Townsville Enterprise Annual Report 2014/15

ANNUAL REPORT

TOWNSVILLE ENTERPRISE

WHAT IS ECONOMIC DEVELOPMENT?

BOARD OF DIRECTORS

COMMITTEES

CHAIRMAN’S REPORT

CHIEF EXECUTIVE OFFICER’S REPORT

MEMBERSHIP

ADVOCACY

POLICY

INFRASTRUCTURE

INVESTMENT ATTRACTION

AVIATION

EVENTS

INDUSTRY DEVELOPMENT: EDUTOURISM | CRUISE

MARKETING AND COMMUNICATIONS

ECONOMIC SNAPSHOT

FINANCIAL REPORT

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Principal Partner

CONTENTS

Major Partner

Townsville Enterprise Limited Annual Report 2014/15

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STATEMENT OF INTENT

A more prosperous Townsville and North Queensland, a stronger Australia.

MISSION

To achieve sustainable economic and lifestyle benefits for Townsville, North Queensland and Australia.

Townsville Enterprise is the voice of industry and business.

VALUES

• Leadership• Innovation, customer focus

and commercial orientation• Vision, initiative and responsiveness

to the here and now• Collaborative and productive

working relationships• A productive, sustainable environment• Honesty and credibility• Professionalism• Breadth of experience and heritage

STRATEGIC PRIORITIES

• Membership• Advocacy• Policy • Infrastructure• Investment Attraction• Aviation• Events• Industry Development• Marketing and Communications

Townsville Enterprise is the primary engine for economic development, charged with leveraging the region’s assets and strengths to drive jobs, growth, infrastructure investment and improve quality of life. It is an organisation determined to deliver for the Townsville North Queensland region and its people.

Townsville Enterprise represents the Townsville North Queensland region, which includes the five Local Government Areas of Townsville, Charters Towers, Hinchinbrook, the Burdekin and Palm Island, and is one of Australia’s true regional powerhouses.As the local voice of industry and business

it offers many targeted services, including the Townsville North Queensland Emerging Leaders Program which mentors the region’s best and brightest young business people to achieve their potential. It also hosts a range of corporate events bringing national and international speakers to the region.

In addition to its role as the peak Economic Development Organisation for the region, it is also the Regional Tourism Organisation and Convention Bureau for Townsville North Queensland. It is a not-for-profit, apolitical, membership based organisation, advised and influenced by a Board of Directors, Finance Audit & Risk Committee

and Strategic Advisory Committees. The company’s mission is ‘To achieve sustainable economic and lifestyle benefits for Townsville, North Queensland and Australia.’

The valuable contribution of its Partners and Members makes it possible for Townsville Enterprise to advocate across a broad section of Government and industry sectors to secure funding, project approvals and policy support for essential infrastructure, investment and the promotion of Townsville North Queensland.

TOWNSVILLE ENTERPRISE

ADVOCACY

EVENTS

INFRASTRUCTURE

AVIATION

POLICY

INVESTMENTATTRACTION

MARKETING &COMMUNICATIONS

MEMBERSHIP

INDUSTRYDEVELOPMENT

Promoting North Queensland to achieve

sustainable economic and lifestyle benefits for the

region and Australia

Marketing and promoting the region to attract

new residents, new investment

and visitors

Attracting public and private sector funding for economic infrastructure

Working with key stakeholders to

attract investment for regional projects of

significance

Developing key policy positions that affect the

growth and development of the region

Events development and acquisition

Supporting, promoting and advocating for

our members

Developing the tourism and events industry with a specific focus

on edutourism and cruise

Working with the Townsville Airport on the

attraction of domestic and international flights

4 Townsville Enterprise Annual Report 2014/15

Economic development is the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area.

As the region’s peak economic development organisation, Townsville Enterprise is charged with leveraging the region’s assets

and strengths to drive growth, attract investment and secure infrastructure.

The underlying goal in all of Townsville Enterprise’s actions and priorities is jobs growth. Growth in jobs results in a better standard of living for Townsville North Queensland’s population, a brighter future

for its youth and a greater degree of business confidence which leads to more investment.

There are four main ways Townsville Enterprise can grow job numbers in the region – via business, Government, population and development.

This means if a mining project goes ahead in the region, school leavers have a greater chance of securing apprenticeships and local businesses have a greater chance of securing contracts for logistics, manufacturing or recruitment services.

If a development approval is granted for a new precinct in the CBD, there will be more jobs for project managers, bobcat drivers and bricklayers in the short term and more jobs for marketing managers, chefs and refrigeration mechanics in the medium term.

The same results occur when the Federal Government invests in Defence spending in the region, the State Government commits funding to a construction project, or the region welcomes more international students. This flows through to more business for lawyers, real estate agents, beauticians and taxi drivers.

More jobs means not only more opportunities for the people of Townsville North Queensland but also delivers more taxes to Governments, allowing them to invest in hospitals, universities, roads, schools and parks which improve quality of life.

WHAT IS ECONOMIC DEVELOPMENT?

Commencing or expanding, especially

export businesses

Activity leading toconstruction and

investment

Spending on infrastructure

projects

Growth via immigration,tourism or student

education

BUSINESS DEVELOPMENTGOVERNMENT POPULATION

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Townsville Enterprise Annual Report 2014/1506

BOARD OF DIRECTORS

CHAIRMAN Mr Kevin Gill

Chief Operating OfficerTownsville Airport Pty Ltd

Ms Ranee CrosbyChief Executive Officer

Port of Townsville Limited

Mr Laurence LanciniManaging Director

Lancini Group of Companies

DEPUTY CHAIRMAN Cr Jenny Hill

MayorTownsville City Council

Professor Sandra HardingVice-Chancellor & President

James Cook University

Mr Paul VictoryGeneral Manager

SeaLink Qld / NT Pty Ltd

COMPANY SECRETARYMs Michelle Warrington

Mr Joe CareyDirector

Carey Accountants Pty Ltd

Mr Peter HoneycombeManaging Director

Honeycombes Property Group

Ms Sandra YatesChairman

Australian Festival of Chamber Music (appointed August 2015)

7Townsville Enterprise Annual Report 2014/15 07

COMMITTEES

FINANCE AUDIT & RISK COMMITTEE

Joe Carey Carey Accountants Pty Ltd (Chair)

Aileen Cull Queensland Country

Peter Duffy wilson/ryan/grose Lawyers

Luke Guazzo Lancini Property & Development

Kevin Gill Townsville Airport Pty Ltd

Observer: Patricia O’CallaghanTownsville Enterprise Limited

Observer: Michelle WarringtonFinancial Advisor/Company Secretary

TOURISM AND EVENTS STRATEGIC ADVISORY COMMITTEE

Paul VictorySeaLink Qld / NT Pty Ltd (Chair)

Colin FoleyTourism Operators and Businesses Magnetic Island (TOBMI)

Sue HackettAustralian Festival of Chamber Music

Jeff JimmiesonTownsville City Council

Brad MorganThe Ville Resort – Casino

Simon MillcockTownsville City Council

Steve MitchellNQ Toyota Cowboys

Associate Professor Laurie MurphyJames Cook University

Ross McLennanHidden Valley Cabins & Tours

Fred NuciforaReef HQ Great Barrier Reef Aquarium

Ruth PrideauxMercure Townsville

Troy ScottGrand Hotel

Isabelle YatesTownsville Airport Pty Ltd

Patricia O’CallaghanTownsville Enterprise Limited

Bridget WoodsTownsville Enterprise Limited

Observer: Kimberley GoulterTourism and Events Queensland

Observer: June PowellDepartment of State Development

ECONOMIC DEVELOPMENT STRATEGIC ADVISORY COMMITTEE

Ranee CrosbyPort of Townsville (Chair)

Stuart CunninghamCore Developments NQ

Glen GrahamMount Isa to Townsville Economic Zone (MITEZ)

Peter LindsayAssociate Member

Simon MillcockTownsville City Council

Stephen MottiBrazier Motti

Sean RyanNews Ltd

Patricia O’CallaghanTownsville Enterprise Limited

Tracey LinesTownsville Enterprise Limited

Observer: Paul HoldenDepartment of State Development


This organisation represents a broad church of talents and experience that, when brought together, continue to demonstrate that even in challenging times we can achieve results.

View of Townsville City from Castle Hill by Megan MacKinnon

9Townsville Enterprise Annual Report 2014/15 09

These are challenging times but Townsville Enterprise, in conjunction with its Partners, Members, the Townsville City Council, the Townsville Chamber of Commerce and the four Regional Councils, is striving harder than ever to promote the opportunity that is Townsville North Queensland and continue to drive results for this region.

Our Board and leadership team are focused on several defined strategic priorities – membership, advocacy, policy, identifying critical infrastructure, investment attraction, aviation, events, industry development and marketing the destination as a place to live, work and invest.

Advocacy is Townsville Enterprise’s critical role. Our efforts through the State election process saw both sides of Government commit funds to the inner city revitalisation vision led by the development of the Integrated Stadium and Entertainment Centre and the city waterfront project. This is unashamedly the city’s number one priority and we urge community leaders and members to voice their support for it.

Opening up the Galilee Basin is another priority for Townsville Enterprise. Coal is, and will remain, a legitimate industry for our region that will continue to support thousands of jobs for everyday families.

Townsville Enterprise welcomes the bipartisan support at Federal Government level for the development of Northern Australia. The organisation is engaging widely with stakeholders to develop a list of clear infrastructure priorities to stimulate jobs, investment and lifestyle.

These priorities focus on rail (Eastern Access Corridor, Galilee Basin), water (adequate supplies for agricultural and urban use) and energy (base load and other renewable solutions.)

This is Nation building infrastructure and, as proven throughout this country’s history, will create step changes in our economic prosperity.

With regard to the cost of electricity, Townsville Enterprise believes that the current Government monopoly model is no longer working and is in fact creating the inefficiencies that are driving unsustainable increases in electricity costs for our region. Our energy working group is focused on a number of initiatives to halt these increases but ultimately it requires bold Government policy to support reform of the current model.

In terms of other policy reform Townsville Enterprise advocates taxation reform that encourages reward for effort and encourages businesses to invest for growth.

Townsville North Queensland as a tourism destination is an emerging market. As tourism continues to globalise, this region risks being left behind as competitor destinations invest in new offerings and innovative ways to market them. Townsville North Queensland needs to develop experiences and products that will attract visitors and Townsville Enterprise is focused on developing tourism products, particularly in the areas of cruise and edutourism.

A joint Townsville Enterprise, Reef HQ Great Barrier Reef Aquarium and James Cook University initiative is now attracting in excess of 800 American edutourism visitors per annum. This is a real example of how we can harness our existing strengths in tropical science and education and create an offer that translates into visitation numbers.

Promoting our wonderful destination is critical and we implore the State Government to review the funding allocation for both tourism and economic development in this region.

As a membership based organisation, Townsville Enterprise recognises how important it is to continue supporting its members by connecting, informing and educating them, whether this is by attending networking functions, engaging Townsville Enterprise to assist in making vital connections, or enrolling future leaders in the Townsville North Queensland Emerging Leaders Program.

A number of operational factors led to the small increase in the budgeted deficit. The broader issue of retaining reserve funding remains a challenge when income is under pressure but stakeholder and community expectations continue to grow. This will be a key consideration during the company’s upcoming Strategic Review. Operationally the organisation continues to deliver against its objectives with high levels of activity and quality outcomes in the core areas of economic and tourism development.

This year has been one of significant transition. Our new Chief Executive Officer, Patricia O’Callaghan, has overseen a number of important initiatives to further enhance the effectiveness of the organisation with a particular focus on high quality advocacy. I wish to acknowledge Patricia’s contribution.

I wish also to recognise and thank our voluntary Board of Directors. The Board, our leadership team, our employees, Volunteers, the Finance Audit & Risk Committee and Strategic Advisory Committees members are very clear on the challenges that lie ahead and the need to work even harder for our members, this city and region.

I wish to thank retiring Director Helen Stanton (two years, five months) for her contribution to the Board.

On behalf of the Board I wish to affirm our appreciation to Partners and Members for their ongoing support, both financial and in terms of time given freely. This organisation represents a broad church of talents and experience that, when brought together, continue to demonstrate that even in challenging times we can achieve results.

CHAIRMAN’S REPORT

Kevin Gill

The Northern Australia Agenda challenges the region to ‘think bigger’ and acknowledge the opportunity of Asia which sits on its doorstep.

Townsville City Aerial by Budd Photography


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As we lead into the celebration of Townsville’s 150th Anniversary, we reflect on a year that while filled with economic challenges also presented opportunities for growth and development and a renewed vision to cement Townsville’s reputation as Northern Australia’s largest city and commercial gateway.

The State Government election and the Federal Government’s Northern Australia Agenda dominated, presenting policy platforms that provided solid foundations for advocacy campaigns promoting investment into key infrastructure priorities.Townsville Enterprise rolled out a State election advocacy campaign focused on securing critical funding for priority infrastructure projects in the form of a $450M Regional Jobs Package, including the Integrated Stadium and Entertainment Centre which achieved bipartisan political support. When Labor won the election $100M was secured, with the Premier committing to deliver a stadium for Townsville.

The Northern Australia Agenda challenges the region to ‘think bigger’ and acknowledge the opportunity of Asia which sits on its doorstep.

There is much talk of the Asian Century and its population of 600 million projected to grow to around three billion over the next few decades. Demand for energy, mineral resources, better quality food and agriculture, tropical research and tourism will present opportunities on an unprecedented scale for Northern Australia. These global shifts will drive changes in import and export opportunities

for the region and it is through the strategic use of the city’s access points that its potential as an international city and gateway will be realised. One of these gateways is the Townsville Airport which regained full international status following the Federal Government’s decision to upgrade border services as a result of a strong community campaign.

The Northern Australia Agenda provided Townsville Enterprise an opportunity to lead a delegation to Canberra with the five Regional Mayors and the Townsville Chamber of Commerce. This laid a solid foundation for critical outcomes in infrastructure and service provision. Burdekin Water, the Galilee Basin, the Townsville Eastern Access Corridor and the North West Minerals Province were priority areas discussed with the Prime Minister, the Treasurer and the Minister for Trade. Over 24 hours, the delegation engaged with seven Ministers and six Senators.

Operationally the company continued to deliver against its objectives with high levels of activity and quality outcomes in the core areas of economic development and tourism and events with an organisational restructure delivering stronger front line services ensuring collaborative Partner and Member support to increase economic activity.

The Federal Government’s reform agenda for Australia’s future provided ample opportunities to form strong positions on Defence, Energy, Taxation and Northern Australia. Advocacy around Energy dominated our agenda with operators across the north paying the second highest energy costs in the country, placing significant constraints on development in the region. Townsville Enterprise led energy roundtables and forums have assisted communication with the State and Federal Governments as we advocate for lower energy costs across the region.

Townsville Enterprise initiated Opportunity Townsville North Queensland which delivers a comprehensive listing of all major development projects in the region.It incorporates statistical data on the economy, population and liveability and

has been widely distributed as a tool for advocacy and investment attraction.

The Townsville North Queensland Emerging Leaders Program is working with its third cohort of business people establishing themselves as future leaders. The Program involves partnering participants with community leaders in a mentor/mentee relationship as well as providing insight into every aspect of the economy and delivering community projects. The second cohort graduated during the year having contributed to three valuable projects:

• The Townsville North Queensland Ambassador Program

• The Cape Pallarenda Activation Project • Engaging an Elder: Greyline Phone Service

In Tourism and Events, Townsville Enterprise worked with industry to achieve solid results for the destination. A new initiative, the Events Bid Fund, secured an estimated 14,139 room nights for accommodation providers and is expected to generate $8.56M in economic value. The Edutourism strategy continues to gain momentum with operators welcoming more than 800 students spending 3,000 nights in region. Destination Marketing took centre stage with the Townsville North Queensland, Alive with curiosity brand campaign resulting in over 26 million impressions online, 121,701 unique visits to the consumer website and a PR value of approximately $4.1M. The Visitor Information Centres welcomed over 25,000 visitors, greeted by a team of 70 Volunteers who are trained to deliver a fantastic first impression of the city.

Overall, while there have been challenges, the outlook is optimistic and the team will approach the coming year with energy and excitement. The Strategic Plan is being reviewed and will set the direction of the organisation for the next five years. With numerous prospects in front of us and the fundamentals of Townsville North Queensland’s economy still solid, I am confident that with the continued support of Board Directors, Volunteers and the truly committed Townsville Enterprise team, the next 12 months will deliver prosperity not only for the organisation but also for this great region.

CHIEF EXECUTIVE OFFICER’S REPORT

Patricia O’Callaghan

2014/15 saw a renewed focus on Membership through closer engagement with Partners and Members...

John McGrath presents at a Townsville Bulletin Luncheon by Megan MacKinnon


2014/15 saw a renewed focus on Membership through closer engagement with Partners and Members with the allocation of dedicated account managers from the Townsville Enterprise team.

Regular networking opportunities provided a platform for relevant information sharing including:

• Industry roundtables• CEO roundtables• Domestic and international delegations• Panel discussions• Networking functions• Business breakfasts

This enabled Members to be directly involved in key discussions affecting the future of the region.

The fortnightly Member e-newsletter was reviewed to include more meaningful, targeted and relevant content and as a result readership increased by around 5%. Advocacy Alerts, introduced in December 2014 to provide regular updates, are well received with an average open rate of 40%.

The Townsville Enterprise team acknowledges the valuable input by Partners and Members to its advocacy process with all levels of Government, contributions to campaigns, participation in industry development activities and support for projects to develop the region.

MEMBERSHIP


MEMBERSHIP (Continued)

PRINCIPAL PARTNERTownsville City Council

MAJOR PARTNER Townsville Airport Pty Ltd

PLATINUM Southern Cross AustereoTownsville Bulletin

GOLD Ergon Energy Corporation LimitedDuo MagazineGlencore XstrataGrant BroadcastersJames Cook UniversityJetstar GroupPort of Townsville LimitedSuccess Business MagazineSun Metals Corporation Pty Ltd

SILVERCharters Towers Regional CouncilLaurence Lancini ConstructionsParkside DevelopmentsQueensland Rail LimitedThe Ville Resort – CasinoTony Ireland Holden

BRONZEAE SmithAustralian Institute of Marine ScienceBAE Systems AustraliaBurdekin Shire CouncilCCA (Coca-Cola Amatil)CQ UniversityCrowe HorwathDepartment of DefenceDexus Property GroupHinchinbrook Shire CouncilHoneycombes Property GroupHutchinson BuildersIncitec Pivot LimitedLend Lease Communities (Townsville) Pty LtdMike Carney ToyotaNorth Qld Bulk Ports CorporationNorthern Management GroupPalm Island Aboriginal Shire CouncilQueensland Investment CorporationQueensland CountryRPS Australia East Pty LtdSeaLink Queensland Pty LtdStockland Development Pty LimitedSuncorp Bank

TOLL AustraliaTownsville Catholic Education

CORPORATE LEVEL 3AECOMAurizon Operations LimitedBendigo BankBMD GroupBrothers Leagues ClubCommonwealth BankCoutts Redington Pty LtdCox Rayner ArchitectsCubic Defence Australia Pty LtdMoore StephensNorth Queensland Primary Healthcare Network LimitedRoberts Nehmer McKeeTownsville Hospital & Health ServiceTownsville TaxiTropic Distributors Pty LtdWatpac Construction Pty LtdWestpac Banking CorporationWilmar

CORPORATE LEVEL 2AnittelBM Webb Holdings Pty LtdBrazier MottiCarey Accountants Pty LtdColliers International (Townsville) Pty LtdCowboys Leagues ClubDelta Office SolutionsGrand HotelIndustry Training QueenslandJardine Lloyd ThompsonJayco TownsvilleLoloma InvestmentsMacDonnells Law - TownsvilleMBD EnergyMuseum of Tropical QueenslandOffermans PartnersSportscene Super WarehouseSt Patrick’s College TownsvilleTAFE Queensland NorthThincTORGAS IncTropical Icewilson/ryan/grose Lawyers

CORPORATE LEVEL 11300 SMILES LIMITEDAchieve Group TownsvilleAEC Group LtdAON Risk SolutionsArthur J Gallagher & CoARUPBase Backpackers Magnetic Island Breakwater MarinaBrewery, TheBurdekin TheatreCactus Jack’s RestaurantCardwell Rainforest & Reef Visitor Information CentreCassowary Coast Regional CouncilCastlemaine Perkins LimitedCastletown TownsvilleCBC Staff Selection

Chandler MacleodCharters Towers Visitor Information CentreChoice TrainingCommunity Information Centre Townsville Inc.Connolly Suthers LawyersCore Developments NQDefence Force RecruitingDigimen, TheDonald Cant Watts CorkeElders Real EstateEmanate LegalEscape TravelEspecially AustralianFantasea Cruising MagneticFinlay HomesFINPAC Financial AdvisorsFlanagan Consulting GroupFTEC QLD Pty LtdFuji Xerox Business Centre (Townsville)GHD Pty LtdGrace RemovalsGreenridge Press, Greenridge MailGuildford CoalHoliday Inn TownsvilleJacobs Engineering Group Inc.JCU Halls of ResidenceJCU Student AssociationJCU VetJepson MediaJewellery By DesignKeyes & CoKnight Frank - TownsvilleLaird O’ReganLotsa Print and DesignMaidment Development GroupMap to Mine Pty LtdMariners North Holiday ApartmentsMarketing Factory, TheMartin Locke HomesMater Health Services North Queensland LimitedMEGT (Australia) LtdMendi Corporate ServicesMercure TownsvilleMilford Planning ConsultantsMinelec Pty LtdMTU Detroit Diesel AustraliaNational Australia Bank LtdNew Home SolutionsNorth Queensland Toyota CowboysNPS CorporateNQ Expo / North Queensland Transport, Trades and Mining ExpoOperational Performance SystemsOracle StudioPen To Paper Pty LtdPerc Tucker Regional GalleryPink Noise CreativePinnacles GalleryPrintcraftPwCQuayside TerminalQueensland Rail TravelQuest TownsvilleQuest Townsville on EyreReef and Rainforest Research Centre Limited

LIFE MEMBERS

Alison Ferry

Emeritus Professor Edward Scott AM

Geoffrey Plante

Graham Jackson OAM

Greg Peel

John Bearne


Rider Levett BucknallRiverway Arts CentreRMS Engineering and Construction Pty LtdRockfield Technologies AustraliaRowes Bay Beachfront Holiday ParkRuswinRydges Southbank TownsvilleSeaLink TravelShamrock Civil EngineeringSkill360 Australia LimitedSkilled Group LtdSouthern Cross Ten QldStaplesTerry White Chemists, The WillowsTony Ireland StadiumTownsville Civic TheatreTownsville Entertainment and Convention CentreTownsville Grammar SchoolTownsville Rotary MarketsTownsville RSL StadiumTP Human CapitalTraffic Group AustraliaTropical HomesTYTO Wetlands Information CentreUDP Consulting EngineersV8 Supercars Australia Pty LtdWingate CommunitiesWT PartnershipWulguru EngineeringYomstarYongala Dive Pty Ltd

MICROBUSINESS ASSOCIATEBackfatters FarmEllis Developments QLDIndustry QueenslandJESI Management Solutions Pty LtdKwik Kopy Printing TownsvilleMalou WhoMichele Hyde at RemaxNorth Australian Publishing Co Pty Ltd

TOURISM & EVENTS ASSOCIATE Adlink MediaAdrenalin Snorkel and DiveAdventurethonAffordable ChartersAirnorthAllure Hotel & ApartmentsAmaroo On MandalayAquarius on the BeachArcadia Village MotelAussie Outback Oasis Cabin & Van VillageAustralian Festival Of Chamber MusicAustralian-Italian Festival Association IncBarra Fun ParkBeach House Motel, TheBillabong SanctuaryBudd PhotographyBungalow Bay Koala VillageCalypso CoachesCampbell’s CoachesCastaways Resort & Spa Mission BeachCity Oasis InnCruise Whitsundays and Awesome Adventures Oz

Cuisine to GoDanceNorthDaydream Island ResortDetour CoachesEde EventsEssentially FreshEvent CinemasFrosty MangoGet BrandedGhost Tours Pty LtdHamilton IslandHarold’s Seafood on the StrandHarshmellow Media & DesignHerbert HotelHerveys Range Heritage Tea RoomsHidden Valley Cabins and ToursHilton Hotel Cairns - DoubletreeHinchinbrook Marine Cove MotelHinchinbrook Marine Cove ResortHotel Ibis TownsvilleIndia Fest IncItara ApartmentsJamJodie Kennedy Event ManagementL&F Mine TransfersLakes Holiday Park, TheLongboard Bar & GrillMelvilles FarmMungalla StationMurdering Point WineryNautilus AviationOaks Gateway on PalmerOaks M on PalmerOcean Breeze By The StrandOrchid Guest HouseOrpheus Island ResortPaleo Cafe Townsville CityPark Regis AnchorageParonella ParkPeppers Blue on Blue Resort - Magnetic IslandPicnic Bay Hotel, ThePie HouseQCWA Northern Division Units CommitteeRambutanRed Baron Sea PlanesStanton Apartments (Mariners Peninsula)Texas Longhorn Wagon Tours & SafarisTourism Operators & Businesses Magnetic Island (TOBMI)Townsville Bush Oasis Caravan ParkTownsville HelicoptersTownsville Holiday ApartmentsTownsville Military ToursTownsville Turf Club IncTownsville Yacht ClubTripping MagazineTropical Travel & AccommodationUndara ExperienceVirginia Park StationWinton Visitor Information Centre / Winton Shire CouncilXFire Games

ASSOCIATEAaron McLeodAndrew Cripps MPAndrew MillerBetty WebbBurdekin Tourism AssociationCathedral School of St Anne & St James, TheCathy MoratoCoast to Country Housing CompanyColin HarknessCootharinga North QueenslandDale Last MPDolan HayesDyan MitchelhillEndeavour FoundationEwen Jones, MPGreek Fest TownsvilleGreg CampbellHPD Creative Ian Macdonald, Senator the HonJohn HathawayJulia Creek Dirt & Dust FestivalMagnetic Island Community Development AssociationMark McIntyreNational Trust of Australia (Qld) LtdNiki LyonsNQ Dry TropicsPalm Island Community CompanyPatrick HinchyPeter LindsayRob KurzSandra GarvinSandra MooreScott VerrallSmith Family, TheSOLAS IncTherese SmithTina ShawTownsville Museum & Historical Society IncTownsville Road RunnersTownsville Seafood FestivalTownsville Triathlon FestivalTropical Medical TrainingVariety – The Children’s Charity

RECIPROCALAyr Chamber of CommerceChamber of Commerce & Industry QueenslandCharters Towers Chamber of CommerceGulf Savannah DevelopmentHIA - North QueenslandHinchinbrook Chamber of Commerce, Industry and TourismHome Hill Chamber of CommerceMaster Builders North QueenslandMount Isa to Townsville Economic Development Zone Inc (MITEZ)North Queensland ClubRDA Townsville & North West Qld IncTownsville Business Development CentreTownsville Business Women’s NetworkTownsville Chamber of CommerceTownsville Region Indigenous Business NetworkWhitsundays Marketing & Development Ltd


Townsville Enterprise has a clear set of long term priorities for the Townsville North Queensland region...

Proposed Integrated Stadium & Entertainment Centre


The Federal Government’s Northern Australia Agenda and the Queensland Government State election provided solid foundations for a focused advocacy strategy.

The election provided an opportunity to develop a $450M Regional Jobs Package that provided a priority package of infrastructure projects that would stimulate jobs, lifestyle and investment to the region. At the centre of this package was our key priority project, the Integrated Stadium and Entertainment Centre.

Townsville Enterprise is proud to have led such a strong and united campaign working closely with Local and Regional Councils and Chambers of Commerce and while it didn’t secure the breadth of projects this community deserves, the adopted bipartisan approach encouraged both sides of politics to deliver for the North.

The campaign resulted in strong wins for Townsville North Queensland including:

• A $100M commitment towards a new Stadium as part of a broader Integrated Stadium and Entertainment Centre

• A commitment to ensure that a new merged organisation including Ergon Energy will have its regional Queensland base in Townsville protecting local jobs

• The creation of the new role of Assistant Minister for North Queensland – ensuring that stakeholders in the north have more direct access to Government decision making

• $100M over five years to better protect the Great Barrier Reef – an initiative that was strongly welcomed by our local tourism industry

The State Government held its first Community Cabinet in Townsville in March. Townsville Enterprise led a number of deputations on priorities for the region including the Integrated Stadium and Entertainment Centre and the high cost of Energy.

The State Government agreed to commence master planning on the Integrated Stadium and Entertainment Centre and is working closely with the Integrated Stadium and Entertainment Centre Committee on the Business Plan. The allocated $100M however is short of the amount required to build the facility and advocacy to all levels of Government continues.

On a Federal level the Government’s Northern Australia Agenda provided a strong platform to advocate for better access to the region and key infrastructure projects including water and irrigation for the Burdekin, rail infrastructure for the

Galilee Basin, the Townsville Eastern Access Rail Corridor and policies which support population growth and lower energy prices.

Following a strong advocacy campaign in partnership with the Townsville Airport, the Townsville City Council and the Townsville Chamber of Commerce, Townsville Airport’s international status was reinstated. To have the Prime Minister, together with the Minister for Infrastructure and the Minister for Foreign Affairs join the Federal Member for Herbert Ewen Jones MP in Townsville to publically announce Townsville Airport open for international business shows how important Townsville is strategically to the future of this Nation. Talks with international carriers are ongoing as aspirations to open the city to a number of international destinations are complemented by an aggressive advocacy strategy.

Townsville Enterprise has a clear set of long term priorities for the Townsville North Queensland region and a strong advocacy plan around them that is not impacted by short term changes in Government and as the Nation heads into a Federal election in 2016 the organisation’s strategy, combined with the united advocacy efforts, remains strong.

ADVOCACY


It is essential that Townsville North Queensland has a strong, informed and respected voice in putting forward the priorities to State and Federal Governments which can stimulate and benefit the region. This includes policies which support population growth, business expansion or commencement and employment stimulus. Townsville Enterprise is the vehicle for this voice.

The key priority policy area is Northern Australia. Recommendations and targets from the White Paper on Developing Northern Australia include:

• Five economic pillars: • Food and agribusiness • Resources and energy • Tourism and hospitality • International education • Healthcare, medical research

and aged care

• Rapid population growth: • An estimated four to five million people

(from the current one million) by 2060 • Actions rolling out over two,

five, 10 and 20 years • Townsville is the largest population

centre and under every scenario is expected to remain the largest and grow at a faster rate than Cairns and Darwin

• Three key growth areas in Queensland which flow into the Townsville North Queensland economy:

• The Burdekin (irrigated agriculture) • The Galilee and Bowen Basins (coal) • The North West Minerals Province

(base metals and other minerals

The second key priority policy is energy. An optimal energy sector is essential for the Townsville North Queensland region, and thus Northern Australia, to achieve its potential. Current arrangements are not conducive to attracting industry to the region therefore inhibiting employment and population growth.

To achieve the desired optimal energy sector (both domestic supply and export industry) will require a complex interplay between physical assets, regulatory frameworks and investment decisions. Townsville Enterprise’s agenda going forward recognises the critical role of energy as a facilitator of the vision for economic and social development of the region.

Other areas of policy work will focus on issues such as:

• Defence• Ethanol• Water trading and allocation• Taxation• Federation

Townsville Enterprise maintains a strong vocal position supporting the resources sector. Projects such as the Adani Carmichael Mine, Rail and Port Project, have the potential to deliver jobs, apprenticeships, investment, infrastructure, construction and confidence.

POLICY


Under the Northern Australia Development Agenda, infrastructure investment is one of the greatest stimulants of economic development. This has led to a heavy focus on infrastructure.

Using the White Paper on Developing Northern Australia “Our North, Our Future” as a starting point, Townsville Enterprise is leading Townsville North Queensland in a consultative process to identify the highest priorities for economic infrastructure requirements for the region.

The White Paper is informed by the Northern Australia Infrastructure Audit and makes significant funding commitments totalling $1.B which includes $600M to roads, $200M to water and $100M to beef roads. The Audit considered economic infrastructure only – roads, rail, energy, water, ports, airports and telecommunications – and identified 32 infrastructure gaps in the Townsville North Queensland region.

Townsville Enterprise is working with stakeholders to have a high level regional discussion leading to a consensus position for prioritising Townsville North Queensland infrastructure requirements.

The organisation has developed a framework for assessing the region’s infrastructure priorities against the Audit’s identified gaps. This takes into consideration readiness, economic and employment impact, risks and constraints to determine the most appropriate sequencing of project delivery. This process is supported by both Federal and State Government representatives.

The intent is to have the region’s highest infrastructure priorities acknowledged and supported by both Governments. They will also be enduring; the region’s economic infrastructure requirements do not change according to political or other short term cycles.

As part of the regional conversation and resultant consensus position Townsville Enterprise is:

• Considering any economic infrastructure gaps overlooked by the Northern Australia Infrastructure Audit

• Narrowing the 32 gaps (and any additional) to the region’s top priorities

• Identifying which projects are most suited to which funding source including the $800M grant funding available due to

underspend of the Asset Recycling Fund; the $5B Northern Australia Concessional Loan Facility; State level programs and a combination of the aforementioned

Townsville Enterprise will actively work with the private sector to identify and attract potential partners to deliver the individual projects, lead a high level marketing campaign to assist community understanding of the importance of the outcomes of such work and inform both Federal and State Governments of the region’s local priorities and the methodology used.

Stakeholders in this process include Governments, infrastructure owners, operators and users in addition to high level Townsville Enterprise Partners and Members. The intended outcome is a regional consensus on Townsville North Queensland’s infrastructure priorities supported by the five Local Governments and business.

This will assist the Federal Government to progress infrastructure investment in the region, and ensure a consistent approach from State and Federal agendas. It will also ensure a factual evidence base to Townsville

INFRASTRUCTURE

Port of Townsville at sunrise by Megan MacKinnon


... Townsville North Queensland is a unique and valuable proposition for investment.

Cattle in Charters Towers by Rob Parsons


SEEKING FUNDING

The closing months of 2014/15 were an exciting time for Townsville North Queensland with three significant investment decisions announced for Northern Australia that will directly benefit the region as the commercial hub driving its growth, including:

• The acquisition of Domain Shopping Centre by the Queensland Investment Corporation for over $130M

• The investment of $214M by the Sichuan Railway Investment Group into the Altona copper and gold mine, Little Eva at Cloncurry

• The decision by MMG to proceed

with the $1.86B development of the Dugald River zinc project, in the North West Mineral Province

These investments are the practical demonstration of the message that

Townsville North Queensland is a unique and valuable proposition for investment.

This message was articulated at the launch of the first edition of Opportunity Townsville North Queensland following months of project analyses. The document outlines all major development projects (valued at over $5M) taking place in Townsville North Queensland, broken down into five categories:

INVESTMENT ATTRACTION

GIVE TOWNSVILLE

PROJECT PIPELINE

RECENTLY COMPLETED

SEEKING INVESTMENT

UNDER CONSTRUCTION

The response to Opportunity Townsville North Queensland has been incredibly positive with Townsville Enterprise in negotiations with a number of potential investors considering the region.

RECENTLY COMPLETED PROJECTS

PROJECTS

VALUED AT OVER

$1.8B

44 OVER $4.3BSHORT TERM PROJECTS

MEDIUM TERM PROJECTS

POTENTIAL PROJECTS

$3.3B LONG-TERM RESIDENTIAL

PROJECTS

+ $1B PUBLIC

PROJECTS

($400M INFRASTRUCTURE

PROJECTS)

UNDER CONSTRUCTION

22INVESTMENT READY PROJECTS

INVESTMENT OPPORTUNITIES

11

7

30

65

42

The Asian Century is upon us and current and future global shifts in Asia and across the world will drive changes in import and export opportunities for Townsville North Queensland.

In order to capitalise on these opportunities under the Northern Australia Agenda, the region united in advocating the Federal Government to reinstate Townsville Airport’s international status.

Full international status was granted in February with the reintroduction of border services which reduced the costs placed on international airlines flying out of Townsville. This enables Townsville to compete on a level playing field with other destinations.

This was an exciting time for Townsville North Queensland opening its doors to tourism and trade opportunities across the globe and enabling the Townsville

Airport to progress negotiations with a number of international carriers. To assist in this process a dedicated Aviation Attraction Committee comprising airline stakeholders and community leaders has been established under the auspices of Townsville Enterprise.

International access is significant for the region’s tourism and trade relationships. There is already a huge demand from the Asian markets for high quality beef and the rapidly growing population in Asia will present opportunities for the region on an unprecedented scale.

September 2015 will see Jetstar, the first major airline in over a decade to fly internationally from Townsville, take off to Denpasar.

This service will give Townsville a competitive advantage over other regional cities in Queensland and will also provide a lifestyle benefit that will assist in attracting people to make the move to Townsville North Queensland.

It is imperative the community supports this service and Townsville Enterprise will continue its united advocacy approach to attract additional carriers from around the world. Denpasar is just the beginning of Townsville’s international connections as the Aviation Attraction Committee aspires to see new routes such as Auckland, Singapore and Papua New Guinea come to fruition.

AVIATION

Townsville International Airport Concept


Townsville North Queensland has an ambitious target to increase visitor expenditure from $662M in 2013 to $1.04B by 2020. Events have been identified through the Townsville North Queensland Destination Tourism Plan as a key strategic priority for the region to achieve this. To determine the direction for the region in the events sector, Townsville Enterprise, in partnership with Tourism and Events Queensland and each Local Government Area, undertook a comprehensive consultation and strategy development process to establish the 2015–2020 Townsville North Queensland Events Strategy and Action Plan.

Key objectives are:

• Establish a diverse and balanced events calendar across the whole region and industry that assists in building the shoulder season

• Acquire and create events which will attract visitors and ultimately support the 2020 visitor expenditure targets

• Develop and maintain a sustainable events calendar, to provide a level of certainly for local tourism operators

• Improve the region’s capacity to deliver and produce high quality events and be recognised as a leading events destination

• Enhance the visitor experience through events

Throughout the year a strong focus was placed on acquiring business and sporting events for the region. A number of events were secured as a result of a collaborative initiative to establish the region’s first Events Bid Fund, a pool of funding made available to encourage and support events choosing Townsville North Queensland as the host destination. This was made possible due to the support and financial input from Tourism and Events Queensland, Townsville City Council, the Townsville Enterprise Convention Bureau and a number of local operators. As a result the Bid Fund secured the following major events which are anticipated to generate in excess of $8.56M in economic value and predicted to generate 14,139 room nights for local accommodation operators:

• 2015 Developing Northern Australian Conference

• 2015 and 2016 State Netball Championships

• 2016 Hardware and Building Traders Conference

• 2016 Perinatal Society of Australia and New Zealand Annual Conference

• 2015 DestinationQ Conference• 2016 Australasian Society of

Aerospace Medicine Conference

The ongoing commitment and additional support from industry and Townsville Airport will see the continuation of the Bid Fund.

Moving forward Townsville Enterprise is working towards segmenting the roles of event acquisition and event development with the acquisition of established and existing events being a priority. Townsville Enterprise will work towards establishing the Townsville North Queensland Events Hub. This will be a common meeting space providing shared resources and offering developmental support to events which meet a pre-determined criteria.

EVENTS

Australian Festival of Chamber Music by Andrew Rankin



The Townsville North Queensland Edutourism programs continued to deliver growth in tourism visitation.

Reef health assessment training by Megan MacKinnon


EDUTOURISM The Townsville North Queensland Edutourism programs continued to deliver growth in tourism visitation. Over 800 visitors were welcomed equating to 3,000 room nights and contributing over $500K to the region’s economy. Using the region’s natural assets along with world-class education partners, the programs are a result of collaboration between Reef HQ Great Barrier Reef Aquarium, James Cook University, Great Barrier Reef Marine Park Authority, tourism operators and Townsville Enterprise.

The Townsville North Queensland region has positioned itself as a destination of excellence for study abroad, providing an opportunity for tourism operators to diversify their product offerings.The primary target market for the Edutourism programs is educational groups and alumni from America, based on its strong culture for educational travel.

Townsville Enterprise, in conjunction with Reef HQ Great Barrier Reef Aquarium, led a sales mission to the United States to meet with universities and alumni groups. As a result, new opportunities for additional programs and partnerships were identified and developed by the Edutourism Committee. CRUISE In conjunction with the Port of Townsville, Townsville City Council and Tourism and Events Queensland, Townsville Enterprise developed and implemented a strategy to attract new cruise and naval vessels to the region. The strategy includes the following goals:

• Foster the supply of cruise tourism products that meet the needs of the cruise and naval tourism markets

• Maximise Townsville North Queensland’s cruise and naval ship potential

• Maximise the economic benefit of cruise and naval tourism to Townsville North Queensland

• Provide sustainable infrastructure

A total of 26 cruise and naval vessels visited during the year.More opportunities must be pursued to grow this market and Townsville Enterprise will continue to work with the relevant stakeholders to ensure Townsville North Queensland becomes a key cruise and naval destination.

INDUSTRY DEVELOPMENT

Quayside Terminal by Megan MacKinnon

A shift in messaging saw a greater focus placed on the promotion of arts and cultural attractions to the Brisbane and drive markets...

Townsville, a Metropolitan Landscape concept designed by Lyndon Berresford


During the year a number of partnerships were formed with key media outlets including Townsville Bulletin, Southern Cross Austereo, Success Business Magazine and Grant Broadcasters to communicate the organisation’s activities. Townsville Enterprise effectively delivered on its Marketing Activity Plan including projects such as the 2015 Townsville North Queensland Mining and Manufacturing Services Directory, Townsville North Queensland Holiday and Travel Guide, social media activity across eight channels and the Townsville North Queensland Meeting Planners’ Guide. Townsville Enterprise’s destination marketing activity was acknowledged through winning Bronze for the Richard Power Destination Marketing Award at the Queensland Tourism Awards and Best TV Advertisement at the Queensland Multi Media Awards.

KEY PROJECTS:

Integrated Stadium and Entertainment Centre Public Awareness Campaign

In the lead up to the State Government election, Townsville Enterprise commenced a public awareness campaign to educate the Townsville North Queensland community on the economic and social benefits of an Integrated Stadium and Entertainment Centre in the heart of the CBD.

The campaign concept was a collaboration between regional professionals across marketing, graphic design, media, website development and visual production, who all donated their time and expertise. It was voiced by high profile locals including musician Adam Brand, NRL great Johnathon Thurston, actress Judy Higgins, NBL star Mitch Norton, WNBL star Suzy Batkovic and a number of prominent business people. In three weeks the campaign secured over 2,500 votes from the public in favour of the project, generated over $100K in PR value and raised the profile of the project with key political stakeholders resulting in bipartisan commitments for the development in the lead up to the election.

Concept Design Competition – Townsville, a Metropolitan Landscape

Townsville Enterprise embarked on a visionary campaign that sought to boost business confidence in the community through conceptual displays of what the city could look like once growth had reached a pinnacle point with a population of one million. Creative minds were invited to submit their vision, with consideration given to what key infrastructure developments would need to be included to support the population growth. The campaign attracted six high quality submissions with the winning concept provided by local designer, Lyndon Berresford.The competition generated much discussion in local media achieving $9.5K in PR value.

Building the Brand - Townsville North Queensland, Alive with curiosity

Under the destination brand, Townsville North Queensland, Alive with curiosity, the region’s key markets were targeted through an integrated marketing campaign that placed emphasis on digital and PR activity while still maintaining traditional communication tools.

A shift in messaging saw a greater focus placed on the promotion of arts and cultural attractions to the Brisbane and drive markets as the region geared up for an exciting cultural calendar of events. This complemented the activity in market promoting the region’s leisure appeal to families and couples.

The campaign included a tactical partnership with major booking agent Wotif which generated a 20% increase in bookings for participating suppliers. Townsville Enterprise hosted prominent media outlets on a total of 18 famils across the region which generated significant media exposure of Townsville North Queensland through trusted sources. Famil itineraries focused on Hinchinbrook Island’s Thorsborne Trail, local produce, accommodation, unique experiences, school holiday activities for the whole family and Magnetic Island.

Overall the campaign generated 121,701 unique visitors to the destination website and in excess of $2.5M in PR activity. Across the greater organisational priorities, a total PR value of $4.51M was achieved through proactive pitching to local, state, national and international media outlets.

MARKETING AND COMMUNICATIONS


ECONOMIC SNAPSHOT

TOWNSVILLE NORTH QUEENSLAND ECONOMY

NATION AT A GLANCE*

GrossRegional Product

$12.53B

Current RegionalPopulation

236,629

MedianHouse Price

$350K

KEY INDICATOR 2014 2015

Business Confidence -0.5 -0.5

Unemployment Rate 7.3% 7.9%

Persons Employed 108,600 112,900

House Median Price $345,000 $342,500 (March)

Building Approvals (July 2014–April 2015) 3,142 Cum. Total July 13–April 14

2,759 Cum. Total July 14–April 15

Domestic Overnight Visitors 955,000Y/e September 2013

873,000 Y/e September 2014

REGION AT A GLANCE* *Figures reflect latest data available

Australia GDP Growth Unemployment Rate2.5% 6.2%

Inflation Average Price Residential Dwellings1.3% $572K

RBA Cash Rate Queensland GrossState Product2% $295.1B

Population Queensland Population23.6 million (1.5% growth) 4.74 million

Source: Reserve Bank Australia, August 2014, Australian Bureau of Statistics, Office of Economic and Statistical Research


Townsville North Queensland’s economy has seen signs of recovery after a sluggish start to the decade. The region’s 2013/14 Gross Regional Product (GRP) of $12.59B represents a 2.1% growth rate on the previous year.

This strong growth has firmed the region’s economic significance as the highest GRP in Northern Australia outside of Western Australia’s Pilbara region.

Diversity continues to be the underpinning factor for the region’s economic strength. The largest industry by value-added, Rental, Hiring and Real Estate Services, holds only 12.3% of value-added GRP. This is followed by Public Administration and Safety, driven by Defence, with an 11.1% share. Around half of the region’s GRP is shared across the five largest industries. See Figure 1 for full breakdown.

Combining the GRP for the economically significant north-west resources region with that of Townsville North Queensland produces a different picture.

While economic growth of 2.1% is maintained, economic diversity is greatly diminished with the Mining industry accounting for 21.5% of the combined region’s value-added GRP. See Figure 2 for full breakdown.

GROSS REGIONAL PRODUCT

FIGURE 1 VALUE ADDED GROSS REGIONAL PRODUCT – TOWNSVILLE NORTH QUEENSLAND

Rental, Hiring & Real Estate Services 12.3%

Public Administration & Safety 11.1%

Manufacturing 10.7%

Construction 7.7%

Health Care & Social Assistance 7.5%

Education & Training 6.0%

Financial & Insurance Services 5.1%

Retail Trade 5.0%

Transport, Postal & Warehousing 4.9%

Mining 4.8%

Electricity, Gas, Water & Waste Services 4.2%

Professional, Scientific & Technical Services 4.0%

Wholesale Trade 3.7%

Agriculture, Forestry & Fishing 3.0%

Accommodation & Food Services 2.7%

Information Media & Telecommunications 2.5%

Other Services 2.0%

Administrative & Support Services 2.0%

Arts & Recreation Services 0.8%

SOURCE: REMPLAN, JANUARY 2015

$11.67B


GROSS REGIONAL PRODUCT (CONTINUED)

TOP FIVE REGIONAL ECONOMIES BY GRP IN NORTHERN AUSTRALIA 2014

FIGURE 2 VALUE-ADDED GRP – TOWNSVILLE NORTH QUEENSLAND AND NORTH WEST

Mining 21.5%

Rental, Hiring & Real Estate Services 10.3%

Manufacturing 9.1%

Public Administration & Safety 8.7%

Construction 6.6%

Health Care & Social Assistance 6.0%

Education & Training 4.9%

Transport, Postal & Warehousing 4.2%

Retail Trade 4.0%

Financial & Insurance Services 4.0%

Electricity, Gas, Water & Waste Services 3.6%

Professional, Scientific & Technical Services 3.1%

Wholesale Trade 3.0%

Agriculture, Forestry & Fishing 2.8%

Accommodation & Food Services 2.3%

Information Media & Telecommunications 1.9%

Administrative & Support Services 1.7%

Other Services 1.7%

Arts & Recreation Services 0.6%

SOURCE: REMPLAN, JANUARY 2015

$16.2B

WA $34.849B

WA $10.576B

QLD $12.592B

QLD $8.77B

NT $9.21B

TOWNSVILLE NORTH QUEENSLAND

PILBARA

EAST PILBARA

DARWIN

ISAAC

Source: Remplan Economic Development Modelling, Economy ID Economic Development Modelling

ECONOMIC SNAPSHOT (Continued)


Townsville maintained strong population growth into 2014, with a growth rate of 1.6% bringing the city’s population to an estimated 192,107 people. The city’s five-year population growth rate is a remarkable 11%.

In the broader region, Townsville North Queensland grew by a collective 1.3% to an estimated total population of 236,629. This reflects a total growth rate of 8.9% over the last five years.

The most recent projections have Townsville North Queensland expected to reach a population of 361,098 by June 2036, an increase of 1.9% per year over 20 years.

Townsville City is expected to have 314,362 persons, with an annual growth rate of 2.3% per year.

ESTIMATED POPULATION

PROJECTED POPULATION

TOWNSVILLE NORTH QUEENSLAND

BY 2036

TOWNSVILLE CITY BY 2036361,098 314,362

REGIONAL POPULATION FORECASTS TO 2036

Source: OESR, data as at June 2013

BURDEKIN

19,467

HINCHINBROOK

11,351

CHARTERS TOWERS

12,459

PALM ISLAND

3,460

Townsville Enterprise continues to deliver against its objectives with high levels of activity and quality outcomes in the core areas of economic and tourism development.

View to Magnetic Island from The Strand by Megan MacKinnon


Your directors present this report on the entity for the financial year ended 30 June 2015.

DirectorsThe following persons were directors of Townsville Enterprise Limited during the whole of the financial year and up to the date of this report:

Kevin Gill – appointed 26/05/2008Jenny Hill – appointed 25/05/2012Sandra Harding – appointed 20/02/2013 Joe Carey – appointed 11/02/2011Laurence Lancini – appointed 12/10/2005Peter Honeycombe – appointed 14/11/2013Paul Victory – appointed 14/11/2013Ranee Crosby – appointed 15/05/2014

Helen Stanton – resigned 27/10/2014

Principal ActivitiesThe company’s principal continuing activities during the year consisted of the promotion of tourism and economic development in North Queensland.

Review of operationsComments on the operations and the results of those operations are set out below:

Operating revenue for the year ended 30 June 2015 totalled $3,089,499 (2014: $5,755,409). The operating surplus/(deficit) for the year totalled $(424,878) (2014: $252,834).

Significant changes in the state of affairsThere were no significant changes in the company’s state of affairs during the financial year ended 30 June 2015 other than those matters disclosed in the financial report. The directors are not aware of any future developments which will have a significant impact on the operations of the company.

Matters subsequent to the end of the financial yearSince the end of the financial year the directors are not aware of any matters or circumstances not otherwise dealt with in the report or accounts that have significantly affected the operations of the company, the results of those operations or the state of affairs of the company in subsequent financial years.

Developments and expected results of operationsThe past year has resulted in a deficit of $(424,878) against a planned budget deficit of $(394,970). Given the tough economic conditions the Board considered it prudent to draw on previous years surpluses and invest in strategically focused projects and initiatives that were of regional significance and which were core to the company’s role as the region’s peak economic development and tourism body.

A comprehensive marketing and advocacy strategy was developed and initiated with the objective to secure the Integrated Stadium and Entertainment Centre as one of the key economic stimulants.

Advertising expenditure was increased to support campaigns for projects in the lead up to the 2015 State Election. Your Board identified this as an essential action requiring a commitment of previous years reserve funding to help win this vital project for Townsville at a time when the city needed it most. Importantly, the funding by Townsville Enterprise was a catalyst for further Townsville City Council and local business community financial investment that delivered a campaign of support with media exposure valued in excess of $500K. Townsville Enterprise’s application of these funds secured commitments from both sides of politics to the catalyst project with the incumbent Government’s election promise of $100M.

In Tourism and Events, Townsville Enterprise worked with industry to achieve solid results for the destination. A new initiative, the Events Bid Fund, was launched and it is anticipated that the major events it secured for the region will generate in excess of $8.56M in economic value and 14,139 room nights for local accommodation operators. The Edutourism strategy continues to generate momentum with operators welcoming more than 800 students spending 3,000 nights exploring the region. Destination Marketing also took centre stage with the Townsville North Queensland, Alive with curiosity brand campaign resulting in 121,701 unique visitors to the destination website and PR value of approximately $4.1M.

A successful advocacy campaign resulted in Townsville Airport’s international air services being reinstated with the Federal Government agreeing to provide border services to the airport. The first flight to Denpasar, Bali will take off on 2 September 2015. Townsville Enterprise continues to deliver against its objectives with high levels of activity and quality outcomes in the core areas of economic and tourism development. The leadership demonstrated by the management team in the great opportunity area of Northern Australia has been positive and has laid a solid foundation for local and regional outcomes in infrastructure and service provision. The corporate culture remains robust and the team is focused on its core goal of collaborative membership and partnership support to sustain and increase economic activity in the Townsville North Queensland region.

In 2015/16 Townsville Enterprise will finalise its Strategic Review which will set the direction of the organisation for the next three years. The Board will continue to invest members’ funds prudently and wisely with a view to securing projects and initiatives of regional relevance and which are catalytic to the development of our city and region.

Environmental regulationsNo significant environmental regulations apply to the company.

TOWNSVILLE ENTERPRISE LIMITED FINANCIAL REPORT 2014/2015

KJ Gill

B. Com, CA Chairman 3 years 3 monthsDirector 7 years 1 month Chief Operating Officer – Townsville Airport Pty Ltd, Aviex Pty LtdSpecial ResponsibilitiesMember – Finance Audit & Risk Committee

JL Hill

BSc MPHTMDeputy Chairman 3 years 1 monthMayor – Townsville City CouncilChairman – Townsville Breakwater Entertainment Centre Joint VentureExecutive Member – Local Government Association of QueenslandChairman – Townsville Local Disaster Management

JW Carey

B. Com, CPA, Dip FP, Authorised Rep Securitor Pty LtdDirector 4 years 4 months Director – Carey Group of CompaniesDeputy Chairman – Cowboys Leagues Club LimitedChairman – Cowboys Leagues Club Finance Audit & Risk CommitteeDirector – Cowboys Rugby League Football Club LimitedChairman – Cowboys Rugby League Football Club Limited Finance Audit & Risk CommitteeSpecial ResponsibilitiesChairman – Finance Audit & Risk Committee

RL Crosby

LLB, GAICD Director 1 year 1 month Chief Executive – Port of Townsville LimitedDeputy Chair – Queensland Ports AssociationChairman – Townsville Committee Australian Institute of Company DirectorsDeputy Chairman – James Cook University Futures CommitteeSpecial ResponsibilitiesChairman – Economic Development Strategic Advisory Committee

SL Harding

BSc (Hons) ANU, MPub.Admin UQ, PhD NCSU,Hon Doc JIU, FACE, FQA, FAICD, FAIMDirector 2 years 4 months Vice-Chancellor and President – James Cook UniversityChair – Universities Australia Director – Regional Australia InstituteCouncil Member – Australian Institute of Marine ScienceDirector – Cowboys Rugby League Football Club LimitedMember – Defence Science and TechnologyOrganisation (DSTO) Advisory BoardMember – Trade and Investment Policy Advisory CommitteeMember – Australia-China Council BoardDeputy Chair – Foundation of Australia Literary StudiesDirector – Advance CairnsMember – Northern Australia Expert Advisory Panel

PE Honeycombe

B.Bus, FAICD, FAIM, FREIQ Director 1 year 7 months Managing Director – Honeycombes Property Group

L Lancini

Director 9 years 7 months Managing Director – Lancini Group of CompaniesDirector – Cowboys Leagues Club LimitedDirector – Cowboys Holdings Pty LtdDirector – Cowboys Community Fund Ltd Chairman – Cowboys Rugby League Football Club Limited Member – Qld Division Council of the Property Council of AustraliaMember – Salvation Army Advisory Board

HL Stanton

BE, GAICD Director 2 years 7 months (resigned October 2014)Director – Mater Health Services North QueenslandDirector – Townsville Mackay Medicare Local Director – Northern Territory Power and Water Corporation

PA Victory

MA, Grad Dip Bus, BADirector 1year 7 months General Manager – SeaLink Qld/NT Pty LtdSpecial ResponsibilitiesChairman – Tourism and Events Strategic Advisory Committee

DIRECTOR QUALIFICATIONS DIRECTOR QUALIFICATIONS

34 Townsville Enterprise Financial Report 2014/15

MEETINGS OF DIRECTORS

The numbers of meetings of the company’s board of directors and of each board committee held during the year ended 30 June 2015, and the number of meetings attended by each director, were:

Full meetings of directors

Meetings of Finance Audit & Riskcommittee

A B A B

Kevin Gill 4 5 5 6

Jenny Hill 5 5 – –

Joe Carey 5 5 6 6

Ranee Crosby 5 5 – –

Sandra Harding 2 5 – –

Peter Honeycombe 3 5 – –

Laurence Lancini 1 5 – –

Helen Stanton 0 1 – –

Paul Victory 4 5 – –

A = Number of meetings attended.B = Number of meetings held during the time the director held office

or was a member of the committee during the year.

Directors’ benefitsSince the end of the previous financial year no directors have received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of the emoluments received or due and receivable by directors) by reason of a contract made by the company or a related corporation with the director or with a firm they are a member of or a company in which they have a substantial financial interest to the financial statements.

Insurance of officersDuring the financial year, Townsville Enterprise Limited paid a premium to insure the directors and secretaries of the company. Under the arrangement the premium is unable to be disclosed.

Contributions on winding upThe entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the Constitution states that each member is required to contribute a maximum of $20 towards meeting any outstanding obligations of the entity. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $20 (2014: $20).

Auditor’s Independence DeclarationA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out below.

This directors’ report is signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

Kevin GillDirectorTownsville7 September 2015

AUDITOR’S INDEPENDENCE DECLARATIONUNDER S307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF TOWNSVILLE ENTERPRISE LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

Crowe Horwath NQ

Mark AndrejicPrincipal9 September 2015

35Townsville Enterprise Financial Report 2014/15

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015Note 2015 2014

$ $Revenue 3 2,036,512 2,720,618

Other income 4 1,052,987 3,034,791

Total Income 3,089,499 5,755,409

Expenses

Other expenses 5 (1,447,546) (3,485,967)

Employee benefits expense (1,697,294) (1,626,613)

Depreciation and amortisation expense (99,892) (100,079)

Travel (147,911) (154,806)

Finance costs (3,335) (5,027)

Administration (118,399) (130,083)

Total Expenses (3,514,377) (5,502,575)

Surplus/(deficit) for the year attributable to the members of Townsville Enterprise Limited

19 (424,878) 252,834

Other comprehensive income for the year – –

Total comprehensive income for the year attributable to the members of Townsville Enterprise Limited

(424,878) 252,834

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2015Note 2015 2014

$ $Assets

Current assets

Cash and cash equivalents 6 1,203,479 1,666,896

Trade and other receivables 7 515,982 947,606

Other 8 15,098 24,594

Total current assets 1,734,559 2,639,096

Non-current assets

Property, plant and equipment 9 249,351 221,781

Intangibles 10 80,552 99,063

Total non-current assets 329,903 320,844

Total assets 2,064,462 2,959,940

Liabilities

Current liabilities

Trade and other payables 11 42,812 98,200

Tax payable 12 79,916 90,880

Employee benefits 13 65,427 69,235

Borrowings 14 9,786 –

Other 15 584,676 1,044,808

Total current liabilities 782,617 1,303,123

Non-current liabilities

Employee benefits 16 45,210 41,078

Borrowings 17 45,773 –

Total non-current liabilities 90,983 41,078

Total liabilities 873,600 1,344,201

Net assets 1,190,862 1,615,740

Equity

Reserves 18 887,356 876,124

Retained surpluses 19 303,506 739,616

Total equity 1,190,862 1,615,740

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

The above statement of financial position should be read in conjunction with the accompanying notes


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015Asset Revaluation

SurplusReserves (Note 18)

Retained Surplus

Total Equity

$ $ $ $Balance at 1 July 2013 64,080 678,600 620,227 1,362,907

Surplus for the year attributable to members of the entity – – 252,834 252,834

Transfers to/from reserves (64,080) 197,524 (133,445) –

Balance at 30 June 2014 – 876,124 739,616 1,615,740

Balance at 1 July 2014 – 876,124 739,616 1,615,740

Deficit for the year attributable to members of the entity – – (424,878) (424,878)

Transfers to/from reserves – 11,232 (11,232) –

Balance at 30 June 2015 – 887,356 303,506 1,190,862

The above statement of changes in equity should be read in conjunction with the accompanying notes

The above statement of cash flows should be read in conjunction with the accompanying notes

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015Note 2015 2014

$ $Cash flows from operating activities

Payments to suppliers and employees (inclusive of GST) (3,927,814) (5,465,891)

Receipt of grants 745,782 2,954,630

Receipts from members and customers 2,721,734 2,038,002

(460,298) (473,259)

Interest received 41,837 74,859

Net cash from operating activities (418,461) (398,400)

Cash flows from investing activities

Payments for property, plant and equipment (98,236) (33,412)

Payments for intangible assets (18,280) (93,986)

Proceeds from sale of assets 16,000 300,332

Net cash provided by (used in) investing activities (100,516) 172,934

Cash flows from financing activities

Net proceeds from finance lease obligations 55,560 –

Net cash provided by (used in) financing activities 55,560 –

Net increase in cash and cash equivalents (463,417) (225,466)

1,666,896 1,892,362

Cash and cash equivalents at the end of the financial year 6 1,203,479 1,666,896

Cash and cash equivalents at the beginning of the financial year


NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) New, revised or amending Accounting Standards and Interpretations adoptedTownsville Enterprise Limited has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the company.

The following Accounting Standards and Interpretations are most relevant to the company:• AASB2013-3 Amendments to AASB136 – Recoverable Amount

Disclosures for Non-Financial Assets• AASB2014-1 Amendments to Australian Accounting Standards

(Parts A to C)• AASB2012-3 Amendments to Australian Accounting Standards –

Offsetting Financial Assets and Financial Liabilities

(b) Basis of preparationThese general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board (‘AASB’), and associated regulations and the Corporations Act 2001, as appropriate for not-for-profit oriented entities.

Historical cost conventionThe financial statements have been prepared under the historical cost convention.

Critical accounting estimatesThe preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2.

(c) Revenue recognitionRevenue is recognised when it is probable that the economic benefit will flow to the company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.

Membership or PartnershipMembership or partnership revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income in respect of the period to which it relates.

GrantsGrant revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income when Townsville Enterprise Limited obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be reliably measured.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

Where grant revenue is received whereby Townsville Enterprise Limited incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the Statement of Financial Position as a liability until the service has been delivered to the contributor otherwise the grant is recognised as income on receipt.

Service RevenueRevenue arising from the rendering of a service is recognised upon the delivery of the service to the clients.

Other RevenueOther revenue is recognised when it is received or when the right to receive the payment is established.

All revenue is stated net of the amount of the goods and services tax (GST).

(d) Income taxAs Townsville Enterprise Limited is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax; no provision for income tax has been raised.

(e) Current and non-current classificationAssets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

(f) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

NOTES TO THE FINANCIAL STATEMENTS


(g) Trade and other receivablesTrade receivables are measured at amortised cost using the effective interest method. Trade receivables are generally due for settlement within 30 days.

Other receivables are recognised at amortised cost.

(h) Property, plant and equipmentPlant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line or diminishing value basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:

Leasehold improvements 10–50% Plant and equipment 5–20% Motor vehicles 20–25%

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the company. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

(i) Impairment of non-financial assetsNon-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

(j) Intangible assetsIntangible assets are initially recognised at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. The gains or losses recognised in profit or loss arising from the de-recognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption of useful life are accounted for prospectively by changing the amortisation method or period.

SoftwareSignificant costs associated with software are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of five years.

Billabong Visitor Information Centre Kiosk (right to use)Townsville Enterprise has an agreement with the Billabong Sanctuary for the right to use the kiosk constructed on its site. Townsville Enterprise Limited incurred the original construction costs (whilst ownership resides with Billabong Sanctuary) which in agreement with Billabong Sanctuary gives Townsville Enterprise Limited the right to use the facilities for the life of the agreement. Townsville Enterprise Limited will amortise the cost over the life of the agreement.

(k) Trade and other payablesThese amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

(l) Employee benefitsShort-term employee benefitsLiabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date or where no right to defer settlement exists, are recognised in current liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefitsThe liability for long service leave is not expected to be settled within 12 months of the reporting date is recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

(m) Goods and Services Tax (‘GST’) and other similar taxesRevenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included in other receivables or other payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from or payable to the ATO are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the ATO.

(n) LeasesLeases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance leases.

Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values.


Leased assets are depreciated on a straight-line basis over the estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease terms.

NOTE 2. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONSThe preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year, are discussed below.

Estimation of useful lives of assetsThe company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Long service leave As discussed in note 1, the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

NOTE 3. REVENUE2015 2014

$ $

Sales revenue

Net Contribution/Compensation from VIC – 290,240

Sale of Assets 8,435 –

Other revenue

Interest 45,173 74,859

Rent 10,445 11,315

Campaign and Event Income 227,392 264,509

Advertising Income 83,186 107,593

Partnership Income 856,008 837,455

Membership Income 694,872 822,826

Contra Membership Income 81,359 127,287

Other Revenue 29,642 184,533

2,028,077 2,430,378

2,036,512 2,720,618

NOTE 4. OTHER INCOME2015 2014

$ $

Government Grants 745,782 2,954,622

Marketing Packages 32,900 41,669

Project Income 216,032 38,500

Sponsorship Income 58,273 –

1,052,987 3,034,791

NOTE 5. OTHER EXPENSES2015 2014

$ $

Audit and Accounting Expenses 20,957 14,759

Consultants and Contractors 321,634 2,323,208

Facility Expenses 178,757 187,181

Web Development and Maintenance Expenses 5,593 43,874

Design Printing and Reproduction 82,573 114,295

Trade and Exhibition 169,959 237,753

Sponsorship and Membership Expenses 156,997 120,218

Vehicle Expenses 13,950 39,414

Advertising Expenses 344,608 225,438

Employee related Expenses 69,582 63,742

Entertainment Expenses 16,684 37,931

Information Technology Expenses 58,075 43,774

FBT 2,285 10,569

Other Expenses 5,892 23,811

1,447,546 3,485,967

NOTE 6. CURRENT ASSETS – CASH AND CASH EQUIVALENTS

2015 2014

$ $

Cash at bank and on hand 1,203,479 1,666,896

1,203,479 1,666,896

NOTE 7. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES

2015 2014

$ $

Trade receivables 515,830 922,141

Accrued revenue – 24,880

Sundry debtors 152 585

515,982 947,606

NOTE 8. CURRENT ASSETS – OTHER 2015 2014

$ $

Prepayments 15,098 24,594


NOTE 9. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT

2015 2014

$ $

Leasehold improvements – at cost 245,486 245,486

Less: Accumulated depreciation (135,678) (111,129)

109,808 134,357

Plant and equipment – at cost 239,166 476,045


79,667 81,963

Motor vehicles – at cost 71,378 49,637


59,876 5,461

Total non-current assets 249,351 221,781

ReconciliationsReconciliation of the written down value at the beginning and end of the current financial year is set out below:

Leasehold Improvements

Motor Vehicles

Plant and Equipment Total

$ $ $ $

Balance at 1 July 2014 134,357 5,461 81,963 221,781

Additions at cost – 69,508 26,858 96,366

Borrowing costs – 1,870 – 1,870

Disposals – (5,461) (2,104) (7,565)

Depreciation expense (24,549) (11,502) (27,050) (63,101)

Balance at 30 June 2015 109,808 59,876 79,667 249,351

NOTE 10. NON-CURRENT ASSETS – INTANGIBLES2015 2014

$ $

Billabong VIC Kiosk (right to use) 93,986 93,986

Less: Accumulated amortisation (31,358) (7,862)

62,628 86,124

Computer Software – at cost 90,898 129,524

Less: Accumulated amortisation (72,974) (116,585)

17,924 12,939

Total intangible assets 80,552 99,063

ReconciliationsReconciliation of the written down value at the beginning and end of the current financial year is set out below:

Billabong VIC Computer Software Total

$ $ $

Balance at 1 July 2014 86,124 12,939 99,063

Additions at cost – 18,280 18,280

Amortisation expense (23,496) (13,295) (36,791)

Balance at 30 June 2015 62,628 17,924 80,552

NOTE 11. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES

2015 2014

$ $

Trade payables 30,855 87,792

Other payables 11,957 10,408

42,812 98,200

NOTE 12. CURRENT LIABILITIES – TAX PAYABLE2015 2014

$ $

GST/PAYGW Tax payable 79,916 90,880

NOTE 13. CURRENT LIABILITIES – EMPLOYEE BENEFITS2015 2014

$ $

Annual leave 65,427 69,235

NOTE 14. CURRENT LIABILITIES – BORROWINGS2015 2014

$ $

Borrowings 9,786 –

NOTE 15. CURRENT LIABILITIES – OTHER2015 2014

$ $

Accrued expenses 36,696 62,829

Revenue received in advance* 547,980 981,979

584,676 1,044,808

* Revenue received in advance relates to grant income and

membership invoices raised in 2014–15 for 2015–16 year

NOTE 16. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS

2015 2014

$ $

Long service leave 45,210 41,078

NOTE 17. NON-CURRENT LIABILITIES – BORROWINGS2015 2014

$ $

Finance lease obligations 45,773 –

The lease liabilities are effectively secured as the rights to the leased assets, recognised in the statement of financial position, revert to the lessor in the event of default.

NOTE 18. EQUITY – RESERVES2015 2014

$ $

Visitor Information Centre – Capital reserve 175,388 197,524

General reserve 711,968 678,600

887,356 876,124


NOTE 19. EQUITY – RETAINED SURPLUSES2015 2014

$ $

Retained surpluses at the beginning of the financial year

739,616 620,227

Transfers to Reserves (11,232) (133,445)

Surplus/(Deficit) for the year (424,878) 252,834

Retained surpluses at the end of the financial year

303,506 739,616

NOTE 20. CONTINGENT LIABILITIES

Townsville Enterprise Limited has no contingent liabilities at 30 June 2015 and 30 June 2014. NOTE 21. KEY MANAGEMENT PERSONNEL DISCLOSURES

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel. The Board of Directors of Townsville Enterprise Limited are designated key management personnel in accordance with the definition provided. No director receives remuneration for their role on the Board. Other management personnel for 2014/2015 include Mr David Kippin (Chief Executive Officer, resigned 05/09/2014), Ms Patricia O’Callaghan (Chief Executive Officer and General Manager Tourism and Events), Ms Tracey Lines (General Manager Economic Development) and Ms Bridget Woods (Executive Manager Tourism and Events).

2015 2014

$ $

Key management personnel compensation

463,033 435,460

NOTE 22. COMMITMENTS

2015 2014

$ $

Lease commitments – operating

Committed at the reporting date but not recognised as liabilities payable

Within one year 106,220 16,775

One to five years 531,100 103,076

637,320 119,851 Operating lease commitments comprise of the lease arrangements on Enterprise House and storage facilities.

NOTE 23. RELATED PARTY TRANSACTIONS

Key management personnelDisclosures relating to key management personnel are set out in note 21.

Transactions with related partiesThere were no transactions with related parties during the current and previous financial years.

Receivables from and payable to related partiesThere were no trade receivables from or trade payables to related parties at the current and previous reporting dates.

Loans to/from related partiesThere were no loans to or from related parties at the current and previous reporting dates.

NOTE 24. ECONOMIC DEPENDENCY

Townsville Enterprise Limited receives funding from Tourism and Events Queensland (TEQ) and partnership funding from the Townsville City Council (TCC). Funding from TEQ is approximately $673,195:2014–15 ($609,000:2013–14) per financial year whilst sponsorship from TCC is approximately $734,000:2014–15 ($730,000:2013–14) per financial year. At the date of this report the Board of Directors has no reason to believe TEQ or the TCC will not continue to support Townsville Enterprise Limited.

NOTE 25. EVENTS AFTER THE REPORTING PERIOD

No matter or circumstance has arisen since 30 June 2015 that has significantly affected, or may significantly affect the company’s operations, the results of those operations or the company’s state of affairs in future financial years. TOWNSVILLE ENTERPRISE LIMITEDDIRECTOR’S DECLARATION

In the director’s opinion:

• the attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian Accounting Standards – Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes thereto give a true and

fair view of the company’s financial position as at 30 June 2015 and of its performance for the financial year ended on that date; and

• there are reasonable grounds to believe that the company will be

able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the sole director made pursuant to section 295 (5) (a) of the Corporations Act 2001. On behalf of the directors

Kevin GillDirectorTownsville 7 September 2015


INDEPENDENT AUDIT REPORT TO THE MEMBERS OF TOWNSVILLE ENTERPRISE LIMITED

Report on the Financial ReportWe have audited the accompanying financial report of Townsville Enterprise Limited (the company), which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the director’s declaration.

Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation and fair presentation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Townsville Enterprise Limited on 7 September 2015, would be in the same terms if provided to the directors as at the date of this auditor’s report

Opinion In our opinion, the financial report of Townsville Enterprise Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Corporations Regulations 2001.

Crowe Horwath NQ

Mark AndrejicPrincipalTownsville9 September 2015



Enterprise House6 The Strand, TownsvilleQueensland, 4810 Australia

Phone:Fax: Email:

+61 7 4726 2728+61 7 4726 [email protected]

ABN: 58 053 020 536

townsvilleenterprise.com.au

TOWNSVILLE ENTERPRISE LIMITED

Townsville Enterprise Annual Report 2014/15

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Transcript of Townsville Enterprise Annual Report 2014/15