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An Overview of the Economic Indicators and Regional Priorities for Central and Western Queensland

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An Overview of the Economic Indicators and Regional Priorities for Central and Western Queensland An overview of the economic indicators and regional priorities for Central and Western Queensland October 2019 Contents Introduction 3 Foreword 4 Project Scope 5 Central and Western Queensland: Region at a Glance 6 Key Development Areas 8 Agriculture 9 Tourism 14 Mining 17 Manufacturing 19 Defence 22 Thriving Communities 23 Summary of Regional Priorities 24 Appendix One - References 34 Appendix Two – Central Queensland Local Government Project 39 Pipeline 2 RDA Central and Western Queensland INTRODUCTION • Foreword • Project Scope • Central and Western Queensland: Region at a Glance Foreword Regional Development Australia Central and Western Queensland (RDACWQ) continues to focus on regional economic development priorities and initiatives that span across the central and western region. As such, RDACWQ Project Stakeholders has undertaken a study into the significance of the region’s economy as well as the regional initiatives required to support its continued growth as a key RDACWQ would like to acknowledge and thank all the project contributors, national contributor. including Banana, Gladstone, Rockhampton, Central Highlands, Woorabinda Livingstone, Barcaldine, Blackall-Tambo, Longreach, Barcoo, Diamantina and Winton The purpose of this project was to firstly deliver an economic baseline with information on the local governments as well as the Commonwealth Department of Infrastructure, region’s activities and competitive advantages to facilitate engagement with both government Transport, Cities and Regional Development. This project illustrates both the and the private sector, domestically and internationally. This will provide an evidence base to quantity and interconnectedness of the growth opportunities available in the region. engage on key policy and investment initiatives and support community stakeholders to The commitment of all three levels of government to work together will enable develop project proposals. Secondly, the project sought to develop a detailed understanding of these opportunities to be realised. the challenges across the region’s supply chains and the critical regional development issues affecting the region. This will further lay the groundwork for the development of a priority list of regional economic interventions to support the region’s growth objectives. Through collaboration with relevant stakeholders, identification of these economic interventions will help to leverage private and public sector investment in the region. The RDACWQ members recognise the value of a shared regional approach. The local Grant Cassidy governments and other relevant stakeholders within the region have come together to plan for economic prosperity to ensure the long term success of all parts of the region. OAM A coordinated approach ensures that new projects are considered within the wider region Chair highlighting the interdependencies between the investments. Projects in the region are part Regional Development Australia of a long term program of investment required to support the regional supply chains and Central and Western Queensland community. This approach highlighted the interdependencies been projects, strengthening the value and contribution of the individual investment. 4 Project Scope Scope Disclaimer KPMG were engaged on 13 May 2019 to assist Regional Development Inherent Limitations Australia Central and Western Queensland (RDACWQ) with: This report has been prepared as outlined in the Scope Section. The services provided in connection with • The development of an economic profile to assist with The RDACWQ’s this engagement comprise an advisory engagement, which is not subject to assurance or other standards engagement with local, regional and national elected representatives issued by the Australian Auditing and Assurance Standards Board and, consequently no opinions or as well as to support their engagement with industry; and conclusions intended to convey assurance have been expressed. • To identify regional initiatives that the local governments across The findings in this report are based on a qualitative study and the reported results reflect a perception of central and western Queensland believed had the greatest potential Regional Development Australia Central and Western Queensland but only to the extent of the sample to drive economic development for the entire region. surveyed, being representatives of the local governments comprising the RDA region and the RDA Central and Western Queensland Board and their approved representatives. This report details the findings from this analysis and consultations. All analysis has been informed by publicly available data sources and are No warranty of completeness, accuracy or reliability is given in relation to the statements and referenced, as appropriate, throughout this report. All identified priorities representations made by, and the information and documentation provided by those consulted as part of have been sourced from consultation with representatives of the 11 local the process. governments comprising the Central and Western Queensland region as KPMG have indicated within this report the sources of the information provided. We have not sought to well as the board members of RDACWQ. independently verify those sources unless otherwise noted within the report. In preparing this report, KPMG have not been engaged to test the viability KPMG is under no obligation in any circumstance to update this report, in either oral or written form, for or feasibility of initiatives proposed during consultation, nor model the events occurring after the report has been issued in final form. impact of the potential initiatives that have been identified. The findings in this report have been formed on the above basis. The report also acknowledges the extended project list that has been Third Party Reliance prepared in consultation with the local governments with the addition of This report is solely for the purpose set out in the Scope Section and for RDA Central and Western the local government of Boulia. This list has been included in Appendix Queensland’s information. Two as a reference for this report. This report has been prepared at the request of RDA Central and Western Queensland in accordance with the terms of KPMG’s engagement letter dated 13 May 2019. Other than our responsibility to RDA Central and Western Queensland, neither KPMG nor any member or employee of KPMG undertakes responsibility arising in any way from reliance placed by a third party on this report. Any reliance placed is that party’s sole responsibility. 5 Central and Western Queensland: Region at a Glance A regional economy with the capacity to grow economy, as demand for the region’s resources Central and Western Queensland (CWQ) is home to 1 in remains. Key statistics: CWQ % of QLD 6 regional Queenslanders (17% of Queensland’s A diversifying regional economy with Tourism Overview regional population - those not living in South East Tourism is part of a sustainable, long-term pathway Total area21 451,454 km2 26% Queensland (SEQ)), with a residential population of towards a diversified and vibrant economy. A broader 11 231,000 (2016) . The regional economy contributed an economic base is important to provide a wider range of Population11 231,000 5% estimated $17.7 billion to the state economy in 2018 employment and economic development opportunities 11, 21 (economy id) 19, drawing on a workforce that consists of for the local community. The region has diverse natural Population density (people/ km2) 0.51 2.71* ~93,000 local residents and ~7,300 workers from beauty and tourist attractions which provides a solid Resident workforce 49 93,000 4% outside the area (based on 2016 Census) 11. foundation. 40 Queensland’s regional agricultural supply chain A key manufacturing region for Queensland Number of jobs 100,000 5% The region has an abundance of productive land, with a The CWQ has a focus on rail manufacturing and Economy total area of 452,454 km2 (26% of Queensland) 21. The technology, resource processing, advanced GRP 19 $17.719 billion 6% majority of this land is utilised for sustaining the technologies for metal production and food product region’s large cattle herd of approximately 4,484,569 innovation. With a supply of suitable land and Exports32 96.772 million tonnes 32% (note this estimate includes the broader Fitzroy Basin government investment, there is significant potential and Dessert Channel natural resource management for this sector to grow. Key Industries regions, which do not directly align to the CWQ region) Defence industry enables local business growth Agriculture gross value added (GVA) 48 $1.972 billion 15% 1, with the cattle herd providing the primary source of economic activity for many of the region’s townships. On the east coast, the Shoalwater Bay Training Area is Cattle herd 1 approx. 4.5 million 37% the Australian Defence Force’s (ADF) largest permanent The total value of the region’s agricultural products was 46 48 training area. The presence of a defence training facility Mining gross value added $7,359.8 million (2018) 12% $1.972 billion in 2015/16 . Of this, the region’s is a boost for the region through the supply chain livestock generated a combined value of $1.661 Saleable coal production 32 49 million tonnes 20% 48 involvement in the construction and running of the billion . The region’s crops generated the remaining training area. (2017/18) $310 million in gross value added (GVA) with cotton, 23 chickpeas, mung beans, mangoes, grapes, and Maintaining
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