed as a priority and create jobs in the mining sector again,” Rob Baker said.