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- The Hunter Valley Research Foundation (HVRF) was commissioned by the Singleton Support Development Team to conduct an analysis of the economic benefits to the Hunter Region of the proposed F3 extension. Funding for the project was provided by the Coal and Allied Trust.
- The possibility of a new highway corridor between the F3 and the New England Highway was first examined by the RTA in 1991-92. An Environment Impact Statement (EIS) was conducted in 1995 in which the proposed route was chosen. Public consultation resulted in small amendments to the route in 2001. The EIS estimated that the benefits of the road would be double its construction cost.
- The proposed extension would see a 39.5 kilometre four-lane dual carriageway link the Newcastle-Sydney Freeway at Seahampton (just west of Newcastle) with the New England Highway around Branxton. The construction is anticipated to take six-and-a-half years at a cost of $335 million.
- The HVRF Input-Output Model of the Hunter Region economy was used to estimate the economic benefits of the roads construction. It was estimated that the $335 million in construction expenditure would:
- Generate around 2,437 full-time jobs in the Hunter. These jobs would flow to the following sectors:
- Construction (1,444)
- Retail (272)
- Finance and Insurance (78)
- Accommodation, Cafes and Restaurants (72)
- Wholesale (61) sectors.
These jobs are defined as full-time (35 hours per week) positions of one-year duration.
- Result in an expansion of industrial output from Hunter businesses of around $605 million. The major beneficiaries would be the Construction ($378m), Retail ($46m), Wholesale ($37m), Finance and Insurance ($26m) and Fabricated Metals ($17m) sectors.
- Create an additional $111 million in income (wages, rents and profits) for Hunter Region residents. Those involved in the Construction ($71m), Wholesale ($6m), Finance and Insurance ($6m), Retail ($5m) and Fabricated Metals ($3m) sectors would benefit the most.
- Generate around $53 million on taxation revenue at the federal ($45m) and State ($8m) levels.
The results understate the full impact of the construction expenditure as the model only considered impacts in the Hunter Region.
- The HVRF commissioned Gutteridge Haskins & Davey Pty Ltd (GHD) to review the benefit-cost analysis undertaken by the Roads and Traffic Authority in 1995 and estimate a benefit-cost ratio (BCR) based upon likely changes in traffic flow scenarios. The scenarios used are considered conservative estimates of traffic flow increases because of population growth and business development in the region. The analysis shows that:
- The BCR is extremely sensitive to traffic flows, with changes in traffic flows resulting in a more than proportional change in the BCR.
- A 4.4 per cent increase in traffic flows increases the BCR by 18.6 per cent (from 1.83 to 2.17), while a 12.8 per cent increase in traffic flows increases the BCR by 31.1 per cent (from 1.83 to 2.4).
- Interviews conducted by the HVRF with regional councils and businesses suggest:
- The F3 extension would improve the competitiveness of local industries by reducing freight costs and times
- Tourism in the Upper Hunter and beyond is likely to be encouraged by the extension, already having increased after the 11 September terrorist attacks and the collapse of Ansett Airlines and its regional subsidiaries
- Trade through the Port of Newcastle is expected increase and the extension is expected to assist to divert freight away from the congested Port Botany in Sydney.
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