Level 3 South Bank House Stanley Street Plaza PO Box 2001, South Bank Queensland 4101 T 07 3867 2000 F 07 3844 4067 www.south-bank.net.au South Bank Corporation ABN 95 927 817 538 SOUTH BANK CORPORATION ANNUAL REPORT 08 09
A timeless journey About Our Reporting Process This report provides you with an overview of our highlights and key milestones for the reporting period. It also outlines our future direction and commitment to creating a world-class urban precinct by collaborating with our partners to create meaningful experiences for visitors. We strive not only to develop sustainable business practices, but to foster growth and strong relationships with customers and stakeholders, including:
• visitors to the precinct, and the wider Queensland community • our employees • our shareholders • retailers in the precinct; and • residents in the precinct, and business and industry partners.
We welcome your feedback on this report, which is available on our website: www.southbankcorporation.com.au Welcome to a timeless journey
At a time when Brisbane is experiencing rapid growth and change, we understand the importance of creating places and experiences which stimulate social exchange and provide respite from the pressures of everyday life.
There is no other place like South Bank in the world. We are the business behind South Bank and we believe we now have a unique destination to showcase to the world.
The evolution of South Bank continues. Enjoy our timeless journey!
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 1 Part One Workplace Health & Safety Page 50 Our Business Page 3 Chairman’s Message Page 4 Part FOUR Sustainability Performance Page 51 Chief Executive Officer’s Report Page 6 Our Sustainable Journey Page 52 Our Highlights Page 9 The Green Team Page 53 Performance Overview 2008-09 Page 12 Water Efficiency Page 53 Who We Are Page 20 South Bank Corporation Profile Page 21 Part FIVE Our Board of Directors Page 22 Corporate Governance Page 55 Our Executive Management Team Page 26 Board of Directors Page 56 Board Meetings Page 56 Part TWO Member Benefits Page 56 Operational Performance Page 29 Audit Committee Page 57 Our Customers Page 30 Remuneration Committee Page 57 Our Visitors Page 33 Code of Conduct Page 57 Our Places Page 35 Crisis Management Page 58 Part THREE Consultants Page 58 Social Performance Page 41 Keeping Visitors Safe Page 58 Our People Page 42 Freedom of Information Page 58 Our Communities Page 46 Risk Management & Insurance Page 59 Our Corporate Partners Page 47 Part SIX Financial Performance Page 61 CONTENTS
2 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART ONE 01
Our Business
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 3 Chairman’s Message
Growing our Business
South Bank Corporation entered into a phase of further transformation during the year, which will result in major changes across all aspects of the business.
While our destinations have evolved considerably since the Corporation’s inception, the development phase we have now entered will take us to another level and enhance South Bank Corporation’s reputation as one of Australia’s most dynamic public place managers. The emergence of new public spaces is coupled with a strong financial result which underscores the success of the activities during 2008-09.
Improving Financial Performance
We recorded an improved net cash flow for 2009 of $5.6 million excluding extraordinary government grants; this contribution reflects a positive swing of $7.1 million when compared to last year’s results. The significant improvement in operating performance and cash flows is derived from higher contributions from retail rental income and car parking, sustained revenue and profitability of the Brisbane Convention & Exhibition Centre, revenue generated by the completion of long term lease agreements over development property, and a reduction in asset re-investment costs.
The enhanced trading performance of our retail assets minimised the negative impact of market revaluations across the investment property portfolio of $2 million (3.8 percent of asset value).
4 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Given the retail appetite for the South Bank precinct, we look visitors to enjoy. As Brisbane’s population increases, we are forward to expanding the Corporation’s income producing asset forward planning to create new multi-use public spaces so base over the next year. Continued commercial and residential that visitors take full advantage of our authentic, world-class growth within the immediate area has aided the ongoing destination. demand for development opportunities (generating profits in favour of the Corporation). Delivering into the Future Next year will see the commencement of the exciting Southpoint South Bank Corporation will continue to strive for excellence. project at the corner of Vulture and Grey Street and the We will continue working on securing new and exciting retail development of the ABC headquarters on Grey Street, reinforcing offers which complement our places and add new dimensions the Corporation’s aim to transform Grey Street into Australia’s to visitor experiences. We will continue delivering world-class best cultural boulevard. developments that ensure we meet the expectations of our shareholders and customers. South Bank Corporation’s Contribution to Queensland We face exciting challenges ahead. Though spirit, industry and strong stakeholder partnerships - hallmarks of our Corporation, The South Bank precinct and Brisbane Convention & Exhibition we will positively build on this year’s achievements, next year Centre are major contributors to the Queensland economy, and into the future. generating approximately 800 jobs and contributing $70 million I would like to thank the Board and employees at the to regional economies annually. Corporation for their ongoing commitment to the evolution of Given the current developments underway across the precinct, the precint. we expect the Corporation’s contribution to the State economy We now have a solid foundation on which to achieve our growth to grow at an even greater rate during the next five years and objectives and continue as an innovative and successful and beyond. organisation.
The Emergence of New Quality Public Spaces
For several years, South Bank Corporation has worked in partnership with the State Government, Brisbane City Council, Brisbane Marketing, Tourism Queensland and current and prospective partners to promote the South Bank precinct to the Steve Wilson people of Brisbane as a place where they can enjoy an array of Chairman great experiences, unlike anything else in Brisbane.
We have implemented a number of major initiatives to increase the quality and quantity of green space. We have created two hectares of new open space on Little Stanley Street, which has contributed to the vibrancy and variety of experiences for
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 5 Chief Executive Officer’s Report Responding to the Challenges
This year South Bank Corporation faced diverse challenges arising from a market which is placing greater demands on our precinct as well as a rapidly growing inner-city population.
In taking up these challenges, we have continued to invest in planning for the future by improving the quality and accessibility of our spaces. We are confident that this investment will deliver the best results for Queensland.
While our focus was on several large and significant developments, including the expansion of the Brisbane Exhibition and Convention Centre, the Corporation is redoubling its efforts to maintain high levels of customer satisfaction and meaningful visitor experiences.
Expanding on our Delivery Capability
This year marked the announcement that the Parklands will see one of the most significant design changes in over ten years through the redevelopment of the original Boardwalk site. This exciting public space will deliver 70 metres of new riverfront parkland for the people of Brisbane to enjoy. Visitors will be able to engage with the river more than ever; realising a long-held dream to revitalise our city’s relationship with the river.
In a major coup for the precinct, we also announced that the Australian Broadcasting Corporation (ABC) headquarters will be relocating to the precinct. Our cultural and educational partners as well as the wider Brisbane population will benefit from having a state-of-the-art media centre in the heart of the
6 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 city where they can see and learn about how electronic media I want to personally thank all staff for their ongoing operates, a Brisbane first. commitment and their desire to take our organisation to a new level. While pursuing our entrepreneurial community role, we simultaneously focus on achieving efficiencies and cost control and we build on the success achieved to date by Supporting our Communities creating memorable visitor experiences, outstanding customer This year, as part of our commitment to being a responsible relationships and delivering operational excellence. corporate citizen, we continued to engage the local community and support charity organisations. Evolving our Business We actively participated in a number of fundraising initiatives We are committed to being a high performing organisation, including Clean Up Australia Day, Yalari Foundation, Talk Like a driven by continuous improvement. These cultural drivers are Pirate Day and Zoe’s Place. vital in delivering value to customers and stakeholders and in our long-term business success – critical for reinvestment in our We continued to support the Brisbane community by jointly public assets. hosting over sixty events for local organisations and supporting them with the management of their events. We are a prominent player in Queensland’s tourism and leisure industry, and we believe in creating solutions and building As South Bank continues to emerge as a vibrant locale, our enduring partnerships that significantly contribute to our state’s partnerships with our cultural, educational and business economy. partners continue to strengthen. We worked, for example, with the Queensland Art Gallery to promote the world exclusive Our business is collaborative, meaning that we actively work American Impressionism and Realism exhibition across the together with our customers, partners and suppliers. We believe precinct and we staged a number of public performances that positive relationships are the key to a strong business and with the Queensland Conservatorium of Music and Opera so we will continue to focus on our people. Queensland.
This year, we launched a ‘Breakfast with the CEO’ event in which We will continue to carry out regular market research and I consulted with many employees and welcomed direct feedback consultation across all our communities and ensure that we are on how we can become a better place to work. Consequently, responding to the needs of local people. we have improved our business by acting on many of the suggestions made.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 7 Our Customers
The Corporation’s unerring quest is to create a truly world-class destination and we will achieve this by delivering great visitor experiences. We know innovative design and place management are vital components to our precinct’s success. This however, is only one part of the formula and why we must also strive to build strong rapport with our customers. We have not, and will not, lose sight of the fact that much of the success that the Corporation enjoys comes on the back of the efforts of our customers and we will continue to work with them to ensure our efforts are directed towards adding value to their businesses.
Environmental Management My Thanks South Bank Corporation is committed to becoming a national leader in sustainability. This year, we comprehensively reviewed In conclusion, I thank the Board, the management group waste, water and energy consumption throughout the precinct and every employee for their outstanding contributions in 2008- and we will continue to actively pursue improvements to our 09. The achievements of the past year are the result performance and efficiency in this area. of a concerted team effort and I am proud to be working with such a professional and committed organisation. Next year, the addition of our new stormwater harvesting system will see the installation of a two million litre underground As the leader of that team, I know that South Bank Corporation reservoir to capture and supply precious water for irrigation. is well positioned to deal with the challenges of tomorrow, This will meet 78 percent of our Parklands irrigation and water while strengthening our contribution to the overall feature needs and will be one of the largest projects of its Queensland community. kind in Queensland.
Malcolm Snow Chief Executive Officer
8 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Highlights
Delivering New Quality Open Space Increasing our Diversity
We committed to our Open Space Strategy by announcing plans We introduced a migrant work experience program as part of to transform the original Expo ’88 Boardwalk site to provide the our commitment to diversity and equal opportunities. This was a people of Brisbane with 70 metres of new high quality riverfront joint initiative between TAFE and the Queensland Government to public space. Designed by Brisbane firms Arkhefield and Cardno increase the participation rate of migrants in companies such as S.P.L.A.T., the project will be the most significant design change South Bank Corporation. to the Parklands in ten years. Delivering a World-Class Brisbane & Providing High Quality Experiences for Convention Exhibition Centre our Visitors We commenced the $130 million Brisbane Convention & We created and delivered over 150 events across the precinct, Exhibition Centre (BCEC) expansion on Grey Street. The providing the people of Brisbane with a variety of quality free expansion will revitalise Grey Street, link the Centre with the experiences, resulting in over nine million visitors to the precinct Parklands and introduce a new public space with a mix of retail throughout the year. and shopping experiences. The extension will add five levels of boutique meetings and event space to the existing Centre and Completed Significant Negotiation with ABC will create 4,000 full-time equivalent jobs over the first 15 years of operation including the construction period. In partnership with the State Government, we completed a commercial negotiation with the Australian Broadcasting Wheel of Brisbane Launch Corporation (ABC) resulting in the new Queensland headquarters being relocated to South Bank. The ABC television We completed a negotiation with World Tourist Attractions to and online facilities will complement our existing cultural, introduce the Wheel of Brisbane to the city skyline. The Wheel education and business partnerships when it opens on its site at takes visitors on a journey to experience Brisbane at new Russell Street in 2011. heights from a unique vantage point. It stands at 60 metres tall and weighs in at 350 tonnes.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 9 Brisbane’s First Interactive Play Facility Re-Opened BCEC Highlights
We re-opened our interactive childrens water play facility, Aquativity, following the change in Brisbane’s water conditions. As the owner of the Brisbane Convention & Exhibition Centre The facility educates children on the complexity of the river (BCEC) on Grey Street, we worked with our management systems and the importance of indigenous, urban and company AEG Ogden who achieved: environmental elements of our relationship to the Brisbane River. Financial Success Enhanced our Water Recycling Capabilities BCEC recorded its second best year in 14 years of operation; We expanded on our sustainable environmental initiatives a strong result achieved during a very challenging global throughout the precinct. Plans for the installation of a two financial environment. Convention bookings are at their highest million litre underground water storage facility are fully level since the Centre opened, with more than 270 advance underway; a project that will reduce our reliance on potable and engagements locked in – the result of continued and vigorous purchased recycled water, providing 78 percent of the water we marketing by the Centre’s management team and increased require to irrigate the Parklands. awareness of Brisbane as a preferred meetings destination.
Improving the Retail Mix Supporting our Community
We opened six new retailers on Little Stanley Street and Grey The introduction an active Community Engagement Program Street; significantly enhancing our mix of authentic retail offers which resulted in the donation of 30000 packaged meals to in two of our major precincts and resulting in a more vibrant Foodbank, to support Brisbane’s homeless community. The team and active street frontage. also worked closely with both Mater Hospital’s Reg Leonard House, low cost accommodation for regional patients and the West End Community House, a community centre providing a range of services and activities for residents living within the inner southern suburbs of Brisbane.
10 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Launch of Australia’s First Carbon Calculator
In a first for Australian convention centres, Brisbane Convention & Exhibition Centre introduced a custom designed carbon calculator providing clients with the opportunity to stage carbon neutral events. Designed in conjunction with the Carbon Reduction Institute (CRI) to specifically measure the environmental impacts of all types of events held at the Centre, the Carbon Calculator is available for all events.
Centre adds to its Awards Tally
The Centre added two more awards to its already impressive list of achievements, Best Function Centre/Convention Centre Caterer and Caterer of the Year in the Queensland Restaurant and Catering Awards, bringing the overall number of awards to 105.
Centre Raises the Bar on Customer Services
Service excellence has always been at the heart of our operation. But with the establishment of a dedicated Customer Service Department and the appointment of a Director of Customer Service, in the Executive Management Team we’ve elevated the importance of customer service to new heights.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 11 Performance Overview 2008-09
Financial Performance Operational Performance
During the year, South Bank Corporation recorded a net cash We are committed to continuously improving our strategic flow of $5.6 million excluding extraordinary government grants; planning process and measuring our performance so that we reflecting a positive increase of $7.1 million compared to the ensure our destinations evolve into world-class places that previous financial year. inspire people to visit.
We experienced significant improvement in our commercial The organisation has adopted the Balanced Scorecard approach revenue throughout the year, as a result of higher contributions to measure our operational performance. This approach and from retail rental income and car parking. In addition, the the Corporation’s Environmentally Sustainable Development Brisbane Convention & Exhibition Centre continued to sustain (ESD) Policy both support the Queensland Government priorities its profitability and maintain its rank as one of the top three of building economic success, embracing growth, managing international convention centres. climate change, protecting the environment and building strong communities. Our Operational Performance Our strategic planning process will be reviewed in the next Each year, South Bank Corporation outlines the scope of our financial year in line with the development of our new five year strategies, objectives and actions in our annual business plan. business plan, which will result in many of the organisation’s key strategic drivers being realigned to reflect our future vision. Our performance against the 2008-09 business strategy is summarised on the following pages.
FINANCIAL SNAPSHOT 2008-09 2007/08 2006/07 2005/06 2004/05
Revenue $76,825.00 $69,063.00 $70,606.00 $70,250.00 $53,658.00 Expenditure $78,778.00 $71,362.00 $62,143.00 $63,118.00 $64,206.00 Net Profit (Excluding Capital Grant) -$1,953.00 -$2,299.00 $8,463.00 $7,132.00 -$10,548.00
Total Assets $653,002.00 $590,941.00 $510,961.00 $467,221.00 $441,502.00 Net Assets $592,541.00 $534,732.00 $457,276.00 $418,564.00 $390,550.00
12 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Customer Success Measure
Customers: Delivery of a new, interactive Corporate website (www.southbankcorporation.com.au), to position the Corporation as a leading organisation and to build relationships and work Ensure that visitors more effectively with our customers and partners was a proud accomplishment. are our primary service focus and ensure their We also achieved the following: experience is unique and enjoyable • introduction of six new unique retailers to the precinct, providing visitors with more choices and dining and shopping experiences to enjoy
• committed to providing new and high quality public open spaces in the precinct and completed the Riverside Green and Rainforest Green projects
• developed and launched a new digital communications program, providing tailored information to each of our partners
• delivered almost 150 events, significantly increasing visitation and turnover for our retailers as well as providing a wide audience with an array of diverse experiences
• expanded our volunteer program to include 20 new volunteers; and
• delivered three Retailer Forums for all precinct retailers, with presentations and guest speakers.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 13 Our Customer Success Measure
Community: We met this measure by:
Recognise and strengthen • hosting more than 60 community events, to bring different cultures together to the value of our diverse celebrate their way of life local community through positive engagement • partnering with nine organisations to deliver different multicultural festivals to the precinct • partnering with the Queensland Conservatorium of Music to deliver the outdoor Jazz Café series
• launching our new annual ‘South Bank Regional Flavours’ event which brought 80 stallholders from South East Queensland to the precinct to showcase fresh produce and wine from the region – resulting in over 7000 visitors
• supporting the South Bank Institute of Technology ‘South Bank Student’ award, which recognises outstanding results in event management; and
• partnering with local schools to provide work experience opportunities for young people.
Precinct Partners:
Build sustainable relationships We met this measure by: with our cultural precinct partners and identify • carrying out significant consultation with key partners on the Boardwalk, ABC, BCEC opportunities to work together and the Maritime Museum projects • continuing our support for Business South Bank, representing the organisation at Board level; and
• continuing to develop joint event initiatives with our partners, including Opera Queensland and Southbank Institute of Technology.
14 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Customer Success Measure
Government: We met this measure by:
Build strong links with all • attending monthly meetings with the Department of Premier and Cabinet spheres of Government to ensure our collaborations • delivering two major press conferences, involving our shareholding minister are frequent and productive throughout the year • carrying out consultation on major projects with key government partners; and
• working in partnership with the Department of Premier and Cabinet to deliver several events, including Australia Day.
Our Financial Success Measure
Revenue Generation: We met this measure by:
Identify and develop new • leasing land to World Tourist Attractions, which saw the launch of the Wheel of revenue sources that support Brisbane as an addition to the Brisbane skyline our long term financial goals and reduce our dependency • leasing land to Da Vinci Promotions to host the Da Vinci Machines exhibition; and on external funding • increasing our Moving Annual Turnover figures by percent in our retail business.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 15 Our Financial Success Measure
Operating expenditure: We met this measure by:
Efficiently manage our • reducing the number of consultants over the reporting year operating costs within the approved budget parameters • improving our car park operations, and increasing revenue by 26 percent; and • attracting over 75 clients to the precinct who hired our authentic venues for private events. Capital Expenditure:
Efficiently manage our operating costs within the The Corporation’s capital expenditure program throughout the year was maintained within approved budget parameters the budgetary approvals.
Debt Reduction: In consideration of the Corporation’s cash flow requirements for operating activities; Ensure our debt reduction funding of major projects; and maintaining the integrity of its existing assets, there will be target remains on track requirements to defer debt repayments to future years. However, it is anticipated that the Corporation will be in a position to retire its debt obligations by 2016.
16 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Systems and Processes Measure
We met this measure by: Image and Identity: • effectively working in partnership with Queensland Art Gallery to promote the American Strengthen our image Impressionism & Realism exhibition by ensuring our brand recognition is strong and • delivering two editions of Creations magazine, profiling South Bank and prominent Brisbane aligned to the marketing people to an audience of 50000 Brisbane locals of the broader precinct • purchasing a new digital communications system to enable us to communicate more effectively with partners
• upgrading our website system to increase our digital capabilities with partners
• carrying out continuous training sessions with employees on TRIM
• working with the media on several campaigns, with total media coverage being $7.5 million in equivalent advertising value (EAV) in a total of 1300 press cutting; and
• planning a new brand strategy to launch in the new financial year.
We met this measure by: Projects and Delivery: • completing the site preparation works and appointed the building contractor for the Design and deliver our Brisbane Convention and Exhibition Expansion on Grey Street. For more information on our projects to ensure they projects. See page 39 meet our strategic and master planning goals • completing the upgrading of Rainforest Green within the Parklands precinct
• announcing that the ABC headquarters will be relocating to South Bank, in partnership with the State Government
• announcing the Boardwalk project which will see the most significant change to the Parklands in ten years; and
• planning a project to improve the presentation of the South Point site on Grey Street.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 17 Our Financial Success Measure
Recording and Reporting: We met this measure by:
Ensure our reporting is • delivering the annual report and disseminated to all key stakeholders; and concise and clear, focussing on the strategic issues and • providing regular training for all employees on TRIM records management to ensure informed by clear analysis that we accurately record all business information.
Corporate Governance:
Manage the Corporation’s Our Remuneration and Audit Committees met at regular intervals during the reporting period. business to meet the highest See page 57 for details. standards of governance and accountability
Our Engaged People Measure
Motivated staff: The Corporation set a goal to become an official ‘Employer of Choice’ by 2011. Improved health and wellbeing program and rostered days off were introduced. Feedback from focus Instil a strong sense of groups resulted in new systems being introduced. purpose and commitment in our people through teamwork, We met this measure by: individual responsibility and accountability • launching our Breakfast with the CEO event and held four breakfast sessions with small groups of employees
• improving the format of our monthly full employee meetings to engage and motivate employees; and
• sponsoring employees to run the ‘Bridge to Brisbane’ fun run.
18 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Engaged People Measure
Organisation Capability: We met this measure by:
Strengthen and sustain • introducing Personal Development Plans, with an emphasis on training opportunities the capabilities of the for all staff organisation so that it can respond to new challenges • completing the Great Places to Work Survey. For more details, go to page 43 and opportunities • reviewing and implementing a new organisation structure to ensure that we can deliver the future business strategy; and
• planning to develop a new five-year business strategy and performance management system.
Applied research: We met this measure by:
Identify and invest in those • commissioning a strategic sustainability review, addressing our management of areas of research that can energy, waste, water and human resources; and directly support both our vision and strategic planning goals • supporting the Place Leaders Association to carry out an annual research project on ‘Measuring Public Domain Success’.
Knowledge Management: We met this measure by: Capture, manage and disseminate the knowledge • integrating the e-DRMS (TRIM) by January 2009 and skills of our people • introducing a new digital communications system to improve our internal communications and capture feedback from employees
• launching two new internal bulletins, showcasing HR news and updates and general news/project/event updates; and
• carrying out 47 media interviews with staff throughout the year.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 19 Who we are
Our vision is to create a world-class urban precinct. With a total asset base of over $650 million and 79 permanent As South Bank evolves, we strive to ensure that the employees, we are one of Australia’s leading place management Parklands, Little Stanley Street and Grey Street remain companies. Our precinct is open 24 hours a day every day of as places which form the heart of city life and contribute the year. to the recognition of Brisbane as one of the world’s most attractive and liveable cities. Values Our organisation values are: Our mission is for the South Bank Reach to be the centre of Brisbane. The people, activities, environment and design will • Bold Leadership form the heart of city life and contribute to the recognition of • Experimental • Sustainable Brisbane as one of the world’s most attractive cities. • Inclusive The river will unite South Bank and Brisbane’s CBD, linking the precinct with the northern side of the river, the city’s green and Our key responsibilities include: commercial places and provide a vibrant platform for activities. Facilitation: We facilitate the development, disposal and management of South Bank will also connect with the West End, Highgate land and other property within the 42 hectare site that is the Corporation Hill and Woolloongabba communities, along with the arts, area. We strive to create great public spaces that complement, rather than educational, sporting and convention centres. duplicate other public sites in the inner city Brisbane area.
The Corporation will promote a distinctive Queensland style of Innovation: Sustainable relationships, innovation and passion characterise design advocating sustainable and responsible development with our work. We are committed to leading the way in sustainable practices, delivering innovative solutions to environmental and human resources. a community focus. We will provide an operating environment for successful businesses that enhance the vitality of the Creation: We manage 71 tenancies across the precinct, and work closely precinct. with each of our customers, partners, and the community to create places for great social exchange, and an iconic landmark which defines our city’s Established as a statutory by Queensland Parliament under identity. the South Bank Corporation Act 1989, we are the organisation behind Brisbane’s authentic riverfront destination, South Bank. Destination: We are proud to manage this unique location, and we take pride in building successful relationships with our partners and stakeholders, Our focus this year was on contributing to the future needs of and we are committed them. South Bank is Brisbane’s favourite place to the capital city through forward planning. As Brisbane continues come together and work, relax, play and celebrate. to experience unprecedented growth, we are planning to introduce new high quality public spaces, complemented by an The Corporation also owns the Brisbane Convention & Exhibition array of new and authentic experiences for visitors to enjoy. Centre, which is managed on a day-to-day basis by AEG Ogden.
20 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 South Bank Corporation Profile
Our employees are passionate and committed to creating a Our Places world-class destination. Each employee plays an integral role in the delivery of our vision. Our wide range of expertise in We create and manage three main destinations within the the areas of urban design, horticulture, retail and property, South Bank precinct being the Parklands, Little Stanley Street maintenance, marketing and events combine seamlessly to and Grey Street. While each of these places offer different ensure a proactive approach is applied to forward planning, experiences, they complement each other very well and innovation and continuous improvement. together, provide visitors with a truly memorable experience. In the new financial year, we will launch a new brand strategy Our People which reflects the shift in our business focus. Building our places is only part of our role. Increasingly, our focus is on creating We understand that our people are central to our performance places where people want to visit. and we place great emphasis on training and developing employees to ensure they have challenging and rewarding work to carry out during their career with us.
Our 112 permanent and part time employees enjoy the benefits of working in our unique environment and interacting with visitors from the community. They enjoy the benefits of our new health and wellbeing program. Our commitment to creating a healthy and active workforce remains at the heart of our business.
Our Customers
Our customers are passionate business owners who together, create a diverse and authentic mix of experiences for our visitors. Because our service depends on us building excellent relationships with our customers, we will be implementing a customer relationship program next year to ensure that we continue to have regular contact with key customers and focus on improving these relationships. We value the feedback we receive from customers on both an informal (through day-to- day dealings) and formal (surveys) basis.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 21 Steve Wilson Our Board of Directors Chairman He was formerly Chairman of the St John’s Cathedral Throughout the evolution of South Bank Corporation, our Steve Wilson, Investment Completion Fund and Board and Executive Management Team continue to lead Banker, is Executive Hyperion Flagship the development and implementation of our long-term Chairman of Wilson HTM Investments Limited and strategic plan. Investment Group having served on the Boards been Managing Director of Telstra Corporation, from 1985-2003. He is Achievements of the Board City of Brisbane Airport a solicitor of the Supreme Corporation, Queensland During the year, the Board focused on: Court of Queensland Tourism Corporation, with other experience The Brisbane Institute and • achieving financial success for the tax payers of Queensland in accounting with Ernst The Great Barrier Reef • further development of our open space strategy to ensure & Young and stockbroking Research Foundation. that we continue to improve the quality of our spaces with Cazenove & Co Other appointments have • ensuring all major new developments exemplify in London. also included membership outstanding design of Committee for Economic • introducing the ABC and the BCEC expansion onto Grey Current other appointments Development of Queensland Street to contribute towards our goal of it becoming include Chairman of and the Brisbane City Australia’s best cultural boulevard Barambah Wines Pty Council Business Advisory • committing to providing new quality open space as a result Ltd, Deputy Chairman Board. of the ABC development; and of Queensland Rugby • development of the contemporary terrace houses in the SW1 Union Ltd, Director of The development as a means to continue the connectivity Centre for Independent between West End and the South Bank precinct. Studies and Trustee of the University of Queensland Rugby Union Foundation.
22 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Stefan Ackerie Eleanor Davidson Tim Quinn David Ford Board Member Board Member Board Member Board Member
CEO of Stefan Corporation, Eleanor has extensive After an early career David Ford was appointed Stefan Ackerie heads experience across Banking, as a secondary school Deputy Under Treasurer up one of the largest Property Management and teacher and as the Queensland Treasury in hairdressing companies in Tourism and Hospitality. Assistant Secretary August 2005, following a the world with 50 salons She is the 2006/07 of the Queensland period as Deputy Director- and 500 employees. He is recipient of the Telstra Association of Teachers General in the Department also the owner of Jo Jo’s, Queensland Corporate in Independent Schools, of Tourism, Fair Trading one of Brisbane’s famous Sector Business Woman of Tim Quinn served as an and Wine Industry restaurants. the Year and is the Telstra elected representative on Development and a decade Queensland Business Brisbane City Council for as Executive Director of Stefan was instrumental Woman of the Year. nineteen years. His Council the Queensland Office of in one of the first training responsibilities were as Gaming Regulation within strategic alliances with South Eleanor is the General Ward Councillor for Queensland Treasury. He Bank Tafe which is often Manager Operations for the Inner Southside, was the 2006 Chair of the used as a role model to Meridien Student Living. Chair of Urban Planning International Association of other private enterprises. He She was awarded the Committee, Deputy Mayor Gaming Regulators (IAGR) was awarded an Australian centenary medal for and Lord Mayor. His and is an Associate Fellow Medal to commemorate the services rendered to the interests are in the areas of the Australian Institute Centenary of Federation of tourism and hospitality of community development of Management and a Australia. Stefan was also industry. Eleanor is a and land use planning. member of the Institute selected as a finalist in the member of the Queensland of Public Administration 2004 Australian of the Premier’s Round Table. of Australia. Year Awards.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 23 Michael Papageorgiou Ken Smith Board Member Board Member
Michael Papageorgiou was SEQROC Councils on the Ken Smith was appointed Ken is a Fellow of the appointed to the position development of the new as Director-General of Australian College of of Manager City Planning SEQ Regional Plan, and the Department of the Educators and Adjunct with Brisbane City Council in the SEQ Scenic Amenity Premier and Cabinet in Professor of Education August 2004, after an Project, a two-year project September 2007. at the University of eight-year appointment undertaken jointly by Prior to this appointment, Queensland, Griffith as the Gold Coast City SEQROC and the State he served as Coordinator- University and University Council’s Manager Strategic Government. He holds a General and Director- of Sydney and has and Environmental Planning. BA (Hons) from Monash General of the Department previously held the position University and a Master of of Infrastructure, formed of Adjunct Professor in in January 2007. From the School of Social Work Michael chairs the SEQROC Urban Planning from the November 2008, Ken was and Social Policy at the Planning Working Group, University of Melbourne. providing advice to the also appointed Chair of the University of Queensland. Australia and New Zealand School of Government (ANZSOG).
24 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Toni Thornton Michael Power Michael Keniger Board Member Board Member Board Member
Toni is the State Manager Michael Power is an Michael Keniger is the a key contributor to many Queensland and Executive engineer with over 30 Deputy Vice-Chancellor significant architectural Director at investment bank years experience in the (Academic) of the and urban design projects, Goldman Sachs JBWere. civil engineering University of Queensland. including the Sydney She was appointed to the construction industry. He also holds the position and other Olympic sites, Corporation Board in May of Queensland Government National Museum, National He founded The BMD 2008 and is also a Board Architect with a specific Gallery, Queensland Gallery Group, with his wife Denise, member of the Gallipoli responsibility to advise of Modern Art, and State in 1979 and the company Research Foundation. on projects of major Library extension, and South has grown to become significance. Bank Corporation (inaugural a successful Australian chair of Design Advisory construction, design and Recipient of the Queensland Panel, from 1997 to 1999, property investment Board of Architects’ then from 2003 to 2004). organisation employing Architect of the Year award over 600 people. in 1998, Michael has been
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 25 Our Executive Management Team
Malcolm Snow Chief Executive Officer General Manager, Commercial
Malcolm Snow was City of Melbourne. Malcolm This role was created in March 2009, and was appointed on appointed as Chief was one of the inaugural 1 July 2009. The role oversees and manages the following: Executive Officer of South recipients of the Australia Bank Corporation in Award for Urban Design. • Financial management 2005. Malcolm is one of He is a non executive • Corporate governance Australia’s leading urban Director of the Queensland • Government reporting planners and business Maritime Museum a • Human Resources leaders. He has extensive Queensland Government • Payroll international experience in representative on the • Information Technology both the private and public Urban Futures Brisbane • Records management sectors. Prior to joining The Board and is the chairman • Organisational development South Bank Corporation, of the Place Leaders • Insurance/risk management he held the position of Association. • Workplace health and safety Head of Design for the • Brisbane Convention & Exhibition Centre
26 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Paul Herd Susie Johnson General Manager, Planning and Projects General Manager, Marketing
Appointed in August 2007. Bank Corporation, Paul was Appointed in November to Brisbane in 2008 and Paul is responsible for the Executive Director of 2008. Susie is responsible joining the Corporation, overseeing the planning Strategic Development in for overseeing the Susie was Head of and projects team to the Queensland Department marketing, events and Communications for a ensure that all major of Infrastructure. Paul corporate affairs teams. European property services development projects are has a Bachelor of Arts, a She also advises the CEO firm in London. delivered effectively across Bachelor of Applied Science and executive team on our 42 hectare precinct. in Construction Management reputation, stakeholder Key responsibilities: His team is responsible (Hons) and Graduate and issues management. • Sponsorship for the future planning Certificate in Finance. Following her graduation • Events of the precinct including from her Master of Key responsibilities: • Marketing and promotion The Parklands, Little Business degree at QUT in • Corporate Affairs Stanley Street and Grey • Project management 2002, Susie relocated to • Stakeholder and issues Street. Paul has extensive • Urban planning, design London for several years, management experience in a wide range • Cultural planning/ where she worked in • Public Relations of project development and public art various senior marketing • Visitor Services community consultation • Special projects and communications roles • Business Development roles in both the private and • Development coordination within the property sector public sectors. Prior to his • Sustainability across the UK and Europe. appointment to the South Prior to relocating back
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 27 Sheila Rodriguez General Manager Assets and Operations
Appointed in May 1994. Key responsibilities: South Bank Corporation Sheila is responsible for underwent a restructure in managing our operational • Asset management March, 2009, reflecting our strategy and performance • Maintenance new direction and including maintenance, • Capital Works Program business strategy. asset management, • Contract management: horticulture, cleaning and cleaning, security and The Corporate Services security. She is responsible lifesaving and Commercial Division for ensuring that our asset • Utilities management merged into a single new portfolio is maintained to • Crisis management division called Corporate the highest levels. Sheila • Horticulture and Commercial, and a was educated in the USA Marketing Division was where she completed a established, absorbing Masters degree at George some functionalities from Washington University. the former Commercial Prior to joining the Division, including Corporation in 1994, Sponsorship, Visitor Sheila acquired a wealth Services, Marketing and of experience in tourism Promotion and Events. and hospitality with The division also includes Hilton International. Corporate Affairs.
28 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART TWO 02
Operational Performance
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 29 Our Customers
With such a diverse set of skills required to deliver operational excellence, we understand that our internal and external relationships are vital to our success. Whether our employees work as horticulture, finance, events or retail experts, there is one common thread; we all have an underlying passion for improving our operational performance to become world-class.
Adding Value to our Customers
We understand that our customers play a vital role in our business success. We strive to deliver service excellence to our customers, who are passionate business owners. We focus on a value added approach with both our new and existing customers.
We strive to provide high quality places and services for our retailers. We place great value on customer relationships and understand that in a changing marketplace, we need to understand their needs. As part of a new customer relationship management program, we regularly meet with our customers across the Parklands, Little Stanley Street and Grey Street to discuss any issues and place improvements.
30 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Customers
Improving the Retail Mix We also developed a new campaign to activate Stanley Street Plaza, allowing food and beverage operators to submit This year, we focused on enhancing the retail mix on Little expressions of interest for up to five retail opportunities within Stanley Street and Grey Street to provide our visitors with a the precinct. This was advertised on the South Bank Corporation greater selection of alfresco dining and shopping experiences. website, in Brisbane News and The Courier-Mail.
We attracted six new businesses to Little Stanley Street and Within the next financial year, Stanley Street Plaza will become Grey Street including: a vibrant al fresco dining precinct with direct access to Streets Beach, and will be unlike any other destination in Brisbane. Fifth Element: a wine and tapas restaurant offering one of Australia’s most extensive ranges of wine by the glass. Fifth element is located on Little Stanley Street. Engaging with our Customers
Lylah: a boutique on Little Stanley Street which stocks new We strive to engage with our customers on marketing season fashion from a superior selection of designers, including opportunities and destination related initiatives and as such, Zambesi, Nom d, Deadly Ponies, DL & Co. Lylah is Brisbane’s inject considerable resources into developing proactive only stockist of C’N’C Costume National. communications with our customers.
MySweetopia: an exquisite cupcake and dessert restaurant In 2008-09, we launched a new online bi-weekly communication which is also home to petite fours, truffles and handmade to retailers, specifically to inform them about marketing chocolates, located on Grey Street. opportunities and campaigns across the Parklands, Little Stanley Street and Grey Street. Steam Café Xpress: a cafe featuring quality coffee, dessert and light meals on Grey Street. A new, interactive and distinctly Queensland designed corporate website was launched in early 2009 as part of our commitment La Via: an Italian restaurant, particularly renowned for its pizza, to improving our communications with customers and partners. Italian wines, and beers. Located on Little Stanley Street. We also launched a series of new digital communications tools Beastie Burgers: serves up gourmet burgers and healthy to our stakeholders to ensure that all residents and employees salads, located on Little Stanley Street. across the precinct know what is happening on a regular basis. These bulletins have been very well received, read by 64 percent of recipients. We will continue to expand on our suite of communications in the future.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 31 Retailer Participation Building Successful Businesses
Our retailers were given the opportunity to participate in our Throughout the year, retail sales across our three destinations inaugural Regional Flavours event via our electronic news remained strong. Our constant visitor numbers and new service. The Point Restaurant and Bar and the Plough Inn hosted authentic retailers, who continue to improve their offer year cooking classes alongside celebrity chef Peter Howard, while on year, contributed to the ongoing success of our overall Mysweetopia served up an array of delicious cup cakes and financial success. coffee to the thousands of visitors who attended. Our retailers continue to deliver great customer service and high quality experiences for all visitors to the precinct and we will continue to work with them to strengthen our relationship and listen to their feedback to improve the visitor experience.
The Parklands Moving Annual Turnover (MAT) increased by five Wow! What a fantastic event. percent, confirming an increase in visitation throughout the Customers we had never met before also year. The addition of six new retailers in Little Stanley Street visited our store on Grey Street, so there resulted in an increase in MAT by up to nine percent. were flow on benefits to our business as a The Parklands continued to be an attractive destination for result of taking part in this event. We were many businesses with vacancy rates decreasing by eight percent running back and forth from the shop all compared to 2007-08. Our retail and property team fully leased Little Stanley Street, resulting in a combined vacancy rate of day to keep up with the demand and went just four percent. through nearly 60 litres of milk. Overall, the Corporation achieved an annual increase in revenue Victor Chang, Owner, MySweetopia of five percent.
32 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Visitors
South Bank strives to create high quality and meaningful fashion, accessories and homewares at markets and events experiences for millions of visitors each year. There is no other such as the South Bank Young Designers Market, the kids place in the world like South Bank. Mums and Bubs Market, and Regional Flavours • to shop at speciality retailers and dine at restaurants on Our Unique Offer Little Stanley Street and Grey Street; and • to experience the Gallery of Modern Art, Queensland Art The people of Brisbane are proud of our precinct, which is Gallery, State Library of Queensland, Queensland Museum, unlike any other lifestyle destination in the world. South Bank Queensland Performing Arts Centre and Queensland is the epicentre of arts, culture, education, business and leisure Maritime Museum. in Brisbane and its elements typify the enviable Queensland lifestyle. South Bank Corporation plays an important role in Visitor Feedback building Brisbane’s reputation as a major Australian tourist We are committed to improving our offer, and our visitor destination. The Corporation is committed to working with local, experiences at South Bank. The Corporation continues to interstate and international partners to ensure that we see implement the Australian Standard ISO:10002 for complaints not only an increase in our visitor numbers each year, but an handling. We collate and respond to all enquiries, complaints improvement on the quality of the experiences we create. and suggestions. We use the feedback provided by our visitors We will carry out new research in the next reporting period to improve our service. to support our marketing and communications initiatives. Our We received 285 complaints during the year, with a variety current research indicates that visitors come to South Bank to of feedback relating issues including: fulfil a wide range of activities and desires, including: • Noise • to cycle, walk and exercise throughout the Parklands, • Ibis (birds) in the Parklands including along the Brisbane River on Clem Jones Promenade • Car parking prices and at free exercise events such as the Vaalia Yoghurt Feel • Development proposals Good program • to swim at Streets Beach, the Boat Pool and Aquativity, which together make South Bank home to Brisbane’s largest free public swimming pools • to discover something new, unique and locally created
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 33 South Bank Visitor Centre: A snapshot
The South Bank Visitor Centre (SBVC) is the only service centre of its kind on the south side of the Brisbane River. Our Visitor Centre operates 365 days per year, and assists more than 2200 enquiries per week, in person, by phone, via fax and email.
The Centre creates awareness of the facilities and services throughout the South Bank precinct by providing tourism information about our precinct as well as other south east Queensland destinations. As a profitable sales centre and authorised Ticketek and QTIX agent, the visitor centre adds significant value to the visitor experience.
The Centre expanded on its Volunteer Program during the year, which is open to the people of Brisbane, who promote our authentic destination and provide information to visitors at major events. Twenty new volunteers joined the Corporation team throughout the year.
I’m studying a Master of Business (Marketing) at the moment, and the South Bank Volunteer Program is a great opportunity for me to gain experience in meeting new people and to improve my communication and customer service skills at the same time.
Nikki Zhang, Volunteer, May 2009
34 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Places
There is no other place like South Bank in the world. As part of our commitment to evolve the precinct into a worldclass destination, our team is focused on delivering quality and meaningful experiences for our visitors.
The Parklands Riverside Green Wheel of Brisbane QPAC Lawn Riverside Green received The Wheel of Brisbane Water features on QPAC The Parklands is Brisbane’s a makeover as part of opened in September 2008. Lawn were decommissioned urban oasis; a place which a refurbishment project The Wheel is 60 metres and returned to lawn space. provides an escape from which started in May 2009. in height and weighs in hectic city life. It is a place The project involved at 350 tonnes. The Wheel Car Park where visitors can take an Australian first: the takes guests on a 12 to New signage was installed time out, relax and enjoy installation of a unisex 15 minute ride in a fully to clearly communicate the wonderful natural changing room for disabled enclosed climate controlled parking rates and offers. setting, right in the heart of visitors. We relocated the gondola bringing visitors a Next year, the floors of the the CBD. restrooms and enhanced 360 degree panoramic view car park will be resurfaced the landscaping to create of Brisbane City. We made a number of and new pay machines will new space. We also improvements to the be scoped. installed brand new BBQs As part of the installation, Parklands this year, for visitors to enjoy along the Corporation refurbished Nepalese Pagoda including: the riverfront. and upgraded the lighting We completed upgrades to of the Flag Court Fountains, Rainforest Green install low energy lighting Streets Beach and returned these features Rainforest Green and we worked with the The Corporation completed to service. underwent a makeover, Nepalese consulate to minor works to Streets with the construction of a replace ornamental skirting Beach in June 2009, with Arbour View and new performing arts stage on the roof. the works including an Central Cafes that can also be used for upgrade of the bridge Water features were platform seating. decking between the Beach refurbished and returned and Aquativity. to service.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 35 Central Cafes and ABC Relocation synergies for arts and designs to the public in late Arbour View Cafes Queensland Premier Anna educational institutions at 2009. Leighton Contractors In addition to all of these Bligh announced the new South Bank. will be developing the works, over 80 additional Brisbane headquarters for headquarters with Richard The ABC relocation resulted Ibis-proof bins were the Australian Broadcasting Kirk Architects appointed to in the activation of a new distributed throughout Corporation will be in the complete the design. heart of South Bank in green space strategy for the Parklands, particularly South Bank Corporation, around dining areas to help November 2008. Boardwalk which will result in more Plans for a major discourage the native birds The ABC radio, television green and open space for transformation to the from scavenging. and online facilities will the public to enjoy in the Boardwalk site in the relocate to a site at the precinct. The Corporation Parklands precinct were Parkland Projects corner of Grey and Russell made a public commitment announced in January 2009 Streets, between the to replace any green space We announced some as part of our open space Queensland Performing lost as a result of the ABC significant projects this strategy. This project will Arts Centre and Griffith development elsewhere in year which will transform deliver new high quality University’s Queensland the Parklands precinct. the Parklands precinct and open space and will be the Conservatorium of Music. which will contribute to Concept Design planning most significant change our vision of creating a The move offers long-term for ABC is underway and to the Parklands design world-class destination. creative and commercial we expect to be unveiling in more than ten years.
36 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 The project will provide a waterfront café and Stormwater Parklands, which will the Brisbane community restaurant dining precinct. Harvesting Project provide an alternative with 70 metres of prime We expanded on our water supply source for Planning has continued parklands in the heart of sustainable environmental the maintenance of the on the Boardwalk initiatives throughout the the city and a significantly precinct. smaller area of commercial redevelopment project year by continuing our development than what with amendments to the plan to install a two million We expect to begin works is currently allowed in our Corporation’s Approved litre underground water on this project in 2010 Development Plan, to storage facility; a project Approved Development Plan further details about the reflect the increase in open that will reduce our reliance (ADP). design of the project will space, anticipated in the on potable and purchased be available to the public in The project will create new financial year. recycled water, providing early 2010. opportunities to interact 78 percent of the water The Corporation appointed we require to irrigate the with the Brisbane River and Queensland architecture Parklands. improve the connection firm Arkhefield, together between the Goodwill with landscape architects The State Government Bridge and Clem Jones Cardno S.P.L.A.T. to design committed $4.6 million Promenade. It will also the new Boardwalk project. to the Corporation to feature an interactive implement this extensive children’s playground and system throughout the
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 37 Little Stanley The Corporation in Keeping the street clean Street partnership with our Four new general waste retailers made a number of bins and three additional As one of Brisbane’s improvements to enhance recycle bins were installed best dining and shopping the look and vibrancy of the on Little Stanley Street. streets, Little Stanley street this year including: Street encapsulates the Adding vibrancy energy of our people in Improving our street All of our retailers brought We made improvements to an authentic and their business out into kerbsides by widening contemporary setting. the street, significantly the footpaths to improve enhancing the vibrancy and A place which is infused accessibility for our visitors. romantic al fresco mood. with chance discoveries. Creating new A place where people quality spaces come over to celebrate our Three new ‘street seats’ unique outdoor lifestyle. were installed underneath Little Stanley Street is a fig trees along Little celebration of ‘street life’ in Stanley Street, providing Brisbane. new high quality and shady places for visitors to enjoy.
38 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Grey Street We announced some this project will also include The expansion will be significant projects this year an upgrade of one of launched in 2011. It will In a world where time is which will contribute to the South Bank Railway add five levels of boutique in short supply, and where our goal to transform Grey Station platforms and a meetings and event space people are looking for Street into Australia’s great 16 storey plus two-storey to the existing Centre, meaningful and rewarding cultural boulevard. podium, commercial and including two levels urban experiences, Grey retail spaces, a 130 room dedicated to meetings and Southpoint Development Street stands apart on boutique hotel, up to 56 conventions, representing The Corporation received Brisbane’s leisure and residential apartments, 50 percent increase in Approved Development Plan commercial landscape as a supermarket and the centre’s convention amendment approval for the true hub of the city’s childcare facilities. facilities. The expansion the $650 million Southpoint creative, leisure and The development aims will create 4000 full development in mid 2008. retail experiences. for a 5 Star Green Star time equivalent jobs Due to the economic and a 4.5 Star Australian over the first 15 years of The improvements we climate, the construction of Building Greenhouse rating. operation including the made to Grey Street this Southpoint is expected to construction period and year include: begin in 2011. BCEC on Grey Street Expansion will contribute significantly Improving the street This project incorporates Early site preparation towards our Grey Street We installed seven new the heritage listed building works were completed on activation plans. general waste bins and Collins Place and will herald the Brisbane Convention & one recycle bin to improve the start of a new chapter Exhibition Centre on Grey the look of the street and in the history of South Street expansion site, and improve our recycling Bank. Located at the corner foundations began to be laid capabilities. of Grey and Vulture Streets, toward the end of the year.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 39 40 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART THREE 03
Social Performance
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 41 Our People
The Corporation is committed to the wellbeing of our employees. Our programs and policies are created to support employees with work-life balance, a safe and inclusive work environment and opportunities for personal and professional development. We strive to openly communicate with our employees and it is our goal to become a recognised ‘Employer of Choice’ by 2011.
To achieve this we developed a series of initiatives this year, to engage with our employees and encourage open communication between all levels of staff in order to recognise and reward performance excellence.
Improving our Communications
We launched a monthly ‘Breakfast with the CEO’ event in February 2009 to provide each employee with the opportunity to meet and give feedback to the CEO in a small and intimate setting. During the reporting period, 24 employees attended Breakfast with the CEO and many improvements were made as a result of employee feedback.
We also launched a new suite of communications tools to engage and seek feedback from our employees including:
PeopleSpace: A human resources based bulletin that offers training opportunities, welcomes and farewells staff, and advertises any internal positions that may be vacant. Each PeopleSpace bulletin is read by approximately 67 staff members on average.
42 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 OpenSpace: A monthly bulletin filled with news and updates Being a Great Employer for employees as well as reviews and stories written by our employees. OpenSpace is opened on average by 51 recipients. As part of our commitment to our people, we offer a series of benefits including flexible working to ensure a good work life Suggestions Box: An employee suggestions box was created balance is achieved. to enable employees to submit feedback. All suggestions were reviewed by the Executive Management Team and posted on the This year we maintained our strategy of attracting and intranet with a response. retaining the very best employees – people who have a personal passion for excellence and the drive and enthusiasm Intranet: Our intranet acts as an information base for our to improve our services, our business and themselves. employees, encourages collaboration on issues that affect all We invested heavily in developing the skills of our team staff, and provides further opportunity for employees to provide through learning and development. feedback to the Corporation. Staff safety and wellbeing was improved with a very successful employee health program offering several benefits, ranging from free skin checks and flu vaccinations to the provision of fresh fruit and police safety seminars.
Each month I write an article for OpenSpace, featuring the plants, trees and flowers that are in bloom. I really enjoy sharing a part of my job with other employees who may be less familiar with what we do, and the many amazing species of plants found right here at South Bank.
Josh Lawrence, Horticulturalist
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 43 Great Place to Work
In the reporting period, the Corporation carried out a Great Places to Work Survey. The survey was completed by 64 employees, with 84 percent of respondents agreeing with the statement, “Taking everything into account, I would say that this is a great place to work.”
While responses to the survey were very successful, the Corporation has identified opportunities for improvement and is committed to becoming an official ‘Employer of Choice’ by 2011. We will do this by investing in a series of new systems and processes, including the development of a new, interactive intranet that will better foster cross-team working and communication.
Women in the Workforce
During the reporting period, our 53.16 percent of our employee base was made up of women (exclusive of casual and contract staff), with 41.6 percent of these women in senior executive or senior leadership roles.
44 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 My Journey
E-DRMS I grew up in East Germany, and moved The Corporation’s electronic Document and Records to Frankfurt when I Management System (e-DRMS) – TRIM was fully implemented finished school, and across the organisation as of January 2009. This system worked for two of provides a corporate framework for the electronic creation, Germany’s largest capture, registration, classification, use, storage, disposal insurance companies and retention of documents and records in accordance with for two years. I moved legislative requirements, standards and best practice. to Brisbane in 2005, and after a long immigration process, I am now settled in and really enjoy the Australian way of life. Migrant Work Experience Program One of my neighbours told me about The Queensland Migrant This year, we introduced a migrant work experience program, Work Experience program which is a joint initiative of TAFE which is an initiative of TAFE and the Queensland Government, and the Queensland Government, which aims to increase the with the goal of increasing the participation rate of migrants participation rate of migrants in the public service. I was given in the public service in companies such as ours. Through this the opportunity to join South Bank Corporation for a period initiative, we welcomed a new team member. of six weeks. During my placement, a full time role became available as Property Administration Assistant. I applied for the role in May and was successful.
I now work in the Retail and Property Management team and look forward to a great future here at South Bank Corporation and am aiming to build my career here, and I have made many good friends all along the way. I particularly find it’s the people and the location that makes working here special.
Annika Klapproth, South Bank Corporation employee
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 45 Our Communities
This year, South Bank was named Queensland’s sixth most iconic destination in a state-wide Q150 poll. Our team will continue to support our community, local businesses, emerging artists and cultural activities.
Business South Bank
The Corporation continued to support Business South Bank which celebrated its 10th Anniversary in June. Business South Bank creates endless opportunities for employees and businesses in the precinct to collaborate with one another and improve the overall precinct. Business South Bank is the ‘voice’ of the precinct, commenting on issues including the Kurilpa Structure Plan, the ABC relocation, Melbourne and Grey Street Intersection and Queensland Children’s Hospital.
46 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Our Corporate Partners
Suncorp continued its support of the Suncorp Piazza and approval to distribute magazines to visitors at this event. Suncorp Superscreen throughout the year. Suncorp received benefits including naming rights recognition, which included Each sponsor and partner is recognised in any media, marketing logos on all maps, the Piazza and Superscreen. We created and communications initiative regarding the event or initiative. opportunities for Suncorp Superscreen ‘moments’ throughout the year, during key events such as New Year’s Eve, Australia Building Strong Communities Day and BMD Beach Movie Daze. At South Bank Corporation, we’re committed to excellence and Streets continued its support of the precinct extending creativity. We strongly advocate Queensland made products its naming rights sponsorship of Streets Beach, as well as and local businesses. Last year, we hosted and facilitated more sponsoring the Streets New Year’s Eve Party. than 150 events across the precinct. Our team developed We screened TVCs for Streets at major events including New and produced up to 40 of these events, supporting the local Year’s Eve and BMD Beach Movie Daze. We also provided community and providing a platform to showcase emerging promotional and mobile vending opportunities, exclusive to artists, local businesses and local tourism initiatives. Streets Beach. We aim to build stronger and healthier communities through NRMA Insurance supported the Corporation with the third our strategic social investments. We focus upon education, annual NRMA Insurance Dancing in the Street event which took cultural experience and healthy lifestyles. With an emphasis on place in July. As a result, NRMA Insurance received naming positive social activity, together with our precinct partners we rights and logo recognition and obligations for Dancing in strive to build better, stronger and more resilient communities the Street. across Queensland.
We also continued to develop initiatives with key partners This year, we continued our collaboration with the Southbank including the Queensland Government, BMD, Parmalat Vaalia, Institute of Technology, by sponsoring the South Bank ourbrisbane.com, The Courier-Mail, Channel Nine and 97.3FM. Corporation Outstanding Student Award, which recognises Each of these partners received signage and logo recognition outstanding achievement in students studying the event and obligations throughout the Parklands or related precinct management course at the Institute. During the reporting during applicable events. period, Kyliee Jewelle won this award, receiving a $500 grant towards professional development courses. Kylie also received a In addition, bMag joined the Corporation as a media partner framed award. of South Bank’s Regional Flavours. In return, bMag received opportunities to display signage for logo recognition, and the
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 47 In addition, we partnered with Opera Queensland to host the Streets New Year’s Eve Party: Brisbane’s biggest New inaugural Sunset Opera, a free event welcoming the community Year’s Eve celebration welcomed more than 80000 people to to enjoy a relaxed evening of popular operatic and musical the precinct in 2008. In its 17th year, the event included live theatre arias. music, an all-ages dance party, free movies, and a Fantastical Fairground. The event culminated in two spectacular We also continued our partnership with Griffith University fireworks displays. Queensland Conservatorium of Music with Jazz Café, where musicians (including staff and students) from the Australia Day Celebrations in association with the Conservatorium play a series of classic and contemporary jazz Queensland Government: The Queensland Government pieces to a wide audience, with something for everyone once a hosted an extraordinary day of celebrations that attracted more month, on Fridays. than 80000 people to the precinct. The celebrations included an Australia Day Concert a fireworks display, a Big Top circus stage, South Bank’s Young Designers Market: The South Bank international dance and music performances in the Suncorp Young Designers Market provides a new generation of emerging, Piazza, a multi-faith ceremony, a flag raising ceremony and talented designers to engage with their customers, helping roving entertainment. establish their brand and career without expensive overheads. For our visitors, the market provides a rare opportunity to NRMA Insurance Dancing in the Street: Little Stanley discover unique, affordable designer clothing that is made right Street became home to Brisbane’s biggest street party in July, here in Queensland. The market proved a success, and in May 2008 when more than 10000 people came together on Little a bigger, brighter program was launched, seeing the event take Stanley Street for an evening of dance, music and interactive place on the first Sunday of each month on Little Stanley Street. demonstrations with professional instructors and talented dancers. Christmas Around the World: In 2008, our Christmas celebrations took place over three days, and included live Vaalia Yoghurt Feel Good Program: Is a free exercise concerts, pantomimes, fireworks, a Fantastical Fairground, a program featuring yoga and aqua aerobics hosted by free outdoor cinema, Little Elf Workshops with craft and musical professional instructors. This program was extremely popular, activities, as well as appearances from Santa Claus, and a and attracted hundreds of inner city workers and locals of all Christmas concert series featuring the Boogie Woogies and the ages to each class. The Vaalia Yoghurt Feel Good Program Queensland Youth Choir. is a part of our commitment to encourage fit, healthy and active lifestyles, restoring work-life balance and encouraging community engagement.
48 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 South Bank’s Regional Flavours: In 2009, South Bank hosted the inaugural South Bank’s Regional Flavours event as part of Queensland Week and in support of the local community, local business and regional tourism.
The event was more than a market; it was a celebration of the quality produce, ingredients and wine that are grown in South East Queensland, featuring more than 70 growers from regions including the Granite Belt, South Burnett, Darling Downs, Scenic Rim and Gold Coast.
The event welcomed more than 7000 Brisbane food lovers to discover a unique Queensland experience in one location while enjoying the wine and produce from more than 80 growers from regions including the Darling Downs, the South Burnett region, the Granite Belt, Scenic Rim and Gold Coast regions.
Visitors participated in wine appreciation sessions, sampled local produce, attended live cooking demonstrations by one of Australia’s best food and wine commentators and chefs, Peter Howard, while also discovering the best fresh produce, meats and poultry, wine, liqueur, coffee and chocolate, amidst a festival atmosphere with live music and entertainment.
The event met the sales expectations of 80 percent of stallholders, and up to 85 percent of stallholders would like to participate in the event again in 2010.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 49 Workplace Health and Safety
An annual Workplace Health and Safety Assessment was Workplace Health and Safety Training conducted in the reporting conducted over the reporting period. The assessment included period included: a system audit, an updated incident KPI report detailing the incident statistics from the previous five years, the completion of • Hazard and risk awareness the 2008-09 action plan and creation of the new 2009-10 action • Manual Handling plan. The assessment also included updating the Corporation’s • Safe working in a confined space hazard register. • Fire Warden • Risk Assessment for maintenance and horticulture employees The Corporation continued to develop and update its WHS and volunteers management system with the aim of continual improvement and • Risk management for events. to further align our WHS management system with AS4801 – Occupational health and safety management systems. We did not receive any notices from Workplace Health and Safety Queensland. There were a total of 558 incidents reported in the precinct in the reporting period. This encompasses the public, employees Safety and Security and contractors. Analysis of the incidents indicates 434 of these were minor, or negligible. The majority of incidents were related We continued to review our security systems over the year, to lifeguards assisting patrons using Streets Beach, the Boat with the goal of reducing incidents in the area and enhancing Pool and Aquativity. a customer service focus. The security team works closely with Queensland Police at all times, with regular safety and Our Workplace Health & Safety Committee met 12 times security meetings. throughout the year, and conducted 44 hazard inspections. In July 2008 the Office of Fair Trading and the Department In compliance with our Workplace Health and Safety of Justice implemented amendments to legislation relating to Online Induction for Contractors program, 106 inductions security providers. In accordance to this, all permanent security were completed. operators employed at South Bank Corporation underwent additional certification in site specific functions such as Control Room Monitoring and Crowd Control. Key Personnel were also recertified in both Certificate II and Certificate III in Security Operations.
50 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART FOUR 04
Sustainability Performance
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 51 Sustainability Performance
Over the next five years, the Corporation will continue to work Our Sustainability Journey towards becoming a leader in sustainable practices across all dimensions. We recognise the importance of sustainable This year: business practices, and it is our goal to achieve and lead the • the lighting system between the Piazza and Arbour View way by demonstrating best practice in environmental, social and Cafes was upgraded to a lighting sensor system economic sustainability. • the lights in the car park were replaced with more efficient We are committed to changing the way people work, live, lights, reducing energy consumption play and learn in more sustainable ways. Together with our • we developed tenancy fit-out guidelines for lessees on customers, partners, communities and employees, we have a Little Stanley Street to encourage the use and development unique opportunity to apply our place management expertise of sustainable products and designs throughout the planning to help us reach our individual, organisational and and fit-out process. This initiative will be expanded for environmental goals. tenancies in the Parklands precinct in the next financial year To reach this goal, we introduced a Sustainability Strategy in • we engaged EnSight, a consultancy to independently review 2006 and established a Green Team to monitor and implement the Corporation’s use of energy, waste and water. The review all initiatives. covered all aspects of our management and approach to these issues, and will be applied to a new, more robust We work to: sustainability strategy next year; and • maximise waste management and recycling opportunities • employees participated in Business Clean up Australia Day. • deliver an energy efficient audit system • identify opportunities for investment and employment creation • promote public transport use • develop public realm strategy • ensure all development and tenancy fit outs promote sustainable principles, such as the use of appropriate building materials; and • continue to engage the community about all projects at South Bank.
52 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 The Green Team
The Green Team was established in 2006, with a representative from each team from across the business. The Green Team meets each month to support the Corporation’s energy, water and waste initiatives.
Water Efficiency
This year, we continued to work to improve our Water Efficiency Management Plan, which was developed in 2001. Since its inception, we have reduced the water consumption by approximately 81 percent across the precinct.
We are committed to responsible water use, and will begin development on a stormwater harvesting project next year which will provide an alternative supply of water to maintain the precinct, and is expected to meet more than 78 percent of our irrigation requirements.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 53 54 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09
PART FIVE 05
Corporate Governance
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 55 Corporate Governance
South Bank Corporation is a Statutory Corporation established Board Meetings by the Queensland Parliament under the South Bank Corporation Act 1989. The Board meets every month, and met 12 times in the reporting period. The Chairman and the Chief Executive Officer Our Board of Directors are responsible for the corporate liaise ahead of each meeting, to discuss current issues facing governance of the organisation and are accountable to our the Corporation as well as the meeting agenda, which includes: shareholding minister for the Corporation’s performance. • monthly reports on non-financial performance Corporate governance at South Bank Corporation encompasses • major projects a number of functions, including authority, accountabilities, • retail, commercial and business milestones risk management, leadership, performance monitoring and • strategic planning and updates; and internal control systems. Our Board recognises the importance • monthly financial performance reports. of applying effective corporate governance practices and is committed to a high level of integrity throughout its operations. Appointment: The Board is appointed by the Department of Premier and Cabinet. South Bank Corporation has a Corporate Governance Manual which includes Guidelines for Members Potential Conflicts of Directors must adhere to South Bank Corporation’s Policies Interest and Charters for each of the Audit and Remuneration on Disclosure and Conflicts of Interest and the Code of Conduct, Committees and are therefore required to disclose potential or actual conflicts of interest as soon as they arise. The Board must also comply with obligations regarding disclosure and conflicts of Board of Directors interest imposed upon them in the South Bank Corporation Act Details of our Board, including their term of office as well as 1989. This is the first agenda item at each meeting. If a conflict their skills, experience and expertise are outlined on pages 22 of interest arises, the director in question will not participate in to 24 of this report. any discussion or decision regarding the matter in question, and in some circumstances will not be present during any discussion and/or decision of the Board in relation to the issue where a conflict of interest has arisen.
Member Benefits
Throughout the reporting period, no board member received or became entitled to receive any benefit other than as is noted in the Financial Statements section of this report.
56 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Audit Committee Remuneration Committee
The South Bank Corporation Audit Committee provides advice The Remuneration Committee reviews changes to remuneration to Board Members to assist in the effective discharge of the policy, the performance and remuneration of the Chief Executive responsibilities prescribed in the South Bank Corporation Act Officer and reviewing the CEO’s report on remuneration of 1989, Financial Administration and Audit Act 1977, the Financial members of the Executive Management Team. It comprises Management Standard 1997 and other relevant legislation and Michael Power (Chairman), Steve Wilson, Eleanor Davidson prescribed requirements. and Stefan Ackerie. The Committee met twice over the reporting period. The South Bank Corporation Audit Committee: • advises on internal control processes, including business Code of Conduct and Ethical Standards risk and appropriate standards for the management of the Corporation The Corporation’s Code of Conduct sets out the behavioural • ensures the quality and reliability of the financial information standards for each Board member, manager and employee of prepared, working in conjunction with both internal and the Corporation. A copy of the code has been given to each external auditors; and employee of the Corporation and is included in the induction • reviews and confirms that all services provided by auditors package for all new employees. are consistent with maintaining audit independence. The Code promotes and outlines the core ethical principles The committee met two times over the reporting period. of respect for the law and system of government, respect for The members of the Audit Committee include: Graham persons, integrity, diligence, economy and efficiency. Carpenter (Chairman), David Ford, Toni Thornton. The Code also covers consultants and members of boards, Internal and external auditors, the Chief Executive Officer, the reviews, advisory panels and selection committees where Chief Financial Officer and others are invited to meetings at the they use the Corporation resources or have access to discretion of the Committee. official information. The Corporation’s administrative procedures and management practices are carried out with proper regard to the Code of Conduct and the Public Sector Ethics Act 1994.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 57 Crisis Management Keeping our Visitors Safe
The Crisis Management and Recovery Manual was reviewed Under Section 91 of the South Bank Corporation Act 1989, the in 2009. All crisis team members underwent training on the Corporation is required to report on the number of exclusion crisis management process and reviewed responsibilities and directions issued as a result of disorderly conduct, drunkenness processes on a monthly basis. or creating a disturbance during the reporting period.
For the year ending 30 June 2009, there were 400 exclusion Consultants directions given, a decrease from the last financial year when 416 exclusion directions were given. Below is a summary of the payments made to consultants during the reporting period: The breakdown of exclusionary offences for the year is as follows: Description Payments $’000 Disorderly conduct: 325 Legal 576 Drunkenness: 27 Creating a disturbance: 48. Professional and technical 4,598 Communication 258 Of these exclusions, 189 related to minors aged 16 years Finance and accounting 204 or younger. This is in increase on the 2008 figure of 129. Management - No applications for review of any exclusion directions were Human Resource management 76 made and no exclusion directions were set aside. Information Technology 71
Total: 5,783 Freedom of Information The Freedom of Information Act 1992 enabled the public to access documents held by the Corporation. In turn, we make as much information available to the public as possible.
We received one Freedom of Information request in the reporting period, regarding the relocation of the ABC to South Bank.
58 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 Risk Management and Insurance Whistleblowers Protection
We maintain a business risk register as part of our risk Under the Whistleblowers Protection Act 1994, we are required management process. The register is used to ensure that all to report to Parliament on our administration of the Act. There internal controls, including fraud and corruption prevention were no matters required to be disclosed for public interest over and other risk mitigation strategies are considered in the the reporting period. preparation of internal audit strategies.
The Corporation insures with the Queensland Government Overseas Travel Insurance Fund against insurable liabilities and losses that There was no overseas travel was undertaken by South Bank would materially affect its operations and assets. Corporation employees in this year.
Special Facilities Liquor Licence
The Corporation holds a Special Facilities Licence from the Office of Liquor, Gaming and Racing. This licence is often referred to as an ‘umbrella’ licence as it can be used to cover a range of different types of liquor outlets, for example, hotels, bars, restaurants and convention centres, as is the case in South Bank. A Special Facility Licence is only granted in limited circumstances including in respect of “a facility that makes or is likely to make a significant contribution to the tourism development of the State.”
The majority of restaurants, cafes and bars in the Corporation Area are sublicensed for the sale of liquor under the Corporation’s Special Facilities Licence.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 59 60 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 PART SIX 06
Financial Performance
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 61 SOUTH BANK CORPORATION INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2009
Notes Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000
Income Revenue User charges 35,682 33,499 35,682 33,499 Sale of goods 19,343 19,501 19,343 19,501 Sale of development property 6,558 1,648 6,558 1,648 Interest 4,453 1,483 4,453 1,483 Other 464 817 464 817 Operating grant and other contributions 3 10,325 10,025 10,325 10,025 Gains Gain on revaluation of investment property 11 - 2,090 - 2,090 Total Income before capital project grants 76,825 69,063 76,825 69,063
Expenses Employee expenses 5 7,479 6,319 153 6,319 Supplies and services 6 44,142 42,017 51,468 42,017 Cost of goods sold 4,637 4,876 4,637 4,876 Cost of property sales 1,873 1,362 1,873 1,362 Other 203 57 203 57 Depreciation 10 15,206 14,338 15,206 14,338 Borrowing costs 2,045 2,171 2,045 2,171 Losses Loss on revaluation of investment property 11 2,000 - 2,000 - Loss on disposal of plant and equipment 1,193 222 1,193 222 78,778 71,362 78,778 71,362 Total Expenses
Surplus (Deficit) before capital project grants (1,953 ) (2,299 ) (1,953 ) (2,299 ) Capital project grants received 3 78,870 26,730 78,870 26,730 Operating Surplus 76,917 24,431 76,917 24,431
The above statement should be read in conjunction with the accompanying notes.
62 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION BALANCE SHEET AS AT 30 JUNE 2009
Notes Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 Current assets Cash and cash equivalents 7 129,415 44,964 129,243 44,964 Receivables 8 7,491 2,127 7,491 2,127 Prepayments and deposits 1,395 442 1,395 442 Inventories 326 364 326 364 Development property 9 3,190 3,187 3,190 3,187 Total current assets 141,817 51,084 141,645 51,084
Non-current assets Development property 9 5,472 5,359 5,472 5,359 Property, plant and equipment 10 454,713 481,498 454,713 481,498 Investment property 11 51,000 53,000 51,000 53,000 Total non-current assets 511,185 539,857 511,185 539,857 Total assets 653,002 590,941 652,830 590,941 Current liabilities Payables 12 9,624 10,677 10,272 10,677 Accrued employee benefits 13 704 642 - 642 Other financial liabilities 14 3,177 3,177 3,177 3,177 Other 15 17,625 9,689 17,625 9,689 Total current liabilities 31,130 24,185 31,074 24,185 Non-current liabilities Payables 12 548 518 548 518 Accrued employee benefits 13 116 122 - 122 Other financial liabilities 14 28,667 31,384 28,667 31,384 Total non-current liabilities 29,331 32,024 29,215 32,024 Total liabilities 60,461 56,209 60,289 56,209 Net assets 592,541 534,732 592,541 534,732 Equity Retained surpluses 296,783 219,866 296,783 219,866 Asset revaluation reserve 16 295,758 314,866 295,758 314,866 Total equity 592,541 534,732 592,541 534,732
The above statement should be read in conjunction with the accompanying notes. SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 63 SOUTH BANK CORPORATION STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Retained Surpluses Asset Revaluation Reserve (note 16) 2009 2008 2009 2008 $’000 $’000 $’000 $’000
Balance 1 July 219,866 195,435 314,866 261,841 Net surplus for the year 76,917 24,431 - - Increase in valuation of property, plant and equipment - - (19,108 ) 53,025
Balance 30 June 296,783 219,866 295,758 314,866
South Bank Corporation Retained Surpluses Asset Revaluation Reserve (note 16) 2009 2008 2009 2008 $’000 $’000 $’000 $’000
Balance 1 July 219,866 195,435 314,866 261,841 Net surplus for the year 76,917 24,431 - - Increase in valuation of property, plant and equipment - - (19,108 ) 53,025
Balance 30 June 296,783 219,866 295,758 314,866
The above statement should be read in conjunction with the accompanying notes.
64 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2009 Notes Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 Cash flows from operating activities Inflows: User charges and sale of goods 56,045 54,685 56,045 54,685 Sale of development property 8,345 3,820 8,345 3,820 Grants and other contributions 89,195 36,755 89,195 36,755 Interest 4,453 1,483 4,453 1,483 GST collected on sales and charges 6,502 6,272 6,502 6,272 GST input tax credits received from ATO 1,354 4,090 1,354 4,090 Outflows: Employee benefits (7,346 ) (6,271 ) (153 ) (6,271 ) Cost of sales, supplies and services (51,095 ) (44,949 ) (58,460 ) (44,949 ) Borrowing costs (2,045 ) (2,171 ) (2,045 ) (2,171 ) GST paid on purchases (7,109 ) (4,302 ) (7,109 ) (4,302 ) GST remitted to ATO (1,434 ) (6,099 ) (1,434 ) (6,099 ) Net cash from operating activities 17 96,865 43,313 96,693 43,313
Cash flows from investing activities Inflows: Sale of plant and equipment 215 5 215 5 Outflows: Payments for property, plant and equipment, and investment property (9,912 ) (14,935 ) (9,912 ) (14,935 ) Net cash (used in) investing activities (9,697 ) (14,930 ) (9,697 ) (14,930 )
Cash flows from financing activities Inflows: Borrowings proceeds 15 15 15 15 Outflows: Borrowing redemptions (2,692 ) (3,126 ) (2,692 ) (3,126 ) Finance lease payments (40 ) (31 ) (40 ) (31 ) Net cash (used in) financing activities (2,717 ) (3,142 ) (2,717 ) (3,142 )
Net increase in cash held 84,451 25,241 84,279 25,241 Cash at beginning of financial year 44,964 19,723 44,964 19,723
Cash at end of financial year 7 129,415 44,964 129,243 44,964
The above statement should be read in conjunction with the accompanying notes. SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 65 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 Objectives of South Bank Corporation for certain assets at valuation (refer notes 1 (m) and (n)). The The objectives of South Bank Corporation (the Corporation) are accounting policies have been applied on a basis consistent with to: promote, facilitate, carry out and control; the development, the previous financial year except where otherwise stated. disposal and management of land and other property within the Corporation area; to the highest possible standards and in the b. The Reporting Entity interest of the people of the City of Brisbane and of Queensland. Effective from 1 July 2008 all employees of South Bank The Corporation’s mission is to make its place ‘The Best New Corporation, with the exception of its Directors, were employed Urban Precinct in the World’. by the South Bank Employing Office (SBEO) under the same terms, conditions and entitlements as per their employment The Corporation is partly funded for the outputs it delivers by contracts with the Corporation. The SBEO and the Corporation Parliamentary appropriations and is reliant upon the support have entered into an arrangement for the employees to perform of the Queensland Government to enable it to continue as a the work of the Corporation. going concern. It also sells development property by lease and provides services on a fee for service basis including: All employee entitlements, including annual leave and • Venue hire facilities, including associated food long service leave, were transferred to the SBEO from the and beverage sales Corporation. The SBEO is indemnified for all such liabilities • Retail and commercial tenancies by the Corporation. • Car parking facilities. The Corporation as an economic entity consists of the parent 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES entity together with the SBEO as a controlled entity. In order to a. Basis of Preparation provide enhanced disclosure, the Corporation has adopted the The financial statements cover South Bank Corporation as an principles outlined in Australian Accounting Standard AASB 127 individual parent entity (parent entity) and the consolidated consolidated and Separate Financial Statements. This approach financial statements of South Bank Corporation and its is considered appropriate as it reflects the relationship between controlled entity (consolidated Group). The Corporation is the Corporation’s core business activities and those of the constituted as a body corporate by virtue of the South Bank SBEO. In the process of reporting on the Corporation as a single Corporation Act 1989 (the Act), and is a statutory body within economic entity, all transactions and balances internal to the the meaning of the Financial Administration and Audit Act 1977. economic entity have been eliminated in full.
These financial statements have been prepared as a general The Queensland Auditor-General is the auditor of the South purpose financial report in accordance with Australian Accounting Bank Employing Office. Standards, the Treasurer’s Minimum Reporting Requirements for the year ending 30 June 2009 and other authoritative c. Brisbane Convention & Exhibition Centre (BCEC) pronouncements. They have been prepared on an accruals basis The Corporation’s financial statements incorporate the assets, using historical costs and do not take into account changing liabilities and financial results of the BCEC. money values nor non-current valuations of specific assets except
66 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 d. Revenue and Trade Debtors Any expenditure that increases the originally assessed capacity The Corporation generates revenue from ordinary activities or service potential of an asset is capitalised and the new comprises sale by leasehold of development land, grants depreciable amount is depreciated over the remaining useful received from the Queensland Government, sale of goods life of the asset. including food and beverage, provision of venue hire, car Plant and equipment subject to a finance lease is amortised on parking, tourism sales, and rental and outgoings received a straight line basis over the expected useful life of the asset to or receivable from properties leased by the Corporation. the Corporation. Assets under construction (work in progress) Revenue from the sale by leasehold of development property is are not depreciated until they reach service delivery capacity. only recognised once all pre-conditions to the granting of the lease are completed. f. Impairment of Non-current Assets Government grants that are non-reciprocal in nature are All property, plant and equipment are assessed for indicators recognised as revenue in the financial year in which they are of impairment on an annual basis. If an indicator of possible receivable. Other revenues are recognised upon provision of the impairment exists, the Corporation determines the asset’s particular service. recoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable amount is recorded as an Trade debtors are recognised at the amounts receivable, as impairment loss. they are due for settlement within normal trading terms. Collectability of trade debtors is reviewed on an ongoing basis. The asset’s recoverable amount is determined as the higher A provision for impairment is raised when doubt as to collection of the asset’s fair value less costs to sell and depreciated exists. replacement cost. An impairment loss is recognised immediately in the Income e. Depreciation of Property, Plant and Equipment Statement, unless the asset is carried at a revalued amount. Land is not depreciated as it has an unlimited useful life. When the asset is measured at a revalued amount, the Depreciation is calculated on a straight line basis to write off the impairment loss is offset against the asset revaluation reserve net cost or revalued amount of each item of property, plant and of the relevant class to the extent available. equipment (excluding land) over its expected useful life to the Where an impairment loss subsequently reverses, the carrying Corporation. Estimates of remaining useful lives are made on amount of the asset is increased to the revised estimate of a regular basis for all assets. The expected useful lives are its recoverable amount, but so that the increased carrying as follows: amount does not exceed the carrying amount that would have • Buildings and infrastructure works 1–91 years been determined had no impairment loss been recognised for • Heritage and cultural assets 24–100 years the asset in prior years. A reversal of an impairment loss is • Plant and equipment 3–20 years. recognised as income, unless the asset is carried at a revalued Where assets have separately identifiable components that are amount, in which case the reversal of the impairment loss is subject to regular replacements, these components are assigned treated as a revaluation increase. useful lives distinct from the asset to which they relate and are depreciated accordingly.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 67 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 g. Taxation l. Property, Plant and Equipment The Corporation is exempt from Commonwealth taxation except The property, plant and equipment of the Corporation comprises for Fringe Benefits Tax (FBT) and Goods and Services Tax (GST). the South Bank parklands and the BCEC including land, As such, input tax credits receivable from, and FBT and GST buildings, public infrastructure works and related items of payable to, the Australian Taxation Office are recognised plant and equipment, other than investment property. and accrued. Land with a cost or other value in excess of $1, and all other items of property, plant and equipment with a cost or other h. Insurance value in excess of $5,000 are recognised in the Balance Sheet in It is the Corporation’s policy to insure against potential liabilities the year of acquisition. Items with a lesser value are expensed. or losses that would materially affect its operations and assets. Actual cost is used for the initial recording of all non-current i. Cash and cash equivalents physical and intangible asset acquisitions. Cost is determined For the purposes of the Balance Sheet and the Cash Flow as the value given as consideration plus costs incidental to the Statement, cash includes all cash, cash at bank and deposits at acquisition, including all other costs incurred in getting the assets call with financial institutions. ready for use, including architects’ fees and engineering design fees. Any training costs, however, are expensed as incurred. j. Inventories Inventories represent goods held by the BCEC and the m. Revaluation of Land, Buildings and Infrastructure Corporation in the ordinary course of business and are stated The Corporation values land (other than development property), at the lower of cost and net realisable value. Cost is assigned buildings, infrastructure and heritage and cultural assets in on a weighted average cost basis. accordance with the Australian Accounting Standard AASB 116 Property, Plant & Equipment and the Queensland Treasurer’s k. Development Property guidelines – ‘Non-Current Asset Accounting Guidelines for the Certain of the real property holdings are intended for sale Queensland Public Sector’. It is the Corporation’s policy to record at by leasehold and are classified as development property. fair value, being the value for which the assets could be exchanged Development property is stated at the lower of deemed between knowledgeable willing parties in an arm’s length cost, cost or net realisable value. Costs of preparing land for transaction, all land, buildings, infrastructure, and heritage and leasing are capitalised until all pre-conditions of the lease are cultural assets. Revaluations are made with sufficient regularity completed. Revenue and costs are then brought to account in to ensure that the carrying amount of these assets does not differ the Income Statement. materially from their fair value at the reporting date. All other classes of assets are recorded on a cost basis less depreciation Development property is treated as a current asset when the and impairment losses. The carrying amount for these assets issuing of the leasehold is expected within 12 months. should not materially differ from their fair value.
68 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 m. Revaluation of Land, Buildings and Infrastructure financial year and which are unpaid. The amounts are unsecured (cont’d) and are usually paid within normal trading terms. Revaluation increments are credited directly to the asset revaluation reserve of the appropriate class, except that, to p. Employee Benefits the extent that an increment reverses a revaluation decrement Annual leave and sick leave in respect of that class of asset previously recognised as an All liabilities for annual leave are expected to be paid within expense in the Income Statement, the increment is recognised twelve months of the reporting date. Such liabilities in respect immediately as revenue in that statement. Revaluation of employees’ services up to the reporting date are measured at decrements are recognised immediately as expenses in the the amounts expected to be paid when the liabilities are settled, Income Statement, except that, to the extent that a credit plus relevant on-costs. No provision is made for non-vesting sick balance exists in the asset revaluation reserve in respect of leave as the anticipated pattern for future sick leave indicates the same class of assets, they are debited directly to the asset that accumulated non-vesting sick leave will never be paid. revaluation reserve. Long Service Leave Any accumulated depreciation at the date of revaluation is A liability for long service leave is recognised, and is measured eliminated against the gross carrying amount of the asset and as the present value of expected future payments to be made in the net amount is restated to the revalued amount of the asset. respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. n. Investment Property Future payments not expected to be paid within 12 months are Investment property, which is property held to earn rentals discounted using interest rates on national government guaranteed and or for capital appreciation, is initially recognised at cost securities with terms to maturity that match, as closely as or deemed cost including transaction costs. Where investment possible, the estimated future cash outflows. Relevant on-costs are property is acquired at no or nominal cost it is recognised at fair included in the determination of the provision. value. Investment property is subsequently carried at fair value at the reporting date. Superannuation Employer contributions for superannuation expenses are Gains or losses arising from changes in the fair value of included in the Income Statement. Beyond the agreed investment property are included in the Income Statement contributions to the various funds the Corporation has no for the period in which they arise. Investment property is not financial commitment to the funds. depreciated and is not tested for impairment. q. Other Financial Liabilities and Borrowing Costs Rental received from investment property is recognised as Loans are carried at their principal amounts which represent the income on a periodic straight line basis over the lease term. future cash flows associated with servicing the debt. o. Payables Borrowing costs comprising interest and charges related to loans Trade creditors and accruals represents liabilities for goods and are recognised as expenses in the financial year in which they services provided to the Corporation prior to the end of the are incurred.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 69 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 r. Other Liabilities Borrowings are initially recognised at fair value, plus any Other liabilities includes premiums received for the sale of transaction costs directly attributed to the borrowings. development land not yet completed and deposits received from customers for bookings at the BCEC relating to future financial Any borrowing costs are added to the carrying amount of the years. Such revenue is recognised when earned. borrowing to the extent they are not settled in the period in which they arise. Borrowings are classified as non-current liabilities to the extent that the Corporation has an unconditional right to defer s. Leases settlement until at least 12 months after balance date. A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee The Corporation does not enter into transactions for speculative substantially all risks and benefits incidental to ownership, and purposes, nor for hedging. Apart from cash and cash operating leases under which the lessor retains substantially all equivalents, the Corporation holds no financial assets classified risks and benefits. at fair value through the profit and loss.
Where a non-current physical asset is acquired by means of u. New and Revised Accounting Standards a finance lease, the asset is recognised at the lower of the Disclosure is required when initial application of an Australian fair value of the leased property and the present value of the Accounting Standard has an effect on the current period or minimum lease payments. The lease liability is recognised at any prior period, would have such an effect except that it is the same amount. Lease payments are allocated between the impracticable to determine the amount of the adjustment, or principal component of the lease and the interest expense. will have an effect on future periods. At the date of authorisation Operating lease payments are representative of the pattern of of the financial report, a number of new or amended Australian benefits derived from the leased assets and are expensed in the Accounting Standards with future commencement dates will have a significant impact on the Corporation. Details of these periods in which they are incurred. impacts are set out below. t. Financial Instruments The Corporation will need to comply with a revised version of Recognition AASB 101 Presentation of Financial Statements as from 2009- Financial assets and financial liabilities are recognised in the 10. This revised standard does not have measurement or Balance Sheet when the Corporation becomes a party to the recognition implications. However, in line with the new concept contractual provisions of the financial instrument. of ‘comprehensive income’ in the revised AASB 101, there will be significant changes to the presentation of the Corporation’s Classifications income and expenses that are currently presented in the Income Financial instruments are classified and measured as follows: Statement and the Statement of Changes in Equity. In addition, • Cash and cash equivalents – held at fair value through profit where there have been retrospective accounting policy changes, and loss retrospective re-statement of items in the financial statements or • Receivables – held at amortised cost re-classifications of financial statement items during the current • Payables – held at amortised cost reporting period, the revised AASB 101 will require a statement • Borrowings – held at principal amount which represents of financial position to be presented as at the beginning of the the future cash flows associated with servicing the debt earliest comparative period included in the financial statement.
70 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 u. New and Revised Accounting Standards (cont’d) The Corporation can not early adopt a new accounting standard A revised version of AASB 123 Borrowing Costs has been ahead of the specified commencement date unless approval is released and will apply to the Corporation from 2009/10. The obtained from Treasury. No additional standards have been early main effect will be that all borrowing costs directly attributable adopted in the reporting period. to the acquisition, construction or production of ‘qualifying assets’ (as defined in AASB 123) with commencement dates for v. Change in Accounting Policy capitalisation on or after 1 July 2009 will need to be capitalised Employee costs of the entity contracted to manage the Brisbane into the acquisition cost of such assets. All other borrowing costs Convention & Exhibition Centre have been shown in these will be expensed. financial statements as payments for Supplies and Services rather than Employee Expenses as in previous years. It is The main impact from the revised standard AASB 140 believed that this better represents the contractual arrangement Investment Property is that from 2009-10, investment with the Centre manager. Accrued leave and other entitlements buildings under construction will need to be included within for the Centre employees, at balance date, for which the the Investment Property category, rather than within Property Corporation is contractually liable, are shown as Other Payables. Plant and Equipment (for subsequent transfer to the Investment All comparative figures have been changed to be consistent with Property category). this change in Accounting Policy. All other Australian Accounting Standards and interpretations Had the accounting policy not been changed the following items with future commencement dates are either not applicable to would have been shown in the Financial Statement. the Corporation, or have no material impact on it.
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 Expenses in the Income Statement Employee expenses 25,789 24,435 18,463 24,435 Supplies and services 25,832 23,901 33,158 23,901 Current Liabilities Other payables 370 308 370 308 Annual leave entitlements 1,142 1,175 783 1,175 Long service leave entitlements 1,202 1,122 857 1,122 Non-current Liabilities Other payables - - - - Long service leave entitlements 664 640 664 640
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 71 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 w. Issuance of Financial Statements 2. BUSINESS SEGMENT INFORMATION The financial statements are authorised for issue by the Board Venue Hire of South Bank Corporation at the date of signing the Includes hire of the BCEC, Suncorp Piazza and sundry parkland Management Certificate. areas, as well as the associated sale of food and beverages and hire of audio visual equipment. x. Judgements and Assumptions The preparation of financial statements necessarily requires Tenancies the determination and use of certain critical accounting Includes rent and recoveries from the retail and commercial estimates, assumptions, and management judgements that tenancies within the South Bank parklands and Little have potential to cause a material adjustment to the carrying Stanley Street. amounts of assets and liabilities within the next financial year. Such estimates, judgments and underlying assumptions are Car Parking reviewed on an ongoing basis. Revisions to accounting estimates Includes commercial car parking facilities within the South Bank are recognised in the period in which the estimate is revised parklands and the BCEC. and in future periods as relevant.
Estimates and assumptions that have a potential significant Community Activities and Promotions effect are outlined in the following statement notes: Includes tourism sales, provision of the parkland facilities, events within and around the South Bank parklands and Valuation of Property, Plant and Equipment – note 10 marketing of the precinct. Events are staged as part of the Receivables – note 1d Corporation’s community service activities. Employee benefits – note 1p. y. Rounding and Comparatives Amounts included in the financial statements have been rounded to the nearest $1,000 or, where the amount is $500 or less, to zero.
Comparative information has been reclassified and restated where necessary to be consistent with disclosures in the current reporting period.
72 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 2. BUSINESS SEGMENT INFORMATION (cont’d)
Consolidated Business Segments Venue Hire Tenancies Car Community Other Total Parking activities & Promotions For the year ended 30 June 2009 $’000 $’000 $’000 $’000 $’000 $’000
Income User charges 15,377 9,018 11,219 68 - 35,682 Sale of goods 19,247 - - 96 - 19,343 Sale of development property - - - - 6,558 6,558 Interest received - - - - 4,453 4,453 Other - - - 418 46 464 Operating grant and other contributions - - - - 10,325 10,325 Capital project grants - - - - 78,870 78,870 34,624 9,018 11,219 582 100,252 155,695 Expenses Employee costs - 519 601 4,269 2,090 7,479 Supplies and services 29,453 2,371 1,170 9,236 1,912 44,142 Cost of goods sold 4,560 - - 77 1,873 6,510 Other - 180 - 23 - 203 Depreciation 9,173 - 1,418 4,355 260 15,206 Borrowing costs - - - - 2,045 2,045 Loss on revaluation of investment property - 2,000 - - - 2,000 (Gain)/loss on disposal of plant and equipment 180 - - 994 19 1,193
43,366 5,070 3,189 18,954 8,199 78,778 Net surplus/(deficit) (8,742 ) 3,948 8,030 (18,372 ) 92,053 76,917
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 73 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 2. BUSINESS SEGMENT INFORMATION (cont’d)
Consolidated Business Segments Venue Hire Tenancies Car Community Other Total Parking activities & Promotions For the year ended 30 June 2008 $’000 $’000 $’000 $’000 $’000 $’000
Income User charges 14,680 7,648 10,945 226 - 33,499 Sale of goods 19,424 - - 77 - 19,501 Sale of development property - - - - 1,648 1,648 Interest received - - - - 1,483 1,483 Other - - - 797 20 817 Operating grant and other contributions - - - - 10,025 10,025 Capital project grants - - - - 26,730 26,730 Gain on revaluation of investment property - 2,090 - - - 2,090 34,104 9,738 10,945 1,100 39,906 95,793 Expenses Employee costs 30 104 606 3,622 1,957 6,319 Supplies and services 29,130 2,610 566 7,810 1,901 42,017 Cost of goods sold 4,796 - - 80 1,362 6,238 Other 6 51 - - - 57 Depreciation 8,747 - 1,069 4,306 216 14,338 Borrowing costs - - - - 2,171 2,171 (Gain)/loss on disposal of plant and equipment (6 ) - - - 228 222
42,703 2,765 2,241 15,818 7,835 71,362 Net surplus/(deficit) (8,599 ) 6,973 8,704 (14,718 ) 32,071 24,431
74 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 2. BUSINESS SEGMENT INFORMATION (cont’d)
South Bank Corporation Business Segments Venue Hire Tenancies Car Community Other Total Parking activities & Promotions For the year ended 30 June 2009 $’000 $’000 $’000 $’000 $’000 $’000
Income User charges 15,377 9,018 11,219 68 - 35,682 Sale of goods 19,247 - - 96 - 19,343 Sale of development property - - - - 6,558 6,558 Interest received - - - - 4,453 4,453 Other - - - 418 46 464 Operating grant and other contributions - - - - 10,325 10,325 Capital project grants - - - - 78,870 78,870 34,624 9,018 11,219 582 100,252 155,695
Expenses Employee costs - - - - 153 153 Supplies and services 29,453 2,890 1,771 13,505 3,849 51,468 Cost of goods sold 4,560 - - 77 1,873 6,510 Other - 180 - 23 - 203 Depreciation 9,173 - 1,418 4,355 260 15,206 Borrowing costs - - - - 2,045 2,045 Loss on revaluation of investment property - 2,000 - - - 2,000 (Gain)/loss on disposal of plant and equipment 180 - - 994 19 1,193
43,366 5,070 3,189 18,954 8,199 78,778 Net surplus/(deficit) (8,742 ) 3,948 8,030 (18,372 ) 92,053 76,917
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 75
SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 2. BUSINESS SEGMENT INFORMATION (cont’d)
South Bank Corporation Business Segments Venue Hire Tenancies Car Community Other Total Parking activities & Promotions For the year ended 30 June 2008 $’000 $’000 $’000 $’000 $’000 $’000
Income User charges 14,680 7,648 10,945 226 - 33,499 Sale of goods 19,424 - - 77 - 19,501 Sale of development property - - - - 1,648 1,648 Interest received - - - - 1,483 1,483 Other - - - 797 20 817 Operating grant and other contributions - - - - 10,025 10,025 Capital project grants - - - - 26,730 26,730 Gain on revaluation of investment property - 2,090 - - - 2,090 34,104 9,738 10,945 1,100 39,906 95,793 Expenses Employee costs 30 104 606 3,622 1,957 6,319 Supplies and services 29,130 2,610 566 7,810 1,901 42,017 Cost of goods sold 4,796 - - 80 1,362 6,238 Other 6 51 - - - 57 Depreciation 8,747 - 1,069 4,306 216 14,338 Borrowing costs - - - - 2,171 2,171 (Gain)/loss on disposal of plant and equipment (6 ) - - - 228 222
42,703 2,765 2,241 15,818 7,835 71,362 Net surplus/(deficit) (8,599 ) 6,973 8,704 (14,718 ) 32,071 24,431
76 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09
SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 3. GRANTS AND OTHER CONTRIBUTIONS Operating grant 10,325 10,025 10,325 10,025 Capital project grants: BCEC expansion 76,000 25,000 76,000 25,000 Stormwater Harvesting 2,870 1,730 2,870 1,730 Total 89,195 36,755 89,195 36,755
4. EXPENSE ITEMS Insurance premiums: Qld Government Insurance Fund 866 929 866 929 Fees paid to Directors 153 129 153 129 Operating lease rentals 394 56 394 56 Bad debts written off 4 21 4 21 External audit fees (the auditors received no other benefits) 99 77 77 77 5. EMPLOYEE EXPENSES Wages, salaries and other costs 6,547 5,504 135 5,504 Statutory on-costs 932 815 18 815 Total 7,479 6,319 153 6,319
As at the end of the financial year 79 full-time equivalents were employed (2008:79). The Chief Executive and Directors whose total remuneration from the Corporation was within the specified bands are as follows:
Number Number Number Number
$0 – $19,999 9 9 9 9 $50,000 – $69,999 1 1 1 1 $300,000 – $319,999 - 1 - 1 $320,000 – $339,999 1 - - -
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 77 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 6. SUPPLIES AND SERVICES Brisbane Convention & Exhibition Centre: Staffing charges 18,243 18,116 18,243 18,116 Food and beverage cost of sales 4,560 4,796 4,560 4,796 Electricity 1,098 1,049 1,098 1,049 Advertising, marketing and PR 1,105 1,315 1,105 1,315 Asset repairs and replacements 1,501 1,467 1,501 1,467 Other supplies and services 17,635 15,274 24,961 15,274 Total 44,142 42,017 51,468 42,017 7. CASH AND CASH EQUIVALENTS Cash on hand 320 494 320 494 Cash at bank 10,827 12,106 10,655 12,106 Deposits at call 118,268 32,364 118,268 32,364 Total 129,415 44,964 129,243 44,964 8. RECEIVABLES Trade and other receivables 7,822 2,229 7,822 2,229 Less provision for impairment (331 ) (102 ) (331 ) (102 ) Total 7,491 2,127 7,491 2,127 Movement in the provision for impairment Balance 1 July 102 67 102 67 Increase in provision recognised in the income statement 233 56 233 56 Amount written off during the year (4 ) (21 ) (4 ) (21 ) Balance 30 June 331 102 331 102
78 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 9. DEVELOPMENT PROPERTY Current asset 3,190 3,187 3,190 3,187 Non-current asset 5,472 5,359 5,472 5,359 Total 8,662 8,546 8,662 8,546 At deemed cost 4,461 4,665 4,461 4,665 Capitalised development costs 4,201 3,881 4,201 3,881 Total 8,662 8,546 8,662 8,546
Development property at deemed cost comprises land valued by Mr RA French BSc, ARICS, FAPI (registered valuer # 1398), of Burgess Rawson, as at 30 June 1997. During the year an area of Parklands land with a carrying value of $0.975 million, was reclassified as development property. As at 30 June 2009 the directors of the Corporation Board estimate the fair market value of the development property to be approximately $37 million. This valuation has not been recognised in the financial statements. Furthermore, the directors of the Corporation Board expect that the carrying value of the land will not exceed the present value of the net cash flows resulting from the realisation of the land.
10. PROPERTY, PLANT AND EQUIPMENT Land At valuation 106,900 124,000 106,900 124,000 Buildings At valuation 193,415 198,264 193,415 198,264 Infrastructure works At valuation 105,759 114,702 105,759 114,702 Heritage and Cultural assets At valuation 4,111 4,314 4,111 4,314 Plant and equipment At cost 113,122 111,316 113,122 111,316 Less accumulated depreciation (82,997 ) (81,933 ) (82,997 ) (81,933 ) Total plant and equipment 30,125 29,383 30,125 29,383 Work in progress At cost 14,403 10,835 14,403 10,835 Total 454,713 481,498 454,713 481,498
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 79 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 10. PROPERTY, PLANT AND EQUIPMENT (cont’d) Land Land of the South Bank Parklands (excluding development land) and the BCEC was independently valued by the State Valuation Services of the Department of Environment and Resource Management as at 30 June 2009 and 2008. The valuations were determined by reference to the highest and best use physically possible, legally permissible and financially feasible, which would result in the highest value.
Buildings and Infrastructure The commercial car park, and buildings utilised by the Corporation for administration were valued as at 30 June 2009 and 2008 by independent valuers Knight Frank Valuations Queensland using ‘fair value’ principles, based on current market values.
Landscaping, civil works and the BCEC building were valued by independent valuers Rider Levett Bucknall as at 30 June 2009. The valuations were determined based on the written down replacement cost of the assets, taking into consideration their remaining useful life. Other building and infrastructure assets were indexed in line with the independent valuation. The 30 June 2008 building and infrastructure valuations were determined using the non-residential construction Queensland index and the engineering construction Queensland index respectively as produced by the Australian Bureau of Statistics.
Plant and equipment is valued at cost in accordance with Queensland Treasury’s Non-current Asset Accounting Policies for the Queensland Public Sector.
Consolidated and South Bank Corporation Property, Plant and Equipment reconciliation Land Buildings Infra- heritage & Plant & Work in Total structure Cultural Equipment progress $’000 $’000 $’000 $’000 $’000 $’000 $’000 2009 Balance 1 July 2008 124,000 198,264 114,702 4,314 29,383 10,835 481,498 Additions - 909 322 - 4,119 4,562 9,912 Reclassification (975 ) - - - - - (975 ) Revaluations (16,125 ) 2,396 (5,218 ) (161 ) - - (19,108 ) Disposals - - (1 ) - (413 ) (994 ) (1,408 ) Depreciation - (8,154 ) (4,046 ) (42 ) (2,964 ) - (15,206 )
Balance 30 June 2009 106,900 193,415 105,759 4,111 30,125 14,403 454,713
80 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated and South Bank Corporation Property, Plant and Equipment reconciliation Land Buildings Infra- heritage & Plant & Work in Total structure Cultural Equipment progress $’000 $’000 $’000 $’000 $’000 $’000 $’000 2008 Balance 1 July 2007 92,000 188,473 109,378 4,203 30,167 3,658 427,879 Additions - 2,591 2,825 - 2,237 7,177 14,830 Reclassification 858 (529 ) - - - - 329 Revaluations 31,142 16,789 4,940 154 - - 53,025 Transfers - (1,597 ) 1,597 - - - - Disposals - (122 ) (105 ) - - - (227 ) Depreciation - (7,341 ) (3,933 ) (43 ) (3,021 ) - (14,338 ) Balance 30 June 2008 124,000 198,264 114,702 4,314 29,383 10,835 481,498
The Corporation has plant and equipment with an original cost of $60.3 million and a written down value of zero still being used in the provision of services. These assets primarily relate to the original fit-out of the Brisbane Convention & Exhibition Centre, and can not be revalued under the Corporation’s accounting policies.
The South Bank Employing Office does not hold any Property, Plant and Equipment.
11. INVESTMENT PROPERTY Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 Land and buildings $’000 $’000 $’000 $’000
Balance 1 July 53,000 50,276 53,000 50,276 Reclassification - 529 - 529 Additions - 105 - 105 Fair value adjustment (2,000 ) 2,090 (2,000 ) 2,090 Balance 30 June 51,000 53,000 51,000 53,000
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 81 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 11. INVESTMENT PROPERTY (cont’d) The Parklands investment properties were independently valued as at 30 June 2009 and 2008 by registered valuers Knight Frank Valuations Queensland using ‘fair value’ principles, based on current market values and the rental stream received for the property.
Valuations provided are for the land and buildings used. The split between land and buildings has not been obtained.
The rental income and direct operating expenses derived from the investment properties is shown as:
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000
Property rental income 8,326 7,364 8,326 7,364 Direct operating expenses on property that generated rental income during the period 2,265 2,523 2,265 2,523
Investment property is leased on terms which vary depending on the use of the property and other relevant factors. There were no properties that did not generate rental income during the period. No contingent rentals were recognised during the current or prior period.
The future minimum lease payments receivable under non-cancellable leases are:
Not later than one year 5,867 6,005 5,867 6,005 Later than one year and not later than five years 14,575 14,934 14,575 14,934 Later than five years 7,513 6,282 7,513 6,282 Total 27,955 27,221 27,955 27,221
There are no restrictions on the realisability of investment property or remittance of income and proceeds of disposal.
The Corporation does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancement.
82 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 12. PAYABLES $’000 $’000 $’000 $’000 Current Trade payables 3,383 2,442 3,383 2,442 Accruals 4,233 5,587 4,881 5,587 Other 2,010 1,963 2,010 1,963 9,626 9,992 10,274 9,992 GST receivable (819 ) (645 ) (819 ) (645 ) GST payable 817 1,330 817 1,330 (2 ) 685 (2 ) 685 Total 9,624 10,677 10,272 10,677 Non-current Other 548 518 548 518 13. ACCRUED EMPLOYEE BENEFITS Current Annual leave entitlements 359 343 - 343 Long service leave entitlements 345 299 - 299 704 642 - 642 Non-current Long service leave entitlements 116 122 - 122 Total 820 764 - 764
14. OTHER FINANCIAL LIABILITIES Current Finance lease liability (note 19) 24 37 24 37 Queensland Treasury Corporation borrowings 3,153 3,140 3,153 3,140 Total 3,177 3,177 3,177 3,177
Non-current Finance lease liability (note 19) 9 21 9 21 Queensland Treasury Corporation borrowings 28,658 31,363 28,658 31,363 Total 28,667 31,384 28,667 31,384
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 83 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 14. OTHER FINANCIAL LIABILITIES (cont’d) No assets have been pledged as security for any liabilities, with the exception of leased assets which revert to the lessor in the event of default.
All borrowings are in $A denominated amounts and carried at amortised cost, interest being expensed as it accrues. No interest has been capitalised during the current or comparative reporting period. Repayment dates vary from 2016 to 2028. There have been no defaults or breaches of the loan agreements during the period.
The weighted average borrowing rate for QTC borrowings is 5.85%, ranging from 5.79% to 6.15% (2008: 5.87%, ranging from 5.79% to 6.30%). As it is the intention of the Corporation to hold its borrowings for their full term, no fair value adjustment is made to the carrying amount of the borrowings.
Interest in finance leases is recognised as an expense as it accrues. No interest has been capitalised during the current or comparative reporting period.
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 15. OTHER CURRENT LIABILITIES Unearned income 11,992 4,812 11,992 4,812 Forward booking deposits 5,633 4,877 5,633 4,877 Total 17,625 9,689 17,625 9,689
Unearned income includes a premium received of $8.1M on the sale of development land with the transaction completed in July 2009.
84 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 16. ASSET REVALUATION RESERVE BY CLASS Consolidated and South Bank Corporation There is no variance between the consolidated and the reporting entity South Bank Corporation, as the South Bank Employing Office does not hold any Property, Plant and Equipment.
Land Buildings Infra- heritage & Plant & Total structure Cultural Equipment $’000 $’000 $’000 $’000 $’000 $’000
Balance 1 July 2008 123,292 113,201 75,902 1,994 477 314,866 Revaluation increment/(decrement) (16,125 ) 2,396 (5,218 ) (161 ) - (19,108 ) Balance 30 June 2009 107,167 115,597 70,684 1,833 477 295,758
Balance 1 July 2007 92,150 96,412 70,962 1,840 477 261,841 Revaluation increment 31,142 16,789 4,940 154 - 53,025 Balance 30 June 2008 123,292 113,201 75,902 1,994 477 314,866
The asset revaluation reserve represents the net effect of upwards and downwards revaluations of assets to fair value.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 85 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 17. RECONCILIATION OF OPERATING $’000 $’000 $’000 $’000 SURPLUS TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating surplus 76,917 24,431 76,917 24,431 Non-cash items Depreciation 15,206 14,338 15,206 14,338 (Gain)/loss on revaluation of investment property 2,000 (2,090 ) 2,000 (2,090 ) (Gain)/loss on disposal of plant and equipment 1,193 222 1,193 222 Transfer of land to development property 975 - 975 - Change in assets and liabilities: (Increase)/decrease in receivables (5,364 ) (1,005 ) (5,364 ) (1,005 ) (Increase)/decrease in prepayments and deposits (953 ) 787 (953 ) 787 (Increase)/decrease in inventories 38 (101 ) 38 (101 ) (Increase)/decrease in development property (116 ) 1,065 (116 ) 1,065 (Decrease)/increase in payables (1,023 ) 1,223 (375 ) 1,288 (Decrease)/increase in accrued employee benefits 56 113 (764 ) 48 (Decrease)/increase in other liabilities 7,936 4,330 7,936 4,330 Net cash from operating activities 96,865 43,313 96,693 43,313
18. FINANCIAL INSTRUMENTS a. Categorisation of Financial Instruments The Corporation has the following categories of financial assets and financial liabilities. Category Financial asset Cash and cash equivalents 129,415 44,964 129,243 44,964 Receivables 7,491 2,127 7,491 2,127 Total 136,906 47,091 136,734 47,091 Financial liabilities Payables 10,172 11,195 10,820 11,195 Other financial liabilities – Qld Treasury Corporation (QTC) borrowings 31,811 34,503 31,811 34,503 Other financial liabilities – Lease liabilities 33 58 33 58 Total 42,016 45,756 42,664 45,756
86 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 18. FINANCIAL INSTRUMENTS (cont’d) The Corporation measures risk exposure using a variety of methods as follows: Financial Risk Management The Corporation’s activities expose it to a variety of financial risks – interest rate risk, credit risk, liquidity risk and Risk Exposure Measurement Method market risk. Credit risk Ageing analysis Financial risk management is implemented pursuant to Liquidity risk Sensitivity analysis Corporation’s policies which focus on the unpredictability of Market risk Interest rate sensitivity analysis financial markets and seek to minimise potential adverse effects on the financial performance of the Corporation. b. Credit Risk Exposure Credit risk exposure refers to the situation where the Corporation may incur financial loss as a result of another party to a financial instrument failing to discharge their obligation.
The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is the carrying amount of those assets net of any provisions for impairment as indicated in the Balance Sheet. The following table represents the maximum exposure to credit risk. No significant credit risks have been identified.
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000
Financial assets Cash 129,415 44,964 129,243 44,964 Receivables 7,491 2,127 7,491 2,127
It is the Corporation’s policy to hold cash deposits or bank guarantees equal to three month’s rental for lease tenants.
The Corporation manages credit risk through the use of a credit management strategy. This strategy aims to reduce the exposure to credit default by ensuring that it invests in secure assets and monitors all funds owed on a timely basis. Exposure to credit risk is monitored on an ongoing basis.
No financial assets and financial liabilities have been offset and presented net in the Balance Sheet.
The method for calculating any provisional impairment for risk is based on past experience and current and expected changes in economic conditions.
The recognised impairment loss is $331,000 for the current year, an increase of $229,000 from 2008.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 87 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 18. FINANCIAL INSTRUMENTS (cont’d) Aging of pase due but not impaired as well as impaired financial assets are disclosed in the following tables:
Consolidated and South Bank Corporation There is no difference between the aging of the receivables of the consolidated and the reporting entity South Bank Corporation.
2009 Financial Assets Past Due Contractual Repricing/Maturity Date:
Not Less than 30-60 61-90 more than Total Total Overdue 30 days days days 90 days Overdue Financial Assets $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets Not Impaired Receivables 6,871 150 180 67 223 620 7,491 Financial Assets that have been Impaired Receivables - - - - 331 331 331
2008 Financial Assets Past Due Contractual Repricing/Maturity Date:
Not Less than 30-60 61-90 more than Total Total Overdue 30 days days days 90 days Overdue Financial Assets $’000 $’000 $’000 $’000 $’000 $’000 $’000 Financial Assets Not Impaired Receivables 1,016 571 363 49 128 1,111 2,127 Financial Assets that have been Impaired Receivables - - - - 102 102 102
88 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 18. FINANCIAL INSTRUMENTS (cont’d) c. Liquidity Risk Liquidity risk refers to the situation where the Corporation may encounter difficulty in meeting obligations associated with financial liabilities.
The Corporation is exposed to liquidity risk through its trading in the normal course of business. It manages this risk by monitoring forecast cash flows to ensure it has sufficient funds available to meet employee and supplier obligations at all times. The following table sets out the liquidity risk of financial liabilities held.
Consolidated Financial Liabilities 1 year or less 1 to 5 years Greater than 5 years Total $’000 $’000 $’000 $’000 2009 Payables 9,624 548 - 10,172 QTC borrowings 3,153 12,685 15,973 31,811 Finance leases 24 9 - 33 Total 12,801 13,242 15,973 42,016
2008 Payables 10,677 518 - 11,195 QTC borrowings 3,140 12,940 18,423 34,503 Finance leases 37 21 - 58 Total 13,854 13,479 18,423 45,756
South Bank Corporation Financial Liabilities 2009 Payables 10,272 548 - 10,820 QTC borrowings 3,153 12,685 15,973 31,811 Finance leases 24 9 - 33 Total 13,449 13,242 15,973 42,664
2008 Payables 10,677 518 - 11,195 QTC borrowings 3,140 12,940 18,423 34,503 Finance leases 37 21 - 58 Total 13,854 13,479 18,423 45,756
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 89 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 18. FINANCIAL INSTRUMENTS (cont’d) d. Market Risk The Corporation does not trade in foreign currency and is not materially exposed to commodity price changes. It is exposed to interest rate risk through its borrowings from Queensland Treasury Corporation (QTC) and cash deposits in interest bearing accounts. All QTC borrowings are from generic debt pools which approximate fixed rate loans. The Corporation does not undertake any hedging in relation to interest risk. e. Interest rate risk exposure The Corporation’s exposure to interest rate risk is mainly attributable to variable interest rates on cash held with and borrowings from QTC. The Corporation’s sensitivity to interest rate risk has reduced in the current period due to increased cash which is held for capital works projects to be undertaken.
The following interest rate sensitivity analysis depicts the outcome to profit and loss if interest rates would change by +/-1% from the year-end rates applicable to the Corporation’s financial assets and liabilities. With all other variables held constant, the Corporation would have a surplus and equity increase/(decrease) of $976,000 (2008:$105,000).
Financial Instruments Carrying Amount 2009 Interest Rate Risk -1% +1% Profit Equity Profit Equity Consolidated $’000 $’000 $’000 $’000
2009 Cash 129,415 (1,294 ) (1,294 ) 1,294 1,294 QTC Borrowings 31,811 318 318 (318 ) (318 ) Overall effect on profit and equity (976 ) (976 ) 976 976
2008 Cash 44,964 (450 ) (450 ) 450 450 QTC Borrowings 34,503 345 345 (345 ) (345 ) Overall effect on profit and equity (105 ) (105 ) 105 105
90 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 18. FINANCIAL INSTRUMENTS (cont’d)
Financial Instruments Carrying Amount 2009 Interest Rate Risk -1% +1% Profit Equity Profit Equity South Bank Corporation $’000 $’000 $’000 $’000
2009 Cash 129,243 (1,292 ) (1,294 ) 1,292 1,294 QTC Borrowings 31,811 318 318 (318 ) (318 ) Overall effect on profit and equity (974 ) (974 ) 974 974
2008 Cash 44,964 (450 ) (450 ) 450 450 QTC Borrowings 34,503 345 345 (345 ) (345 ) Overall effect on profit and equity (105 ) (105 ) 105 105
f. Fair Value It is considered that the carrying amount of the financial assets and financial liabilities of the Corporation, with the exception of the interest-bearing liabilities listed below, closely approximate their fair value and therefore no fair value is disclosed.
The fair value of interest-bearing liabilities was determined by Queensland Treasury Corporation by discounting the expected future cash flows by the current interest rates for liabilities with similar risk profiles.
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 Financial liabilities QTC borrowings: Total carrying amount 31,811 34,503 31,811 34,503 Net fair value 31,928 32,781 31,928 32,781
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 91 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 19. COMMITMENTS FOR EXPENDITURE a. Finance Lease Commitments Lease liabilities recognised in the Balance Sheet:
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000 Current 24 37 24 37 Non-current 9 21 9 21 33 58 33 58 Commitments under the finance leases at reporting date exclusive of GST are payable as follows: Not later than one year 25 42 25 42 Later than one year and not later than five years 10 21 10 21 Total commitments 35 63 35 63 Future finance charge (2 ) (5 ) (2 ) (5 ) Total 33 58 33 58
Finance leases are entered into as a means of funding the acquisition of photocopiers. The lease payments are fixed, with a purchase option, and contingent rental obligations dependent on the volume of use. b. Non-cancellable Operating Lease Commitments Commitments under operating leases at reporting date are inclusive of anticipated GST and are payable as follows:
Not later than one year 437 62 437 62 Later than one year and not later than five years 1,230 39 1,230 39 Total commitments 1,667 101 1,667 101 Anticipated input tax credits 153 9 153 9
Operating leases, with fixed lease payments, are entered into as a means of acquiring access to assets, mainly retail space, building accommodation and motor vehicles.
92 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 SOUTH BANK CORPORATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2009 19. COMMITMENTS FOR EXPENDITURE (cont’d) c. Capital Expenditure Material capital expenditure commitments contracted for but not completed and therefore not recognised as a payable at balance date:
Consolidated Consolidated South Bank South Bank 2009 2008 Corporation 2009 Corporation 2008 $’000 $’000 $’000 $’000
Not later than one year 42,957 - 42,957 - Later than one year but not later than five years 80,973 - 80,973 Total commitments (including GST) 123,930 - 123,930 -
Contracted capital commitments mainly relate to the construction of the expansion of the Brisbane Convention & Exhibition Centre.
20. CONTINGENT LIABILITIES AND ASSETS The Corporation has received notification of public liability claims that could result in litigation. The Corporation believes that any material liability from these actions is indemnified by the Corporation’s insurers.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 93 CERTIFICATE OF SOUTH BANK CORPORATION
These general purpose financial statements have been prepared pursuant to the provisions of the Financial Administration and Audit Act 1977 (the Act) and other prescribed requirements. In accordance with section 46F of the Act we certify that in our opinion:
• the prescribed requirements for establishing and keeping the accounts have been complied with in all material respects; and
• the statements have been drawn up to present a true and fair view, in accordance with prescribed accounting standards, of the transactions of the South Bank Corporation for the financial year ended 30 June 2009 and of the financial position of the Corporation at the end of that year.
S M Wilson M C Snow T Marsden Chairman Chief Executive Officer Chief Financial Officer
20 August 2009
94 | SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 INDEPENDENT AUDITOR’S REPORT
To the Board of the South Bank Corporation The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Report on the Financial Report Australian Auditing Standards. These auditing standards require I have audited the accompanying financial report of the South compliance with relevant ethical requirements relating to audit Bank Corporation, which comprises the balance sheet as at 30 engagements and that the audit is planned and performed to June 2009 and the income statement, statement of changes in obtain reasonable assurance whether the financial report is free equity and cash flow statement for the year ended on that date, from material misstatement. a summary of significant accounting policies other explanatory notes and certificates given by the Chairman, Chief Executive An audit involves performing procedures to obtain audit Officer and Chief Financial Officer of the consolidated entity evidence about the amounts and disclosures in the financial comprising the Board and the entities it controlled at the year’s report. The procedures selected depend on the auditor’s end or from time to time during the financial year. judgement, including the assessment of risks of material misstatement in the financial report, whether due to fraud or The Board’s Responsibility for the Financial Report error. In making those risk assessments, the auditor considers The Board is responsible for the preparation and fair internal controls relevant to the entity’s preparation and fair presentation of the financial report in accordance with presentation of the financial report in order to design audit prescribed accounting requirements identified in the procedures that are appropriate in the circumstances, but not Financial Administration and Audit Act 1977 and the Financial for the purpose of expressing an opinion on the effectiveness Management Standard 1997 including compliance with of the entity’s internal control, other than in expressing an applicable Australian Accounting Standards (including the opinion on compliance with prescribed requirements. An audit Australian Accounting Interpretations). This responsibility also includes evaluating the appropriateness of accounting includes establishing and maintaining internal controls relevant policies and the reasonableness of accounting estimates made to the preparation and fair presentation of the financial report by the Board, as well as evaluating the overall presentation that is free from material misstatement, whether due to fraud of the financial report and any mandatory financial reporting or error; selecting and applying appropriate accounting policies; requirements as approved by the Treasurer for application and making accounting estimates that are reasonable in in Queensland. the circumstances. I believe that the audit evidence obtained is sufficient and Auditor’s Responsibility appropriate to provide a basis for my audit opinion. My responsibility to express an opinion on the financial report based on the audit is prescribed in the Auditor-General Independence Act 2009. This Act, including transitional provisions, came The Auditor-General Act 2009 promotes the independence of into operation on 1 July 2009 and replaces the previous the Auditor General and QAO authorised auditors. The Auditor- requirements contained in the Financial Administration and General is the auditor of all Queensland public sector entities Audit Act 1977. and can only be removed by Parliament.
SOUTH BANK CORPORATION ANNUAL REPORT 2008-09 | 95 The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.
Auditor’s Opinion In accordance with s.40 of the Auditor-General Act 2009 – (a) I have received all the information and explanations which I have required; and (b) in my opinion – (i) the prescribed requirements in respect of the establishment and keeping of accounts have been complied with in all material respects; and (ii) the financial report has been drawn up so as to present a true and fair view, in accordance with the prescribed accounting standards of the transactions of the South Bank Corporation and the consolidated entity for the financial year 1 July 2008 to 30 June 2009 and of the financial position as at the end of that year.
K A VIVIAN FCA (as Delegate of the Auditor-General of Queensland)
Signed on this 31st day of August 2009, at Brisbane.
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