Townsville Enterprise Annual Report 2016/17
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WHAT’S INSIDE
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PRIORITIES
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VISITOR SERVICES & VOLUNTEERING
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BOARD OF DIRECTORS
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EDUTOURISM
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2016/17 COMMITTEES
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TOURISM INDUSTRY DEVELOPMENT
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A WORD FROM OUR CHAIR & CEO
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COMMUNITY ENGAGEMENT
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ADVOCACY
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TOWNSVILLE ENTERPRISE EVENTS
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INVESTMENT ATTRACTION
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EMERGING LEADERS PROGRAM
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INTERNATIONAL MARKETS
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OUR MEMBERS
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GROWING TOWNSVILLE’S CONNECTIVITY
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2016/2017 TOWNSVILLE ENTERPRISE
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TOURISM MARKETING
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EVENT ATTRACTION & DEVELOPMENT
Cover image: Megan MacKinnon
LIMITED FINANCIAL REPORT
Townsville Enterprise Annual Report 2016/17
Connect, grow and promote Townsville North Queensland
Townsville Enterprise Annual Report 2016/17
Image: Megan MacKinnon
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Townsville Enterprise ADVOCACY
Promoting North Queensland to achieve sustainable economic and lifestyle benefits for the region and Australia
PRIORITIES
POLICY
Developing key policy positions that affect the growth and development of the region
INVESTMENT ATTRACTION
INFRASTRUCTURE Attracting public and private sector funding for economic infrastructure
JOBS
Working with key stakeholders to attract investment for major regional projects of signficance
FOR THE TOWNSVILLE NORTH QUEENSLAND COMMUNITY MEMBERSHIP
EVENTS
Supporting, promoting and advocating for our members
Events development and acquisition
MARKETING & COMMUNICATIONS
AVIATION Working with the Townsville Airport on the attraction of domestic and international flights
INDUSTRY DEVELOPMENT
Developing the tourism and events industry with a specific focus on edutourism and cruise
Marketing and promoting the region to attract new residents, new investment and visitors
Image: Megan MacKinnon
“Townsville Enterprise is one of the most active and passionate economic development bodies in Australia. In tough times for Townsville, Townsville Enterprise has punched above its weight in influencing governments and achieving significant investments for North Queensland. Townsville Enterprise comes to us with solutions not just problems.� Matthew Canavan, Senator for Queensland
Townsville Enterprise Annual Report 2016/17
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BOARD OF DIRECTORS
DEPUTY CHAIRMAN
CHAIRMAN Kevin Gill
Moya Steele
Partner MacDonnells Law
Laurence Lancini
Peter Honeycombe
Vice-Chancellor & President James Cook University
Chief Executive Officer Port of Townsville Limited
Director Carey Accountants Pty Ltd
Mayor Townsville City Council
Professor Sandra Harding
Ranee Crosby
Joe Carey
Cr Jenny Hill
Chief Operating Officer Townsville Airport Pty Ltd
Managing Director Lancini Group of Companies
Managing Director Honeycombes Property Group
Paul Victory
(Resigned 21/04/2017)
Jeffrey Wall CBE
General Manager SeaLink Qld / NT Pty Ltd
Owner Jeffrey Wall Public Affairs
COMPANY SECRETARY Michelle Warrington
Sandra Yates AO Chair Australian Festival of Chamber Music
2016/2017 COMMITTEES FINANCE AUDIT & RISK Joe Carey (Chairman) Carey Accountants Pty Ltd Aileen Cull Queensland Country Peter Duffy wilson/ryan/grose Lawyers Kevin Gill Townsville Airport Pty Ltd Luke Guazzo Lancini Property & Development Observers: Patricia O’Callaghan Townsville Enterprise Limited Michelle Warrington Financial Advisor/Company Secretary
ECONOMIC DEVELOPMENT STRATEGIC ADVISORY
TOURISM AND EVENTS STRATEGIC ADVISORY
Ranee Crosby (Chairman) Port of Townsville Limited
Paul Victory (Chairman) SeaLink Qld / NT Pty Ltd
Mark Adams Northern Management Group
Amanda Byrne Queensland Airports Ltd
Stuart Cunningham Core Developments NQ
Mark Evans Paronella Park
Kathy Danaher Sun Metals Corporation Pty Ltd
Annie Ilett Tourism Operators and Businesses Magnetic Island (TOBMI)
Richard Harvey Glencore Xstrata Peter Lindsay OAM Associate Member Simon Millcock Townsville City Council Carl Valentine PVW Partners Isabelle Yates Townsville Airport Pty Ltd Patricia O’Callaghan Townsville Enterprise Limited Michael McMillan Townsville Enterprise Limited Observers: Kevin Gill Townsville Airport Pty Ltd Paul Holden Department of State Development
Jeff Jimmieson Townsville City Council Simon Millcock Townsville City Council Associate Professor Laurie Murphy James Cook University Fred Nucifora Reef HQ Great Barrier Reef Aquarium Patricia O’Callaghan Townsville Enterprise Limited Bridget Woods Townsville Enterprise Limited Observers: Kevin Gill Townsville Airport Pty Ltd June Powell Department of State Development
Glen Graham Mount Isa to Townsville Economic Development Zone Inc (MITEZ)
Townsville Enterprise Annual Report 2016/17
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Kevin Gill Chairman
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Patricia O’Callaghan Chief Executive Officer
Image: Megan MacKinnon
A WORD FROM OUR CHAIR & CEO The past twelve months have been a solid year of delivering on the objectives identified in the recently launched Strategic Plan, resulting in major infrastructure announcements, significant policy approvals, an increase in visitor numbers and an 8.23% membership growth.
In 2016/17, the region worked together to secure and leverage a number of exciting and transformative announcements. The North Queensland Stadium took another step closer to becoming reality with a strong local content strategy established through managing contractor and Townsville Enterprise member, Watpac. Adani Australia declared Townsville as the base for its Regional Headquarters, the $2.2M Hells Gates Feasibility Study commenced, $75M was secured for the Port of Townsville Channel Widening project and a historic agreement was signed between Australia and Singapore that will see over $1B of infrastructure invested into Townsville over the next 25 years. Townsville Enterprise remains firmly focused on leveraging these commitments and ensuring decision makers remain accountable. Advocating for local content strategies is a priority, giving local businesses the optimum
Townsville Enterprise Annual Report 2016/17
chance of securing real business from the infrastructure pipeline rolling out. In tourism and events, strong international and national visitor levels were achieved, the Bid Fund injected $21M of event revenue into the local economy, three new flight connections commenced and we welcomed nine cruise ships to our shores. These connections aren’t just a celebration of new investment into Townsville, but an opportunity to sell our region to potential tourists, investors and those looking to relocate and discover Townsville North Queensland.
significant CRM and Systems upgrade that will provide a strong platform for membership engagement and activity, whilst increasing operational efficiencies and productivity levels. This program will continue to be delivered throughout 2017/18. Overall 2016/17 was a positive year defined by tangible results for members and the broader community. Significant outcomes were achieved for the region through partnerships with key stakeholders and whilst the region is not out of the woods yet, it is definitely heading in the right direction.
The Emerging Leaders Program continues to go from strength to strength, with 19 graduates working on three major projects that aim to deliver positive community outcomes. Internally, Townsville Enterprise delivered an Innovation Strategy and Program which included a
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“I can’t say enough about Townsville Enterprise. Since we joined, the support, the opportunities to network with clients, the strong advocating for development, including the stadium, and advocating for local procurement and employment have been endless. Everyone at Townsville Enterprise is easy to talk to and deal with, I strongly recommend a membership with Townsville Enterprise.” Brian Glancy, Northern Region Manager, Watpac
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Image: Cameron Laird
ADVOCACY The advocacy efforts of Townsville Enterprise is critical to the short, medium and long term prosperity of Townsville North Queensland. The past 12 months have seen some of the organisation’s strongest advocacy efforts to date, ensuring the region remains at the forefront of the minds of politicians and key decision makers.
CASE STUDY
2016/17 HIGHLIGHTS
Over the past 12 months, Townsville Enterprise has united with regional councils and stakeholders to relentlessly advocate for the Adani Carmichael project to become a reality. Advocacy efforts included working closely with all levels of government, targeted media and marketing campaigns in print, TV and radio across local, state and national platforms to highlight what the $16.5B project could do for regional Queensland.
In partnership with key stakeholders including Townsville City Council, Townsville Airport, Tourism and Events Queensland and the Port of Townsville, Townsville Enterprise has worked to secure some phenomenal outcomes in 2016/17.
Such bold advocacy resulted in Adani announcing Townsville as the Regional Headquarters for the project’s operations and officially confirming the project’s commencement which will generate 10,000 direct and indirect jobs.
Townsville Enterprise Annual Report 2016/17
> Securing the Adani Regional Headquarters
> $1B Singapore Comprehensive Strategic Partnership > $75M towards the Port of Townsville’s Channel Capacity Upgrade project > Three new direct flight connections to Papua New Guinea, Melbourne and Toowoomba > $225M towards Townsville’s long term water security
> A local content strategy for the North Queensland Stadium
MEMBERS FIRST When advocating for major infrastructure projects for the Townsville North Queensland region, one of Townsville Enterprise’s key priorities is ensuring local businesses are given the utmost chance of
securing real business from the infrastructure pipeline. As always, Townsville Enterprise strived to ensure its members were at the forefront of all opportunities related to these major projects and will continue to do so as they roll out.
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“It was a rare and exciting opportunity for Townsville and the region to be able to host the 2016 Trade and Investment Commissioners event. Townsville Enterprise took a lead role in coordinating the schedule of events for delegates and also offered local businesses a number of opportunities to meet and network with this influential delegation. The team from Townsville Enterprise was fantastic to work with and their support was essential to the event’s success.” Roger Kaus, Trade & Investment Queensland
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
INVESTMENT ATTRACTION Townsville Enterprise is the primary engine for the economic development of Townsville North Queensland, leveraging the region’s assets, its people and their skills to drive investment resulting in employment opportunities, infrastructure improvement and sustainable growth.
CASE STUDY
2016/17 HIGHLIGHTS
In February 2017 Townsville Enterprise partnered with Sun Metals to commission an AEC Group Pty Ltd report, to provide an economic analysis of Sun Metals’ proposed refinery expansion plans, related energy consumption and define the investment’s economic impact.
> Development of key investment attraction collateral including Opportunity Townsville North Queensland and Quarterly Economic Snapshots in partnership with AECOM
This report identified that the proposed refinery upgrade and expansion would result in the creation of over 800 new local jobs. Sun Metals identified that in order for the project to be economically viable the organisation would need to secure affordable power pricing. As a result Sun Metals has committed to the establishment of Queensland’s largest solar farm, installing 100MW of solar generation ensuring the refinery is able to manage energy pricing particularly during peak times.
Townsville Enterprise Annual Report 2016/17
> Provided support for key infrastructure and investment advocacy through the production of economic reports, supplier
INVESTOR SUPPORT Looking to invest in Townsville North Queensland? Townsville Enterprise can assist by providing the following: > Regional economic data to support building a business case
recommendations, familiarisation tours and introductions to business and political leaders > Production of Project Economic Impact Models (EIM) for seven private and public project developments enabling project developers, political leaders and the community to understand the potential economic impact > Supported more than 30 international business missions
> Access to key contacts and business leaders to assist in building project suppliers and customer networks > Advocacy for large scale projects with extensive economic benefits > Promotional resources
> A n Economic Impact Model to assist in building political and community support
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“The Townsville Enterprise Papua New Guinea delegation was a great success for my company and the other local businesses as a whole. The new direct flights have enabled seamless travel and a very quick connection to Port Moresby which enhances business for all�. Ashley Finn, Managing Director, Pacific Islands International
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
INTERNATIONAL MARKETS In order to drive economic growth, unlock potential for the broader region and encourage business and industry development, international markets must be explored. Townsville Enterprise is taking advantage of Australia’s developing relationship with its closest neighbours, providing North Queensland business owners with the necessary intelligence, support and insight required to access opportunities supportive of their business growth.
CASE STUDY
2016/17 HIGHLIGHTS
In 2016, Townsville Enterprise took 16 local business and industry representatives, including Townsville Mayor Jenny Hill and two Townsville Enterprise Emerging Leaders, to Port Moresby, Papua New Guinea (PNG) via the newly established direct flight connection by Air Niugini.
> A successful visit by Townsville Enterprise CEO and James Cook University to Singapore in April 2017 to establish business and political relationships ahead of a larger delegation planned for September 2017.
This in-country experience provided valuable insight into business, trade, tourism and investment opportunities that align with the Townsville North Queensland region’s key business interests. Delegates were warmly received by the PNG business community at all meetings and functions across the five day delegation, expressing a genuine willingness to engage with the Townsville representatives.
Townsville Enterprise Annual Report 2016/17
GROW YOUR BUSINESS Townsville Enterprise delegations assist businesses to establish a comprehensive strategic roadmap toward the development of an effective export market entry strategy. This support helps target tangible business outcomes for those eager to broaden their business horizons outside of Australia. In addition to the time in country, the work undertaken
> The effective facilitation of a business delegation to Papua New Guinea in May 2017 including 16 local businesses and industry representatives. > The development of a comprehensive Singapore Insights Delegation program planned for September 2017.
prior to and following each delegation help businesses fully prepare for the opportunities for their business overseas. If you are serious about business and investment and exploring opportunities on an international platform, Townsville Enterprise is your one stop source. Planned outbound delegations for 2017/18 include Singapore and Papua New Guinea.
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“Townsville Enterprise is an integral partner to attract cruise lines to our region, including engaging our local operators and providing a fantastic welcoming experience for our cruise passengers and crew alike.� Claudia Brumme-Smith, General Manager Trade and Property, Port of Townsville Limited
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
GROWING TOWNSVILLE’S CONNECTIVITY Townsville Enterprise plays a key role in increasing the connectivity of Townsville North Queensland through its work in aviation and cruise attraction.
CASE STUDY
2016/17 HIGHLIGHTS
Tigerair launched direct flights between Townsville and Melbourne in June 2017, injecting $12.5M a year into the local economy.
Aviation
Cruise
In partnership with Townsville City Council, Townsville Airport, and Tourism and Events Queensland , Townsville Enterprise has worked to achieve some significant wins in aviation attraction in 2016/17 including:
The Townsville White and Grey Ship Attraction Committee was established for the development of a sustainable, coordinated and achievable future to capitalise on the strong growth of the Australian cruise industry.
> Securing a direct Air Niugini service between Townsville and Port Moresby with a through connection to Hong Kong
Led by the Port of Townsville and supported by Townsville Enterprise, the committee has delivered outstanding results over the past 12 months.
To leverage the new route Townsville Enterprise, Townsville City Council and Townsville Airport successfully lobbied to receive state government funding to promote the route and drive visitation.
WHAT DOES THE FUTURE LOOK LIKE? Growing Townsville North Queensland’s domestic connections and capacity, and establishing direct services to New Zealand and Singapore remain a priority for Townsville Enterprise.
> Securing a Tigerair Australia service between Townsville and Melbourne > Combined these new routes will generate an additional 93,000 passenger movements through Townsville Airport
> In 2016/17, nine cruise ships visited Townsville bringing 7,746 passengers and 4,071 crew. The estimated spend in the region was $2.9M
The future is already looking bright for cruise attraction with 12 cruise ships expected in 2017/18 delivering 8,704 passengers, 4,866 crew and a spend of $3.2M. Townsville Enterprise Annual Report 2016/17
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“The 2017 Australian Festival of Chamber Music exceeded all expectations, achieving box office growth of approximately 10%, with almost twothirds of attendees travelling from interstate for the event. The Australian Festival of Chamber Music was featured as a hero event for the 2017 Events Campaign and the support from this campaign and the team at Townsville Enterprise certainly assisted in creating a successful festival in 2017.� Justin Ankus, Australian Festival of Chamber Music
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Image: Megan MacKinnon
TOURISM MARKETING As part of the Townsville North Queensland Destination Tourism Plan, the region set an ambitious target of increasing overnight visitor expenditure from $662M in 2013 to $1.04B by 2020. To assist the region in reaching this target and support the ever growing tourism and events sector, Townsville Enterprise is strongly focused on positioning and promoting the Townsville North Queensland region as a must visit holiday and event destination.
CASE STUDY
2016/17 HIGHLIGHTS
The McDonald’s Townsville Running Festival partnered with Townsville Enterprise throughout the 2017 Events Campaign to be promoted online, in the events guide, across print mediums and also at event activations such as the Gold Coast Marathon. The Running Festival saw direct conversions from this campaign and received significant exposure as a result of the marketing activity.
> 2017 Events Campaign In February 2017, Townsville Enterprise partnered with Townsville City Council, Tourism and Events Queensland, Townsville Airport, Townsville Bulletin and Southern Cross Austereo to launch an integrated marketing campaign that showcased the 2017 Events Calendar alongside the destination’s stunning and iconic locations.
Townsville Enterprise Annual Report 2016/17
The campaign used a combination of traditional and digital platforms including television, print inserts and advertising, a Webjet partnership, digital and social media advertising, activations and PR activity. Campaign results exceeded expectations with a reach of more than three million people across all platforms. The campaign also generated 247 accommodation room night bookings and flight bookings for 3,159 people on Webjet.
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“The marketing and media exposure that Townsville Enterprise has provided our business has been an incredible support for us since launching Pilgrim Sailing on Magnetic Island. We have received extensive media features in major national publications such as inflight magazines, The Weekly Review and online blogs. We also received a great feature in a local lifestyle magazine. Without partnering with Townsville Enterprise, this type of exposure and promotion would not have been possible.� Clare Ley, Pilgrim Sailing
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Image: Pilgrim Sailing
TOURISM MARKETING (Continued) CASE STUDY
2016/17 HIGHLIGHTS
Aquascene Charters on Magnetic Island worked closely with Townsville Enterprise throughout 2016/17 to boost the profile of its tourism business. As a result Aquascene has received significant exposure across national media outlets including Tiger Tales (Tigerair’s inflight magazine) and Melbourne’s Weekly Review. The business has reported direct conversions as a result of this media exposure.
> W here Winter Shines Campaign As the cool winter temperatures hit in Sydney and Brisbane, Townsville Enterprise, in partnership with Townsville Airport and Tourism and Events Queensland, launched the Where Winter Shines Campaign. This month-long digital campaign delivered almost 24,000 clicks to townsvillenorthqueensland.com.au and achieved a reach in excess of 2.8 million impressions across social media platforms. Results from Webjet indicate that the
GROW YOUR BUSINESS Townsville Enterprise provides endless opportuniites for tourism businesses including: > Promoting and selling your tourism product on townsvillenorthqueensland.com.au > Promoting your tourism product in our Townsville North Queensland Holiday & Travel Guide (70,000 copies printed each year)
Townsville Enterprise Annual Report 2016/17
campaign saw an increase in length of stay from 2.18 nights to 2.96 nights and 201 room nights and flight bookings for 2,608 people. > ‘Always on’ Activity To ensure that Townsville North Queensland is never far from the minds of potential holidaymakers, a number of ‘always on’ marketing activities were in place throughout the year. These activities included social media, email marketing, engaging content on townsvillenorthqueensland.com.au, digital influencer famils, public relations and event activations.
> Promoting your event or tourism product in our Events Guide (130,000 copies printed each year) > Promoting your tourism products in our digital campaigns reaching over three million people > Featuring your tourism product in media and digital influencer famil itineraries
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“Townsville Enterprise greatly assisted Hockey Australia in securing funding through the Townsville North Queensland Bid Fund to host the 2017 Australian Country Hockey Championships. This event provided an opportunity for our local hockey supporters and Townsville sports lovers to see a high calibre of hockey and saw approximately 600 people in Townsville for the event.� Pip Genge, Hockey Australia
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Image: Budd Photography Townsville Enterprise Annual Report 2016/17
EVENT ATTRACTION & DEVELOPMENT Through the Townsville Enterprise Convention Bureau and Townsville North Queensland Bid Fund, Townsville Enterprise is passionate about establishing the region as a leader in destination events. This is achieved through the attraction of leisure, sporting and business events which drive visitation.
CASE STUDY
2016/17 HIGHLIGHTS
On behalf of members, Townsville Enterprise Convention Bureau manages the region’s representation at the annual Asia-Pacific Incentives and Meetings Expo (AIME), attended by over 4,000 professionals from the meetings, incentives and events industry.
> This year, the Townsville North Queensland Bid Fund has committed funding to the value of $197,850 towards the attraction of new events into the Townsville region. These events are anticipated to deliver over $21M in economic impact in the coming years. Since its inception, the Bid Fund has secured 35 new events
In February 2017, The Ville Resort– Casino and Mercure Townsville attended the exhibition with the Convention Bureau as presenting partners. The venue representatives networked and identified opportunities for Townsville as a business events destination with key business event planners and key decision makers.
Townsville Enterprise Annual Report 2016/17
GET INVOLVED Townsville Enterprise Convention Bureau is focused on the attraction of business events to the Townsville region. The Convention Bureau works with members to coordinate bids in an effort to secure the hosting rights of events with strong
with an anticipated economic impact of $54M. Additionally, Townsville Enterprise worked with AECOM and 10 of Australia’s top concert promoters to deliver the ‘Barriers to Major’ Events report. An Event Collective was established and tasked to address the outcomes of the report.
local industry links. If you have attended a business event which you believe would benefit from being held in Townsville please contact the Convention Bureau.
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“We love your city and we love your friendly volunteers. We’ve never felt so welcome in a port before. Can’t wait to come back. Well done!” Dennis & Jan, visiting from Chicago, Illinois
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Image: Megan MacKinnon
VISITOR SERVICES & VOLUNTEERING The award-winning Townsville Enterprise Tourism Volunteers are a dedicated and passionate group of supporters who play a pivotal role in promoting Townsville North Queensland’s attractions and experiences by providing a friendly welcome to visitors of our region.
CASE STUDY
2016/17 HIGHLIGHTS
The Townsville Enterprise Volunteers are an integral part of the overall experience and success of the Cape Cleveland Lighthouse Tours conducted by SeaLink Queensland. The Volunteers welcome their fellow guests, assist the lighthouse staff and enjoy participating in one of North Queensland’s iconic experiences.
> The Townsville Enterprise Volunteers welcomed 12,000 cruise ship passengers and crew to our region with a pop up Visitor Information Centre, personalised copies of the Townsville Bulletin and complimentary branded sunscreen
WOULD YOU LIKE TO JOIN THE TEAM? New Volunteers with a keen interest in Townsville North Queensland, travel and meeting people are always welcome to join the team. Get in touch to find out how!
Townsville Enterprise Annual Report 2016/17
> Tourism information was provided to over 26,000 visitors via our Visitor Information Centres and our new service at the Breakwater Ferry Terminal
> The 2017 Regional Visitor Information Centre Volunteer Conference and Famil provided a wonderful opportunity to meet, learn and laugh with fellow Volunteers from the Hinchinbrook, Charters Towers and Burdekin regions > Testament to the fantastic reputation of our Volunteers, the Townsville Enterprise Tourism Volunteers were honored to receive a Bronze award at the 2016 Queensland Tourism Awards
> Our Volunteer cohort has increased to 85 enthusiastic individuals who are always ready with local tourism information and a smile
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“Hidden Valley Cabins diversified its business in 2012 and moved into Educational Tourism and developed packages with other leading Tourism businesses. Since this diversification the business has transformed, increasing turnover by 30% equating to over 95% occupancy rates during peak travel periods.� Ross McLennan, Owner and Operations Manager, Hidden Valley Cabins
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
EDUTOURISM The Townsville North Queensland EduTourism Consortium has a vision to be Australia’s capital for transformational experiential learning and teaching programs. This is being delivered through the development and implementation of a long term, focused strategy to attract international education groups to the region through study abroad programs.
CASE STUDY
2016/17 HIGHLIGHTS
Bungalow Bay Koala Village is a family business based on Magnetic Island focused on educating guests in sustainable practices and values which make a difference to the environment.
> Over the past 12 months, the region has received 20 groups of international students contributing approximately $1M to the Townsville North Queensland economy. Townsville Enterprise successfully lobbied to have EduTourism formally recognised in the Queensland Government’s International Education and
Edutourism groups are a relatively new pursuit focusing on marine and terrestrial studies to faculty led study abroad groups from the USA. Welcoming 14 groups in 2017 allowed for investment in the same year of $180K in a new outdoor education deck and total rebuild of group accommodation rooms, with more ideas planned into 2018 in infrastructure and increased staffing solutions.
Townsville Enterprise Annual Report 2016/17
GET INVOLVED The mission of the EduTourism Consortium is ‘To deliver diverse world class immersive learning experiences and develop relationships and partnerships in a sustainable environment throughout Townsville North Queensland’.
Training Strategy which paved the way for the Consortium to receive $40K in matched funding to grow international student numbers. > The Consortium also hosted travel agents from America and New Zealand who specialise in EduTourism experiences which has since resulted in additional groups being secured for the region.
If you have a business that can help deliver this mission Townsville Enterprise and the Edutourism Consortium want to hear from you.
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“Since becoming a Townsville Enterprise member in 2016, we have improved our social media marketing, received a mentoring session with an international tourism specialist and continue to receive ongoing support to further develop our business. This would not have been possible without Townsville Enterprise and their connections to the wider tourism industry�. Kerri Mio, Claredale Pastures
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Image: Jarrad Seng Townsville Enterprise Annual Report 2016/17
TOURISM INDUSTRY DEVELOPMENT Townsville Enterprise is committed to delivering a range of business development programs to meet the needs of the Townsville North Queensland Tourism and Events industry. Practical workshops across a range of relevant topics provide the tools, support and networking opportunities to assist operators in growing their business.
CASE STUDY
2016/17 HIGHLIGHTS
Liddles Air Service became a Townsville Enterprise member in 2016, seeking assistance to further develop their tourism business Hinchinbrook Adventures. With the support of Townsville Enterprise, Hinchinbrook Adventures now promotes its business on the Australian Tourism Data Warehouse, has integrated a channel manager and is bookable online across multiple platforms. As a result, the business has significantly improved its digital marketing presence, and has made invaluable local connections with other Townsville North Queensland tourism businesses through a variety of Townsville Enterprise events.
> The Signature Tourism Experience Program gave members the opportunity to receive a digital audit from internationally-renowned tourism digital specialists Destination Think! and gain insights from awarded-winning tourism operators in the Whitsundays.
Townsville Enterprise Annual Report 2016/17
GROW YOUR BUSINESS As a Townsville Enterprise member, tourism businesses have access to a range of exclusive business development workshops, programs and networking events, ensuring operators are aware of upcoming industry opportunities
> A series of workshops assisted operators in developing cruiseready product and improving digital presence, along with mentoring sessions with a range of business leaders. > The 2016 Excellence in Tourism and Events Celebration acknowledged the achievements of the local tourism industry and saw 12 operators and three events participate in over five categories.
and have the skills to leverage these opportunities. Member updates and networking functions also provide a platform for local operators to share insights, experiences and collaborate with other members within the industry.
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“The Townsville Bulletin has worked alongside Townsville Enterprise on a number of advocacy campaigns to build a better Townsville. That has involved sharing of research and insights to drive the case for critical projects such as the CBD stadium and water security infrastructure. It’s an alignment founded on hard work, discipline and rigorous interrogation of facts to campaign for key objectives.’’ Ben English, Editor, Townsville Bulletin
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Image: Megan MacKinnon
COMMUNITY ENGAGEMENT A key focus for 2016/17 was ensuring members and the community were informed and engaged in the activities undertaken by Townsville Enterprise to connect, grow and promote the region. Building upon strong relationships with media partners allowed effective communication of Townsville Enterprise’s key messages and regional priorities on a local, state and national level.
CASE STUDY
2016/17 HIGHLIGHTS
As part of the ‘Taking Townsville North Queensland to George Street’ event, Townsville Enterprise worked with member 360 Cre8ive Enterprises to produce a video showcasing Townsville North Queensland as a great place to live, work, invest, study and visit.
> A social media campaign distributing the Townsville North Queensland Destination Commercial through the Townsville Enterprise Facebook page achieved over 54,000 views. This campaign not only highlighted the incredible events calendar and tourism offerings of our region, but showcased what Townsville Enterprise is doing to grow this industry
This video opened the event and featured in a social media campaign with the aim of not only engaging the community in the work of Townsville Enterprise, but also building confidence in the future of Townsville North Queensland.
Townsville Enterprise Annual Report 2016/17
> A number of advertisements in the Townsville Bulletin about the Adani project ensured the advocacy efforts of Townsville Enterprise and its partners were visible to the local community > PR coverage valued at $5.5M ensured Townsville Enterprise’s strategic priorities were communicated on a local, state and national level > Growth in social media activity saw a 26.9% increase in Facebook likes
MEMBER BENEFITS
COMING SOON
Take advantage of your membership by promoting your business to fellow Townsville Enterprise members through Townsville Enterprise’s email database and social media channels. Get in touch with the team to find out how.
Stay tuned to find out how Townsville Enterprise’s new website will enable you to make the most of your membership. Engage with fellow members, access images and video, manage your communication preferences and much much more. Due to launch late 2017.
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“George Street has an enormous influence over business and economic development in the north, and the opportunity to reach these people at Townsville Enterprise’s event at Parliament House really improved our ability to show that Townsville businesses are capable and have capacity.” Pat Brady, Executive Director, Premise
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
TOWNSVILLE ENTERPRISE EVENTS In 2016/17 Townsville Enterprise’s events calendar strategically promoted the Townsville North Queensland region to maximise business, investment and networking opportunities for members. Over the course of the year Townsville Enterprise hosted 19 events welcoming 2,049 attendees – a 22% increase in attendees compared with the previous year.
CASE STUDY
2016/17 HIGHLIGHTS
Showing economic leadership, Townsville Enterprise’s inaugural Mining and Resources Industry Forum highlighted the importance of this industry sector to our region.
> 25 Year Gala Dinner To mark Townsville Enterprise’s 25th year, 220 of the organisation’s partners, members, staff and volunteers came together to celebrate the milestones reached over the past quarter century.
The full day forum provided local businesses the opportunity to hear from and connect with some of the major mining and resources companies in our region including Adani, Sun Metals, Genex Power, MMG, Chinova Resources, Minjar Gold and the Port of Townsville.
> Annual General Meeting The Townsville Enterprise 25th Annual General Meeting and networking event featured keynote speaker Peter Beattie AC, Chairman Gold Coast 2018 Commonwealth Games. > Taking Townsville North Queensland to George Street A watershed moment for the
GET CONNECTED Townsville Enterprise events are an opportunity not only to connect and promote your business, they can provide an opportunity to push our region’s priorities to the forefront of
Townsville Enterprise Annual Report 2016/17
region, with over 330 people packed into Parliament House, Brisbane for a showcase in why Townsville North Queensland is a great place to live, work, invest, visit and study. This event put our region in front of the State’s key decision makers and leading investors from across Australia. > Business Breakfasts A successful ongoing partnership with the Townsville Bulletin ensured delivery of a number of high quality business breakfasts featuring speakers Senator The Hon Matthew Canavan, Ian Macfarlane, and The Hon Tim Nicholls MP.
the national agenda. As a member you are entitled to reduced member only pricing and should you wish to host a Townsville Enterprise networking function on your premise, sponsorship packages are available.
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“This program has opened my mind and left me inspired, motivated and looking for opportunities to better myself and the wider community through meaningful relationships.” Chloé Costanzo, Member Experiencer Manager, Queensland Country Health Fund, 2016/17 Emerging Leader
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Image: Megan MacKinnon Townsville Enterprise Annual Report 2016/17
EMERGING LEADERS PROGRAM 2016/17 Program proudly sponsored by Queensland Country Credit Union The Townsville Enterprise Emerging Leaders Program offers a unique opportunity to middle and executive level management and business owners. The Program is aimed at enhancing the critical skills, knowledge and aptitude required to become a community and/or industry leader. It responds to a recognised need to develop a pool of leadership talent to progress our city and the region.
A WORD FROM AN EMERGING LEADERS’ GRADUATE “As the director of a small, emerging architecture firm I wanted to expand my business network, gain insight into the key industries in our region, and meet inspiring leaders locally and nationally. Through professional development and forging relationships with key business industry leaders, the Program has been a catalyst for rapid business growth and winning contracts for major projects such as the North Queensland Stadium and James Cook University Masterplan.” – Zammi Rohan, Director, Counterpoint Architecture
Townsville Enterprise Annual Report 2016/17
2016/17 HIGHLIGHTS > In March 2017, the Emerging Leaders met world-renowned humanitarian and philanthropist Professor Ajay Rane as part of the Health and Education Module hosted at Program Sponsor Queensland Country Credit Union’s Head Office. > In May 2017, a group of the Emerging Leaders met Queensland Premier, The Hon
GET INVOLVED The 2017/18 Emerging Leaders Program is already underway but if you’d like to be a part of the
Annastacia Palaszczuk MP and took part in a private tour of Parliament House as part of Townsville Enterprise’s ‘Taking Townsville North Queensland to George Street’ event. > In June 2017, the Emerging Leaders had the pleasure of meeting Holly Ransom, Port Adelaide Football Club Director, CEO of Emergent and Chair of the 2014 G20 Youth Summit.
2018/19 Program beginning in July 2018, get in touch with Townsville Enterprise to find out what the Program could do for your business and career.
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OUR MEMBERS It is only with the support of its partners and members that Townsville Enterprise can continue to drive growth for Townsville North Queensland. Following a solid year of outcomes and actions achieved, the membership base of Townsville Enterprise grew by 8.23% in 2016/17.
GOLD
Australian Institute of Marine Science
DUO Magazine
Bendigo Bank
Energy Queensland
Burdekin Shire Council
Glencore Xstrata
CQ University
Grant Broadcasters
Cubic Defence Australia Pty Ltd
James Cook University
Davco Farming
Jetstar Group
Dexus Property Group
Geoffrey Plante
Paradise Outdoor Advertising
Honeycombes Property Group
Port of Townsville Limited
Hutchinson Builders
Graham Jackson OAM
Success Business Magazine
Incitec Pivot Limited
Sun Metals Corporation Pty Ltd
Lend Lease Communities (Townsville)
LIFE MEMBERS Alison Ferry Emeritus Professor Edward Scott AM
Greg Peel
Pty Ltd Mike Carney Toyota
Charters Towers Regional Council
Northern Management Group
Hinchinbrook Shire Council
Palm Island Aboriginal Shire Council
Lancini Property and Development
Queensland Country
Parkside Developments
RPS Australia East Pty Ltd
Townsville City Council
The Ville Resort – Casino
SeaLink Queensland Pty Ltd
MAJOR
COPPER
Townsville Airport Pty Ltd
Crowe Horwath
PLATINUM
BRONZE
Adani Mining Pty Ltd
A.E. Smith
Southern Cross Austereo
Australia Post
Townsville Bulletin
Australian Future Energy Pty Ltd
John Bearne
PRINCIPAL
36
SILVER
Stadiums Queensland Stockland Development Pty Limited Suncorp Bank TOLL Australia Townsville Catholic Education Office Tropical Containers
Townsville Enterprise Annual Report 2016/17
LEVEL 4
Watpac Construction Pty Ltd
Fantasea Cruising Magnetic
AECOM
Westpac Banking Corporation
Flanagan Consulting Group
Aurizon Operations Limited
wilson/ryan/grose Lawyers
Fuji Xerox Business Centre (Townsville)
Commonwealth Bank
GHD Pty Ltd
Coutts Redington Pty Ltd
LEVEL 2
CPB Contractors
1300 SMILES LIMITED
Grand Hotel and Apartments
LGIAsuper
AEC Group Pty Ltd
Hastings Printers
Mad Cow Tavern and
Alluvium Consulting
Hinchinbrook Visitor
Wild Goose Brews & Chews
AMP Control
Information Lounge
Pacific Islands International
AON Risk Solutions
Jacobs Engineering Group Inc
Rapid Global Software
Arthur J Gallagher & Co
JCU Halls of Residence
SAP Australia Pty Ltd
ARUP Pty Limited
JCU Student Association
Townsville Taxi
Base Backpackers Magnetic Island
JCU Vet
Tropic Distributors Pty Ltd
Bells FNQ
Knight Frank – Townsville
Tropical Coast Tourism
Breakwater Marina
Laird O’Regan
Wilmar
Brewery, The
Lotsa Print and Design
Brothers Leagues Club
Maidment Development Group
Burdekin Theatre
Mariners North Holiday Apartments
Anittel
Cactus Jack’s Restaurant
Marketing Factory, The
ANZ Banking Group Limited
Cardwell Rainforest & Reef Visitor
Martin Locke Homes
B M Webb Holdings Pty Ltd
Information Centre
Mater Health Services North
Carey Accountants Pty Ltd
Cassowary Coast Regional Council
Queensland Limited
Colliers International (Townsville) Pty Ltd
CastleTown Shoppingworld
McVicar’s Cricket
Cowboys Leagues Club
Charters Towers Chamber of Commerce
MEGT (Australia) Ltd
Delta Office Solutions
Charters Towers Visitor
Melvilles Entertainment
Especially Australian
Information Centre
Mendi Corporate Services
Gema Catering and Events
Choice Training
Mercure Townsville
Grand Central Industries (Holdings)
Claredale Pasture
Metal Manufactures Limited
Pty Ltd
Clarity Hearing Solutions Pty Ltd
Michel’s Restaurant
Hotel Grand Chancellor
Community Information Centre
Milford Planning Consultants
Intersport Super Warehouse
Townsville Inc.
Minelec Pty Ltd
Jardine Lloyd Thompson
Connolly Suthers Lawyers
Museum of Tropical Queensland
Jayco Townsville
Core Developments NQ
Nautilus Aviation
Loloma Investments
Cox Architecture
New Home Solutions
MacDonnells Law - Townsville
Department of Defence (Army)
North Queensland Customs Service
Northern Queensland PHN
Digimen, The
North Queensland Elite Rodeo
NQGP Pty Ltd
Ede Events
North Queensland Toyota Cowboys
TAFE Queensland North
Elders Real Estate
NPS Corporate
The Coffee Club
Emanate Legal
Oaks Gateway on Palmer
Townsville Allure Events
Escape Travel
Oaks M on Palmer
LEVEL 3
Townsville Enterprise Annual Report 2016/17
Grace Removals
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<< LEVEL 2 (Continued)
TP Human Capital
Castaways Resort & Spa Mission Beach
Orpheus Island Resort
Tropical Homes
Castle Crest Motel
PDS Qld
Tropical Ice
CBar Cafe
Pen To Paper Pty Ltd
TYTO Wetlands Information Centre
City Oasis Inn
Perc Tucker Regional Gallery
UDP Townsville Pty Ltd
Cleveland Bay Chemical Company
Pinnacles Gallery
V8 Supercars Australia Pty Ltd
Crackajack Sportfishing Adventures
PVW Partners Pty Ltd
Value Added Engineering NQ
Cruise Whitsundays and Awesome
Quayside Terminal
Wingate Communities
Adventures Oz
Queensland Rail Travel
Yongala Dive Pty Ltd
DanceNorth
Quest Townsville
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Detour Coaches
Quest Townsville on Eyre
LEVEL 1
Reef and Rainforest Research Centre
360 Cre8ive Enterprises
Essentially Fresh
Limited
Adrenalin Snorkel and Dive
Event Cinemas
ReefHQ Great Barrier Reef Aquarium
Adventurethon
Evolution Financial Planning
Regional Express (REX Airlines)
Affordable Charters
Extrastaff
Rider Levett Bucknall
Airnorth
Finlay Homes
Riverway Arts Centre
Allure Hotel & Apartments
Flinders Shire Council
RMS Engineering and Construction Pty
Amaroo On Mandalay
Frontier Voice & Data
Ltd
Aquarius on the Beach
Frosty Mango
Rockfield Technologies Australia
Aquascene Charters
FTEC Electrical
Rowes Bay Beachfront Holiday Park
Arcadia Village Motel
Get Branded
Ruswin
Arid to Oasis Traffic Solutions Pty Ltd
Gilberton Outback Retreat
Rydges Southbank Townsville
Aussie Outback Oasis Cabin & Van
Great Northern Laundry
SeaLink Travel
Village
Hamilton Island
Skill360 Australia Limited
Australian Festival Of Chamber Music
Herbert Hotel
Skilled Group Ltd
B & G Law Pty Ltd
Herveys Range Heritage Tea Rooms
Southern Cross Ten Qld
Beach House Motel, The
Hidden Valley Cabins and Tours
Star Track Express
Beet Bar, The
Hinchinbrook Marine Cove Resort
St Patrick’s College Townsville
BG Hotel ( Cairns) Pty Ltd
Illi Custometics
Sunland Group
Big 4 Walkabout Palms Caravan Park
Industry Queensland
Sunsuper
Big Mama Sailing
Jade Holland
Terry White Chemists, The Willows
Billabong Sanctuary
Jam
The Pier
Blue Kino Pty Ltd
Jeffrey Wall Public Affairs
Tony Ireland Stadium
Bluewater Caravan Park
Jewellery By Design
Townsville Civic Theatre
Boom Logistics
Kernow Charters Towers
Townsville Rotary Markets
Brazier Motti
Kordamentha
Townsville RSL
Budd Photography
Kwik Kopy Printing Townsville
Townsville RSL Stadium
Bungalow Bay Koala Village
Learning Partnerships
Townsville Tenpin & Fun Centre
Campbell’s Coaches
Liddles Air Service Pty Ltd
E Property Consultants NQ
Townsville Enterprise Annual Report 2016/17
Longboard Bar & Grill
Townsville Watersports
Patrick Hinchy
Michele Hyde at Remax
Townsville Yacht Club
Peter Lindsay
Mudpickers Boat Hire
Tropical Travel & Accommodation
Rebecca McIntyre
Mungalla Station
Undara Experience
Roxanne Grey
Murdering Point Winery
Virginia Park Station
Sandra Moore
North Australian Publishing Co Pty Ltd
Wambiana Station
Scott Stewart MP
Oaks Hotels & Resorts
Winton Visitor Information Centre /
Scott Verrall
Ocean Breeze By The Strand
Winton Shire Council
SOLAS
Oracle Studio
WT Partnership
Stephen Bailey
Orchid Guest House
Zesty Rentals
Therese Smith
Pacific Rim Technical Services
Townsville Museum & Historical Society Inc
Paronella Park
ASSOCIATE
PBR Australia - Iron Cowboy Townsville
Aaron Organ
Tully Visitor & Heritage Centre
Peppers Blue on Blue Resort - Magnetic
Andrew Cripps MP
YWAM Medical Ships – Australia Ltd
Island
Betty Webb
Pilgrim Sailing
Burdekin Tourism Association
RECIPROCAL
Pineapple House
Cardwell Visitor & Heritage Centre
Ayr Chamber of Commerce
Planpac Group Pty Ltd
Cathedral School of St Anne & St James, The
Chamber of Commerce & Industry
Pleasure Divers Magnetic Island
Christopher Rockemer
Queensland
Pro-Draulics
Colin Harkness
Gulf Savannah Development
Qencom Pty Ltd
Cootharinga North Queensland
HIA - North Queensland
Rambutan
Dale Last MP
Hinchinbrook Chamber of Commerce,
Scan Tech 3D
David Lynch
Industry and Tourism
Secura Lifestyle
Dolan Hayes
Home Hill Chamber of Commerce
Smiiiles Townsville
Drive It NQ
Master Builders North Queensland
Testing Inspection & Calibration
Dyan Mitchelhill
Mount Isa to Townsville Economic
Services
Greek Fest Townsville
Development Zone Inc. (MITEZ)
Texas Longhorn Wagon Tours & Safaris
Ian Macdonald, Senator The Hon
North Queensland Club
Tour Townsville
Innisfail Visitor Information Centre
RDA Townsville & North West Qld Inc
Tourism Operators & Businesses
John Hathaway
Tourism Whitsundays
Magnetic Island (TOBMI)
John McHugh
Townsville Business Development
Townsville Bush Oasis Caravan Park
Julia Creek Dirt & Dust Festival
Centre
Townsville Central Hotel
Magnetic Island Community
Townsville Business Women’s Circle
Townsville Helicopters/ Koolardie
Development Association
Townsville Chamber of Commerce
Aviation
Mark Budd
Townsville Region Indigenous Business
Townsville History Walking Tours
Mission Beach Tourism Inc
Network
Townsville & James Cook University
National Trust of Australia (Qld) Ltd
Rowing Club
NQ Dry Tropics
Townsville Tourist and Lifestyle Village
Palm Island Community Company
Townsville Enterprise Annual Report 2016/17
Townsville Running Festival
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â&#x20AC;&#x153;North Queensland is a strong region to invest in and my Government will continue to be a champion for North Queensland. I congratulate Townsville Enterprise Limited on the work they do to encourage investment into this important region.â&#x20AC;? Hon Annastacia Palaszczuk MP, Premier of Queensland Image: Megan MacKinnon
TOWNSVILLE ENTERPRISE LIMITED FINANCIAL REPORT 2016/2017 Your directors present this report on the entity for the financial year ended 30 June 2017.
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 Joe Carey – appointed 11/02/2011 Ranee Crosby – appointed 15/05/2014 Sandra Harding – appointed 20/02/2013 Peter Honeycombe – appointed 14/11/2013 Paul Victory – appointed 14/11/2013 Moya Steele – appointed 21/10/2015 Sandra Yates – appointed 19/08/2015 Jeffrey Wall CBE – appointed 01/06/2017 Laurence Lancini – appointed 12/10/2005 (resigned 21/04/2017)
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 2017 totalled $4,220,101 (2016: $3,045,952). The operating surplus/(deficit) for the year totalled $1,585 (2016: $22,606).
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 2017 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.
Townsville Enterprise Financial Report 2016/17
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 An exciting year of growth, development and real outcomes As demonstrated in this annual report, 2016/17 has been another solid year of outcomes and actions achieved through membership growth, organisational development and member advocacy. The 2016–2021 Strategic Plan laid a strong foundation for success and a focus on the four pillars, Politically Powerful, Economic Leadership, Proud and Engaged Members and Capable and Accountable, and saw Townsville Enterprise grow membership by 8.23% whilst achieving operational efficiencies through new systems and digital upgrades. Advocacy and strategic partnerships delivered game changing outcomes for Townsville North Queensland including: > Local content strategy for the North Queensland Stadium > Securing the Adani Regional Headquarters in Townsville > Commencing the $2.2M Hells Gates Feasibility Study > $1B Singapore Comprehensive Strategic Partnership > $225M towards Townsville’s long term water security > $75M towards Port of Townsville’s Channel Capacity Upgrade Project > T hree new flight connections which include Papua New Guinea (Air Niugini) through to Hong Kong, Toowoomba (Airnorth) and another service to Melbourne (Tigerair Australia) > Securing the first partial turnaround of a cruise ship in 2018 > Business delegation to Papua New Guinea. With a number of major infrastructure projects secured through advocacy, a focus on local content and engaging with the private sector to develop capabilities and capacities was a priority for the Policy & Investment team. A number of programs were delivered throughout 41
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<< Continued the year to ensure members were at the forefront of tenders and business opportunities. This has been particularly prevalent for the construction of the North Queensland Stadium – a major project secured in the previous financial year following a comprehensive advocacy campaign led by Townsville Enterprise. Engaging with the private sector was also a key element of the Hells Gates Feasibility Study, where a consortium of local businesses were selected to assist the Study, as well as consultants to lead the project, with Townsville Enterprise, resulting in an increase in consultancy fees. The Tourism and Events team had a strong year with visitor numbers at record levels across national and international visitor surveys. A major events campaign was launched in 2017 delivering significant reach across television and almost 2.5 million people across social media and 329,000 video views, resulting in over 3,000 new flight bookings and a 27% year on year growth. In the 2016/17 financial year the Townsville Bid Fund secured 15 events for the region, injecting an estimated $21M into the local economy and generating 80,000 room nights. The cruise ship industry in Townsville is going from strength to strength, welcoming nine cruise ships in 2016/17, delivering 7,833 passengers, 4,191 crew and $2.9M in economic expenditure. Townsville has already secured 19 cruise ships for 2018 and the very first partial turnaround. The Townsville Enterprise Emerging Leaders Program has been well supported with 19 participants working on three major community projects that aim to deliver positive community outcomes. The profile of the Program has grown significantly in the past 12 months and continues to receive strong support from business and civic leaders offering time to mentor, support, educate and engage with the participants. Internally, Townsville Enterprise delivered an Innovation Strategy and Program which included a significant CRM and systems upgrade that will provide a strong platform for membership engagement and activity whilst increasing operational efficiencies and productivity levels. This Program will continue to be delivered throughout 2017/18.
DIRECTOR KJ Gill
QUALIFICATIONS B. Com, CA Chairman 5 years 3 months Director 9 years 1 month Chief Operating Officer – Townsville Airport Pty Ltd, Mt Isa Airport, Longreach Airport Special Responsibilities Member – Finance Audit & Risk Committee
JL Hill
BSc MPHTM Deputy Chairman 5 years 1 month Mayor – Townsville City Council Chairman – Townsville Breakwater Entertainment Centre Joint Venture Director – Local Government Association of Queensland Chairman – Townsville Local Disaster Management
JW Carey
B. Com, CPA, Dip FP, Authorised Rep Securitor Pty Ltd Director 6 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 Special Responsibilities Chairman – Finance Audit & Risk Committee
Overall 2016/17 was a positive year defined by tangible results for members and the broader community. Significant outcomes were achieved for the region through partnerships with key stakeholders and whilst the region is not out of the woods yet, it is definitely heading in the right direction.
Environmental regulations No significant environmental regulations apply to the Company.
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42
Townsville Enterprise Financial Report 2016/17
DIRECTOR RL Crosby
QUALIFICATIONS LLB, GAICD
PE Honeycombe
QUALIFICATIONS B.Bus, FAICD, FAIM
Director 3 years 1 month
Director 3 years 7 months
Chief Executive Officer – Port of
Managing Director – Honeycombes
Townsville Limited
Property Group
Deputy Chair – Queensland Ports Association Member – Townsville Committee Australian
SL Harding
DIRECTOR
L Lancini
Director 11 years 5 months (resigned April 2017)
Institute of Company Directors
Managing Director – Lancini Group of Companies
Member – James Cook University
Director – Cowboys Leagues Club Limited
Human Resources Committee
Director – Cowboys Holdings Pty Ltd
Member – Queensland Ministerial
Director – Cowboys Community Fund Ltd
Freight Council
Chairman – Cowboys Rugby League
Special Responsibilities
Football Club Limited
Chairman – Economic Development
Member – Qld Division Council of the
Strategic Advisory Committee
Property Council of Australia, President of State Council
BSc (Hons) ANU, MPub.Admin UQ, PhD NCSU, Hon Doc JIU, FACE, FQA, FAICD, FAIM
MA Steele
BA.LLB, MUDIA, MAICD
Director 4 years 4 months
Director 1 year 8 months
Vice-Chancellor and President –
Partner – MacDonnells Law
James Cook University
Director – MA Steele Pty Ltd
Council Member – Australian Institute
Director – SunWater Limited
of Marine Science Director – Cowboys Rugby League
PA Victory
MA, Grad Dip Bus, BA
Football Club Limited
Director 3 years 7 months
Member – Trade, Tourism and Investment
General Manager – SeaLink Qld/NT Pty Ltd
Policy Advisory Committee
Special Responsibilities
Deputy Chair – Foundation of
Chairman – Tourism and Events Strategic
Australian Literary Studies
Advisory Committee
Director – Advance Cairns Director – Australian American
SL Yates
AO
Education Leadership Foundation
Director 1 year 10 months
Commissioner – Australian Centre for
Chairman – Australian Festival of Chamber Music
International Agricultural Research Commission Member – Queensland Futures Institute Council Director – Westpac Bicentennial Foundation Board
JC Wall
CBE Director 1 month Owner – Jeffrey Wall Public Affairs
Townsville Enterprise Financial Report 2016/17
43
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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 2017, and the number of meetings attended by each director, were: Full meetings of directors
Meetings of Finance Audit & Risk Committee
A
B
A
B
Kevin Gill
8
8
3
6
Jenny Hill
4
8
–
–
Joe Carey
7
8
6
6
Ranee Crosby
7
8
–
–
Sandra Harding
6
8
–
–
Peter Honeycombe
7
8
–
–
Laurence Lancini
0
5
–
–
Moya Steele
6
8
–
–
Paul Victory
7
8
–
–
Sandra Yates
7
8
–
–
Jeffrey Wall
1
1
–
–
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.
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.
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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 24 August 2017
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 2017 there have been: 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. i.
Crowe Horwath NQ
Mark Andrejic Partner Townsville 7 September 2017
Townsville Enterprise Financial Report 2016/17
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Note
2017
2016
$
$ 2,296,293
Revenue and Other Income Revenue
2
2,417,481
Other income
3
1,802,620
749,659
4,220,101
3,045,952
(2,221,403)
(1,124,757)
Total Revenue and Other Income Expenses Other expenses
4
(1,619,054)
(1,564,927)
Depreciation and amortisation expense
Employee benefits expense
(109,740)
(101,408)
Travel
(152,982)
(125,622)
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
(3,156)
(2,834)
(112,181)
(103,798)
(4,218,516)
(3,023,346)
1,585
22,606
â&#x20AC;&#x201C;
â&#x20AC;&#x201C;
1,585
22,606
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note
2017
2016
$
$
Assets Current assets Cash and cash equivalents
5
1,382,250
1,167,720
Trade and other receivables
6
647,967
168,262
Other Total current assets
55,122
5,077
2,085,339
1,341,059 222,699
Non-current assets Property, plant and equipment
7
164,568
Intangibles
8
71,630
49,491
236,198
272,190
2,321,537
1,613,249
Total non-current assets Total assets
Townsville Enterprise Financial Report 2016/17
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<< STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 (CONTINUED) Note Liabilities
2017
2016
$
$
491,870
67,159
Current liabilities Trade and other payables
9
Tax payable
10
26,945
54,650
Employee benefits
11
92,978
65,998
Borrowings
12
13,052
9,786
Other
13
414,264
116,277
1,039,109
313,870
Total current liabilities Non-current liabilities Employee benefits
14
45,084
49,925
Borrowings
15
22,291
35,986
67,375
85,911
Total liabilities
Total non-current liabilities
1,106,484
399,781
Net assets
1,215,053
1,213,468
Reserves
711,968
711,968
Retained surpluses
503,085
501,500
1,215,053
1,213,468
Equity
Total equity
The above statement of financial position should be read in conjunction with the accompanying notes
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 Reserves
Balance at 1 July 2015 Surplus/(Deficit) for the year attributable to members of the entity
Retained Surplus
Total Equity
$
$
$
887,356
303,506
1,190,862
–
22,606
22,606
(175,388)
175,388
–
Balance at 30 June 2016
711,968
501,500
1,213,468
Balance at 1 July 2016
711,968
501,500
1,213,468
–
1,585
1,585
711,968
503,085
1,215,053
Transfers to/from reserves
Surplus/(Deficit) for the year attributable to members of the entity Balance at 30 June 2017
The above statement of changes in equity should be read in conjunction with the accompanying notes
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Townsville Enterprise Financial Report 2016/17
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note
2017
2016
$
$
(3,371,229)
(2,917,711)
Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) Receipt of grants
1,686,167
731,244
Receipts from members and customers
1,952,260
2,169,285
267,198
(17,182)
35,260
35,492
302,458
18,310
Payments for property, plant and equipment
(18,668)
(44,282)
Payments for intangible assets
(55,671)
–
–
–
(74,339)
(44,282)
Net proceeds/repayments from finance lease obligations
(13,589)
(9,787)
Net cash used in financing activities
(13,589)
(9,787)
Net increase in cash and cash equivalents
214,530
(35,759)
1,167,720
1,203,479
1,382,250
1,167,720
Interest received Net cash from operating activities Cash flows from investing activities
Proceeds from sale of assets Net cash used in investing activities
Cash flows from financing activities
Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year
5
The above statement of cash flows should be read in conjunction with the accompanying notes
Townsville Enterprise Financial Report 2016/17
47
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. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Future Impact of Accounting Standards not yet Effective At the date of authorisation of the financial report, the expected impacts of new or amended Australian Accounting Standards issued but with future commencement dates are set out below. AASB 15 Revenue from Contracts with Customers This standard will become effective from reporting periods beginning on or after 1 January 2018 and contains much more detailed requirements for the accounting for certain types of revenues from customers. Depending on the specific contractual terms, the new requirements may potentially result in a change to the timing of revenue from sales of the Townsville Enterprise Limited’s services, such that some revenue may need to be deferred to a later reporting period to the extent that the Townsville Enterprise Limited (TEL) has received cash but has not met its associated obligations (such amounts would be reported as a liability (unearned revenue) in the meantime). TEL considers that the most likely financial impact will be the deferred recognition of certain revenue to the extent that there are performance obligations under an enforceable contract that meet the “sufficiently specific” criteria of AASB15. AASB 1058 Income of Not-For-Profit Entities This standard will become effective for reporting periods commencing on, or after, 1 January 2019. AASB1058 clarifies and simplifies the income recognition requirements that apply to not-
48
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for-profit (NFP) entities, and the majority of income recognition requirements relating to private sector NFP entities and the majority of income recognition requirements relating to public sector NFP entities, previously in AASB1004 Contributions. AASB 1058 applies to transactions where the consideration given to acquire an asset (including cash) is significantly less than the fair value of the asset principally to enable an NFP entity to further its objectives or to volunteer services. Where consideration provided under a transaction solely involves performance obligations under an enforceable contract and is sufficiently specific, it is accounted for under AASB15 Revenue from Contracts with Customers. TEL is yet to complete its analysis of current arrangements in relation to transactions that fall within the ambit of AASB1058, but does not expect a significant impact on its present accounting practices. AASB9 Financial Instruments and AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB9 (December2014) These standards will become effective from reporting periods beginning on, or after, 1 January 2018. The main impacts of these standards to Townsville Enterprise Limited are that they will change the requirements for classification, measurement, impairment and disclosures associated with the TEL’s financial assets. AASB9 will introduce criteria for whether financial assets can be measured at amortised cost or fair value. At this stage, and assuming no change in the types of transactions that TEL enters into, all the TEL’s financial assets are expected to be measured at fair value. In the case of TEL’s current receivables, as they are short term in nature, the carrying amount is expected to be a reasonable approximation of fair value. Changes in the fair value of those assets will be reflected in TEL’s operating result. Another impact of AASB 9 relates to calculating impairment losses for TEL’s receivables. Assuming no substantial change in the nature of TEL’s receivables, as they do not include a significant financing component, impairment losses will be determined according to the amount of lifetime expected credit losses. On initial adoption of AASB9, TEL will need to determine the expected credit losses for its receivables by comparing the credit risk at the time to the credit risk that existed when those receivables were initially recognised.
Townsville Enterprise Financial Report 2016/17
Assuming no change in the types of financial instruments that TEL enters into, the most likely ongoing disclosure impacts are expected to relate to the credit risk of financial assets subject to impairment through other comprehensive income. (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 (â&#x20AC;&#x2DC;AASBâ&#x20AC;&#x2122;), and associated regulations and the Corporations Act 2001, as appropriate for not-forprofit 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 Companyâ&#x20AC;&#x2122;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 the relevant accounting policies within note 1 and are based on historical experience and on other various factors, including expectations of future events management believes to be reasonable under the circumstances. (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. 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.
Townsville Enterprise Financial Report 2016/17
If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied. Where grant revenue is received whereby Townsville Enterprise Limited incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the Statement of Financial Position as a liability until the service has been delivered to the contributor otherwise the grant is recognised as income on receipt. Service revenue Revenue arising from the rendering of a service is recognised upon the delivery of the service to the clients. Other revenue Other revenue (which includes campaign and event income and project income) is recognised when it is received or when the right to receive the payment is established. All revenue is stated net of the amount of the goods and services tax (GST). (d) Income 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.
49
(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. Bank overdrafts also form part of cash and cash equivalents for the purpose of the statement of cash flows and are presented within current assets cash and cash equivalents on the Statement of Financial Position. (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. (h) Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation. 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 over their expected useful lives as follows: Leasehold improvements Plant and equipment Motor vehicles
10–50% 5–20% 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) Intangibles Intangible assets are initially recognised at cost. The gains or losses recognised in profit or loss arising from the de-recognition
50
50
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 three to five years. Billabong Visitor Information Centre Kiosk (Right to use) Townsville Enterprise has an agreement with the Billabong Sanctuary for the right to use the kiosk constructed on their 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. (j) 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. (k) Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits and annual 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 not expected to be settled within 12 months of the reporting date is recognised in noncurrent 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
Townsville Enterprise Financial Report 2016/17
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 recognised at the expected cash outflow when the liability is settled. Long-term benefits are accounted for employees who have achieved five or more years of service with the company. (l) 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. (m) 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.
NOTE 2. REVENUE 2017
2016
$
$
Interest
35,260
35,491
Rent
10,440
10,543
340,313
278,644
Advertising Income
–
71,160
Partnership Income
939,550
815,973
Membership Income
803,370
833,443
Contra Membership Income
276,519
216,461
12,029
34,578
2,417,481
2,296,293
Campaign and Event Income
Other Revenue
NOTE 3. OTHER INCOME 2017
2016
$
$
Government Grants
1,619,458
691,940
Marketing Packages
3,594
10,598
139,758
34,225
39,810
12,896
1,802,620
749,659
Project Income Sponsorship Income
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.
Townsville Enterprise Financial Report 2016/17
51
NOTE 4. OTHER EXPENSES 2017
2016
$
$
7,354
6,621
1,117,505
290,793
145,831
162,200
8,273
10,372
77,739
135,517
285,119
83,873
Sponsorship and Membership expenses
74,103
27,045
Vehicle expenses
10,232
11,757
375,387
258,180
Employee related expenses
44,339
32,627
Entertainment expenses
16,743
19,929
Information Technology expenses
39,256
58,551
–
4,690
19,522
18,602
2,221,403
1,124,757
Audit and Accounting expenses Consultants and Contractors Facility expenses Web Development and Maintenance expenses Design Printing and Reproduction Trade and Exhibition
Advertising expenses
FBT Other expenses
NOTE 5. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 2016
$
$
1,382,250
1,167,720
NOTE 6. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
52
2017
2016
$
$
Trade receivables
575,045
168,187
Accrued revenue
60,835
–
Sundry debtors
12,087
75
647,967
168,262
52
2017
2016
$
$
245,486
245,486
(184,775)
(160,226)
60,711
85,260
302,114
283,446
(229,151)
(191,394)
72,963
92,052
Motor vehicles – at cost
71,378
71,378
Less: Amortised borrowing costs
(1,179)
(587)
Less: Accumulated depreciation
(39,305)
(25,403)
30,894
45,387
Leasehold improvements – at cost Less: Accumulated depreciation
Plant and equipment – at cost Less: Accumulated depreciation
Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below: Leasehold Improvements Balance at 1 July 2016
Motor Plant and Vehicles Equipment $
$
$
85,260
45,387
92,052
222,699
18,668
18,668
Borrowing costs Depreciation expense Balance at 30 June 2017
Total
$
Additions at cost
2017
Cash at bank and on hand
NOTE 7. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
(592)
(592)
(24,549)
(13,901)
(37,757)
(76,207)
60,711
30,894
72,963
164,568
Townsville Enterprise Financial Report 2016/17
NOTE 8. NON-CURRENT ASSETS – INTANGIBLES
NOTE 11. CURRENT LIABILITIES – EMPLOYEE BENEFITS
2017
2016
2017
2016
$
$
$
$
Billabong VIC Kiosk (right to use)
93,986
93,986
92,978
65,998
Less: Accumulated amortisation
(78,352)
(54,855)
15,634
39,131
Computer Software – at cost*
146,569
90,898
2017
2016
Less: Accumulated amortisation
(90,573)
(80,538)
$
$
55,996
10,360
13,052
9,786
Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below:
Balance at 1 July 2016 Additions at cost* Amortisation expense Balance at 30 June 2017*
Billabong VIC
Total
$
$
$
39,131
10,360
49,491
–
55,671
55,671
(23,497)
(10,035)
(33,532)
15,634
55,996
71,630
*Note includes Work in Progress totalling $28,017 for Coresoft (TEL’s Customer Relationship Management System)
Finance lease obligations
Accrued expenses Revenue received in advance
2017
2016
$
$
390,644
25,948
23,620
90,329
414,264
116,277
NOTE 14. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS
Long service leave
2017
2016
$
$
45,084
49,925
NOTE 15. NON-CURRENT LIABILITIES – BORROWINGS
NOTE 9. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES 2017
2016
$
$
Trade payables
482,666
56,768
Other payables
9,204
10,391
491,870
67,159
Finance lease obligations
2017
2016
$
$
22,291
35,986
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 16. CONTINGENT LIABILITIES
NOTE 10. CURRENT LIABILITIES – TAX PAYABLE
Townsville Enterprise Financial Report 2016/17
NOTE 12. CURRENT LIABILITIES – FINANCE LEASE OBLIGATIONS
NOTE 13. CURRENT LIABILITIES – OTHER
Computer Software
GST/PAYG Tax payable
Annual leave
2017
2016
$
$
26,945
54,650
Townsville Enterprise Limited has no contingent liabilities at 30 June 2017 and 30 June 2016.
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NOTE 17. KEY MANAGEMENT PERSONNEL DISCLOSURES
NOTE 20. ECONOMIC DEPENDENCY
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 2016/2017 include Patricia O’Callaghan (Chief Executive Officer), Michael McMillan (Director – Policy & Investment) and Bridget Woods (Director – Tourism & Events).
Key management personnel compensation
2017
2016
$
$
506,710
497,471
NOTE 18. COMMITMENTS
Townsville Enterprise Limited receives funding from Tourism and Events Queensland (TEQ) and partnership funding from the Townsville City Council (TCC). Funding from TEQ is $639,319:2016-17 ($638,039:2015-16) per financial year whilst sponsorship from TCC is $740,000:2016-17 ($740,000:2015-16) per financial year. At the date of this report the Board of Directors have no reason to believe TEQ or the TCC will not continue to support Townsville Enterprise Limited.
NOTE 21. EVENTS AFTER THE REPORTING PERIOD No matter or circumstance has arisen since 30 June 2017 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:
2017
2016
$
$
Within one year
109,686
107,127
One to five years
437,018
423,973
546,704
531,100
Lease commitments – operating Committed at the reporting date but not recognised as liabilities payable
Operating lease commitments comprise of the lease arrangements on Enterprise House and storage facilities.
NOTE 19. RELATED PARTY TRANSACTIONS
• t he attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian Accounting Standards Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements; • t he attached financial statements and notes thereto give a true and fair view of the Company’s financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and • t here are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. Signed in accordance with a resolution of the sole director made pursuant to section 295(5)(a) of the Corporations Act 2001.
Key management personnel Disclosures relating to key management personnel are set out in note 17. Transactions with related parties There were no transactions with related parties during the current and previous financial year outside of the normal course of business. Receivables from and payables 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. 54
54
Kevin Gill Director Townsville 24 August 2017
Townsville Enterprise Financial Report 2016/17
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF TOWNSVILLE ENTERPRISE LIMITED Opinion
Australian Accounting Standards – Reduced Disclosure Requirements 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.
We have audited the financial report of Townsville Enterprise Limited (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration.
In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:
Auditor’s Responsibilities for the Audit of the Financial Report
(a) g iving a true and fair view of the Company’s financial position as at 30 June 2017 and of its financial performance for the year then ended; and (b) c omplying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.
Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar3.pdf. This description forms part of our auditor’s report. Crowe Horwath NQ
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of the Directors for the Financial Report
M. Andrejic Partner Townsville 7 September 2017
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Townsville Enterprise Financial Report 2016/17
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TOWNSVILLE ENTERPRISE
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