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An unforgettable year

The economy in tropical north Queensland began 2020 facing what seemed like more of the same – mixed fortunes depending on which type of enterprise.

Sectors such as health and allied industries, manufacturing, agriculture and resources were buoyant. But conditions for tourism, hospitality, retail and construction (particularly residential) were increasingly difficult. The year ahead appeared to be set to follow a relatively familiar pattern to that of 2018-19. But beneath the surface lurked a severe flu-like virus which we all quickly came to know as coronavirus (or more specifically COVID-19), a pandemic which swept the world and caused the most significant economic and social disruption since the Great Depression in the 1930s. What began as perhaps a largely forgettable year had rapidly turned into one which will be remembered for decades to come. Swift and substantive government control measures across the nation (and the world) brought many industries to a standstill. Faced with this, organisations were forced to ‘pivot’ with their business models to adapt to a new norm which offered only one certainty – unprecedented uncertainty. At Advance Cairns our planning for 2020 had been largely centred on the October state election. The advent of COVID-19 saw us also pivot quickly with the Board of Directors endorsing a significant shift into shorter-term advocacy, undertaken in close collaboration with sister organisations including Tourism Tropical North Queensland and the Cairns Chamber of Commerce. Advance Cairns established a 50-strong Industry and Business Reference Group to provide grassroots information on the gravity of the COVID-19 impacts and recommend key support measures to governments of all levels. These recommendations were subsequently fed into Cairns Regional Council’s newly established Economic Response and Recovery Sub-Committee (of which Advance Cairns was a member). Three phases of government support were identified – business survival, short-term stimulus and longer-term economic recovery. The multi-billion dollar COVID-19 response was led by the Federal Government with a raft of survival initiatives (most notably the JobKeeper subsidy) while the QLD Government and local councils also stepped up to reduce fees and charges. A suite of shovel ready infrastructure projects were also bankrolled. While actively supporting these COVID-related initiatives, Advance Cairns continued with its long-term advocacy priority activities. This advocacy was headlined by the biggest ever delegation from this region to Parliament House in Brisbane, the Cairns TNQ Convoy to Capital Q in late February (and a smaller group of senior representatives returning in July). By the time the Palaszczuk Government was returned to office on October 31, the following major commitments were secured: • Cairns University Hospital - $15m towards land acquisition, $1.5m for a business case and a commitment from the Premier that university status would follow • Cairns marine precinct - $28m for early works plus $2m for a business case, to inform what the Government acknowledges what may be a further $150m in investment • Cairns Western Arterial Rd - $60m for further duplication works • Tourism and aviation - $54m in destination marketing and $20m for event attraction (both statewide funding pools) As we look ahead to 2021, the uncertainty of the COVID-19 pandemic is still playing havoc with industries such as tourism, hospitality and international education. Health, manufacturing, agriculture and resources continue to grow while two emerging highlights are accelerating private investment in the marine maintenance sector and a surprising recovery in residential construction and property prices, fuelled by government incentives and a renewed focus on regional living. In light of COVID-19, Advance Cairns will step up its economic development activity over the next three years with a focus on sectors offering the greatest growth potential. We will also be increasing our presence in Canberra this year with a federal election possible as soon as August (and no later than May next year). Prime Minister Scott Morrison knows the Cairns region is among the hardest hit by COVID-19 – and that the seat of Leichhardt has been in the hands of government for all but one parliamentary term in the past 49 years. The PM would be wise not to forget that the conservatives suffered a 14.3% swing when departing incumbent Warren Entsch last retired in 2007 – and the Coalition margin for the seat is now just 3.95%.

Nick Trompf Executive Chair, Advance Cairns