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State Government Budget Submission

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State Government Budget Submission State Government Budget Submission townsvilleenterprise.com.au FOREWORD Townsville North Queensland encompasses five Supporting the Water and Energy priorities are a major regional centres: Townsville, Charters package of projects and policies that will drive new Towers, Burdekin, Palm Island and Hinchinbrook. job generation, create economic opportunity and The region contributes over $15.94B annually to encourage business and industry to invest. the Queensland economy and is home to nearly 240,000 people. Townsville itself is now Australia’s Townsville Enterprise is calling on the State 13th largest city and is acknowledged by State and Government to commit to the following: National Governments as the ‘Capital of Northern Australia’. The region has one of the most diverse Enabling Infrastructure economic bases in Australia and enjoys a stunning natural environment that provides tourism growth Sustainable North Queensland Energy Pricing and opportunities and an attractive lifestyle for its Infrastructure residents. Water Security for Townsville Key state and national policy documents highlight the critical importance of Townsville and North Port City Queensland as a driver of national economic growth and job creation. The signing of Australia’s Townsville Eastern Access Rail Corridor (TEARC) and first ever City Deal for Townsville is testament to the Mount Isa to Townsville Rail Connection the commitment of three levels of Government to drive economic growth, unlock potential for Townsville State Development Area the broader region and encourage business and industry development to help Townsville and North Destination Development Queensland become: Entertainment and Exhibition Centre the economic gateway to Asia and Northern Australia Drive IT NQ a global leader in tropical and marine research and State of Origin Bid innovation Townsville Concert Hall a prosperous and highly-liveable city for residents and visitors. Wallaman Falls Ecotourism But Townsville and its immediate region has been Defence doing it tough in recent years and needs targeted government investment and policy support to reverse Townsville – Australia’s Northern Defence Deep economic decline. Maintenance, Sustainment and Logistics Hub As a community we have all worked hard to secure Capital of Northern Australia major investments into projects and to their credit, Local, State and Federal Governments have played major High Growth Population Target & Relocation roles in the economic recovery of the North Queensland of Government Bodies region. As a result the region is proud to boast a multimillion dollar pipeline of projects that is driving Innovative & Connected City renewed confidence and investment and more than 10,000 jobs have been created in the past 12 months. Lithium-ion Battery Plant It is important however to continue driving this Australian Tropical Biosecurity Network momentum and projects and policies that promote economic diversification and growth are key and Re-regulate the Mount Isa – Townsville Air Route leading those priorities is a major focus on the issues of Water and Energy. For a region abundant Supporting the Regions with natural resources, it is no longer acceptable for our businesses and our community to live with Palm Island Retail and Business Precinct the unsustainable costs of accessing these basic necessities and this budget submission strongly Burdekin Shire Industrial Land Development focuses on addressing these two economic development inhibitors. Upgrade of the Mt Inkerman Road/Bruce Highway Intersection Page 2 of 32 TOWNSVILLE NORTH QUEENSLAND LOCAL CONTEXT SHORT TERM ECONOMIC SNAPSHOT UNEMPLOYMENT 5.5% AUSTRALIA JANUARY 2018 QUEENSLAND 5.8% QUEENSLAND 3 MONTH AVERAGE 6.5% NOV 17, DEC 17, JAN 18 TOWNSVILLE NORTH 8.4% QUEENSLAND Australian Bureau of Statistics 12.5% AUSTRALIA 13.0% QUEENSLAND TOWNSVILLE NORTH QUEENSLAND IN THE NATION 3,000 TOWNSVILLE NORTH 13.6% Australian Bureau of Statistics 3 month moving average QUEENSLAND 9.6% Nov 17, Dec 17, Jan 2018 Confidence for the March Quarter 2018 AUSTRALIA – 6.0% is -1.5 which is the largest ever drop in BUSINESS CONFIDENCE Business Confidence over two quarters. Australian Bureau of Statistics PVW Partners Quarterly Business Confidence Index LONG TERM GROWTH FUNDAMENTALS PORT AIRPORT Northern Australia’s most direct trade 229,031 gateway to the Asia Pacific and the Townsville North Queensland has country’s largest sugar, copper, 1.63 MILLION maintained a population growth lead and zinc export port. rate of 1.0% over the last 5 years The centre of aviation in ALMOST $10 BILLION North Queensland Census 2016 Townsville Airport Dec 2016 – Nov 2017 TOWNSVILLE IS HOME TO Townsville Hospital is the only 3 WORLD CLASS tertiary hospital outside of EDUCATIONAL INSTITUTIONS an Australian capital city LEADING $15.946 INTERNATIONAL James Cook University (JCU)* ENTITIES OF MARINE Central Queensland University (CQU) TAFE Queensland North AND REEF RESEARCH: James Cook University, Australian Size of the economy *JCU is ranked in the top 2% of Institute of Marine Science, Great REMPLAN Dec 2017 world tertiary institutions Barrier Reef Marine Park Authority Page 3 of 32 SUMMARY OF RECOMMENDATIONS ENABLING INFRASTRUCTURE PORT CITY SUSTAINABLE NORTH QUEENSLAND TEARC AND THE MOUNT ISA TO ENERGY PRICING AND INFRASTRUCTURE TOWNSVILLE RAIL CONNECTION Fast-track the establishment of cost effective Federal Government and State Government ‘clean technology’ base load generation in to work in partnership to identify public and North Queensland (seek diversification of private financing models that will ensure ownership); construction of TEARC can commence as soon as possible; The next 2,000MW of electricity generation to be licensed in Queensland must be based in Determine, adopt and financially support a North Queensland and connected to the grid long-term operating, funding and investment north of Collinsville; model for the Mount Isa to Townsville Rail Line that ensures it is a nationally competitive and The State Government must use its influence to efficient freight corridor. police the behaviour of the generators so that The Government conduct an independent wholesale prices match the costs of production review of the pricing framework for the – not prices driven by market distortion; Mount Isa Rail Line to determine if the current framework is resulting in modal shift (and cost A review of the existing regulatory framework shift) to road transport, and inhibiting the must be expedited in order to address North opening up further resource opportunities in Queensland’s particular issues (this may Northern Queensland. require the establishment of a different regulatory framework to that of South East Queensland); TOWNSVILLE STATE DEVELOPMENT AREA Acquire appropriately located lands in the Ensure North Queensland has future access to Townsville State Development Area (TSDA) competitively priced natural gas; and required to support future industrial and logistics activities for the region and invest into Support industry diversification in the north trunk infrastructure; by assisting the NQ Bio Energy Project in Hinchinbrook. Provide funding for a business case for development and servicing infrastructure required to make the land suitable for securing WATER SECURITY FOR TOWNSVILLE strategic projects for the region. Support the Water Security Taskforce findings to deliver a duplicate pipeline and fast track the $225M project to two years not four years as proposed in the 2016/17 State Budget; DESTINATION DEVELOPMENT Commission and complete business case studies for connecting the Haughton Pump station to ENTERTAINMENT AND EXHIBITION CENTRE the adjoining high-voltage transmission network Complete the preliminary evaluation study and and developing an integrated solar energy array provide funding for the detailed design; to offset energy costs; Provide funding support to enable the Progress the final investment decision for the realisation of a new multipurpose ‘Townsville development of Stage 2 of the Burdekin Falls Entertainment and Exhibition Centre’ venue by Dam within the next term of the Queensland 2020–2022 ($150M). Parliament, dependent on the Burdekin Falls Dam Raising Feasibility Study; DRIVE IT NQ Commit $18.5M to complete the Drive IT NQ Commit to a whole-of-government approach Driver Education and Motorsport Precinct. to the development of the Big Rocks Weir and the increased allocation of water under the STATE OF ORIGIN BID Burdekin Basin Water Plan. Support local stakeholders in the State of Origin Bid. TOWNSVILLE CONCERT HALL Fund the master plan, feasibility and design of the Townsville Concert Hall ($1M); Fund the delivery of an 800–1,000 seat Concert Hall located at Central Park ($35M). WALLAMAN FALLS ECOTOURISM Fund the Wallaman Falls master plan Page 4 of 32 DEFENCE INNOVATIVE AND CONNECTED CITY TOWNSVILLE – AUSTRALIA’S NORTHERN LITHIUM-ION BATTERY PLANT DEFENCE DEEP MAINTENANCE, Support the development of an Energy Industrial SUSTAINMENT AND LOGISTICS HUB Hub on the Lansdown site at Woodstock Establish and provide ongoing funding/ comprising a Lithium-ion Battery Plant. operational support to the ‘North Queensland Stage 1: Development of a detailed Feasibility (NQ) Defence Advisory Board’; Study, detailed design and studies (State Government has committed the required $3M); Relocation/ decentralisation of relevant ‘Defence Industries Queensland’ resources Stage 2: Delivery of key infrastructure (Roads, to Townsville (NQ) to support ‘NQ Defence Power, Water, Sewerage, Telecommunications,
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