The Library Dividend

Socio-economic research on the

value of Queensland public libraries

Andrew McDougall

SGS Economics & Planning

Libraries...the fourth RState Library of Queensland 18th Sept 2012

• Project objectives

• Project framework

• Project methodology

• Survey results

• Case study results

• Queensland results

• Conclusions

Outline of Presentation

• Expand understanding of the value of public libraries

• Prove that public libraries contribute economic benefit to the community

• Equip public library managers with tools for assessing value

• Equip public library managers with advocacy materials

Key Project Objectives

Cost Benefit AnalysisBenefits

Less Costs

Equals Net Benefits

Economic Impact AnalysisDirect stimulus

Plus indirect (flow ion effects)

Total induced economic activity

Qualitative Insights

Framework Elements

Do public libraries provide a net benefit to the Queensland community?

How much economic activity do libraries induce in their local economies?

Content that brings numbers to life and aids advocacy efforts

CBA - Benefits

Benefits

Use

Direct use...access to library resources/ services...social interaction

Indirect use

...sense of place and local amenity

...environmental savings

...contribution to literacy

...contribution to education, career & health

Non-useOptionLegacy

Existence

...for future use

...for current and future generations

CBA - Measurement Techniques

Benefits

Use

Direct use Travel cost Financial savings

Contingent valuation –

usersIndirect use

Non-useOptionLegacy

Existence

Contingent valuation – non-users

Direct Impacts• Recurrent costs of operations• Triggered user expenditures

Indirect Impacts

Total Impacts• Local employment• Local value added• Local output

EIA - Measurement Techniques

Research scope

Survey Sample Method Sample size Coverage

Library users Library users over 18 years

Online survey completed in libraries

Average of 704 in each case study

4,926 in total

7 case study areas

Queensland households

Representative sample of all Queenslanders over 18 years

Telephone survey

1,102 Queensland

Case study library services

Case study Segment population

Brisbane

Sunshine Coast

Fraser Coast

Mackay

Goondiwindi

Paroo

Mount Isa

Metropolitan

High Growth Centre

Disadvantaged Centre

Regional Centre, Stable Population

Small Rural Community (10-25,000)

Declining Community (<5,000) Resource Segment

Library user survey...frequency of use

Library user survey...purpose of visit

Library user survey...primary activity

Library user survey...individual benefits

0%10%20%30%40%50%60%70%80%90%

100%

Major Benefit Minor Benefit No Benefit

Library user survey...community contributions

Library user survey...selected quotes

“The range of materials, the comfortable surroundings and the friendliness and helpfulness of staff.”

“I love the mix of people it attracts all ages from all walks of life; I love that it promotes community.”

“The library is an amazing place to go, staff are always friendly, and the atmosphere makes me feel at home. I can read a book and before I know it 2 hours have passed. I like libraries.”

Library user survey...selected quotes

“We moved from overseas with very little and the library was fantastic, both for resources and helping us integrate into the community.”

“I live a long way out of town so it is also a good mutual place to meet.”

“Libraries have been an important part of both my education and my life”

Library user surveys...dollar values

Financial savings $395 per annum

Contingency valuation $52 per annum

Worth more, but capacity to pay limited

Travel costs Travel 7.8km to get to library

Spend 37 minutes in library

Triggered expenditures $55 per annum due to library use

$19.70 spent elsewhere each visit

Household (non-user) survey...perceived benefits

0% 20% 40% 60% 80% 100%

Help people obtain new jobs or promotions

Help people or start a business

Contribute to productivity by supporting job skills and …

Assist understanding of legal or medicine information

Help people accomplish tasks and/or achieve goals

Assist English language skills

Enable people to gain or improve computer skills

Foster a sense of community or belonging

Support involvement in educational courses

Help people to pursue hobbies and interests

Facilitate informal lifelong learning

Help people find information not obtainable elsewhere

Contribute to enjoyable and meaningful pastimes

Support children's early (0 to 5 years) development

Support children's education

Percentage of Respondents

Large extent Moderate extent Small extent Not provided Don't know

Household (non-user) survey...perceived characteristics

0% 20% 40% 60% 80% 100%

Attracting new business to the community

Supporting existing local businesses

Facilitating job or career planning

Recognising the demand for non-English language …

Acting as a source of government information

Supporting the development of English as a 2nd …

Providing information about community events

Providing public meeting places

Supporting local culture and the arts

Promoting and encouraging literacy

Encouraging responsible social behaviour

Ensuring access to the Internet for all

Facilitating lifelong learning and improving literacy

Being safe and pleasant places to visit

Percentage of Respondents

Agree Strongly Agree Disagree Disagree Strongly Don't Know

Household (non-user) survey...willingness to pay

“

Household (non-user) survey...selected quotes

“

“Libraries. Wouldn't be without them!”

“Libraries act as a hub where community members can come together not only for social activities but to pursue personal interests and continue on their path of lifelong learning.”

“The library is a place where all people can go and have access to resources and be treated the same”.

Case studies...headline messages

Case study Headline messages about library contributions

Brisbane

Sunshine Coast

Fraser Coast

Mackay

Goondiwindi

Paroo

Mount Isa

Embracing new technologies, changing community expectations

Adult education and training opportunities

Co-location with other community services enhances outcomes

Innovative approaches to membership/ programming can mitigate transience of resource workers/ families

Delivery service ensures community wide access

Library’s role in times of crisis is accentuated

Serving socially isolating community members, key entry point for transient resource works/ families

• Insufficiency of funding

• Managing rising community expectations

• Keeping abreast with and training staff in emerging technologies

• Attraction and retention of quality staff

• Promotion of service offering to enable maximise community awareness/ use

Case studies...common issues

Case studies...quantitative results

Cost Financial savings

Travel cost method

Contingency valuation

Brisbane Libraries $49.6 $256.7 $103.6 $55.5

Sunshine Coast Libraries $14.7 $49.7 $33.4 $11.0

Fraser Coast Libraries $2.7 $15.5 $6.1 $3.3

Mackay Libraries $3.7 $20.4 $9.5 $4.4

Paroo Libraries $0.2 $0.7 $0.3 $0.1

Mount Isa Libraries $0.7 $6.4 $1.5 $1.1

Goondiwindi Libraries $0.3 $2.6 $0.7 $0.5

Total $71.9 $351.9 $155.1 $76.0

Case studies...benefit cost ratios

Case studies...local economic impacts

Impact on regional economy

Income ($ million)

Value-added ($ million) Employment

Direct Total Direct Total Direct TotalBrisbane $71.22 $165.44 $29.87 $75.49 410.56 772.22

Sunshine Coast $18.86 $31.12 $9.94 $17.10 129.33 182.23

Fraser Coast $3.90 $5.90 $1.93 $3.08 30.09 40.65

Mackay $5.39 $8.44 $2.55 $4.11 43.30 58.63

Paroo $0.20 $0.25 $0.12 $0.15 5.18 5.88

Mount Isa $1.13 $1.49 $0.17 $0.26 10.28 12.51

Goondiwindi $0.70 $0.98 $0.34 $0.51 5.46 7.25

Total $101.39 $213.62 $44.92 $100.70 634.20 1,079.38

Queensland results...CBA

0 100 200 300 400 500 600 700 800 900

Contingency valuation method (BCR = 1.0)

Travel cost method method (BCR = 1.8)

Financial savings method (BCR = 4.1)

Cost

$ Mill ion$478 (BCR = 2.3)

$614 million in Queensland income

$295 million in Queensland value added

3,135 full time equivalent Queensland jobs

Queensland results...EIA

• Libraries contribute significantly to community welfare & economic activity. They provide a sound return on investment.

• Numbers are robust, disciplined & appropriately informed.

• Both Queensland library users and non-users appreciate the contributions made by libraries.

• Queensland community is largely satisfied with library services; suggested improvements revolve around the deepening of existing services.

Conclusions

Questions