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1367.5 - Western Australian Statistical Indicators, Sep 2007  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 03/10/2007   
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FEATURE ARTICLE 1: REGIONAL WAGE AND SALARY EARNERS IN WESTERN AUSTRALIA - 2001–02 TO 2003–04


INTRODUCTION

Western Australia has enjoyed a period of strong economic and population growth since 2001-02, underpinned by the state's booming construction and mining industries. Between 2001-02 and 2003-04, the Western Australian economy grew by an average of 6.2% per year and the population increased 1.4% (26,742 persons) per year. Rising employment opportunities and incomes have seen an influx of workers into the state, as well as a re-location of resident workers, both of which have brought about significant change in the distribution of wage and salary earners in Western Australia. Much of the recent growth in wage and salary earners has been concentrated in the outer metropolitan areas of Perth, inner Perth, Mandurah and areas surrounding Geraldton and Bunbury. The greatest increases in wage and salary incomes have been in the more affluent areas of Perth's inner west and in rejuvenated mining and other areas around Geraldton. Notably, the traditional mining areas of Kalgoorlie/Boulder, Coolgardie and East Pilbara have recorded relatively modest increases in wage and salary earners and incomes, albeit influenced by a high proportion of fly-in fly-out workers who may report their residence and income outside of these areas.


This analysis follows a previous article 'Regional wage and salary earners in Western Australia: 1996-97 to 2000-01' published in the March quarter 2004 issue of Western Australian Statistical Indicators (cat. no. 1367.5). Readers are directed to this article for information on data methodology, confidentiality, scope and coverage. Wage and salary earners are defined by the Australian Taxation Office as persons aged 15 years and over, who have submitted an individual income tax return and for whom wage and salary income was the principal source of income for the financial year. Wage and salary income includes gross income from wages and salaries, allowances, commissions, bonuses, tips, gratuities, consultation fees, honoraria and other payments for services. Throughout this article the term 'area(s)' is used to describe Statistical Local Areas (SLAs) of the Australian Standard Geographical Classification (cat. no. 1216.0), July 2006 edition.



METROPOLITAN AND NON-METROPOLITAN AREAS

From 2001-02 to 2003-04, the number of wage and salary earners grew 5.9% (43,255) to 771,395 in Western Australia, with the Perth metropolitan area accounting for over three quarters of the increase (up 6.2% or 34,271 to 583,862). Non-metropolitan wage and salary earners grew 5.4% (9,359) to 182,169. Average wage and salary incomes rose 10.1% ($3,497) to $38,284 per year in Western Australia between 2001-02 and 2003-04. For workers living in non-metropolitan areas, average wage and salary incomes rose 11.1% ($3,740), slightly more than for those living in metropolitan Perth (up 9.7% or $3,395). Despite the lower rate of growth, workers residing in metropolitan Perth still had higher average wage and salaries than workers residing outside of the Perth metropolitan area ($38,448 compared to $37,568 in 2003-04). However, the income disparity between the two areas narrowed from $1,224 in 2001-02 to $880 in 2003-04.

WAGE AND SALARY EARNERS, Western Australia

2001-02
2002-03
2003-04
Change from 2001-02 to 2003-04
% change from 2001-02 to 2003-04

NUMBER

Perth metropolitan area
549 591
564 313
583 862
34 271
6.2
Non-metropolitan Western Australia
172 810
176 529
182 169
9 359
5.4
Total - Western Australia(a)
728 140
745 734
771 395
43 255
5.9

AVERAGE ANNUAL INCOME ($)

Perth metropolitan area
35 053
36 572
38 448
3 395
9.7
Non-metropolitan Western Australia
33 828
35 649
37 568
3 740
11.1
Total - Western Australia(a)
34 788
36 386
38 284
3 497
10.1

(a) Includes wage and salary earners and income not allocated to a region.
Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



DISTRIBUTION OF WAGE AND SALARY EARNERS

A large concentration of wage and salary earners reside in Perth's urban fringe and along the south west corridor from Perth through to Rockingham and Mandurah. A large number also live in the major rural centres of Kalgoorlie/Boulder and Bunbury. Conversely, relatively few wage and salary earners reside in inland parts of Western Australia, where economic activity is limited or farming activity is prominent (farmers tend to be self employed workers, not wage and salary earners).


In 2003-04, Joondalup - South (49,198) had the largest number of wage and salary earners in Western Australia, followed by Melville (38,528) and Gosnells (37,338). Kalgoorlie/Boulder - Part A (14,144) and Bunbury (11,713) were the leading non-metropolitan areas. Rapid development along the south west corridor from Perth to Rockingham (30,290) and Mandurah (16,943) has also attracted large numbers of wage and salary earners. Very few wage and salary earners reside in the inland areas of Murchison (28), Sandstone (29), Menzies (47) and Kalgoorlie/Boulder - Part B ( 52).

NUMBER OF WAGE AND SALARY EARNERS, By SLA - Western Australia - 2003-04

HIGHEST
LOWEST

Joondalup - South
49 198
Murchison
28
Melville
38 528
Sandstone
29
Gosnells
37 338
Menzies
47
Swan
37 140
Kalgoorlie/Boulder - Part B
52
Stirling - Central
36 038
Westonia
65
Canning
32 719
Cue
70
Cockburn
30 592
Upper Gascoyne
71
Rockingham
30 290
Woodanilling
71
Stirling - Coastal
27 505
Nungarin
79
Bayswater
23 999
Wandering
84

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



CHANGE IN THE DISTRIBUTION OF WAGE AND SALARY EARNERS

MAJOR INCREASES

Almost two thirds (65.2%) of all areas in Western Australia recorded an increase in wage and salary earners between 2001-02 and 2003-04 (101 of 155). The largest growth was recorded in Perth's outer metropolitan areas of Rockingham (3,131), Gosnells (3,032) and Swan (2,746). Mandurah (1,839) had the largest increase outside of the Perth metropolitan area. The fastest increase in wage and salary earners was recorded in Perth - Inner (45.3%), reflecting the rapid development of high density residential apartments and townhouses in and around the city centre. Aside from Perth, the fastest growth was in areas surrounding the major centres of Geraldton and Bunbury. Adjoining Geraldton, Greenough - Part B and Chapman Valley, recorded increases in wage and salary earners of 42.3% and 40.6% respectively, while a little further outside of Geraldton, Yalgoo (37.9%), also recorded a notable rise. Adjoining Bunbury, Capel - Part A, recorded a 40.4% increase in wage and salary earners. Conversely, the more traditional mining areas of Kalgoorlie/Boulder - Part A (1.9%), Coolgardie (6.6%) and East Pilbara (7.0%) recorded relatively lower rates of growth, partly reflecting the increased use of fly-in fly-out workers in these remote locations (fly-in fly-out workers may report their residence as being in other parts of the state).

NUMBER OF WAGE AND SALARY EARNERS, By SLA - Western Australia - Change from 2001-02 to 2003-04

LARGEST INCREASE
no.
FASTEST INCREASE
%

Rockingham
3 131
Perth - Inner
45.3
Gosnells
3 032
Greenough - Part B
42.3
Swan
2 746
Chapman Valley
40.6
Cockburn
2 427
Capel - Part A
40.4
Wanneroo - North West
2 032
Yalgoo
37.9
Stirling - Central
1 972
Ngaanyatjarraku
33.1
Wanneroo - North East
1 867
Perth - Remainder
29.3
Wanneroo - South
1 851
Upper Gascoyne
29.1
Mandurah
1 839
Wanneroo - North East
21.2
Joondalup - North
1 635
Wanneroo - North West
20.6

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



MAJOR DECREASES

Just over one third (34.8%) of all areas in Western Australia recorded a decrease in wage and salary earners between 2001-02 and 2003-04 (54 of 155). Somewhat surprisingly, the largest decreases were in the more affluent areas of Cottesloe (132) and Nedlands (131), with Peppermint Grove (32) also showing a notable fall. These declines were however more likely a reflection of rising numbers of self employed workers in these areas, as well as an ageing population. All of the other areas in decline were located outside of the Perth metropolitan area, with Meekatharra recording the largest fall of 84 wage and salary earners. Meekatharra also showed the fastest decrease in wage and salary earners of 21.2%, followed by Tambellup (15.9%) and Dowerin (14.3%).

NUMBER OF WAGE AND SALARY EARNERS, By SLA - Western Australia - Change from 2001-02 to 2003-04

LARGEST DECREASE
no.
FASTEST DECREASE
%

Cottesloe
-132
Meekatharra
-21.2
Nedlands
-131
Tambellup
-15.9
Meekatharra
-84
Dowerin
-14.3
Derby - West Kimberley
-73
Mullewa
-13.5
Carnarvon
-71
Wickepin
-12.7
Yilgarn
-68
Kent
-11.9
Leonora
-55
Mount Magnet
-11.1
Manjimup
-54
Yilgarn
-11.0
Dalwallinu
-50
Dalwallinu
-10.9
Wyndham - East Kimberley
-39
Leonora
-9.6

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



DISTRIBUTION OF WAGE AND SALARY INCOMES

A relatively low proportion of areas in Western Australia had wage and salary incomes above the state average. In 2003-04, less than one quarter of areas in Western Australia (34 of 155) reported average wage and salary incomes above the state average of $38,284 per year. The highest annual incomes were reported in areas of Perth's inner west, including Peppermint Grove ($60,364), Cottesloe ($60,287), Nedlands ($57,279), Claremont ($56,988) and Subiaco ($53,284). The proportion of residents earning more than $52,000 per year in wage and salary income was much higher in Cottesloe (40.9%), Peppermint Grove (40.8%), Subiaco (40.8%) and Nedlands (39.6%) than across the state as a whole (25.3%). The major mining areas of Ashburton, Sandstone, Roebourne, East Pilbara and Leonora also recorded wage and salary incomes well above the state average, ranging from $57,141 in Ashburton to $51,890 in Leonora. Notably, one third (34.0%) of wage and salary earners in Ashburton earned more than $78,000 per year.


Wheatbelt and other inland areas of Western Australia had the lowest wage and salary incomes in the state. In 2003-04, Wickepin ($23,657), Tammin ($25,437), Westonia ($25,765), Narembeen ($26,039) and Yalgoo ($26,389) recorded average annual wage and salaries well below the state average. These results should, however, be interpreted with some caution given the high proportion of self employed workers and other atypical workforce characteristics in these areas.

AVERAGE ANNUAL WAGE AND SALARY INCOME, By SLA - Western Australia - 2003-04

HIGHEST
$
LOWEST
$

Peppermint Grove
60 364
Wickepin
23 657
Cottesloe
60 287
Tammin
25 437
Nedlands
57 279
Westonia
25 765
Ashburton
57 141
Narembeen
26 039
Claremont
56 988
Yalgoo
26 389
Sandstone
54 382
Perenjori
26 609
Roebourne
54 186
Mukinbudin
27 068
East Pilbara
53 538
Kent
27 073
Subiaco
53 284
Kondinin
27 084
Leonora
51 890
Brookton
27 143

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



CHANGE IN THE DISTRIBUTION OF WAGE AND SALARY INCOMES

MAJOR INCREASES

The vast majority (96.1%) of areas in Western Australia recorded growth in average annual wage and salary income between 2001-02 to 2003-04. The largest increases were in Perth's inner west, mining regions and areas surrounding Geraldton. Sandstone recorded the highest growth in average wage and salaries of $13,069, followed by Peppermint Grove ($10,209) and Cottesloe ($10,135). Sandstone also had the fastest rise in average wage and salaries of 31.6% over the two year period, followed by other areas surrounding Geraldton: Chapman Valley (24.2%), Mingenew (23.8%), Victoria Plains (23.1%) and Mount Marshall (20.6%). In recent times, gold mining has re-emerged as the principal industry in Sandstone, while many people have re-located to other areas around Geraldton to work in local industries or commute to Geraldton for work. Carnamah ($5,994), another area near Geraldton, has also had a major rise in wage and salary incomes, supported by heavy mineral sands mining activity in the area.

AVERAGE ANNUAL WAGE AND SALARY INCOME, By SLA - Western Australia - Change from 2001-02 to 2003-04

LARGEST INCREASE
$
FASTEST INCREASE
%

Sandstone
13 069
Sandstone
31.6
Peppermint Grove
10 209
Chapman Valley
24.2
Cottesloe
10 135
Mingenew
23.8
Roebourne
7 488
Victoria Plains
23.1
Nedlands
7 189
Mount Marshall
20.6
Claremont
6 923
Trayning
20.6
Chapman Valley
6 418
Peppermint Grove
20.4
Victoria Plains
6 126
Cottesloe
20.2
Mingenew
5 997
Broomehill
20.0
Carnamah
5 994
Kondinin
19.6

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



MAJOR DECREASES

Only six areas in Western Australia experienced a fall in average annual wage and salary incomes between 2001-02 and 2003-04. All of these areas were located in inland parts of the state where very few wage and salary earners reside. The largest fall in average wage and salaries was recorded in Cue ($6,361), followed by Ngaanyatjarraku ($3,929), Murchison ($3,750) and Yalgoo ($2,360). These four areas also recorded the fastest decrease in wage and salary incomes: Cue (17.4%), Murchison (11.9%), Ngaanyatjarraku (10.2%) and Yalgoo (8.2%).

AVERAGE ANNUAL WAGE AND SALARY INCOME, By SLA - Western Australia - Change from 2001-02 to 2003-04

LARGEST DECREASE
$
FASTEST DECREASE
%

Cue
-6 361
Cue
-17.4
Ngaanyatjarraku
-3 929
Murchison
-11.9
Murchison
-3 750
Ngaanyatjarraku
-10.2
Yalgoo
-2 360
Yalgoo
-8.2
Wiluna
-833
Wiluna
-2.6
Westonia
-309
Westonia
-1.2

Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.



INFLUENCE OF SEX, AGE AND OCCUPATION ON WAGE AND SALARY INCOME

The workforce characteristics of sex, age and occupation have an influence on wages and salaries earned across Western Australia. Statistical evidence supports that, generally, workers who are male, above 35 years of age and employed in more skilled occupations tend to earn higher incomes than workers who are female, below 35 years of age and employed in less skilled occupations.


In Western Australia, 35.3% of male wage and salary earners earned in excess of $52,000 per year in 2003-04, compared to only 10.0% of females. Furthermore, 39.0% of female wage and salary earners earned less than $20,800 per year, compared to only 19.7% of males. In terms of age, wage and salary earners aged 35 and over had the highest proportion of workers (30.9%) earning in excess of $52,000 per year in 2003-04 and a low proportion earning less than $20,800 per year (20.2%). For those aged 15-34, only 14.0% earned above $52,000 per year and 39.7% earned less than $20,800 per year in 2003-04. This average was strongly influenced by wage and salary earners aged 15-24, with only 2.8% earning greater than $52,000 per year and 59.8% earning less than $20,800 per year.


At the broadest level of the Australian Standard Classification of Occupations (cat. no. 1220.0), managers and administrators, professionals, associate professionals, and tradespersons and related workers are considered to be the highest skilled occupations. In 2003-04, 36.7% of wage and salary earners in these occupations combined earned above $52,000 per year and only 15.7% earned less than $20,800 per year. This compared to 11.5% earning above $52,000 per year and 40.0% earning below $20,800 per year for the remaining occupations combined.

WAGE AND SALARY EARNERS, By sex, age, occupation and income range - Western Australia - 2003-04

$0 to less than $20,800
$20,800 to less than $52,000
$52,000 and over
Total
no.
%
no.
%
no.
%
no.
%

SEX

Male
81 347
19.7
185 274
44.9
145 579
35.3
412 200
100.0
Female
140 110
39.0
183 140
51.0
35 937
10.0
359 187
100.0
Total - Western Australia(a)
221 457
28.7
368 414
47.8
181 516
23.5
771 387
100.0

AGE

15-24
92 328
59.8
57 587
37.3
4 379
2.8
154 294
100.0
25-34
41 021
22.6
97 819
53.9
42 484
23.4
181 324
100.0
35-44
38 843
21.4
83 891
46.3
58 557
32.3
181 291
100.0
45-54
29 816
17.9
83 321
50.0
53 505
32.1
166 642
100.0
55 and over
19 485
22.2
45 777
52.1
22 640
25.8
87 902
100.0
Total - Western Australia(a)
221 457
28.7
368 414
47.8
181 516
23.5
771 387
100.0

OCCUPATION

Managers and administrators
6 439
10.6
27 033
44.6
27 147
44.8
60 619
100.0
Professionals
21 051
15.1
63 072
45.1
55 623
39.8
139 746
100.0
Associate professionals
9 843
17.0
29 501
51.0
18 480
32.0
57 824
100.0
Tradespersons and related workers
16 825
19.6
43 805
51.1
25 077
29.3
85 707
100.0
Advanced clerical and service workers
5 267
25.9
13 063
64.3
1 989
9.8
20 319
100.0
Intermediate clerical, sales and service workers
49 006
37.2
72 362
54.9
10 347
7.9
131 715
100.0
Intermediate production and transport workers
10 567
18.2
27 995
48.3
19 414
33.5
57 976
100.0
Elementary clerical, sales and service workers
43 660
60.3
26 997
37.3
1 782
2.5
72 439
100.0
Labourers and related workers
33 153
46.3
31 351
43.8
7 140
10.0
71 644
100.0
Total - Western Australia(a)(b)
221 457
28.7
368 414
47.8
181 516
23.5
771 387
100.0

(a) Component items may not sum to totals due to cells being randomly adjusted to avoid the release of confidential data.
(b) Includes the category 'Not stated'.
Regional Wage and Salary Earner Statistics, Australia, cat. no. 5673.0.


Given these relationships, changes in the characteristics of an area's workforce can have a pronounced effect on average wage and salaries earned in an area. The following section investigates areas of Western Australia showing major workforce changes between 2001-02 and 2003-04 and the impact it has had on average wages and salaries. Areas with less than 2,000 wage and salary earners were excluded from the analysis, given the exaggerated effect on average incomes of workforce changes in areas with very few wage and salary earners.



MAJOR CHANGES IN WORKFORCE COMPOSITION

SEX

Perth's inner west and major mining areas of Western Australia recorded the largest movements in the ratio of male-female wage and salary earners between 2001-02 and 2003-04. The ratio of male to female workers rose substantially in Cottesloe (1.08 to 1.14), Collie (1.55 to 1.59), Murray (1.30 to 1.33), Roebourne (1.39 to 1.42) and Port Hedland (1.39 to 1.41). The largest decreases were recorded in Ashburton (1.60 to 1.53), Mosman Park (1.06 to 1.00), East Pilbara (1.52 to 1.46), Claremont (1.09 to 1.03) and Dardanup - Part A (1.36 to 1.30). These areas of Western Australia also showed significant change in wage and salary incomes over the period.

RATIO OF MALE TO FEMALE WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia
Graph: RATIO OF MALE TO FEMALE WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia



The areas of Western Australia with the largest increases in the ratio of male to female workers between 2001-02 and 2003-04 (Cottesloe, Collie, Murray, Roebourne and Port Hedland) recorded a combined increase in average annual wage and salary incomes of $6,175 (14.1%), much higher than the state average increase of $3,497 (10.1%). Among these areas, income growth ranged from $4,007 (11.9%) in Murray to $10,135 (20.2%) in Cottesloe. The areas recording the largest falls in the ratio of male to female workers (Ashburton, Mosman Park, East Pilbara, Claremont and Dardanup - Part A) showed more modest growth in average incomes over the period ($4,534 or 9.9% combined). Among these areas, income growth ranged from $2,350 (5.2%) in Mosman Park to $6,923 (13.8%) in Claremont.



AGE

Very similar areas of Western Australia recorded major changes in the age profile of wage and salary earners between 2001-03 and 2003-04. The largest increases in the ratio of wage and salary earners aged 35 and above to those aged 15-34 were reported in Cottesloe (1.17 to 1.32), Collie (1.59 to 1.73), Broome (0.97 to 1.10), Harvey - Part B (1.34 to 1.47) and East Fremantle (1.71 to 1.83). The largest decreases in the age ratio were recorded in Ashburton (1.25 to 1.12), Mosman Park (1.44 to 1.36), Cambridge (1.39 to 1.34), Subiaco (1.36 to 1.32) and East Pilbara (1.45 to 1.41).

RATIO OF 35+ TO 15-34 AGED WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia
Graph: RATIO OF 35+ TO 15–34 AGED WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia



Generally, workers aged 35 and over earn higher incomes than those aged 15-34. The areas showing the largest increases in the ratio of workers aged 35 and above to those aged 15-34 (Cottesloe, Collie, Broome, Harvey - Part B and East Fremantle) recorded a combined rise in average annual wage and salary incomes of $4,925 (12.8%) from 2001-02 to 2003-04, higher than the state average increase of $3,497 (10.1%). Among these areas, income growth ranged from $3,050 (9.0%) in Broome to $10,135 (20.2%) in Cottesloe. The areas recording the largest declines in the ratio of workers aged 35 and over to those aged 15-34 showed lower income growth over the two years ($4,402 or 9.3% for Ashburton, Mosman Park, Cambridge, Subiaco and East Pilbara combined). Among these areas, income growth ranged from $2,350 (5.2%) in Mosman Park to $5,816 (11.3%) in Ashburton.



OCCUPATION (OR SKILLS)

Changes in the mix of occupations (or skills) across Western Australia's workforce has also influenced wages and salaries earned across the state. Areas gaining more skilled workers (or losing less skilled workers) have tended to see stronger income growth than those areas losing more skilled workers (or gaining less skilled workers). For the purposes of this analysis, skilled occupations are: managers and administrators; professionals; associate professionals; and tradespersons and related workers. Less skilled occupations are: advanced clerical and service workers; intermediate, clerical, sales and service workers; intermediate production and transport workers; elementary, clerical, sales and service workers; and labourers and related workers.


Areas of metropolitan Perth and south west Western Australia showed the largest changes in the occupations of wage and salary earners in the state. Between 2001-02 and 2003-04, the ratio of skilled to less skilled wage and salary earners rose substantially in Cottesloe (2.21 to 2.38), Perth - Remainder (1.47 to 1.62), East Fremantle (1.77 to 1.88), Claremont (1.86 to 1.97) and Kalgoorlie/Boulder - Part A (0.86 to 0.95) . The largest declines in the ratio of skilled to less skilled workers were in Augusta-Margaret River (1.01 to 0.83), Mosman Park (1.74 to 1.57), Albany - Balance (0.91 to 0.83), Albany - Central (0.91 to 0.84) and Mundaring (1.09 to 1.03).

RATIO OF SKILLED TO LESS SKILLED WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia
Graph: RATIO OF SKILLED TO LESS SKILLED WAGE AND SALARY EARNERS, SLAs(a) with largest increases and decreases: Western Australia



The areas showing the largest increases in the ratio of skilled to less skilled workers (Cottesloe, Perth - Remainder, East Fremantle, Claremont and Kalgoorlie/Boulder - Part A) recorded a combined increase in average annual wage and salary incomes of $4,857 (11.2%) between 2001-02 and 2003-04, higher than the state average increase of $3,497 (10.1%). The areas showing the largest decreases in the ratio of skilled to less skilled workers (Augusta-Margaret River, Mosman Park, Albany - Balance, Albany - Central and Mundaring combined) recorded a much lower rise in average incomes of $2,878 (8.9%). Of the areas recording the largest gains in skilled to less skilled workers, income growth ranged from $3,774 (9.1%) in Kalgoorlie/Boulder - Part A to $10,135 (20.2%) in Cottesloe. Of the areas recording the largest declines in the skilled to less skilled worker ratio, growth in wages and salaries ranged from $2,350 (5.2%) in Mosman Park to $3,175 (9.3%) in Mundaring.

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