Dubbo livestock agents say moves by their local council to look at leasing or selling the Dubbo Regional Livestock Market (DRLM) could hit the region's producers - and the Dubbo economy - where it hurts.

Dubbo Regional Council called for Expressions of Interest (EOIs) to buy or lease the facility in April with a deadline of Tuesday 14 May but the timeframe has now been extended to 23 May, just a couple of days ahead of the Council's May meeting on 25th.

Industry stakeholders around the region have been vocal in their opposition to the direction they believe the Dubbo Regional Council (DRC) is taking.

The Dubbo Stock & Station Agents association (DSSA) say the facility is a major income-generator for both council and the wider community, and that the process being undertaken smacks of a pre-determined outcome.

A delegation of concerned users is expected to attend the May 25 meeting as they continue to make their argument in favour of keeping the facility under Council ownership.

Thirteen licensed livestock agents operate at DRLM, and sales are supported by meat companies, butchers, farmers and feedlot operators from across a wide region of central and western New South Wales.

"Understandably, the DSSA are upset with the Dubbo Regional Council (DRC) and extraordinarily little, if any, feedback was asked for from the Producers or Users of the facility, or the ratepayers of Dubbo LGA," agent Andrew Peadon said recently in a statement.

"The DRC have not reached out for any data or statistics whatsoever in relation to what areas the livestock come from or what states and towns support the DRLM."

President of Dubbo Stock & Station Agents Association, Martin Simmons. IMAGE: Elders

As President of the DSSA, Elders’ agent Martin Simmons sits alongside councillors and other stakeholders on the DRC's advisory committee for the saleyards.

He says even he hasn't seen the report which convinced DRC councillors to advertise for parties interested in leasing or buying the facility.

"It was a confidential report only for councillors," he told the Western Plains App.

"I understand there were up to 120 pages in that report. It raises concerns over why they chose to look at leasing or selling at this time."

One key question, he says, is whether "a modified status quo has been floated as one of three options."

"We've been told at the committee level that the yards can no longer remain operating under the current arrangements but in their motion moved last month there was no mention of looking at the status quo - only lease or sale."

Recent figures show a throughput of more than 1.1million sheep and 156,000 cattle at the DRLM, making them first in NSW and third in Australia in terms of cattle throughput, and third in NSW for sheep.

“The privatisation of similar selling facilities in NSW had proven to cost stakeholders more to operate with the same outcomes,” said Dubbo agent Paul Dakin.

“Producers must be aware that fees may increase by double, as has happened in other centres who faced the same shift to privatisation as we are,” he said.

“All rate payers should be alarmed at the speed of which this process to sell or lease the facility has been managed by Council rather than being presented during the upcoming election where a democratic outcome is achieved and greater thought and consideration can be given to such a large decision for the region.”

The Dubbo council's own website attributes $60.902M in total output and 307 full time equivalent positions in their local economy to the flow-on effects of the DRLM.

While there appears to be no argument around the sizeable revenue the DRLM delivers to the Dubbo Regional Council, there are clearly different ways of looking at the bottom line.

“People look at the income of $3.3million but turnover is different to profit and the saleyards have costs of $5.1million including depreciation so we know sustainability is a big issue,” says DRC Mayor Matthew Dickerson.

"It does inject money into the Dubbo economy, but we don't think it's running the best it can be.”

"It's all about getting the best outcome for the community."

Cr Dickerson says changes to regulations around work health safety, anti-competition and animal welfare laws are all scenarios involved in bringing on a saleyards review.

"No one at council thinks Dubbo should lose the facility but if we continue to own the saleyards the charges will go up," he said.

"On a day-to-day basis it is cashflow positive but after depreciation and upgrades it is not.

"We are looking at all our assets. We need to make sure we optimise their operations."

Mayor of Dubbo Regional Council Matthew Dickerson

Cr Dickerson says the status quo "is not the best model" and that agreements with the DSSA are outdated and probably need to be reviewed.

"It would be remiss of us not to look at all the options before making a decision," he said. "A review has to start somewhere. We're starting, not ending, the process."

He said DRC is conducting “an internal review simultaneously” with the EOI process which will include possible changes to the current operating arrangements.

Malcolm Kater, from Egelabra at Warren, is a major supplier of prime cattle and sheep to the Dubbo selling centre. He said he was unable to understand why a facility like the DRLM would be sold if it is profitable.

 “The question needs to be asked if there is a revenue issue or budget black hole within Council that is forcing a review of the saleyards that will culminate in the decision being made to sell or lease it,” he said.

 “You don’t sell a cow in full milk so why should the saleyards be any different?”

Dubbo Regional Livestock Market. IMAGE: Dubbo Regional Council

Once the EOIs are received Cr Dickerson says the information will then come back to councillors.

"We have no way of making a decision until we have the numbers to work with including lease or sale."

A report is due to come to DRC at their June ordinary meeting seeking "a direction not a decision".

"If we like the lease idea we'll go with a more formal process."

Councillors are expected to participate in a workshop on 6 June with council staff to discuss the options for the saleyards.

Whether information from the review comparing potential improvements to the existing operating model will also be included in the report for comparison purposes is not clear.

"As councillors we have to make sure we get the best outcomes for the community," said Cr Dickerson

"We have 66,770 people to look after. We have to make sure we don't focus on a small group of individuals, we've got to make sure the assets provide optimum value for the whole community."

As for the DSSA, President Martin Simmons says that they expect a good turnout of saleyard users at the May 23 meeting.

"I suggest any users interested in the future of the facility come to that meeting or get in touch with the councillors well before a decision is made," he said.