Future Cairns: How employers are finding homes for desperate FNQ workers
Far North employers are dabbling in real estate to get a roof over the heads of new recruits. But there is a downside that comes with this bold initiative.
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A RADICAL plan for employer-provided housing in a bid to attract staff and drive economic growth has been embraced by some industry leaders, but could prove a double-edged sword for the Far North.
Rental vacancy rates as low as 0.2 per cent in parts of the region, desperate families living in tents on the Tablelands, increasing house prices and employees struggling to secure accommodation prompted calls by Demographics Group co-founder Simon Kuestenmacher of a back-to-the-future style strategy.
In a move to ease obstacles to growth Mr Kuestenmacher advocated for companies to provide housing stock for employees similar to what was achieved by English factory owners during the industrial revolution.
Mareeba Chamber of Commerce president Joe Moro said the idea had and was already being implemented by Howe Farming when the company took over the former Golden Leaf Motel on Byrnes St.
“Accommodation is still one of the biggest issues, and all at all different levels. There’s a shortage across the board,” he said.
“That’s how people are attracted to the region, but the issue is you have to raise the capital to do that and costs are going up. But I do think business is going to have to adapt.”
However, Mr Moro feared it had a negative impact on tourism destinations, potentially removing beds that might have been wanted by high-value travellers.
“It’s reinventing the wheel and going back to the old days. I think there is going to be a lot of looking at how things were done in the past,” he said.
“People have gone into setting things up for workers on farm. But that has a down side for the tourism side and it’s a very competitive market.”
But not all employers are prepared to sink cash into a service considered beyond the usual responsibility of the business.
Quicksilver managing director Tony Baker employs 420 workers.
After a gloomy two years severely impacted by the pandemic he said now was the time to invest in delivering on a memorable Great Barrier Reef experience.
“It not something we are looking at doing (on the mainland), but we do provide accommodation for workers at Green Island,” he said.
“I think it’s particularly more difficult for larger employers. At this stage we are certainly seeing employee numbers continue to grow and there are challenges with finding accommodation.
“Now we are seeing much better conditions, we now need to invest back into the products so we can continue to provide opportunities.”
But for Hemingway’s Brewery Port Douglas forging into property and leasing to employees was the only way to lure workers to a resort town critically short on housing.
Roman Haslinger, head of hospitality at Hemingway’s, said the move was to create a sustainable working environment and retain core employees.
“My business model is always based on building a team that stays together for a long time and one of the only ways we could do it was offering accommodation,” he said.
“There was no accommodation so we needed to buy some.”
With six rooms housing six people, the hospitality leader said it “wasn’t enough”.
“I would have more people that would like to stay in our apartments than we have space in our apartment,” he said.
While the initiative has been successful for Hemingway’s, Mr Haslinger said taking on real estate management comes with its own challenges.
“You solve a few problems,” he said.
“In the end we’re a resort town so we need to offer good hospitality to people … something more has to happen at some point otherwise it’s going to be more and more difficult.”
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Originally published as Future Cairns: How employers are finding homes for desperate FNQ workers