Townsville Enterprise Annual Report 2014/15 by Townsville Enterprise

ANNUAL REPORT

CONTENTS

Principal Partner

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 | C RUISE

MARKETING AND COMMUNICATIONS

ECONOMIC SNAPSHOT

FINANCIAL REPORT

Major Partner

Townsville Enterprise Limited Annual Report 2014/15

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 • V ision, 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

03 3

TOWNSVILLE ENTERPRISE Townsville Enterprise is the primary engine

it offers many targeted services, including

and Strategic Advisory Committees.

for economic development, charged with

the Townsville North Queensland Emerging

The company’s mission is ‘To achieve

leveraging the region’s assets and strengths

Leaders Program which mentors the region’s

sustainable economic and lifestyle benefits

to drive jobs, growth, infrastructure

best and brightest young business people to

for Townsville, North Queensland and

investment and improve quality of life. It is

achieve their potential. It also hosts a range

Australia.’

an organisation determined to deliver for

of corporate events bringing national and

the Townsville North Queensland region

international speakers to the region.

and its people.

The valuable contribution of its Partners and Members makes it possible for Townsville

In addition to its role as the peak Economic

Enterprise to advocate across a broad

Townsville Enterprise represents the

Development Organisation for the region,

section of Government and industry sectors

Townsville North Queensland region, which

it is also the Regional Tourism Organisation

to secure funding, project approvals and

includes the five Local Government Areas of

and Convention Bureau for Townsville

policy support for essential infrastructure,

Townsville, Charters Towers, Hinchinbrook,

North Queensland. It is a not-for-profit,

investment and the promotion of Townsville

the Burdekin and Palm Island, and is one of

apolitical, membership based organisation,

North Queensland.

Australia’s true regional powerhouses.

advised and influenced by a Board of

As the local voice of industry and business

Directors, Finance Audit & Risk Committee

ADVOCACY

INVESTMENT ATTRACTION

Promoting North Queensland to achieve sustainable economic and lifestyle benefits for the region and Australia

Working with key stakeholders to attract investment for regional projects of significance

INFRASTRUCTURE

Attracting public and private sector funding for economic infrastructure

POLICY

EVENTS

Developing key policy positions that affect the growth and development of the region

Events development and acquisition

AVIATION

MEMBERSHIP

Working with the Townsville Airport on the attraction of domestic and international flights

Supporting, promoting and advocating for our members

INDUSTRY DEVELOPMENT

Developing the tourism and events industry with a specific focus on edutourism and cruise

MARKETING & COMMUNICATIONS Marketing and promoting the region to attract new residents, new investment and visitors

Townsville Enterprise Annual Report 2014/15

WHAT IS ECONOMIC DEVELOPMENT? Economic development is the sustained,

and strengths to drive growth, attract

for its youth and a greater degree of

concerted actions of policy makers and

investment and secure infrastructure.

business confidence which leads to

communities that promote the standard of living and economic health of a specific area.

more investment. The underlying goal in all of Townsville Enterprise’s actions and priorities is jobs

There are four main ways Townsville

As the region’s peak economic development

growth. Growth in jobs results in a better

Enterprise can grow job numbers in

organisation, Townsville Enterprise is

standard of living for Townsville North

the region – via business, Government,

charged with leveraging the region’s assets

Queensland’s population, a brighter future

population and development.

BUSINESS

GOVERNMENT

POPULATION

DEVELOPMENT

Commencing or expanding, especially export businesses

Spending on infrastructure projects

Growth via immigration, tourism or student education

Activity leading to construction and investment

This means if a mining project goes ahead

The same results occur when the Federal

More jobs means not only more

in the region, school leavers have a greater

Government invests in Defence spending

opportunities for the people of Townsville

chance of securing apprenticeships and

in the region, the State Government

North Queensland but also delivers more

local businesses have a greater chance

commits funding to a construction project,

taxes to Governments, allowing them to

of securing contracts for logistics,

or the region welcomes more international

invest in hospitals, universities, roads, schools

manufacturing or recruitment services.

students. This flows through to more

and parks which improve quality of life.

business for lawyers, real estate agents, If a development approval is granted for a

beauticians and taxi drivers.

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.

Townsville Enterprise Annual Report 2014/15

BOARD OF DIRECTORS

CHAIRMAN Mr Kevin Gill

Chief Operating Officer

DEPUTY CHAIRMAN Cr Jenny Hill

Mr Joe Carey

Director Carey Accountants Pty Ltd

Townsville Airport Pty Ltd

Mayor Townsville City Council

Ms Ranee Crosby

Professor Sandra Harding

Mr Peter Honeycombe

Mr Laurence Lancini

Mr Paul Victory

Ms Sandra Yates

Chief Executive Officer Port of Townsville Limited

Managing Director Lancini Group of Companies

Vice-Chancellor & President James Cook University

General Manager SeaLink Qld / NT Pty Ltd

Managing Director Honeycombes Property Group

Chairman Australian Festival of Chamber Music (appointed August 2015)

COMPANY SECRETARY Ms Michelle Warrington

Townsville Enterprise Annual Report 2014/15

COMMITTEES FINANCE AUDIT & RISK COMMITTEE

TOURISM AND EVENTS STRATEGIC ADVISORY COMMITTEE

ECONOMIC DEVELOPMENT STRATEGIC ADVISORY COMMITTEE

Joe Carey Carey Accountants Pty Ltd (Chair)

Paul Victory SeaLink Qld / NT Pty Ltd (Chair)

Ranee Crosby Port of Townsville (Chair)

Aileen Cull Queensland Country

Colin Foley Tourism Operators and Businesses Magnetic Island (TOBMI)

Stuart Cunningham Core Developments NQ

Peter Duffy wilson/ryan/grose Lawyers Luke Guazzo Lancini Property & Development Kevin Gill Townsville Airport Pty Ltd Observer: Patricia O’Callaghan Townsville Enterprise Limited Observer: Michelle Warrington Financial Advisor/Company Secretary

Sue Hackett Australian Festival of Chamber Music

Glen Graham Mount Isa to Townsville Economic Zone (MITEZ)

Jeff Jimmieson Townsville City Council

Peter Lindsay Associate Member

Brad Morgan The Ville Resort – Casino

Simon Millcock Townsville City Council

Stephen Motti Brazier Motti

Steve Mitchell NQ Toyota Cowboys

Sean Ryan News Ltd

Associate Professor Laurie Murphy James Cook University

Patricia O’Callaghan Townsville Enterprise Limited

Ross McLennan Hidden Valley Cabins & Tours

Tracey Lines Townsville Enterprise Limited

Fred Nucifora Reef HQ Great Barrier Reef Aquarium

Observer: Paul Holden Department of State Development

Ruth Prideaux Mercure Townsville Troy Scott Grand Hotel Isabelle Yates Townsville Airport Pty Ltd Patricia O’Callaghan Townsville Enterprise Limited Bridget Woods Townsville Enterprise Limited Observer: Kimberley Goulter Tourism and Events Queensland Observer: June Powell Department of State Development

Townsville Enterprise Annual Report 2014/15

07 7

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.

Townsville Report 2014/15 View of Townsville City fromEnterprise Castle Hill Annual by Megan MacKinnon

CHAIRMAN’S REPORT These priorities focus on rail (Eastern

As a membership based organisation,

Access Corridor, Galilee Basin), water

Townsville Enterprise recognises how

(adequate supplies for agricultural

important it is to continue supporting

and urban use) and energy (base load

its members by connecting, informing

and other renewable solutions.)

and educating them, whether this is by attending networking functions,

This is Nation building infrastructure

engaging Townsville Enterprise to assist

and, as proven throughout this

in making vital connections, or enrolling

country’s history, will create step

future leaders in the Townsville North

changes in our economic prosperity.

Queensland Emerging Leaders Program.

With regard to the cost of electricity,

A number of operational factors led to

Townsville Enterprise believes that the

the small increase in the budgeted deficit.

current Government monopoly model

The broader issue of retaining reserve

These are challenging times but Townsville

is no longer working and is in fact

funding remains a challenge when income

Enterprise, in conjunction with its Partners,

creating the inefficiencies that are driving

is under pressure but stakeholder and

Members, the Townsville City Council, the

unsustainable increases in electricity

community expectations continue to grow.

Townsville Chamber of Commerce and the

costs for our region. Our energy working

This will be a key consideration during the

four Regional Councils, is striving harder

group is focused on a number of initiatives

company’s upcoming Strategic Review.

than ever to promote the opportunity

to halt these increases but ultimately

Operationally the organisation continues

that is Townsville North Queensland and

it requires bold Government policy to

to deliver against its objectives with

continue to drive results for this region.

support reform of the current model.

high levels of activity and quality

Our Board and leadership team are focused

In terms of other policy reform Townsville

on several defined strategic priorities –

Enterprise advocates taxation reform

membership, advocacy, policy, identifying

that encourages reward for effort and

This year has been one of significant

critical infrastructure, investment

encourages businesses to invest for growth.

transition. Our new Chief Executive Officer,

Kevin Gill

outcomes in the core areas of economic

attraction, aviation, events, industry

and tourism development.

Patricia O’Callaghan, has overseen a number

development and marketing the destination

Townsville North Queensland as a tourism

of important initiatives to further enhance

as a place to live, work and invest.

destination is an emerging market. As

the effectiveness of the organisation with a

tourism continues to globalise, this region

particular focus on high quality advocacy. I

Advocacy is Townsville Enterprise’s critical

risks being left behind as competitor

wish to acknowledge Patricia’s contribution.

role. Our efforts through the State election

destinations invest in new offerings and

process saw both sides of Government

innovative ways to market them.

I wish also to recognise and thank our

commit funds to the inner city revitalisation

Townsville North Queensland needs

voluntary Board of Directors. The Board, our

vision led by the development of the

to develop experiences and products

leadership team, our employees, Volunteers,

Integrated Stadium and Entertainment

that will attract visitors and Townsville

the Finance Audit & Risk Committee and

Centre and the city waterfront project.

Enterprise is focused on developing

Strategic Advisory Committees members

This is unashamedly the city’s number one

tourism products, particularly in the

are very clear on the challenges that lie

priority and we urge community leaders

areas of cruise and edutourism.

ahead and the need to work even harder

and members to voice their support for it.

for our members, this city and region. A joint Townsville Enterprise, Reef HQ Great

Opening up the Galilee Basin is another

Barrier Reef Aquarium and James Cook

I wish to thank retiring Director Helen

priority for Townsville Enterprise. Coal is,

University initiative is now attracting in

Stanton (two years, five months) for

and will remain, a legitimate industry for

excess of 800 American edutourism visitors

her contribution to the Board.

our region that will continue to support

per annum. This is a real example of how

thousands of jobs for everyday families.

we can harness our existing strengths in

On behalf of the Board I wish to affirm our

tropical science and education and create an

appreciation to Partners and Members for

offer that translates into visitation numbers.

their ongoing support, both financial and in

Townsville Enterprise welcomes the bipartisan support at Federal Government

terms of time given freely. This organisation

level for the development of Northern

Promoting our wonderful destination

represents a broad church of talents and

Australia. The organisation is engaging

is critical and we implore the State

experience that, when brought together,

widely with stakeholders to develop a

Government to review the funding

continue to demonstrate that even in

list of clear infrastructure priorities to

allocation for both tourism and

challenging times we can achieve results.

stimulate jobs, investment and lifestyle.

economic development in this region.

Townsville Enterprise Annual Report 2014/15

09 9

The Northern Australia Agenda challenges the region to â&#x20AC;&#x2DC;think biggerâ&#x20AC;&#x2122; and acknowledge the opportunity of Asia which sits on its doorstep.

Townsville City Aerial by Budd Photography

CHIEF EXECUTIVE OFFICER’S REPORT for the region and it is through the

has been widely distributed as a tool for

strategic use of the city’s access points

advocacy and investment attraction.

that its potential as an international city

and gateway will be realised. One of

The Townsville North Queensland Emerging

these gateways is the Townsville Airport

Leaders Program is working with its third

which regained full international status

cohort of business people establishing

following the Federal Government’s

themselves as future leaders. The Program

decision to upgrade border services as a

involves partnering participants with

result of a strong community campaign.

community leaders in a mentor/mentee relationship as well as providing insight

Patricia O’Callaghan

The Northern Australia Agenda provided

into every aspect of the economy and

Townsville Enterprise an opportunity to

delivering community projects. The second

lead a delegation to Canberra with the

cohort graduated during the year having

five Regional Mayors and the Townsville

contributed to three valuable projects:

As we lead into the celebration of

Chamber of Commerce. This laid a

Townsville’s 150 th Anniversary, we reflect

solid foundation for critical outcomes

on a year that while filled with economic

in infrastructure and service provision.

challenges also presented opportunities

Burdekin Water, the Galilee Basin, the

• The Cape Pallarenda Activation Project

for growth and development and a

Townsville Eastern Access Corridor and the

• Engaging an Elder: Greyline Phone Service

renewed vision to cement Townsville’s

North West Minerals Province were priority

reputation as Northern Australia’s

areas discussed with the Prime Minister,

In Tourism and Events, Townsville Enterprise

largest city and commercial gateway.

the Treasurer and the Minister for Trade.

worked with industry to achieve solid

Over 24 hours, the delegation engaged

results for the destination. A new initiative,

with seven Ministers and six Senators.

the Events Bid Fund, secured an estimated

The State Government election and the Federal Government’s Northern Australia

• T he Townsville North Queensland Ambassador Program

14,139 room nights for accommodation

Agenda dominated, presenting policy

Operationally the company continued

providers and is expected to generate

platforms that provided solid foundations

to deliver against its objectives with

$8.56M in economic value. The Edutourism

for advocacy campaigns promoting

high levels of activity and quality

strategy continues to gain momentum

investment into key infrastructure priorities.

outcomes in the core areas of economic

with operators welcoming more than 800

Townsville Enterprise rolled out a State

development and tourism and events with

students spending 3,000 nights in region.

election advocacy campaign focused

an organisational restructure delivering

Destination Marketing took centre stage

on securing critical funding for priority

stronger front line services ensuring

with the Townsville North Queensland, Alive

infrastructure projects in the form

collaborative Partner and Member

with curiosity brand campaign resulting in

of a $450M Regional Jobs Package,

support to increase economic activity.

over 26 million impressions online, 121,701

including the Integrated Stadium and

unique visits to the consumer website and

Entertainment Centre which achieved

The Federal Government’s reform agenda

a PR value of approximately $4.1M. The

bipartisan political support. When

for Australia’s future provided ample

Visitor Information Centres welcomed

Labor won the election $100M was

opportunities to form strong positions on

over 25,000 visitors, greeted by a team of

secured, with the Premier committing

Defence, Energy, Taxation and Northern

70 Volunteers who are trained to deliver

to deliver a stadium for Townsville.

Australia. Advocacy around Energy

a fantastic first impression of the city.

dominated our agenda with operators The Northern Australia Agenda

across the north paying the second highest

Overall, while there have been challenges,

challenges the region to ‘think bigger’

energy costs in the country, placing

the outlook is optimistic and the team will

and acknowledge the opportunity of

significant constraints on development

approach the coming year with energy

Asia which sits on its doorstep.

in the region. Townsville Enterprise led

and excitement. The Strategic Plan is

energy roundtables and forums have

being reviewed and will set the direction

There is much talk of the Asian Century

assisted communication with the State

of the organisation for the next five years.

and its population of 600 million projected

and Federal Governments as we advocate

With numerous prospects in front of

to grow to around three billion over the

for lower energy costs across the region.

us and the fundamentals of Townsville

next few decades. Demand for energy,

North Queensland’s economy still solid,

mineral resources, better quality food

Townsville Enterprise initiated Opportunity

I am confident that with the continued

and agriculture, tropical research and

Townsville North Queensland which delivers

support of Board Directors, Volunteers

tourism will present opportunities on

a comprehensive listing of all major

and the truly committed Townsville

an unprecedented scale for Northern

development projects in the region.

Enterprise team, the next 12 months

Australia. These global shifts will drive

It incorporates statistical data on the

will deliver prosperity not only for the

changes in import and export opportunities

economy, population and liveability and

organisation but also for this great region.

Townsville Enterprise Annual Report 2014/15

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

MEMBERSHIP 2014/15 saw a renewed focus on

This enabled Members to be directly

The Townsville Enterprise team

Membership through closer engagement

involved in key discussions affecting

acknowledges the valuable input by

with Partners and Members with the

the future of the region.

Partners and Members to its advocacy

allocation of dedicated account managers from the Townsville Enterprise team.

process with all levels of Government, The fortnightly Member e-newsletter was

contributions to campaigns, participation

reviewed to include more meaningful,

in industry development activities and

Regular networking opportunities

targeted and relevant content and as a

support for projects to develop the region.

provided a platform for relevant

result readership increased by around 5%.

information sharing including:

Advocacy Alerts, introduced in December 2014 to provide regular updates, are well

• Industry roundtables

received with an average open rate of 40%.

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

Townsville Enterprise Annual Report 2014/15

MEMBERSHIP (Continued) LIFE MEMBERS Alison Ferry Emeritus Professor Edward Scott AM Geoffrey Plante Graham Jackson OAM Greg Peel John Bearne

PRINCIPAL PARTNER Townsville City Council

MAJOR PARTNER

Townsville Airport Pty Ltd

PLATINUM

Southern Cross Austereo Townsville Bulletin

GOLD

Ergon Energy Corporation Limited Duo Magazine Glencore Xstrata Grant Broadcasters James Cook University Jetstar Group Port of Townsville Limited Success Business Magazine Sun Metals Corporation Pty Ltd

SILVER

Charters Towers Regional Council Laurence Lancini Constructions Parkside Developments Queensland Rail Limited The Ville Resort – Casino Tony Ireland Holden

BRONZE

AE Smith Australian Institute of Marine Science BAE Systems Australia Burdekin Shire Council CCA (Coca-Cola Amatil) CQ University Crowe Horwath Department of Defence Dexus Property Group Hinchinbrook Shire Council Honeycombes Property Group Hutchinson Builders Incitec Pivot Limited Lend Lease Communities (Townsville) Pty Ltd Mike Carney Toyota North Qld Bulk Ports Corporation Northern Management Group Palm Island Aboriginal Shire Council Queensland Investment Corporation Queensland Country RPS Australia East Pty Ltd SeaLink Queensland Pty Ltd Stockland Development Pty Limited Suncorp Bank 14

TOLL Australia Townsville Catholic Education

CORPORATE LEVEL 3

AECOM Aurizon Operations Limited Bendigo Bank BMD Group Brothers Leagues Club Commonwealth Bank Coutts Redington Pty Ltd Cox Rayner Architects Cubic Defence Australia Pty Ltd Moore Stephens North Queensland Primary Healthcare Network Limited Roberts Nehmer McKee Townsville Hospital & Health Service Townsville Taxi Tropic Distributors Pty Ltd Watpac Construction Pty Ltd Westpac Banking Corporation Wilmar

CORPORATE LEVEL 2

Anittel BM Webb Holdings Pty Ltd Brazier Motti Carey Accountants Pty Ltd Colliers International (Townsville) Pty Ltd Cowboys Leagues Club Delta Office Solutions Grand Hotel Industry Training Queensland Jardine Lloyd Thompson Jayco Townsville Loloma Investments MacDonnells Law - Townsville MBD Energy Museum of Tropical Queensland Offermans Partners Sportscene Super Warehouse St Patrick’s College Townsville TAFE Queensland North Thinc TORGAS Inc Tropical Ice wilson/ryan/grose Lawyers

CORPORATE LEVEL 1

1300 SMILES LIMITED Achieve Group Townsville AEC Group Ltd AON Risk Solutions Arthur J Gallagher & Co ARUP Base Backpackers Magnetic Island Breakwater Marina Brewery, The Burdekin Theatre Cactus Jack’s Restaurant Cardwell Rainforest & Reef Visitor Information Centre Cassowary Coast Regional Council Castlemaine Perkins Limited Castletown Townsville CBC Staff Selection

Chandler Macleod Charters Towers Visitor Information Centre Choice Training Community Information Centre Townsville Inc. Connolly Suthers Lawyers Core Developments NQ Defence Force Recruiting Digimen, The Donald Cant Watts Corke Elders Real Estate Emanate Legal Escape Travel Especially Australian Fantasea Cruising Magnetic Finlay Homes FINPAC Financial Advisors Flanagan Consulting Group FTEC QLD Pty Ltd Fuji Xerox Business Centre (Townsville) GHD Pty Ltd Grace Removals Greenridge Press, Greenridge Mail Guildford Coal Holiday Inn Townsville Jacobs Engineering Group Inc. JCU Halls of Residence JCU Student Association JCU Vet Jepson Media Jewellery By Design Keyes & Co Knight Frank - Townsville Laird O’Regan Lotsa Print and Design Maidment Development Group Map to Mine Pty Ltd Mariners North Holiday Apartments Marketing Factory, The Martin Locke Homes Mater Health Services North Queensland Limited MEGT (Australia) Ltd Mendi Corporate Services Mercure Townsville Milford Planning Consultants Minelec Pty Ltd MTU Detroit Diesel Australia National Australia Bank Ltd New Home Solutions North Queensland Toyota Cowboys NPS Corporate NQ Expo / North Queensland Transport, Trades and Mining Expo Operational Performance Systems Oracle Studio Pen To Paper Pty Ltd Perc Tucker Regional Gallery Pink Noise Creative Pinnacles Gallery Printcraft PwC Quayside Terminal Queensland Rail Travel Quest Townsville Quest Townsville on Eyre Reef and Rainforest Research Centre Limited Townsville Enterprise Annual Report 2014/15

Rider Levett Bucknall Riverway Arts Centre RMS Engineering and Construction Pty Ltd Rockfield Technologies Australia Rowes Bay Beachfront Holiday Park Ruswin Rydges Southbank Townsville SeaLink Travel Shamrock Civil Engineering Skill360 Australia Limited Skilled Group Ltd Southern Cross Ten Qld Staples Terry White Chemists, The Willows Tony Ireland Stadium Townsville Civic Theatre Townsville Entertainment and Convention Centre Townsville Grammar School Townsville Rotary Markets Townsville RSL Stadium TP Human Capital Traffic Group Australia Tropical Homes TYTO Wetlands Information Centre UDP Consulting Engineers V8 Supercars Australia Pty Ltd Wingate Communities WT Partnership Wulguru Engineering Yomstar Yongala Dive Pty Ltd

MICROBUSINESS ASSOCIATE

Backfatters Farm Ellis Developments QLD Industry Queensland JESI Management Solutions Pty Ltd Kwik Kopy Printing Townsville Malou Who Michele Hyde at Remax North Australian Publishing Co Pty Ltd

TOURISM & EVENTS ASSOCIATE

Adlink Media Adrenalin Snorkel and Dive Adventurethon Affordable Charters Airnorth Allure Hotel & Apartments Amaroo On Mandalay Aquarius on the Beach Arcadia Village Motel Aussie Outback Oasis Cabin & Van Village Australian Festival Of Chamber Music Australian-Italian Festival Association Inc Barra Fun Park Beach House Motel, The Billabong Sanctuary Budd Photography Bungalow Bay Koala Village Calypso Coaches Campbell’s Coaches Castaways Resort & Spa Mission Beach City Oasis Inn Cruise Whitsundays and Awesome Adventures Oz Townsville Enterprise Annual Report 2014/15

Cuisine to Go DanceNorth Daydream Island Resort Detour Coaches Ede Events Essentially Fresh Event Cinemas Frosty Mango Get Branded Ghost Tours Pty Ltd Hamilton Island Harold’s Seafood on the Strand Harshmellow Media & Design Herbert Hotel Herveys Range Heritage Tea Rooms Hidden Valley Cabins and Tours Hilton Hotel Cairns - Doubletree Hinchinbrook Marine Cove Motel Hinchinbrook Marine Cove Resort Hotel Ibis Townsville India Fest Inc Itara Apartments Jam Jodie Kennedy Event Management L&F Mine Transfers Lakes Holiday Park, The Longboard Bar & Grill Melvilles Farm Mungalla Station Murdering Point Winery Nautilus Aviation Oaks Gateway on Palmer Oaks M on Palmer Ocean Breeze By The Strand Orchid Guest House Orpheus Island Resort Paleo Cafe Townsville City Park Regis Anchorage Paronella Park Peppers Blue on Blue Resort - Magnetic Island Picnic Bay Hotel, The Pie House QCWA Northern Division Units Committee Rambutan Red Baron Sea Planes Stanton Apartments (Mariners Peninsula) Texas Longhorn Wagon Tours & Safaris Tourism Operators & Businesses Magnetic Island (TOBMI) Townsville Bush Oasis Caravan Park Townsville Helicopters Townsville Holiday Apartments Townsville Military Tours Townsville Turf Club Inc Townsville Yacht Club Tripping Magazine Tropical Travel & Accommodation Undara Experience Virginia Park Station Winton Visitor Information Centre / Winton Shire Council XFire Games

ASSOCIATE

Aaron McLeod Andrew Cripps MP Andrew Miller Betty Webb Burdekin Tourism Association Cathedral School of St Anne & St James, The Cathy Morato Coast to Country Housing Company Colin Harkness Cootharinga North Queensland Dale Last MP Dolan Hayes Dyan Mitchelhill Endeavour Foundation Ewen Jones, MP Greek Fest Townsville Greg Campbell HPD Creative Ian Macdonald, Senator the Hon John Hathaway Julia Creek Dirt & Dust Festival Magnetic Island Community Development Association Mark McIntyre National Trust of Australia (Qld) Ltd Niki Lyons NQ Dry Tropics Palm Island Community Company Patrick Hinchy Peter Lindsay Rob Kurz Sandra Garvin Sandra Moore Scott Verrall Smith Family, The SOLAS Inc Therese Smith Tina Shaw Townsville Museum & Historical Society Inc Townsville Road Runners Townsville Seafood Festival Townsville Triathlon Festival Tropical Medical Training Variety – The Children’s Charity

RECIPROCAL

Ayr Chamber of Commerce Chamber of Commerce & Industry Queensland Charters Towers Chamber of Commerce Gulf Savannah Development HIA - North Queensland Hinchinbrook Chamber of Commerce, Industry and Tourism Home Hill Chamber of Commerce Master Builders North Queensland Mount Isa to Townsville Economic Development Zone Inc (MITEZ) North Queensland Club RDA Townsville & North West Qld Inc Townsville Business Development Centre Townsville Business Women’s Network Townsville Chamber of Commerce Townsville Region Indigenous Business Network Whitsundays Marketing & Development Ltd 15

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

TownsvilleStadium Enterprise Annual Report 2014/15 Proposed Integrated & Entertainment Centre

ADVOCACY The Federal Government’s

• T he creation of the new role of Assistant

Galilee Basin, the Townsville Eastern Access

Northern Australia Agenda and

Minister for North Queensland –

Rail Corridor and policies which support

the Queensland Government State

ensuring that stakeholders in the

population growth and lower energy prices.

election provided solid foundations

north have more direct access to

for a focused advocacy strategy.

Government decision making • $ 100M over five years to better

Following a strong advocacy campaign in partnership with the Townsville Airport, the

The election provided an opportunity to

protect the Great Barrier Reef – an

Townsville City Council and the Townsville

develop a $450M Regional Jobs Package

initiative that was strongly welcomed

Chamber of Commerce, Townsville Airport’s

that provided a priority package of

by our local tourism industry

international status was reinstated. To

infrastructure projects that would stimulate

have the Prime Minister, together with the

jobs, lifestyle and investment to the

The State Government held its first

Minister for Infrastructure and the Minister

region. At the centre of this package was

Community Cabinet in Townsville in

for Foreign Affairs join the Federal Member

our key priority project, the Integrated

March. Townsville Enterprise led a

for Herbert Ewen Jones MP in Townsville

Stadium and Entertainment Centre.

number of deputations on priorities

to publically announce Townsville Airport

for the region including the Integrated

open for international business shows how

Townsville Enterprise is proud to have led

Stadium and Entertainment Centre

important Townsville is strategically to the

such a strong and united campaign working

and the high cost of Energy.

future of this Nation. Talks with international

closely with Local and Regional Councils

carriers are ongoing as aspirations to

and Chambers of Commerce and while

The State Government agreed to commence

open the city to a number of international

it didn’t secure the breadth of projects

master planning on the Integrated Stadium

destinations are complemented by

this community deserves, the adopted

and Entertainment Centre and is working

an aggressive advocacy strategy.

bipartisan approach encouraged both

closely with the Integrated Stadium and

sides of politics to deliver for the North.

Entertainment Centre Committee on

Townsville Enterprise has a clear set of

the Business Plan. The allocated $100M

long term priorities for the Townsville

The campaign resulted in strong wins for

however is short of the amount required

North Queensland region and a strong

Townsville North Queensland including:

to build the facility and advocacy to

advocacy plan around them that is not

all levels of Government continues.

impacted by short term changes in

• A $100M commitment towards a new

Government and as the Nation heads

Stadium as part of a broader Integrated

On a Federal level the Government’s

into a Federal election in 2016 the

Stadium and Entertainment Centre

Northern Australia Agenda provided a

organisation’s strategy, combined with the

strong platform to advocate for better

united advocacy efforts, remains strong.

• A commitment to ensure that a new merged organisation including Ergon

access to the region and key infrastructure

Energy will have its regional Queensland

projects including water and irrigation for

base in Townsville protecting local jobs

the Burdekin, rail infrastructure for the

Townsville Enterprise Annual Report 2014/15

POLICY 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

• Rapid population growth:

To achieve the desired optimal energy

• A n estimated four to five million people

sector (both domestic supply and export

(from the current one million) by 2060

industry) will require a complex interplay

• Actions rolling out over two, five, 10 and 20 years

between physical assets, regulatory frameworks and investment decisions.

• Townsville is the largest population

population growth, business expansion or

centre and under every scenario is

Townsville Enterprise’s agenda going

commencement and employment stimulus.

expected to remain the largest and

forward recognises the critical role of energy

Townsville Enterprise is the vehicle for

grow at a faster rate than Cairns

as a facilitator of the vision for economic

this voice.

and Darwin

and social development of the region.

The key priority policy area is Northern

• T hree key growth areas in Queensland

Other areas of policy work will

Australia. Recommendations and targets

which flow into the Townsville North

from the White Paper on Developing

Queensland economy:

Northern Australia include:

• T he Burdekin (irrigated agriculture)

• Defence

• T he Galilee and Bowen Basins (coal)

• E thanol

• T he North West Minerals Province

• W ater trading and allocation

• Five economic pillars: • Food and agribusiness

(base metals and other minerals

• Resources and energy

focus on issues such as:

• T axation • F ederation

• Tourism and hospitality

The second key priority policy is energy.

• International education

An optimal energy sector is essential for

Townsville Enterprise maintains a

• Healthcare, medical research

the Townsville North Queensland region,

strong vocal position supporting the

and thus Northern Australia, to achieve

resources sector. Projects such as the

its potential. Current arrangements are

Adani Carmichael Mine, Rail and Port

not conducive to attracting industry

Project, have the potential to deliver

to the region therefore inhibiting

jobs, apprenticeships, investment,

employment and population growth.

infrastructure, construction and confidence.

and aged care

Townsville Enterprise Annual Report 2014/15

INFRASTRUCTURE Under the Northern Australia Development

The organisation has developed a

underspend of the Asset Recycling Fund;

Agenda, infrastructure investment

framework for assessing the region’s

the $5B Northern Australia Concessional

is one of the greatest stimulants of

infrastructure priorities against the

Loan Facility; State level programs and

economic development. This has led

Audit’s identified gaps. This takes into

a combination of the aforementioned

to a heavy focus on infrastructure.

consideration readiness, economic and employment impact, risks and constraints

Townsville Enterprise will actively work

Using the White Paper on Developing

to determine the most appropriate

with the private sector to identify and

Northern Australia “Our North, Our

sequencing of project delivery. This

attract potential partners to deliver

Future” as a starting point, Townsville

process is supported by both Federal and

the individual projects, lead a high

Enterprise is leading Townsville North

State Government representatives.

level marketing campaign to assist

Queensland in a consultative process to

community understanding of the

identify the highest priorities for economic

The intent is to have the region’s highest

importance of the outcomes of such

infrastructure requirements for the region.

infrastructure priorities acknowledged

work and inform both Federal and

and supported by both Governments.

State Governments of the region’s local

The White Paper is informed by the

They will also be enduring; the region’s

priorities and the methodology used.

Northern Australia Infrastructure

economic infrastructure requirements

Audit and makes significant funding

do not change according to political

Stakeholders in this process include

commitments totalling $1.B which

or other short term cycles.

Governments, infrastructure owners,

includes $600M to roads, $200M to water

operators and users in addition to high

and $100M to beef roads. The Audit

As part of the regional conversation

level Townsville Enterprise Partners

considered economic infrastructure

and resultant consensus position

and Members. The intended outcome

only – roads, rail, energy, water, ports,

Townsville Enterprise is:

is a regional consensus on Townsville

airports and telecommunications – and identified 32 infrastructure gaps in the Townsville North Queensland region.

North Queensland’s infrastructure • C onsidering any economic infrastructure gaps overlooked by the Northern

priorities supported by the five Local Governments and business.

Australia Infrastructure Audit Townsville Enterprise is working with stakeholders to have a high level regional discussion leading to a consensus

• N arrowing the 32 gaps (and any

This will assist the Federal Government to

additional) to the region’s top priorities

progress infrastructure investment in the

• I dentifying which projects are most suited

region, and ensure a consistent approach

position for prioritising Townsville North

to which funding source including the

from State and Federal agendas. It will also

Queensland infrastructure requirements.

$800M grant funding available due to

ensure a factual evidence base to Townsville

Port of Townsville at sunrise by Megan MacKinnon

Townsville Enterprise Annual Report 2014/15

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

Townsville EnterpriseTowers Annualby Report 2014/15 Cattle in Charters Rob Parsons

INVESTMENT ATTRACTION 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: • T he acquisition of Domain Shopping Centre by the Queensland Investment Corporation for over $130M

RECENTLY COMPLETED

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

UNDER CONSTRUCTION

PROJECT PIPELINE

GIVE TOWNSVILLE

RECENTLY COMPLETED PROJECTS VALUED AT OVER

OVER $4.3B

UNDER CONSTRUCTION

$3.3B

LONG-TERM RESIDENTIAL PROJECTS

$1B

PUBLIC PROJECTS

$1.8B

($400M INFRASTRUCTURE PROJECTS)

SEEKING INVESTMENT

SEEKING FUNDING

SHORT TERM PROJECTS

MEDIUM TERM PROJECTS

POTENTIAL PROJECTS

The response to Opportunity Townsville North Queensland

INVESTMENT READY PROJECTS

has been incredibly positive

with Townsville Enterprise in negotiations with a number of potential investors considering the region.

PROJECTS

INVESTMENT OPPORTUNITIES

Townsville Enterprise Annual Report 2014/15

AVIATION The Asian Century is upon us and

Airport to progress negotiations with

This service will give Townsville a

current and future global shifts in Asia

a number of international carriers. To

competitive advantage over other

and across the world will drive changes

assist in this process a dedicated Aviation

regional cities in Queensland and will

in import and export opportunities

Attraction Committee comprising

also provide a lifestyle benefit that will

for Townsville North Queensland.

airline stakeholders and community

assist in attracting people to make the

leaders has been established under the

move to Townsville North Queensland.

In order to capitalise on these opportunities

auspices of Townsville Enterprise.

under the Northern Australia Agenda, the

It is imperative the community supports

region united in advocating the Federal

International access is significant for the

this service and Townsville Enterprise will

Government to reinstate Townsville

regionâ&#x20AC;&#x2122;s tourism and trade relationships.

continue its united advocacy approach to

Airportâ&#x20AC;&#x2122;s international status.

There is already a huge demand from

attract additional carriers from around the

the Asian markets for high quality beef

world. Denpasar is just the beginning of

Full international status was granted in

and the rapidly growing population in

Townsvilleâ&#x20AC;&#x2122;s international connections as

February with the reintroduction of border

Asia will present opportunities for the

the Aviation Attraction Committee aspires to

services which reduced the costs placed on

region on an unprecedented scale.

see new routes such as Auckland, Singapore

international airlines flying out of Townsville.

and Papua New Guinea come to fruition.

This enables Townsville to compete on a

September 2015 will see Jetstar, the

level playing field with other destinations.

first major airline in over a decade to fly internationally from Townsville, take off

This was an exciting time for Townsville

to Denpasar.

North Queensland opening its doors to tourism and trade opportunities across the globe and enabling the Townsville

Townsville International Airport Concept

Townsville Enterprise Annual Report 2014/15

EVENTS Townsville North Queensland has an

• I mprove the region’s capacity to deliver

ambitious target to increase visitor

and produce high quality events and be

expenditure from $662M in 2013 to $1.04B

recognised as a leading events destination

by 2020. Events have been identified through the Townsville North Queensland Destination

• E nhance the visitor experience through events

• 2 016 Hardware and Building Traders Conference • 2 016 Perinatal Society of Australia and New Zealand Annual Conference • 2 015 DestinationQ Conference • 2 016 Australasian Society of

Tourism Plan as a key strategic priority for the region to achieve this. To determine

Throughout the year a strong focus was

the direction for the region in the events

placed on acquiring business and sporting

sector, Townsville Enterprise, in partnership

events for the region. A number of events

The ongoing commitment and additional

with Tourism and Events Queensland and

were secured as a result of a collaborative

support from industry and Townsville Airport

each Local Government Area, undertook a

initiative to establish the region’s first Events

will see the continuation of the Bid Fund.

comprehensive consultation and strategy

Bid Fund, a pool of funding made available

development process to establish the

to encourage and support events choosing

Moving forward Townsville Enterprise is

2015–2020 Townsville North Queensland

Townsville North Queensland as the host

working towards segmenting the roles of

Events Strategy and Action Plan.

destination. This was made possible due to

event acquisition and event development

the support and financial input from Tourism

with the acquisition of established and

and Events Queensland, Townsville City

existing events being a priority. Townsville

Council, the Townsville Enterprise Convention

Enterprise will work towards establishing

Bureau and a number of local operators. As

the Townsville North Queensland Events

events calendar across the whole

a result the Bid Fund secured the following

Hub. This will be a common meeting

region and industry that assists in

major events which are anticipated to

space providing shared resources and

building the shoulder season

generate in excess of $8.56M in economic

offering developmental support to events

value and predicted to generate 14,139 room

which meet a pre-determined criteria.

Key objectives are: • E stablish a diverse and balanced

• A cquire and create events which will attract visitors and ultimately support

Aerospace Medicine Conference

nights for local accommodation operators:

the 2020 visitor expenditure targets • D evelop and maintain a sustainable events calendar, to provide a level of certainly for local tourism operators

• 2 015 Developing Northern Australian Conference • 2 015 and 2016 State Netball Championships

Australian Festival of Chamber Music by Andrew Rankin

Townsville Enterprise Annual Report 2014/15

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

Enterprise Report 2014/15 Reef healthTownsville assessment training Annual by Megan MacKinnon

INDUSTRY DEVELOPMENT EDUTOURISM

Townsville Enterprise, in conjunction with

A total of 26 cruise and naval

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 worldclass 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.

Reef HQ Great Barrier Reef Aquarium, led a

vessels visited during the year.

sales mission to the United States to meet

More opportunities must be pursued

with universities and alumni groups. As

to grow this market and Townsville

a result, new opportunities for additional

Enterprise will continue to work with

programs and partnerships were identified

the relevant stakeholders to ensure

and developed by the Edutourism Committee.

Townsville North Queensland becomes a key cruise and naval destination.

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

The Townsville North Queensland region

naval vessels to the region. The strategy

has positioned itself as a destination of

includes the following goals:

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.

• F oster the supply of cruise tourism products that meet the needs of the cruise and naval tourism markets • M aximise Townsville North Queensland’s cruise and naval ship potential • M aximise the economic benefit of cruise and naval tourism to Townsville North Queensland • P rovide sustainable infrastructure

Quayside Terminal by Megan MacKinnon

Townsville Enterprise Annual Report 2014/15

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

MARKETING AND COMMUNICATIONS During the year a number of partnerships

Concept Design Competition –

The campaign included a tactical

were formed with key media outlets

Townsville, a Metropolitan Landscape

partnership with major booking agent

including Townsville Bulletin, Southern

Wotif which generated a 20% increase in

Cross Austereo, Success Business

Townsville Enterprise embarked on

bookings for participating suppliers.

Magazine and Grant Broadcasters

a visionary campaign that sought

Townsville Enterprise hosted prominent

to communicate the organisation’s

to boost business confidence in the

media outlets on a total of 18 famils across

activities. Townsville Enterprise effectively

community through conceptual displays

the region which generated significant

delivered on its Marketing Activity Plan

of what the city could look like once

media exposure of Townsville North

including projects such as the 2015

growth had reached a pinnacle point

Queensland through trusted sources.

Townsville North Queensland Mining

with a population of one million.

Famil itineraries focused on Hinchinbrook

and Manufacturing Services Directory,

Creative minds were invited to submit

Island’s Thorsborne Trail, local produce,

Townsville North Queensland Holiday and

their vision, with consideration given to

accommodation, unique experiences,

Travel Guide, social media activity across

what key infrastructure developments

school holiday activities for the whole

eight channels and the Townsville North

would need to be included to support

family and Magnetic Island.

Queensland Meeting Planners’ Guide.

the population growth. The campaign attracted six high quality submissions

Overall the campaign generated 121,701

Townsville Enterprise’s destination

with the winning concept provided by

unique visitors to the destination website

marketing activity was acknowledged

local designer, Lyndon Berresford.

and in excess of $2.5M in PR activity. Across

through winning Bronze for the Richard

The competition generated much discussion

the greater organisational priorities, a

Power Destination Marketing Award

in local media achieving $9.5K in PR value.

total PR value of $4.51M was achieved

at the Queensland Tourism Awards

through proactive pitching to local, state,

and Best TV Advertisement at the

Building the Brand - Townsville North

Queensland Multi Media Awards.

Queensland, Alive with curiosity

KEY PROJECTS:

Under the destination brand, Townsville

national and international media outlets.

North Queensland, Alive with curiosity, Integrated Stadium and Entertainment

the region’s key markets were targeted

Centre Public Awareness Campaign

through an integrated marketing campaign that placed emphasis on digital

In the lead up to the State Government

and PR activity while still maintaining

election, Townsville Enterprise commenced

traditional communication tools.

a public awareness campaign to educate the Townsville North Queensland community

A shift in messaging saw a greater focus

on the economic and social benefits of an

placed on the promotion of arts and

Integrated Stadium and Entertainment

cultural attractions to the Brisbane

Centre in the heart of the CBD.

and drive markets as the region geared up for an exciting cultural calendar of

The campaign concept was a collaboration

events. This complemented the activity

between regional professionals across

in market promoting the region’s leisure

marketing, graphic design, media, website

appeal to families and couples.

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.

Townsville Enterprise Annual Report 2014/15

ECONOMIC SNAPSHOT TOWNSVILLE NORTH QUEENSLAND ECONOMY

$12.53B

236,629

$350K

Gross Regional Product

Current Regional Population

Median House Price

REGION AT A GLANCE*

*Figures reflect latest data available

KEY INDICATOR

2014

2015

Business Confidence

-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

955,000 Y/e September 2013

873,000 Y/e September 2014

NATION AT A GLANCE* Australia GDP Growth

2.5%

Unemployment Rate

6.2%

Inflation

1.3%

Average Price Residential Dwellings

$572K

RBA Cash Rate

Queensland Gross State Product

$295.1B

Population

23.6 million (1.5% growth)

Queensland Population

4.74 million

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

Townsville Enterprise Annual Report 2014/15

GROSS REGIONAL PRODUCT Townsville North Queensland’s economy

Diversity continues to be the underpinning

Combining the GRP for the economically

has seen signs of recovery after a sluggish

factor for the region’s economic strength.

significant north-west resources region

start to the decade. The region’s 2013/14

The largest industry by value-added, Rental,

with that of Townsville North Queensland

Gross Regional Product (GRP) of $12.59B

Hiring and Real Estate Services, holds only

produces a different picture.

represents a 2.1% growth rate on the

12.3% of value-added GRP. This is followed

previous year.

by Public Administration and Safety, driven

While economic growth of 2.1% is

by Defence, with an 11.1% share.

maintained, economic diversity is greatly

This strong growth has firmed the region’s

diminished with the Mining industry

economic significance as the highest GRP

Around half of the region’s GRP is shared

accounting for 21.5% of the combined

in Northern Australia outside of Western

across the five largest industries. See Figure

region’s value-added GRP. See Figure 2 for

Australia’s Pilbara region.

1 for full breakdown.

full breakdown.

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%

$11.67B

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

Townsville Enterprise Annual Report 2014/15

ECONOMIC SNAPSHOT (Continued) GROSS REGIONAL PRODUCT (CONTINUED) FIGURE 2 VALUE-ADDED GRP â&#x20AC;&#x201C; 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%

$16.2B

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

TOP FIVE REGIONAL ECONOMIES BY GRP IN NORTHERN AUSTRALIA 2014

PILBARA

$34.849B

QLD

TOWNSVILLE NORTH QUEENSLAND

$12.592B

EAST PILBARA

$10.576B

DARWIN

$9.21B

QLD

ISAAC

$8.77B Source: Remplan Economic Development Modelling, Economy ID Economic Development Modelling

Townsville Enterprise Annual Report 2014/15

ESTIMATED POPULATION 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.

PROJECTED POPULATION 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 NORTH QUEENSLAND BY 2036

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

361,098

314,362

TOWNSVILLE CITY BY 2036

REGIONAL POPULATION FORECASTS TO 2036

19,467

12,459

11,351

3,460

BURDEKIN

CHARTERS TOWERS

HINCHINBROOK

PALM ISLAND Source: OESR, data as at June 2013

Townsville Enterprise Annual Report 2014/15

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

TOWNSVILLE ENTERPRISE LIMITED FINANCIAL REPORT 2014/2015 Your directors present this report on the entity for the financial year ended 30 June 2015.

Directors The 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 26/05/2008 Jenny Hill – appointed 25/05/2012 Sandra Harding – appointed 20/02/2013 Joe Carey – appointed 11/02/2011 Laurence Lancini – appointed 12/10/2005 Peter Honeycombe – appointed 14/11/2013 Paul Victory – appointed 14/11/2013 Ranee Crosby – appointed 15/05/2014 Helen Stanton – resigned 27/10/2014

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

Review of operations Comments 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 affairs There 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 year Since 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 operations The 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.

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 regulations No significant environmental regulations apply to the company.

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.

Townsville Enterprise Annual Report 2014/15

DIRECTOR

QUALIFICATIONS

KJ Gill

DIRECTOR

QUALIFICATIONS

SL Harding B. Com, CA Chairman 3 years 3 months Director 7 years 1 month Chief Operating Officer – Townsville Airport Pty Ltd, Aviex Pty Ltd Special Responsibilities Member – Finance Audit & Risk Committee

BSc (Hons) ANU, MPub.Admin UQ, PhD NCSU, Hon Doc JIU, FACE, FQA, FAICD, FAIM Director 2 years 4 months Vice-Chancellor and President – James Cook University Chair – Universities Australia Director – Regional Australia Institute Council Member – Australian Institute of Marine Science Director – Cowboys Rugby League Football Club Limited Member – Defence Science and Technology Organisation (DSTO) Advisory Board Member – Trade and Investment Policy Advisory Committee Member – Australia-China Council Board Deputy Chair – Foundation of Australia Literary Studies Director – Advance Cairns Member – Northern Australia Expert Advisory Panel

JL Hill BSc MPHTM Deputy Chairman 3 years 1 month Mayor – Townsville City Council Chairman – Townsville Breakwater Entertainment Centre Joint Venture Executive Member – Local Government Association of Queensland Chairman – Townsville Local Disaster Management

JW Carey B. Com, CPA, Dip FP, Authorised Rep Securitor Pty Ltd Director 4 years 4 months Director – Carey Group of Companies Deputy Chairman – Cowboys Leagues Club Limited Chairman – Cowboys Leagues Club Finance Audit & Risk Committee Director – Cowboys Rugby League Football Club Limited Chairman – Cowboys Rugby League Football Club Limited Finance Audit & Risk Committee Special Responsibilities Chairman – Finance Audit & Risk Committee

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 Companies Director – Cowboys Leagues Club Limited Director – Cowboys Holdings Pty Ltd Director – Cowboys Community Fund Ltd Chairman – Cowboys Rugby League Football Club Limited Member – Qld Division Council of the Property Council of Australia Member – Salvation Army Advisory Board

RL Crosby LLB, GAICD Director 1 year 1 month Chief Executive – Port of Townsville Limited Deputy Chair – Queensland Ports Association Chairman – Townsville Committee Australian Institute of Company Directors Deputy Chairman – James Cook University Futures Committee Special Responsibilities Chairman – Economic Development Strategic Advisory Committee

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

PA Victory MA, Grad Dip Bus, BA Director 1year 7 months General Manager – SeaLink Qld/NT Pty Ltd Special Responsibilities Chairman – Tourism and Events Strategic Advisory Committee

Townsville Enterprise Financial Report 2014/15

MEETINGS OF DIRECTORS

Auditor’s Independence Declaration

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 & Risk committee

Kevin Gill

Jenny Hill

–

Joe Carey

Ranee Crosby

–

Sandra Harding

–

Peter Honeycombe

–

Laurence Lancini

–

Helen Stanton

–

Paul Victory

–

A = Number of meetings attended. B=N umber of meetings held during the time the director held office or was a member of the committee during the year.

Directors’ benefits Since 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.

A 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 Gill Director Townsville 7 September 2015

AUDITOR’S INDEPENDENCE DECLARATION UNDER 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.

n o contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. n o contraventions of any applicable code of professional conduct in relation to the audit.

Crowe Horwath NQ

Insurance of officers During 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 up

Mark Andrejic Principal 9 September 2015

The 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).

Townsville Enterprise Financi l Report 2014/15

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

2015

2014

Revenue

2,036,512

2,720,618

Other income

1,052,987

3,034,791

3,089,499

5,755,409

(1,447,546)

(3,485,967)

(1,697,294)

(1,626,613)

Total Income Expenses Other expenses

Employee benefits expense Depreciation and amortisation expense Travel Finance costs Administration Total Expenses Surplus/(deficit) for the year attributable to the members of Townsville Enterprise Limited

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

(99,892)

(100,079)

(147,911)

(154,806)

(3,335)

(5,027)

(118,399)

(130,083)

(3,514,377)

(5,502,575)

(424,878)

252,834

–

(424,878)

252,834

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

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

2015

2014

Assets Current assets Cash and cash equivalents

1,203,479

1,666,896

Trade and other receivables

515,982

947,606

Other

Total current assets

15,098

24,594

1,734,559

2,639,096 221,781

Non-current assets Property, plant and equipment

249,351

Intangibles

80,552

99,063

329,903

320,844

2,064,462

2,959,940

Total non-current assets Total assets Liabilities Current liabilities Trade and other payables

42,812

98,200

Tax payable

79,916

90,880 69,235

Employee benefits

65,427

Borrowings

9,786

–

Other

584,676

1,044,808

782,617

1,303,123

Total current liabilities Non-current liabilities Employee benefits

45,210

41,078

Borrowings

45,773

–

Total non-current liabilities Total liabilities Net assets

90,983

41,078

873,600

1,344,201

1,190,862

1,615,740 876,124

Equity Reserves

887,356

Retained surpluses

303,506

739,616

1,190,862

1,615,740

Total equity

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

Townsville Enterprise Financial Report 2014/15

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 Asset Revaluation Surplus Balance at 1 July 2013 Surplus for the year attributable to members of the entity

Reserves (Note 18)

Retained Surplus

Total Equity

64,080

678,600

620,227

1,362,907 252,834

–

252,834

(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)

Transfers to/from reserves

–

11,232

(11,232)

–

Balance at 30 June 2015

–

887,356

303,506

1,190,862

Transfers to/from reserves

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

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

2015

2014

(3,927,814)

(5,465,891)

745,782

2,954,630

2,721,734

2,038,002

(460,298)

(473,259)

Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) Receipt of grants Receipts from members and customers Interest received

41,837

74,859

(418,461)

(398,400)

Payments for property, plant and equipment

(98,236)

(33,412)

Payments for intangible assets

(18,280)

(93,986)

16,000

300,332

(100,516)

172,934

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)

Cash and cash equivalents at the beginning of the financial year

1,666,896

1,892,362

1,203,479

1,666,896

Net cash from operating activities Cash flows from investing activities

Proceeds from sale of assets Net cash provided by (used in) investing activities

Cash flows from financing activities

Cash and cash equivalents at the end of the financial year

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

Townsville Enterprise Financial Report 2014/15

NOTES TO THE FINANCIAL STATEMENTS 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 adopted Townsville 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.

Grants Grant 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.

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

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.

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

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

The following Accounting Standards and Interpretations are most relevant to the company: • AASB2013-3 Amendments to AASB136 – Recoverable Amount Disclosures for Non-Financial Assets • A ASB2014-1 Amendments to Australian Accounting Standards (Parts A to C) • A ASB2012-3 Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities

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

(b) Basis of preparation These 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 convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The 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 recognition Revenue 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 Partnership Membership 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.

All revenue is stated net of the amount of the goods and services tax (GST). (d) Income tax As 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 classification Assets 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.

Townsville Enterprise Financial Report 2014/15

(g) Trade and other receivables Trade 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 equipment Plant 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 assets Non-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 assets Intangible 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. Software Significant 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.

Townsville Enterprise Financial Report 2014/15

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 payables These 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 benefits Short-term employee benefits Liabilities 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 benefits The 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 taxes Revenues, 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) Leases Leases 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 4. OTHER INCOME 2015

2014

Government Grants

745,782

2,954,622

Marketing Packages

32,900

41,669

216,032

38,500

58,273

–

1,052,987

3,034,791

Project Income Sponsorship Income

NOTE 2. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The 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 assets The 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 5. OTHER EXPENSES 2015 $

20,957

14,759

Consultants and Contractors

321,634

2,323,208

Facility Expenses

178,757

187,181

5,593

43,874

82,573

114,295

Trade and Exhibition

169,959

237,753

Sponsorship and Membership Expenses

156,997

120,218

13,950

39,414

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

Audit and Accounting Expenses

Web Development and Maintenance Expenses Design Printing and Reproduction

Vehicle Expenses Advertising Expenses

NOTE 6. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 2015

2014

1,203,479

1,666,896

1,203,479

1,666,896

NOTE 3. REVENUE 2015

2014

Cash at bank and on hand

Sales revenue Net Contribution/Compensation from VIC

–

290,240

8,435

–

Interest

45,173

74,859

Rent

10,445

11,315

Trade receivables

227,392

264,509

Accrued revenue

Advertising Income

83,186

107,593

Sundry debtors

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

Sale of Assets

NOTE 7. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES

Other revenue

Campaign and Event Income

2014

2015

2014

515,830

922,141

–

24,880

152

585

515,982

947,606

2015

2014

15,098

24,594

NOTE 8. CURRENT ASSETS – OTHER

Prepayments

Townsville Enterprise Financial Report 2014/15

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

Leasehold improvements – at cost Less: Accumulated depreciation

Plant and equipment – at cost Less: Accumulated depreciation

Motor vehicles – at cost Less: Accumulated depreciation

Total non-current assets

NOTE 11. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES

2015

2014

2015

2014

245,486

Trade payables

30,855

87,792

(135,678)

(111,129)

Other payables

11,957

10,408

109,808

134,357

42,812

98,200

239,166

476,045

(159,499)

(394,082)

79,667

81,963

71,378

49,637

(11,502)

(44,176)

59,876

5,461

249,351

221,781

Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below: Leasehold Improvements

Motor Plant and Vehicles 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 12. CURRENT LIABILITIES – TAX PAYABLE

GST/PAYGW Tax payable

2014

Billabong VIC Kiosk (right to use)

93,986

Less: Accumulated amortisation

(31,358)

(7,862)

62,628

86,124

90,898

129,524

(72,974)

(116,585)

17,924

12,939

80,552

99,063

Computer Software – at cost Less: Accumulated amortisation

Total intangible assets

Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below: Computer Software

Total

Balance at 1 July 2014

86,124

12,939

99,063

Additions at cost

–

18,280

(23,496)

(13,295)

(36,791)

62,628

17,924

80,552

Amortisation expense Balance at 30 June 2015

Townsville Enterprise Financial Report 2014/15

79,916

90,880

2015

Annual leave

2014

65,427

69,235

NOTE 14. CURRENT LIABILITIES – BORROWINGS

Borrowings

2015

2014

9,786

–

NOTE 15. CURRENT LIABILITIES – OTHER

Accrued expenses Revenue received in advance*

2015

2014

36,696

62,829

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

Long service leave

2015

2014

45,210

41,078

NOTE 17. NON-CURRENT LIABILITIES – BORROWINGS

Finance lease obligations

Billabong VIC

2014

NOTE 13. CURRENT LIABILITIES – EMPLOYEE BENEFITS

NOTE 10. NON-CURRENT ASSETS – INTANGIBLES 2015

2015

2014

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 – RESERVES 2015

2014

Visitor Information Centre – Capital reserve

175,388

197,524

General reserve

711,968

678,600

887,356

876,124 41

NOTE 19. EQUITY – RETAINED SURPLUSES

NOTE 23. RELATED PARTY TRANSACTIONS

2015

2014

Retained surpluses at the beginning of the financial year

739,616

620,227

Transfers to Reserves

(11,232)

(133,445)

(424,878)

252,834

303,506

739,616

Surplus/(Deficit) for the year Retained surpluses at the end of the financial year

Transactions with related parties There were no transactions with related parties during the current and previous financial years. Receivables from and payable to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting dates. Loans to/from related parties There were no loans to or from related parties at the current and previous reporting dates.

NOTE 20. CONTINGENT LIABILITIES Townsville Enterprise Limited has no contingent liabilities at 30 June 2015 and 30 June 2014.

NOTE 24. ECONOMIC DEPENDENCY

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).

Key management personnel compensation

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

2015

2014

463,033

435,460

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 LIMITED DIRECTOR’S DECLARATION In the director’s opinion:

• t he attached financial statements and notes thereto comply with NOTE 22. COMMITMENTS the Corporations Act 2001, the Australian Accounting Standards – Reduced Disclosure Requirements, the Corporations Regulations 2001 2015 2014 and other mandatory professional reporting requirements; $ $ Lease commitments – operating • 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 Committed at the reporting date but not recognised as liabilities payable its performance for the financial year ended on that date; and Within one year 106,220 16,775 • there are reasonable grounds to believe that the company will be One to five years 531,100 103,076 able to pay its debts as and when they become due and payable. 637,320 119,851 Signed in accordance with a resolution of the sole director made Operating lease commitments comprise of the lease arrangements on pursuant to section 295 (5) (a) of the Corporations Act 2001. Enterprise House and storage facilities. On behalf of the directors

Kevin Gill Director Townsville 7 September 2015

Townsville Enterprise Financial Report 2014/15

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF TOWNSVILLE ENTERPRISE LIMITED Report on the Financial Report We 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

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

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.

Mark Andrejic Principal Townsville 9 September 2015

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

Townsville Enterprise Financial Report 2014/15

TOWNSVILLE ENTERPRISE LIMITED

ABN: 58 053 020 536

Enterprise House 6 The Strand, Townsville Queensland, 4810 Australia Phone: Fax: Email:

+61 7 4726 2728 +61 7 4726 2700 tel@tel.com.au

townsvilleenterprise.com.au

Townsville Enterprise Annual Report 2014/15