Department of State Development

Annual Report

2015–2016

About the report

The Government is committed What the report contains to providing accessible services to The Department of State Development Queenslanders from all culturally and Annual Report 2015–2016 reports on our linguistically diverse backgrounds. If you performance for the financial year from 1 have difficulty in understanding the annual July 2015 to 30 June 2016. It also presents report, you can contact us on either our priorities for the forthcoming financial 07 3452 7100 or call the Translating and year of 2016–17. Interpreting Service (TIS National) on telephone 131 450 and ask them to contact the Queensland Department of State Why we have an annual report Development on 07 3452 7100. As well as meeting the statutory requirements set out in the Financial Accountability Act 2009 and the Financial and Performance Management Standard 2009, the annual report is a vital tool in Copyright: keeping the community, industry, government and organisations informed This publication is protected by the about our performance and future services. Copyright Act 1968. © The State of Queensland (Department of Accessing the report State Development) 2016. The annual report is available on the Department of State Development website at Licence: www.statedevelopment.qld.gov.au/corporate -publications/annual-report.html or in hard This annual report is copy on request. licensed by the State of Queensland (Department of State Additional annual reporting requirements Development) under a Creative Commons have been published on the Queensland Attribution (CC BY) 4.0 International Government Open Data portal at licence. In essence, you are free to copy, https://data.qld.gov.au. communicate and adapt this annual report, as long as you attribute it as: For more information The State of Queensland (Department of tel 13 QGOV (13 74 68) State Development) Annual Report 2015– 2016. fax 07 3220 6465 To view a copy of this licence, visit: [email protected] http://www.creativecommons.org/licenses/b www.statedevelopment.qld.gov.au y/4.0 You can provide feedback on the annual ISSN 1839-4582 report at the Get F15/12458 Involved website at www.qld.gov.au/annualreportfeedback

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Letter of compliance

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Contents

About the report ...... i What the report contains ...... i Why we have an annual report ...... i Accessing the report ...... i For more information ...... i Letter of compliance ...... ii Contents ...... iii Director-General’s foreword ...... 1 About us ...... 5 Our vision ...... 5 Our purpose ...... 5 Our strategic objectives ...... 5 Our department ...... 5 Current operating environment ...... 6 Key priorities for the future ...... 8 Influence policy and the investment environment ...... 8 Facilitate a major projects pipeline ...... 9 Strengthen the regions ...... 10 Grow priority, new and emerging industries ...... 10 Support enterprise and job creation ...... 10 Delivering for the community ...... 11 Queensland Government’s objectives for the community ...... 11 Whole-of-government plans and initiatives ...... 11 Our performance in influencing policy and the investment environment ...... 13 Key highlights ...... 13 Our performance in facilitating a major projects pipeline ...... 20 Key highlights ...... 20 Our performance in strengthening the regions ...... 44 Key highlights ...... 44 Our performance in growing priority, new and emerging industries ...... 57 Key highlights ...... 57 Our performance in supporting enterprise and job creation ...... 62 Key highlights ...... 62 Financial performance ...... 66 Chief Finance Officer Statement ...... 66 Summary of financial performance...... 66 Structure ...... 70 Governance ...... 71 DSD Board Members ...... 71

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Accountability ...... 74 Risk management ...... 77 Internal audit ...... 77 External scrutiny ...... 78 Ethics and integrity ...... 79 Information systems and record management ...... 79 Workforce planning and performance ...... 80 Financial statements ...... 85 Abbreviations ...... 128 Glossary ...... 129

Appendixes

Appendix 1 Legislation administered by the department ...... 118 Appendix 2 Our contacts ...... 119 Appendix 3 Strategic Plan 2015–20 performance ...... 120 Appendix 4 Performance against service standards ...... 123 Appendix 5 Compliance checklist ...... 126

Figures

Figure 1 Income by category for the year ended 30 June 2016 ...... 67 Figure 2 Expenses by category for the year ended 30 June 2016 ...... 68 Figure 3 Departmental structure as at 30 June 2016 ...... 70 Figure 4 Departmental governance committees ...... 74 Figure 5 Workforce distribution by salary and gender as at 30 June 2016 ...... 82 Figure 6 Workforce distribution by age and gender as at 30 June 2016 ...... 82

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Director-General’s foreword

I invite you to read the Department of State During the 2015–16 financial year, we: Development Annual Report 2015–2016,  achieved contractual close on 16 which demonstrates how we are realising November 2015 with Destination our vision for Queensland’s economy to be Brisbane Consortium for Queen’s Wharf the strongest and most diverse. Brisbane, and introduced the Queen’s Our purpose is to lead the delivery of Wharf Brisbane Bill 2015 into economic development outcomes for Parliament. The Queen’s Wharf Brisbane Queensland. We do this by: Act 2016, Brisbane Casino Agreement Amendment Act 2016 and Queen’s Wharf  influencing policy and the investment Regulation 2016 were proclaimed on 27 environment May 2016  facilitating a major projects pipeline  advanced development of 10-year  strengthening our regions roadmaps and action plans for priority  growing priority, new and emerging sectors, and launched the Biofutures industries 10-Year Roadmap and Action Plan  supporting enterprise and job creation.  released a Biomedical and Life Sciences Discussion Paper in June 2016 The department continues to make a real difference to the lives of Queenslanders,  established a dedicated Industry with each of our groups directly contributing Attraction team, who are actively to our organisational objectives: engaging with more than 25 companies from a wide range of industries and  Major Projects and Property, Office of managing the $40 million Advance the Coordinator-General and Special Queensland Industry Attraction Fund Projects Unit all facilitate major projects  approved 42 projects with $70.8 million that generate investment and jobs growth. of funding through the first round of the  Economic and Industry Development is Building our Regions program, and focused on diversifying the economy by opened the second round in April 2016 growing new and emerging industries with $70 million funding for critical and creating the knowledge jobs of the infrastructure projects future in our priority sectors—making  implemented 37 council-led projects with Queensland an attractive destination for $68.9 million of funding and creating 421 business investment. jobs as well as 14 strategic and other  Regional Economic Development works projects with $104.6 million of funding across the state to strengthen regional and creating 368 jobs through the final economies and support local business and round of the Royalties for the Regions industry in winning major new contracts. program  Business Solutions and Partnerships  progressed works for the $320.914 continues to support the department in million venues infrastructure program for delivering our objectives and operational the Gold Coast 2018 Commonwealth goals. Games (GC2018), including venues at Coomera, Chandler and Carrara, as well as the Broadbeach Bowls Club, Gold Coast Hockey Centre and Nerang Mountain Bike Trails

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 progressed the development of the $550 to partner with the private sector to assist million Commonwealth Games Village small start-up companies and inventors in  progressed the North Queensland these industries with commercial-ready Stadium by developing the business case, products and services completing market sounding,  established the Industry and determining the optimal procurement Manufacturing Advisory Group (IMAG) solution and securing funding to provide strategic industry advice on commitments to deliver a best-practice building as well as promoting industry regional stadium and manufacturing  prepared an economic transition strategy  progressed the $18 million Bundaberg including extensive consultation for Port Gas Pipeline with a development North Stradbroke Island following the agreement with the Australian Gas decision to cease sand mining Networks Limited for the design,  engaged with proponents regarding delivery and operation of the pipeline regional Integrated Resort Developments  executed a development agreement (IRDs) between the state and Glencore to  provided facilitation support for 10 develop the Aurukun bauxite resource, projects in North Queensland, including which would generate significant Dugald River Zinc Mine, Kidston construction and ongoing operational Pumped Storage Power Generation and jobs Solar Farm, Carmichael Coal Mine and  approved the Environmental Impact Rail, Northern Gas Pipeline, Cloncurry Statement (EIS) for the Sunshine Coast Project, Central Highlands Meat Airport Expansion and Santos GLNG Processing Plant, Guthalungra Gasfields Development Project through Aquaculture, Isaac Plains East Extension, the Coordinator-General Rocklands Project and Ravenswood  the Coordinator-General declared the Extension Project. If all proceed to Coopers Gap Wind Farm and construction over the next 12 months, KUR-World Integrated Eco-Resort these projects may generate 7000 coordinated projects construction jobs and $25 billion in  approved 19 material change of use private sector capital investment—this applications in State Development Areas support is focused on assisting companies (SDAs) through the Coordinator-General to secure regulatory approvals as well as  recommended to the Minister for State site selection, provision of market Development, through the Coordinator- intelligence and government and supplier General, the declaration of three new introductions prescribed projects: Dugald River  attracted Southern Oil Refining to Project, Kidston Project and Isaac Plains Queensland, which led to the building of Mining Complex a $16 million advanced biofuels pilot  completed 231 due diligence assessments plant in Gladstone as part of funding programs such as  supplemented with a $6 million Building our Regions, the Advance contribution over four years, the Queensland Industry Attraction Fund and establishment of the $20 million Mining the Attracting Aviation Investment Equipment and Technology Services Fund—activities include proponent bona (METS) Industry Growth Centre at the fide checks, analysis of historical Queensland University of Technology financial performance, project financial  established the Engineering, Construction analysis and commercial viability and Mining Innovation hub in May 2016

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assessment, and adverse history and  progressed priority ports master planning probity searches processes for the ports of Gladstone and  completed 339 foreign investment Abbot Point application assessments—the department  progressed works for the new $30 million coordinates whole-of-government State Netball Centre at Nathan by assessment of proposals against national engaging with the market for interest in interest criteria the design and construction of the centre  provided 26 economic baseline profiles,  delivered 94 Tendering for Government which form a key input to inform the Business workshops during 2015—89 development of economic strategies and companies won $57 million in tenders plans as well as devising economic  worked with NEXUS to maximise policies targeted at industry development opportunities for local businesses to  progressed assessment of development participate in the Toowoomba Second applications and material change of use Range Crossing Project applications in the Galilee Basin SDA,  assessed market-led proposals such as the including applications from Adani, Queensland Aquarium and Maritime through the Coordinator-General Museum, Fortitude Valley Police-  completed consultation regarding a new Citizens Youth Club (PCYC) and SDA at Bundaberg Brisbane Cruise Ship terminal  approved the $30 million SCT Logistics  negotiated a lease transaction with the Project through the Coordinator-General, Broncos to enable construction of a new to establish an intermodal rail freight training, administration and community facility and warehouses in the Bromelton facility SDA  facilitated the redevelopment of the  worked with Glencore on master former Gold Coast Hospital site through planning to facilitate and coordinate divestment development in the SDA  through the Community Hubs and  progressed legislative amendments Partnerships (CHaPs) program, through the Mineral Resources (Aurukun encouraged private sector investment, Bauxite Resource) Amendment Act 2016 direct capital works savings, shared  supported an independent review of the service and infrastructure benefits in GasFields Commission Queensland Caboolture, Moranbah, Weipa, Yarrabilba and Maryborough  finalised work on the Abbot Point Growth Gateway Project, enabling  collaborated with the Department of federal and state approvals—subject to Agriculture and Fisheries (DAF), the conditions—for dredging at Abbot Point Department of Natural Resources and to increase the port’s capacity from 50 to Mines (DNRM), Regional Development 120 million tonnes per annum. Works Australia Fitzroy and Central West, and will not begin until Adani has gained all the six Fitzroy region local governments its necessary project approvals and on the Growing Central Queensland demonstrated the financing of its Galilee initiative—working to position Central Basin projects Queensland for investment in agriculture and agribusiness  introduced the Sustainable Ports Development Act 2015 (SPD Act), which  progressed investigations of concept- is working to balance the protection of level proposals to improve transport and the World Heritage associated infrastructure in the Southern Area (GBRWHA) with the development Gulf region as well as proposal reviews of the state’s major regional ports for water infrastructure in the region

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 led the activation of the Rapid Response We are successfully driving delivery of 36 Team to implement the Worker of the Queensland Government’s Transition Scheme for Queensland commitments that aim to achieve a Nickel in Townsville prosperous, strong and diverse economy for  provided issues management assistance the state and for Queenslanders. At the end to businesses undergoing voluntary of the 2015–16 financial year, we had administration to lessen impacts on their finalised the delivery of 21 commitments, employees and local economies with a further 14 well under way.  successfully negotiated Cultural Heritage The department adheres to the public service Management Plans for the Mission Beach values of customers first, ideas into action, Safe Boating Project and Commonwealth unleash potential, be courageous, and Games venues empower people.  held business capability statement and Ultimately, our hard work and dedication is Indigenous procurement workshops with helping to build a stronger and more diverse a participating business winning up to economy that ensures opportunities for the $500 000 of subcontracting work Queenslanders of today, and for generations  provided service to small business on to come. behalf of the Department of Tourism, It has been a great first year as Director- Major Events and Small Business General, and I would like to particularly (DTESB) under a Service Level thank our staff who worked tirelessly to Agreement deliver economic development outcomes for  supported CCTV security and Queensland. refurbishment of the PCYC in Aurukun, I look forward to continuing to work with subsequently funded by the Department the department, my colleagues in other of Aboriginal and Torres Strait Islander agencies and our many stakeholders to Partnerships (DATSIP) and the ensure we are leading and delivering on Department of Prime Minister and economic development opportunities for Cabinet Queensland’s future.  strengthened our governance with the

introduction of the Department of State Development Board Michael Schaumburg  introduced a risk-based approach to Director-General procurement Department of State Development  delivered ethics and integrity workshops to 800 staff across the department and the Department of Infrastructure, Local Government and Planning (DILGP)  rolled out tablet technology to 60 per cent of our staff and video conferencing facilities at more than 10 regional and CBD sites  launched the department’s Innovation Challenge, which contributes to developing an innovative culture.

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Director-General Michael Schaumburg addressing a departmental forum

About us

 engage with existing sectors to drive Our vision productivity, ideas, opportunities and Queensland’s economy is Australia’s projects strongest and most diverse.  respond to challenges and opportunities and identify actions that will grow new projects. Our purpose Our department Lead the delivery of economic development outcomes for Queensland. Our current strategic direction was released in November 2015 and outlines the framework from which the department will Our strategic realise its vision for Queensland’s economy as Australia’s strongest and most diverse. objectives Formed in March 2015, the department  Influence policy and the investment combines the functions of the Coordinator- environment. General, Economic and Industry  Facilitate a major projects pipeline. Development, Major Projects and Property, Special Projects Unit and Business Solutions  Strengthen the regions. and Partnerships.  Grow priority, new and emerging industries. Our people are committed to the public service values and are working to enhance  Support enterprise and job creation. performance by empowering, supporting, In operationalising these objectives, we recognising and developing our staff; focus on three key areas: industry, regions fostering a culture of collaboration; and and projects. We plan our delivery of engaging our people through activities with intent to: communication, innovation, consultation and inclusion.  build strong and continued engagement with local, state, national and The department is developing, growing and international agencies and industry diversifying the Queensland economy by: stakeholders  efficiently enabling delivery of major  prioritise industries and new sectors to resource, industrial development and encourage growth and innovation infrastructure projects  partner with regional stakeholders to  building and maintaining confidence in deliver a vibrant and dynamic economy the government’s capacity to lead and  grow regional economies through deliver on state development investment, exports and job creation opportunities

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 identifying regulatory bottlenecks and impediments to investment and job Current operating creation environment  generating economic and community benefit through achieving value uplift on Queensland economy surplus government property The Queensland economy is transitioning  creating jobs and growth through from a period of growth—driven largely by efficient and thorough assessment of a historical surge in resources investment, major projects by streamlining processes led primarily by the liquefied natural gas and facilitating project delivery (LNG) industry—towards more broad-based  providing whole-of-government case growth. management to attract increased private sector capital expenditure Diversification of our economy is vital to support and achieve sustainable economic  encouraging major economic growth, drive job creation and boost the development and public infrastructure living standards and quality of life of all projects by ensuring land is available. Queenslanders. Headquartered at 61 Mary Street, Brisbane, There are positive signs for the Queensland the department includes a network of economy and its regions in terms of business regional office locations that work directly confidence, the investment pipeline, exports, with local industry, stakeholders and employment and overall economic outlook. governments. Our regional office locations are provided at Appendix 2. The Queensland economy is estimated to have grown by 3.5 per cent in 2015–16, Our key departmental strengths include: which is well above the 2.5 per cent forecast  talented people to drive economic for the nation in the same period. development outcomes and the jobs they Echoing this result, based on the 2016–17 generate State Budget, Queensland’s real Gross State  capacity, knowledge and legislative Product (GSP) growth is forecast to be the powers to bring stakeholders to lead and strongest of all states in 2016–17 at 4 per achieve economic development outcomes cent. This is expected to be primarily driven  personable and knowledgeable regional by LNG industry exports. teams who are solutions oriented The National Australia Bank’s Business  abilities to educate and guide parties with Confidence Survey (July 2016) has shown unique cases and project complexity Queensland is currently leading the nation  openness and transparency in our alongside New South Wales in terms of dealings and conversations business confidence, with a trend rating of 6  networks across industry and government points. The survey also shows that  commercially minded, big picture Queensland businesses have had the highest strategic thinking. or equal-highest business confidence of any mainland state for 12 out of the last 13 months. This positive economic outlook and business confidence provided a conducive environment for investment attraction and economic development activities in which

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the department plays a key role in working The latest regional labour force data shows a with businesses. number of regional economies throughout the state performing strongly. For June Investment 2016, regions such as Darling Downs– Maranoa (3.8 per cent) and Toowoomba (4.2 In terms of the total investment pipeline, per cent) had unemployment rates noticeably Queensland is currently second only to below the overall state rate of 6.3 per cent. Western Australia based on the most recent Deloitte Access Investment Monitor The Wide Bay region recorded employment publication, with $183.5 billion worth of growth of 11 100 persons over the latest definite and planned projects in Queensland year, the second largest increase of any as at June 2016. region in Queensland.

The state’s trend unemployment rate Acknowledging risk currently stands at 6.3 per cent over the year to July 2016. Over this period, trend The department acknowledges risk in employment increased by 8900 persons. strategies to deliver economic development This indicates improving labour market outcomes for Queensland, and actively conditions in Queensland. works to manage these risks appropriately. Areas of strategic risk focus include: Industry  proactive identification of factors that During the year to June quarter 2016, direct could impact the department’s ability to employment in Queensland manufacturing deliver projects on time and on budget increased by 2000 jobs, compared with a  the potential for the global and national large reduction nationally. Future growth economic environment to impact the rate opportunities will increasingly be driven by of state or regional economic growth advanced manufacturing niche markets,  ensuring the relevance and impact of the including exports. The department has department through strong engagement identified advanced manufacturing as a with industry sectors as stakeholders in priority sector and is working to provide delivery of economic development support and facilitate growth. outcomes On the exports front, the state continues to  maintaining a resilient medium-to-long- perform strongly. For the year ending June term project pipeline from diverse 2016, Queensland’s overseas goods exports industries increased by 2.3 per cent to $47.6 billion in  ensuring departmental capability, nominal terms, compared with a reduction of systems and policies are fit for purpose. 4.4 per cent nationally. Meat, crops, minerals and LNG exports, the bulk of which are produced in regional Queensland, were significant drivers of this result.

Regional Queensland Regional Queensland is vital to the state’s economy, generating economic activity and growth across a variety of industries, most notably agriculture, forestry and fishing, and mining.

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Artist’s impression of Queen’s Wharf Brisbane at night. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

Key priorities for the future

In the context of a shared responsibility for  and $46 million for projects such as the Queensland economy, the department o Bundaberg Port Gas Pipeline leads the delivery of economic development North Queensland Stadium outcomes for Queensland. The department’s o Queen’s Wharf Brisbane and areas of focus are industry, regions and o Integrated Resort Developments projects. We will continue to deliver the key (IRDs) government priorities of driving enterprise development, economic growth and job o Material Transport and Services creation, as well as assessing, facilitating Corridor and Targinnie Precinct and delivering major projects. within the Gladstone SDA Mission Beach Safe Boating In addition to policy and industry facilitation o Infrastructure Project. work, the department is directly involved in a number of major projects that are generating jobs for Queensland. Influence policy and In the 2016–17 financial year, the the investment department will facilitate, manage or deliver major projects that will create jobs. environment The Queensland Government has secured The department is focusing on influencing and allocated $285 million of funding for policy and the investment environment with major projects such as: the following strategies:  $154 million for the construction of the  through efficient and thorough Commonwealth Games venues and assessment of major projects by village, which will generate 477 jobs. In streamlining processes and facilitating addition to overseeing the development project delivery, provide an attractive agreement of the design and construction investment environment in Queensland— of the Commonwealth Games Village, stimulating industry and regional the department is also managing the economic growth planning and design, procurement and  link economic analysis and direct construction of three new world-class industry experience of sectoral teams to venues and major upgrades to a further provide analysis and advice on policies seven venues and to identify strategic economic reform  $85 million for the Building our Regions opportunities Program, which is helping to ensure the  use a tailored whole-of-government focus on economic growth is not approach for the attraction and confined to the state’s south-east. Based facilitation of significant private sector on the estimated total value of the companies and projects, and in program’s projects, 442 jobs will be collaboration with Trade and Investment supported Queensland (TIQ) and key stakeholders, actively engage with companies to

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Hay Point

support Australian businesses located vacant possession to the proponent in outside of Queensland to relocate or 2017, in readiness for the commencement establish new projects, and help facilitate of construction works reinvestment, increased private capital  finalise construction of the GC2018 expenditure and expansion of existing sporting venues and progress the Queensland operations Commonwealth Games athlete’s village  lead investigations and planning for the  realise value uplift opportunities for creation of SDAs to facilitate industrial government land—such as changes to and economic development of state and land tenure and repurposing or disposing regional significance, including for the surplus land—to stimulate economic placement of particular industries (such development and job creation as biofuels) to support new investment  embed a cross-agency, place-based  work with industry to facilitate projects, approach to maximise asset use through assisting to reduce the cost of doing opportunities for co-location, shared business in Queensland and providing an facilities and better service coordination important service offering in attracting  progress master planning of the priority new investment. ports of Gladstone, Abbot Point, Townsville and Hay Point/Mackay, in Facilitate a major accordance with the SPD Act, to optimise projects pipeline the use of infrastructure; address operational, economic, environmental, To facilitate a major projects pipeline, the supply chain and community department’s strategies are to: relationships; and coordinate with  deliver project facilitation services to surrounding land uses, with a focus on assist the private sector to invest and build meeting port-related actions outlined in projects in Queensland. Specific activities the Reef 2050 Long-term Sustainability include assisting with site selection, Plan (Reef 2050) providing industry connections and  progress funding discussions for the market information, and working with North Queensland Stadium with the companies to manage regulatory Australian Government, Townsville City processes. This work is core to the Council, the and business of the department, with a other potential funding contributors number of areas across the agency  progress and encourage opportunities for involved, including Economic and significant regional IRDs Industry Development, Regional  progress major project assessment and Economic Development and the Office of delivery through the Office of the the Coordinator-General. The group Coordinator-General’s statutory powers chosen to lead an individual project is and whole-of-government coordination. based on the needs of the project, providing the company with a single entry point and the best possible service  undertake preliminary site investigations for Queen's Wharf Brisbane and deliver

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Industry seminar at Beef 2015

Strengthen the Grow priority, new regions and emerging In order to strengthen the regions, the industries department is working to: The department’s strategies to grow priority,  deliver critical infrastructure through new and emerging industries are to: Building our Regions, which is  develop 10-year roadmaps and action supporting jobs and economic plans to strengthen new and emerging development, and improving liveability sectors and further diversify the by addressing regional infrastructure Queensland economy including water, sewerage and waste, roads, airports, flood mitigation and  lead delivery of actions under these social infrastructure such as recreational roadmaps to achieve benefits for the facilities and community hubs advanced manufacturing, aerospace, biofutures, biomedical and life sciences,  progress the Office of the Coordinator- defence, and mining equipment, General’s assessment of coordinated technology and service (METS) sectors. projects, and investigation of potential coordinated projects and facilitation of all approvals for construction ready projects Support enterprise  work with mining proponents to track and and job creation facilitate required approvals and work with resource communities to assist them The strategies the department is employing to be active participants in capitalising on to support enterprise and job creation are to: development opportunities  facilitate new private sector investment  provide facilitation support to a total of and projects—including supply chain 115 projects (as at July 2016) in order to development and access—to provide drive new industry investment, increased job opportunities development and innovation leading to  continue delivering our capital program new jobs throughout Queensland. This and increasing private capital expenditure includes 15 projects that may reach in Queensland through a central point of financial or construction readiness within contact and whole-of-government case approximately 12 months (10 of these are management to create jobs located in North Queensland), 66 projects with an estimated delivery of beyond 12 months, 14 projects under construction, and 20 renewable energy projects. Should all 115 projects proceed, 52 658 operational jobs may be created with capital expenditure of $101 033 million.

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Advanced manufacturing and defence industries at TAE Amberley

Delivering for the community

More information about our policies, programs and services—which have Queensland contributed to the delivery of the Government’s government’s objectives for the community—can be found in the ‘Our objectives for the performance’ sections of this annual report. community The department is focused on delivering the Whole-of- following objectives for the community: government plans  creating jobs and a diverse economy  building safe, caring and connected and initiatives communities  protecting the environment. National Partnership Agreements (NPAs) We collaborate with local, state and federal government agencies, industry and private The department has the lead responsibility sector stakeholders to deliver quality for two NPAs with the Australian frontline services, and to: Government.  support and increase job opportunities The aim of the NPAs is to improve the through major project development and capacity, resilience and infrastructure in the growth of new and existing industry communities, and to implement financial sectors management frameworks that build the  encourage partnerships with regional capacity and resilience of local stakeholders and grow regional governments. economies through investment, exports and job creation Regional Infrastructure Fund  protect the Great Barrier Reef through Stream 2—Economic actioning Reef 2050 as well as Infrastructure advancing master plans at priority ports.  North Queensland Resources Supply The department’s policies, programs and Chain ($1.66 million) services align with the Queensland o A feasibility study is underway for Government Interim Response to The Townsville SDA to examine its Queensland Plan (the Interim Response). suitability as an inland port to The Interim Response supports the support Port of Townsville—related government’s objectives for the community supply chain activities could have and identifies the priorities and key economic impacts for the next 30 initiatives that will contribute towards years. implementing Queenslanders’ vision.

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Ship in port at Townsville

o Mount Isa to Townsville Economic reviewed, the department held a community Development Zone (MITEZ) information session in May 2016. developed a multi-criteria decision To take the project forward and deliver the analysis tool and aerial geographical necessary boating infrastructure at Clump assessment to identify the most Point, in lieu of the previously planned reliable back-up to existing storages works at Perry Harvey Jetty, the department to enhance water security for established a project reference group. Cloncurry and Mount Isa. The reference group—including o The Port of Townsville infrastructure layout and land allocations project representatives from government and was completed, with the final report leading community groups—is providing submitted on 26 May 2016. valuable input towards the preparation of a high-level development plan for Clump  Central Queensland Resources Supply Point that addresses the needs of the Chain ($1.5 million) boating community, while respecting the o A range of projects have been rich natural environment and cultural completed through the Central heritage of Mission Beach. Queensland Resources Supply Chain, including assessing the viability of transporting fuel inputs by rail to reduce road safety and congestion, evaluating upgrading the Clermont- Alpha Road and investigating of the viability of a common user airport to support mining development in Central Queensland.

Mission Beach Safe Boating Infrastructure Project The Mission Beach Safe Boating Infrastructure Project will support the Mission Beach community by assisting the re-establishment of the reef-based tourist market and providing improved recreational boating facilities. The Australian Government has committed $5.5 million in funding and the Queensland Government has allocated $15.3 million to the project, which will potentially create 60 local jobs during design and construction. In response to community-raised concerns and requests for the project scope to be

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SouthSouth- West Queensland Regional Economic Development Forum

Our performance in influencing policy and the investment environment

growth, job creation, environmental Key highlights values and community interests  progressing legislative amendments To drive policy that positively influences the through the Mineral Resources (Aurukun investment environment the department is: Bauxite Resource) Amendment Act 2016,  implementing government policy to which honour government commitments enable economic growth and job creation regarding restoration of objection rights through stimulation and support of the and community consultation in the investment environment development of resource projects  partnering with other agencies to develop  ensuring Queensland is a desirable place legislation that enables significant to do business through efficient development and investment such as the assessment of coordinated projects and Queen’s Wharf Brisbane Act 2016 and the development in SDAs and streamlined Brisbane Casino Agreement Amendment facilitation of the projects approvals Act 2016 process for prescribed projects  working with industry to attract new  providing sound and effective economic projects to the state to grow and diversify development policy and economic the state’s economy, including the analysis across a range of areas establishment of the Advance Queensland including the government’s priority Industry Attraction Fund industry sectors, major projects, infrastructure grants and regional  supporting transparency and economic development. accountability through independent reviews, including Regulatory reform as an o Fly-in Fly-out (FIFO)—responses to the reviews by the Parliamentary enabler of economic growth Committee and FIFO Review Panel The department is working to deliver prepared for government consideration regulatory reform initiatives with o GasFields Commission Queensland— considerable benefits for Queensland review commenced, independent industries and communities, including reviewer appointed and active regional communities. stakeholder consultation conducted  implementing the SPD Act, leading port Queen’s Wharf Brisbane Act 2016 master planning processes for the priority and Brisbane Casino Agreement ports of Gladstone, Abbot Point, Amendment Act 2016 Townsville and Hay Point/Mackay to Project attraction and facilitation is part of support the sustainable development of the department’s charter to underpin critical economic infrastructure, balancing Queensland’s economic development.

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Port of Abbot Point

This is reflected by the significant Sustainable Ports Development Act contribution the agency provided in the 2015 (SPD Act) development of the Queen’s Wharf Brisbane Act 2016 and the Brisbane Casino Another key regulatory initiative delivering Agreement Amendment Act 2016 in benefits for Queensland industries and partnership with the Department of Justice communities is the SPD Act, which and the Attorney-General and Economic commenced on 20 November 2015. Development Queensland (EDQ) in DILGP. Through this Act, the Queensland These Acts, which commenced on 27 May Government is balancing the protection of 2016, establish a policy and legislative the Great Barrier Reef World Heritage Area environment that will support the $3 billion (GBRWHA)—vital to the Queensland Queen’s Wharf Brisbane IRD. This project tourism industry—with the development of will deliver economic growth for the state's major regional ports. Queensland and create more than 2000 The department is working closely with key construction jobs and 8000 ongoing jobs stakeholders to prepare priority port master when it becomes operational in 2022. plans and support long-term development It will stimulate broad investment and and export opportunities for our major economic development in the long-term regional bulk commodity ports. future of Brisbane as a new world city. It Master planning will facilitate economic will also ensure the delivery of an growth by articulating an economic and internationally recognised precinct with environmental vision for priority ports that world-class sustainable urban design and extends beyond existing strategic port land architecture that establishes a clear identity and optimises port development through that is uniquely ‘Brisbane’ and coordinated land and marine area planning. ‘Queensland’. Through this Act, Queensland has set a new This revitalised precinct promises to provide national standard in sustainable port improved facilities for everyday use and development, being the first state to require public events, showcasing Brisbane to locals public consultation in developing long-term as well as to interstate and international plans for its major ports and their visitors. surrounding land and marine areas. Queen’s Wharf Brisbane is a declared The Act gives effect to the government’s Priority Development Area (PDA) under the commitments made in Reef 2050 to better Economic Development Act 2012. This manage the impacts of port development on establishes the necessary regulatory the environment, particularly on the environment to support the intended GBRWHA, while allowing Queensland’s development outcome for the site and economy, jobs and regions to grow. facilitate the planning and delivery of The legislation will ensure the outstanding Queen’s Wharf Brisbane. universal value of the GBRWHA is an intrinsic consideration in future port development.

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Dalby Bio Refinery—turning grain to ethanol

Long-term port master planning at the four priority ports of Gladstone, Abbot Point, Attracting and facilitating Townsville and Hay Point/Mackay will align industry with the Council of Australian Governments Attracting industry to relocate to, or expand (COAG)–endorsed 2012 National Ports existing operations in Queensland, is a Strategy, outcomes of the 2013 independent strong focus for the department. review of the Port of Gladstone and industry demand for a comprehensive strategic The department works with other key approach to planning for the growth of the agencies, including TIQ, to attract new state’s priority ports. contestable projects that will make a significant contribution to the Queensland The Act identifies the opportunity for economy. guidelines to be released for priority port master planning—reflecting a key state One notable recent investment success has government port-related action under Reef been Southern Oil Refining—a New South 2050. Wales waste oil recycling business keen to expand its operations into biofuels. The draft priority port master planning Following discussion with the department, guideline was available for public comment the company agreed to invest $16 million in from 2 February to 14 March 2016. a biofuels facility in Gladstone. Mineral Resources (Aurukun Bauxite This investment will provide regional Resource) Amendment Act 2016 Queensland with an innovative biofuels The department led the preparation of the production facility. Should the legislative amendments that comprised the demonstration plant prove successful, Mineral Resources (Aurukun Bauxite Southern Oil Refining intends to build a Resource) Amendment Act 2016, which commercial facility at the demonstration site commenced on 24 March 2016. These with an estimated investment of $150 amendments balance the promotion of million and the potential for around 64 direct economic growth with the needs and rights full-time jobs. of local landholders, Indigenous groups and As a new mechanism to enhance the benefits the broader Queensland community. of Queensland for industry, the Queensland Amendments to the Aurukun provisions in Government has approved the Advance the Mineral Resources Act 1989 in early Queensland Industry Attraction Fund. 2016 removed a significant impediment to Designed to increase industry growth the Aurukun Bauxite Project progressing, through tailored financial incentives while also restoring landholder and packages, the fund will attract new projects community objection rights. to Queensland that will help generate The department is now working with sustainable jobs, stimulate growth and Glencore to progress the Aurukun Bauxite encourage regional development. It will also Project and ensure economic benefits flow support increased innovation and stronger through to local communities. local supply chains. As part of the $405 million Advance Queensland initiative, the fund will provide

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Packer Leather—using advanced manufacturing techniques

$10 million per year over the next four years of state and federal environmental to eligible businesses through a combination legislation. of payroll tax rebates, transfer duty Following consultation with key concessions and, in some cases, cash grants. stakeholders, the Coordinator-General is Targeted to both traditional and emerging finalising a new Economic Impact industries, projects will be rigorously Assessment guideline. assessed and will be required to provide a As part of the new Strong and Sustainable significant net benefit to the state. Resource Communities policy framework, the Coordinator-General is also undertaking Coordinator-General's targeted stakeholder consultation on a comprehensive and efficient substantially revised Social Impact EIS process Assessment guideline. The Coordinator-General’s assessment process for declared coordinated projects Restoring community delivers a comprehensive evaluation of all objection rights environmental, social and economic The government is committed to balancing impacts. landholder and community rights and Throughout the assessment process the interests with resource industry Coordinator-General considers the views development. To this effect, the government and advice of government agencies, amended the State Development and Public technical specialists and the community. Works Organisation Act 1971 (SDPWO Act) to repeal section 47D, restoring Public input is routinely sought on the landholder and community objection rights project’s draft terms of reference for the EIS and enabling the community to have their and the draft EIS. The proponent must also say on projects. demonstrate that it has conducted a thorough community consultation process. The Mineral and Other Legislation Amendment Bill 2016, passed by the At each key phase of the EIS process, staff Legislatively Assembly on 24 May 2016, of the Coordinator-General draw together fully restores the community objection rights the project proponent, technical experts and to resource developments that existed prior the relevant regulatory agencies to confirm to the Mineral and Energy Resources study methodologies, interpret the results of (Common Provisions) Act 2014. those studies, and analyse proposed impact management strategies. Working with the Australian The Coordinator-General collaborates very Government on approval closely with the Australian Government on all ‘matters of national environmental processes significance’ covered by the Bilateral The state government is committed to Agreement, which has been in operation for ensuring that development in Queensland over 10 years. It enables the Coordinator- occurs in an environmentally responsible General to conduct a single impact manner, especially in relation to the Great assessment that addresses all requirements

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Barrier Reef and our other natural In preparing for the review, the department environments. undertook broad consultation with key stakeholders regarding the review scope, The department is continuously seeking to purpose and consultation process. The improve the way the joint development review’s terms of reference aim to determine assessment process of the state and federal whether the current model works effectively governments can be made more efficient, to manage disputes between resource can provide greater confidence and companies and landholders, or whether an certainty, and can ensure high environmental independent resources ombudsman is standards are maintained. appropriate. The review also considered the In particular, the Coordinator-General is best way forward to enhance the public working closely with the federal Department health and community focus of the of the Environment and Energy to GasFields Commission Queensland. streamline processes and remove duplication and red tape while improving the robustness Social Impact Assessment and of assessments. Fly-in Fly-out (FIFO) This effort to streamline timeframes for project approval decisions that follow the In response to the 2015 Parliamentary Coordinator-General’s Evaluation Report is Inquiry recommendations on FIFO matters, achieving results with a 48 per cent the government is implementing the new reduction of the time taken between the date Strong and Sustainable Resource of finalisation of the Coordinator-General’s Communities policy framework consisting Evaluation Report and the Commonwealth of a revised social impact assessment Minister’s approval since the December guideline and new legislation to: 2013 benchmark.  prescribe the social impact assessment process for new resource projects GasFields Commission  prevent the future use of 100 per cent Queensland review FIFO workforce arrangements  prohibit future discrimination against The Coal Seam Gas (CSG)–LNG industry locals during the recruitment processes of makes a significant contribution to the new workers. Queensland economy through job creation, business investment and royalties that This framework also aims to: benefit our communities—particularly in our  support resource communities to attract regions. and retain workers and their families The GasFields Commission Queensland was  provide improved opportunities for local formally created in 2013 to manage and governments to participate in project improve sustainable coexistence between impact assessment processes rural landholders, regional communities and  maximise opportunities for competitive the onshore gas industry. and capable local businesses to access Following three years of operation, on 16 resource project supply chains March 2016, Mr Robert Scott, a retired  provide sufficient flexibility to respond to member of the Land Court of Queensland peaks and troughs in the resource sector with extensive experience in land valuation,  protect workers’ health and wellbeing compensation and land use matters, was  appointed to undertake an independent minimise any consequential increases in review of the GasFields Commission costs to both proponents and Queensland.

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Defence Northern Queensland Working Group

governments in the assessment and They include a number of projects such as operation of resource projects. improved recreational trails, interpretive The policy framework and legislation signage and the development of a development is being informed by Minjerribah Cultural Centre. consultation with local governments in Acknowledging that early results are an resource communities, industry peak bodies, important aspect of the proposed strategy, relevant trade unions, and key state some planning and feasibility studies are agencies. also required to provide for medium-to- The new legislation would enable the longer term economic development Coordinator-General to also state conditions opportunities for the island. of approval on the social impact Initiatives such as the Dunwich Master Plan management of all resource projects and Tourism Site Identification Study will requiring an EIS in Queensland. help to ensure that growth is appropriately planned for, and that future investment on North Stradbroke Island the island is directed to projects that Economic Transition Strategy contribute to sustainable economic growth. The draft North Stradbroke Island Economic Transition Strategy was released in late Foreign investment activity 2015 to facilitate the transition of the The Australian Government has economy from sand mining to more responsibility for implementing foreign sustainable industries of tourism, education investment policy and welcomes foreign and training and local businesses. investment, as it helps build the economy The draft strategy recognises North and supports economic growth and Stradbroke Island’s strong environmental innovation. and cultural values, and seeks to build on The Foreign Investment Review Board these strengths through supporting the (FIRB) in Canberra has responsibility for growth of: examining proposals with foreign interests  sustainable tourism for investment in Australia and provides  education and training guidance to foreign investors so that their proposals may conform with foreign  local business development. investment policy. FIRB reviews all foreign Public consultation on the draft strategy ran investment proposals against the national from December 2015 to February 2016 and interest on a case-by-case basis and makes involved direct engagement with key recommendations to the Australian stakeholders and the island’s community. Government. The initiatives under the draft strategy focus FIRB must be satisfied that the proposed on stimulating economic activity, investment is not contrary to the national encouraging private sector investment and interest, which includes criteria such as providing long-term sustainable employment national security, competition, Australian opportunities. Government policies, impact on the economy and the character of the investor.

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FIRB refers all Queensland-related foreign investment proposals to the Foreign Investment Secretariat, located within the department, for a coordinated whole-of- government assessment and response. This referral process is purely on a consultative basis and is not legislatively driven. The Foreign Investment Secretariat assesses and refers all foreign investment proposals to the relevant Queensland Government agencies for comment. For the financial year to 30 June 2016, 366 foreign investment applications—valued at about $129 billion—were referred by FIRB to the Foreign Investment Secretariat. This represents a 16 per cent increase compared to the previous year. Assessments are mostly related to acquisition of commercial and residential real estate properties and land.

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Queensland State Velodrome

Our performance in facilitating a major projects pipeline

related construction works to support the Key highlights development of the Port of Abbot Point  progressing works for three new Our department is facilitating a major Commonwealth Games sporting venues projects pipeline by: being built at Coomera, Chandler and Carrara  the Coordinator-General actively facilitating required approvals for  getting construction underway on a projects that have recently commenced number of venue upgrade projects, construction or are close to construction including the Gold Coast Hockey Centre such as the Amrun Project (also known and Nerang Mountain Bike Trails as South of the Embley), Byerwen Coal  continuing construction of the Project, Isaac Plains Coal Mine, QGC Commonwealth Games Village Charlie Fields 1, Kidston Project, Dugald  progressing works for the new $30 River Project, Guthalungra Aquaculture million State Netball Centre at Nathan Project, Rockland Project and Sarsfield  generating savings through the CHaPs Expansion Project program by encouraging private sector  investigating potential new projects investment, direct capital works savings through the Office of the Coordinator- and redirection of budgeted funds General regarding an approvals pathway.  facilitating the sale of the former Gold Since July 2015, AGL’s Coopers Gap Coast Hospital site, in order to convert it Wind Farm and the KUR-World into a mixed-use site, including retail, Integrated Eco-Resort at Kuranda have apartments, health and aged care been declared coordinated projects  receiving, through Property Queensland,  the Coordinator-General undertaking 88 submissions from 15 departments in environmental impact assessments of 13 the 2015–16 financial year—seeking projects (as at 18 July 2016), with a total consideration of 285 property capital value of more than $19.5 billion transactions pursuant to the Queensland and potential to create around 28 000 Government Land Transaction Policy. construction and operational jobs Transactions included sales via open  the Coordinator-General recommending market process, in-priority disposals, ministerial declaration of three new leases and inter-agency transfers with an prescribed projects: Kidston Project, estimated value of $120 million Isaac Plains Mining Complex and the  assisting the Queensland Government’s Dugald River Project, which were Market-led Proposal (MLP) Panel with subsequently prescribed as well as eight the assessment of the Brisbane Cruise prescribed project extensions Terminal and leading the assessment of  completing the EIS and receiving federal the Queensland Aquarium and Maritime and state approvals for dredging and

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Coomera Indoor Sports Centre

Museum and Fortitude Valley PCYC ahead of the GC2018 event, enabling proposals thorough testing.  case managing projects with significant The $320.914 million investment in sport local benefits such as the $70 million and community infrastructure in the lead-up Knauf Plasterboard Factory—expected to to GC2018 is generating more than 1000 be complete in mid 2017—creating up to jobs during the design and construction 200 construction jobs and an estimated stages. 55 operational positions As at 1 June 2016, of the $152 million in  reaching contractual close with the construction contracts awarded for the Destination Brisbane Consortium as the venues projects, $83 million was awarded preferred proponent for Queen’s Wharf to Gold Coast contractors and a further $60 Brisbane IRD on 16 November 2015 million to South East Queensland  continuing to engage with proponents to businesses. develop regional IRDs. Opportunities to work on world-class infrastructure projects will make it possible Delivering Gold Coast 2018 for many suppliers to up-skill and gain Commonwealth Games valuable experience that will build their (GC2018) venue local business capabilities into the future. infrastructure and the There were more than 370 workers Commonwealth Games Village employed across the competition venue sites as at 1 July 2016, with more than 4500 GC2018 venue infrastructure people so far playing a role in the Delivery of the GC2018 venue construction of these projects. infrastructure and the Commonwealth Long-term benefits are already being Games Village—in preparation for hosting realised such as the Broadbeach Bowls the largest sporting event ever to be held on Club upgrade, completed in June 2016 in the Gold Coast—is on time and on budget time to host the Bowls Australian Open as endorsed by the Commonwealth Games competition and 2016 World Junior Federation in May 2016. Championships. GC2018 will be hosted across 18 new, The venue is building its reputation as upgraded and existing venues across the Australia’s premier bowls facility with the Gold Coast, and in Brisbane, and 2020 World Bowls Championships secured, Townsville. Significant stakeholder brief and has employed six additional staff: one development, site investigation works and apprentice kitchenhand and five hospitality, master planning was undertaken to ensure management and customer service trainees. optimum legacy outcomes. The department is managing the planning, Parklands Project (Commonwealth design, procurement and construction of Games Village) three new world-class venues and major The department is overseeing the upgrades to a further seven venues. All of development agreement for the design and these are on track to be delivered well construction of the Parklands Project,

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Parklands development for the Gold Coast 2018 Commonwealth Games

which will provide accommodation and and two-bedroom apartments and 82 three services to 6600 athletes and team officials bedroom townhouses. during GC2018. Grocon will make the dwellings available The Parklands Project private developer for rent and sale from early 2019, with a agreement model delivers value for money gradual sell-down over time, minimising for Queenslanders by significantly the impact of such a large development on minimising risk and cost to the state the Gold Coast property market. through private sector investment partners. The $550 million infrastructure project is Queensland State Netball providing a substantial boost to the Centre Queensland economy and will create an On 8 July 2015, the Queensland estimated 1500 jobs during the design and Government committed $30 million to construction stages. build the State Netball Centre: a purpose The Commonwealth Games Village is the built eight-court indoor netball centre catalyst project for the redevelopment of located at the Queensland Sports and the Parklands Precinct, which is the largest Athletics Centre at Nathan. urban renewal project ever undertaken on The facility will be a base and training the Gold Coast. venue for the Queensland Firebirds and the As at 1 June 2016, of the $306 million in headquarters for Netball Queensland—the construction contracts awarded for the sport’s state-governing body—as well as a Commonwealth Games Village, $126 community competition venue. million has been awarded to Gold Coast During 2015–16, the department worked contractors and a further $143 million to closely with all stakeholders to develop the South East Queensland businesses. scope and maximise the ongoing benefits More than 1800 workers have played a role the project will provide. in the construction of the Commonwealth A detailed brief for the project was Games Village and eight of the 18 prepared following consultation with apartment buildings reached roof level in Stadiums Queensland, Netball Queensland, June 2016. and Queensland Sports and Athletics Substantial progress has been made Centre officials. This was used to inform all throughout the remainder of the site. design works commissioned to date. During Construction of townhouses started recently design and construction, the project will and civil works to the main park are nearing provide up to 120 jobs. completion. Initial expectations were for building works After GC2018, Parklands will become a to be completed and handed over by the end new master planned, mixed-use community of 2017. To ensure the best possible for residents and businesses as part of the outcome for the project, additional time has Gold Coast Health and Knowledge been allowed to enable Stadiums Precinct. It will incorporate 1252 Queensland to progress land negotiations, permanent dwellings, comprising 1170 one- and Netball Queensland to seek funding for a potential 5000-seat competition show

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Artist’s impression of Queen’s Wharf Brisbane. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

court and gymnasium, which are additional will be finalised before site handover to the original scope. occurs to the Destination Brisbane Consortium in 2017. It is anticipated that the project tender will be awarded in late 2016, with practical The department is rolling out a series of completion and handover being achieved in events to ensure that Queenslanders are the first half of 2018. ready to take advantage of the opportunities delivered by Queen’s Wharf Brisbane and Queen’s Wharf Brisbane other new developments. The series includes guest speakers from one of the Queen’s Wharf Brisbane is a $3 billion IRD Queen’s Wharf Brisbane consortium that will deliver new high-quality public partners, Star Entertainment Group, as well precinct on state-owned land located as supply chain and economic experts. between the Brisbane River and George Street and between Alice and Queen The series started in Brisbane on 12 July Streets, with the foreshore improvements 2016 and will be followed by events in extending to the Goodwill Bridge. Toowoomba, the Sunshine Coast, Mackay, Rockhampton, the Gold Coast, Cairns, Queen’s Wharf Brisbane will deliver Townsville, and the Wide Bay and Ipswich significant revenue to the state, with staged regions. payments of $272 million and tax revenue in the first 10 years of casino operations Integrated resort estimated at $880 million. developments (IRDs) The project also has significant job creation capacity, with a forecast of up to 2000 Tourism contributes $23 billion to construction jobs and 8000 ongoing jobs Queensland’s economy and supports more when operational in 2022. than 230 000 jobs. As part of the Queensland Government’s strategy to The key milestone reached in 2015–16 was support and grow the tourism sector, the on 16 November 2015 when the department is seeking to establish regional Queensland Government reached IRDs. contractual close with the Destination Brisbane Consortium to deliver Queen’s Gold Coast IRD Wharf Brisbane. In March 2015, the government announced The department is working closely with its commitment to protect the Gold Coast’s stakeholders, including the recognised northern beaches and South Stradbroke traditional owners of the site, to ensure the Island from development, and to end any site’s cultural heritage is protected and consideration of a cruise ship terminal in celebrated. the Gold Coast Broadwater. The relocation of tenants from the As part of that commitment, areas of the precinct’s government and heritage Spit north of Seaworld and Wavebreak buildings, the decommissioning and storage Island are being safeguarded. of monuments and art, and other precinct The government continues to negotiate with coordination activities are under way and ASF Consortium Pty Ltd (ASF) regarding a

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Artist’s impression of Queen’s Wharf Brisbane. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

five-hectare site between Sea World and the State Development and Public Works Gold Coast Fishermen’s Co-operative on Organisation Act 1971 (SDPWO Act). the Southport Spit. The proponent is Reever and Ocean ASF has been working with the state on this Developments Pty Ltd. If developed, the important economic development project would be a substantial eco-tourism opportunity for more than two years. The asset to the state. ASF proposal for an IRD on the southern Located around 22 kilometres north-west of Spit represents $3 billion in investment, up Cairns, the proposal—which requires a to 2000 construction jobs and up to 10 000 capital investment of more than $640 direct and indirect operational jobs. million—is to develop an integrated eco- ASF provided a preliminary proposal to the resort, including luxury hotel and department on 10 May 2016. Further residential accommodation, education and information is required before a final business facilities, rejuvenation, health and proposal can be requested and subsequently wellbeing facilities, and adventure and evaluated by government. recreation facilities. There is substantial local community and The project could create up to 1830 jobs business interest in identifying a broader during the construction period, with a peak plan for The Spit and surrounding areas. construction workforce of 545 in any one year. During the operational phase, the Aquis Yorkey’s Knob residential project is expected to generate 600 jobs. and tourism proposal On 27 June 2016, the federal Department of The Aquis proposal for an IRD at Yorkey’s the Environment and Energy determined Knob, Cairns has been reshaped to focus on the project to be a ‘controlled action’, a $2 billion residential and tourism requiring assessment under the development. Environment Protection and Biodiversity The government continues to work with Conservation Act 1999. Aquis, given the jobs and opportunities on The Coordinator-General will work closely offer from this reshaped proposal. It is with the proponent and government planned to mainly be a residential and agencies to ensure the potential impacts of tourism development, with luxury hotels, the project—including impacts on protected apartments and villas. The department species habitat—are managed to an continues to work with Aquis and other acceptable level, and will coordinate a agencies to facilitate an appropriate whole-of-government assessment. development at the Yorkey’s Knob site. Prescribed projects Kur-World Integrated Eco-Resort Prescribed project powers under the SDPWO Act can be used to assist On 12 July 2016, the Coordinator-General proponents to overcome unreasonable declared the KUR-World Integrated Eco- delays in obtaining project approvals. Resort a ‘coordinated project’ under the

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Sunshine Coast Airport

The Coordinator-General is currently requirements to protect water quality and monitoring 13 prescribed projects. protected species habitat. During 2016, the Coordinator-General It includes 88 conditions and 28 recommended the declaration of three new recommendations. The Coordinator- prescribed projects to the Minister for State General considered 2227 submissions, Development. These were the: assessment documentation for the project, and advice from relevant federal, state and  Kidston Project local government agencies.  Isaac Plains Mining Complex The Sunshine Coast Airport Expansion  Dugald River Project. Project would deliver jobs and economic For a prescribed project, the Coordinator- growth for the Sunshine Coast region, and General has the power to intervene in the provide a major boost to tourism. approvals process, including by issuing a: The project involves capital expenditure of  progression notice—which requires the $347 million and will provide an economic decision-maker to progress the boost of $311 million to the regional administrative processes necessary to economy by 2040. complete the assessment process within The project will create a peak construction a specified timeframe workforce of 86 and an additional 1538  notice to decide—which requires the direct operational jobs by 2040. decision-maker to make the relevant decision within a specified timeframe The project will also be assessed by agencies in the Australian Government, for  step in notice—allowing the example the Civil Aviation Safety Coordinator-General (with the minister's Authority and Airservices Australia, as part approval) to 'step in' and assume of its responsibility to manage aviation responsibility under the relevant law for airspace. assessing and making a decision on a project, in place of the usual decision- The proponent has indicated that maker. construction would commence as soon as required approvals are in place, with Sunshine Coast Airport planned commencement in 2020. Expansion Improved government The Coordinator-General’s Evaluation property usage Report was sent to the Commonwealth Minister for the Environment on 20 May Repurposing, renewing or disposing of 2016 to inform his decision on matters of surplus government property is an national environmental significance under important part of property management for the Environment Protection and government. It has a range of benefits for Biodiversity Conservation Act 1999. the state: it provides opportunities for economic growth and job creation through The Coordinator-General’s Evaluation private investment, and it creates Report was released on 19 May 2016 community benefits by generating revenue approving the project and setting strict

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Artist’s impression of the Training Administration and Community Facility

for government to reinvest into new by the Broncos and access for community infrastructure and services for groups to a community room and theatrette. Queenslanders. The Brisbane Broncos have commenced Property Queensland, as part of the demolition and remediation works at Red department, assists relevant government Hill, with construction expected to departments, agencies and local councils commence by the end of 2016. This project with re-use opportunities and manages will directly employ approximately 84 significant transactions on behalf of people during the construction phase. government, including strategic and multi- The Broncos are funding the design and agency transactions, the assessment of construction of the new facility, which has property-based MLPs and transactions with an estimated project budget of $27 million. significant complexity. The Broncos will run a number of Property Queensland is also involved in important community programs, such as developing and implementing portfolio Beyond the Broncos, from the facility and review initiatives to identify innovation, expand these programs over the life of the public benefit and value-uplift opportunities lease. and is delivering a transparent reporting and decision-making framework for Government Land for government. Accommodation and Support Proposals from not-for-profit and Services (GLASS) community organisations for the use of The GLASS Program was established so government property are investigated by that surplus and underutilised government Property Queensland on a case-by-case land could be made available to not-for- basis. profit organisations, to enable them to develop affordable accommodation and Brisbane Broncos Training support services. Administration and Community Facility Surplus and underutilised land has been sourced from a number of state agencies for Following government approval, Property the GLASS Program. Queensland negotiated a lease transaction with the Brisbane Broncos to enable the An extensive expression of interest phase construction of a Training, Administration was completed in December 2015, and Community Facility, providing matching not-for-profit organisation significant community benefits to interest with available land. Queensland for the term of the lease. Proposed projects are located on the Gold A key aspect of the lease agreement is the Coast and Sunshine Coast, and in Brisbane, requirement for the Broncos to provide and the Darling Downs, South Burnett, North report upon a range of community benefits and Far North Queensland. in exchange for exclusive access to the site. These community benefits include public access to the training field when not in use

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View of the Mary Valley

Under the lease conditions, these properties Queensland Aquarium and can be purchased by the lessees at the Maritime Museum expiry of their leases, which will occur The department is leading the whole-of- between late 2016 and 2018. government assessment of a MLP for the Queensland Aquarium and Maritime Additionally, in April 2016, the department Museum. transferred 119 hectares of farming land that fronted the Mary River to the The proposal includes a world-class Department of Education and Training aquarium to showcase the diversity of (DET) to be used for agriculture training Queensland’s rivers, islands, reefs and delivery through the Noosa District High ocean environments, and a revitalised School. Queensland Maritime Museum. The proponents are required to develop Community Hubs and Partnerships their detailed proposal on the basis that it (CHaPs) will protect the heritage and cultural values The CHaPs Program facilitates of the site and deliver enhanced public opportunities for all levels of government spaces connecting South Bank and as well as the private and community Kangaroo Point while retaining the site in sectors, to collaborate and plan government ownership. infrastructure to support the integration and delivery of services that benefit Queensland The project would be fully funded, communities. constructed and operated by the private sector and would further enhance tourism CHaPs projects deliver innovation and and employment opportunities. economic efficiency benefits for government and the community, including Mary Valley properties providing direct capital savings, unlocking In April 2016, the department started an private sector contributions and leveraging expression of interest campaign to provide existing investments for greater community opportunity for interested parties to inspect benefit. and purchase 11 of the remaining state- CHaPs managed the planning and owned Mary Valley properties. implementation of 13 projects across the Strong interest was demonstrated in the state during the 2015–16 financial year. properties, with a total of 65 offers received These projects were attributed with saving resulting in 10 sales settling and one tens of millions of dollars in government property under contract. capital expenditure. The projects are: Six additional Mary Valley properties were  Aura (Caloundra South): commenced not included in this expression of interest November 2014; anticipated close-out campaign. These properties have August 2016—facilitated the co-design development leases, including leases for of education and community facilities two dairy farms, an outdoor education and secured a capital contribution from facility, a beef cattle enterprise and the private sector developer to deliver agricultural training and education uses. early facilities to the emerging community

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Artist’s impression of Aura Community Hub

 Caboolture Health Precinct: January needs and develop the Inala Community 2015 to April 2016—facilitated a land Hub Precinct report transfer agreement between state  Maryborough: April 2015 to April agencies, future proofing the Caboolture 2016—partnered with state agencies and Hospital and avoiding significant costs regional stakeholders to identify to government for additional land opportunities to utilise the vacant TAFE purchase and infrastructure duplication site for service co-location or other  Redcliffe: commenced February 2015 to economic development purposes current—collaboratively developed the  Moranbah: January 2015 to June 2016— Redcliffe Peninsular Futures Strategy, facilitated the planning, negotiation and capitalising on the transformational funding of a new youth and community opportunities and regional economic and centre to provide the opportunity for co- social development to be provided by located and improved services for the the Moreton Bay Rail Link community, securing significant private  Logan Development Areas: commenced sector investment from BHP Billiton June 2016 to current—facilitating a Mitsubishi Alliance collaborative cross-government  Mount Isa: February 2016, anticipated mechanism to add value to the close-out October 2016—partnering coordination of land use and service with state agencies and regional delivery planning in the Priority stakeholders to identify opportunities, Development Areas (PDAs) of needs and collaborative solutions in Yarrabilba and Greater Flagstone Mount Isa  Yarrabilba: August 2015 to April  Western Downs: August 2015, 2016—facilitated a state agency and anticipated close-out August 2016— local government agreement on future partnering with state agencies, regional land allocation in the PDA experiencing stakeholders and the resource sector to rapid population growth develop an action plan articulating  Ripley Valley Priority Development coordinated responses to challenges and Area Ipswich: November 2014 to opportunities from changing industry current—negotiating an interagency and community profiles in the region, Infrastructure Agreement with the and identifying actions to support developer for coordinated land use growth, jobs and improve liveability planning and delivery of health,  Weipa: August 2015 to December education and local government services 2015—developed a cross government  Inala: July 2015 to current—worked plan for government accommodation collaboratively with the Department of growth requirements Communities, Child Safety and  Non-Government Education Sector Disability Services (DCCSDS) and other Partnership: June 2016 to current— major stakeholders to engage Inala facilitating partnership opportunities service providers and other community between state and non-government stakeholders to review current and education sectors to support innovation future community service and recreation in funding and finance, as well as

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Artist’s impression of wind turbines at Coopers Gap Wind Farm

planning and land use for the provision Undertaking these types of negotiations of essential infrastructure to meet enables the department to achieve value significant school aged population uplift for strategic surplus government land. growth. CHaPs and its successful collaborative Fortitude Valley PCYC approaches to infrastructure planning will The department, in partnership with the assist government’s delivery of the State PCYC, is investigating opportunities for Infrastructure Plan and Social private sector investment to fund a new Infrastructure Strategy. Fortitude Valley PCYC facility in Brisbane. The CHaPs Program Board, comprising This project demonstrates the government’s central agency and cross government commitment to supporting the renewal of stakeholders, including the Department of community-based infrastructure. The Premier and Cabinet (DPC); Queensland PCYC Association provides a wide range Treasury; DET; Queensland Health; of community services including sport and Department of Housing and Public Works recreation, youth development and crime (DHPW); DCCSDS; and DILGP; endorses prevention programs helping young the initiation of CHaPs projects, following Queenslanders. opportunity scan activities and recommendations from the CHaPs team. This project is testing an innovative funding model that could be applied more widely, Former Gold Coast Hospital resulting in improved standards of divestment community based facilities. Property Queensland led the program of work associated with preparation and Clean coal mining to divestment of the former Gold Coast renewable energy Hospital site in Nerang Street, Southport. The government is pursuing a low-carbon The department project managed the site future, but recognises that coal will be part preparation to ensure the site was of the energy mix for many years to come. ‘development ready’ and more appealing to The government is also focusing on potential purchasers. This included realising the opportunities of a renewable demolition of 20 buildings that previously energy future. accommodated the Gold Coast Hospital— completed in August 2015—and the Queensland’s emerging biofuels and large- remediation of the underlying land— scale renewable energy projects are starting completed in October 2015. to generate jobs and attract more investment. The department is currently At the same time, Property Queensland facilitating more than $3 billion worth of reconfigured the site into saleable lots, renewable energy projects in various stages negotiated infrastructure charges credits of early development, of which more than with Gold Coast City Council and $2 billion is located in North Queensland. coordinated the expression of interest process. By investing in the industry, the department is working towards reducing Queensland’s

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Aerial view of Abbot Point coal terminal

greenhouse gas emissions and creating a A transition from coal to alternative energy low-carbon economy for the future. is underway, but this will take time and there will continue to be global demand for The department is working with the coal for power generation for many years. proponents of 20 projects, which will offer up to 2000 jobs during construction. The department is actively developing the resources industry, but is increasingly While the renewable energy sector will play focusing on Queensland’s emerging an increasingly important role in renewable energy sector in order to harness Queensland’s economic development, the opportunities in both sectors, drive resources industry also continues to provide innovation and create employment. jobs, royalties and business opportunities for many Queenslanders and will continue Renewable energy to do so for some years. The Queensland Government is committed Queensland produces some of the highest to growing the renewable energy industry, quality coking and thermal coal in the creating jobs and reducing greenhouse gas world, within a strong workplace safety and emissions. environmental legislative framework. For example, the government’s Solar There continues to be global demand for Future Plan sets a target of one million thermal coal—the International Energy solar rooftops in Queensland by 2020. Agency (IEA) estimates that Southeast Asia’s electricity demand will almost triple Further, the government’s independent by 2040. The IEA also predicts that 40 per Renewable Energy Expert Panel is cent of the increased capacity would be examining the creation of a credible supplied by coal-fired power stations and pathway to achieving a 50 per cent India is forecast to double its demand for renewable energy target by 2030. thermal coal by 2030. The $500 million Coopers Gap Wind Farm, A significant proportion of the energy the largest proposal of its type in needs of developing nations will draw on Queensland, could generate around 350 coal-powered electricity, and Queensland is construction and 20 operational jobs. It was well positioned to meet this demand. declared a coordinated project by the Coordinator-General in June 2016, with The global adoption of more efficient AGL now preparing an EIS. power generation technologies, such as supercritical and ultra-supercritical power The proposed construction of up to 115 plants, will also require a switch from lower wind turbines would generate 350 quality coal supplies to cleaner burning megawatts of power, which has the black coal. potential to supply power to an estimated 180 000 households. Once operational, the By using Queensland’s high-quality coal, wind farm would assist in meeting the rather than lesser quality coal from other government’s renewable energy generation suppliers—particularly in combination with target. advanced generation technologies—these countries would contribute to lowering carbon emissions globally.

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Irrigation ponds at AJ Bush & Son’s in the Bromelton SDA

Environmental assessments are required, by Galilee Basin federal and state legislation, to be extremely The Queensland Government supports thorough. For example, the environmental development of the Galilee Basin on a studies for the Carmichael mine, rail and commercially viable and environmentally port projects currently cover around 32 500 sustainable basis. The Galilee Basin covers pages of information. an area of 247 000 square kilometres in The Coordinator-General’s evaluation western Queensland and contains a reports for the projects have set extensive, substantial resource of mostly high-volatile, stringent conditions to protect landholders, low-sulphur thermal coal. flora and fauna, groundwater resources, There are currently five proponents with surface water and air quality. Controls on active mine development proposals in the dust and noise have also been set. Galilee Basin. Adani’s Carmichael Coal For groundwater impacts, the Coordinator- Mine and Rail Project, and GVK Hancock’s General imposed strict conditions requiring Alpha and Kevin’s Corner Projects are the Galilee Basin proponents to contribute data most advanced in terms of approvals. and funding for development of a state There are also other projects, including government regional groundwater model. MacMines’ China Stone Coal Project in the This will assess the impacts from multiple north, and Waratah’s Galilee Coal and mines in the Galilee Basin and develop AMCI’s South Galilee Coal Project in the adaptive management measures for ongoing south. mine operations. The mines range in scale from annual For social impacts, the Galilee Basin production output of up to 17 million proponents have committed to being tonnes for the South Galilee Coal Project, involved in local and regional planning to up to 60 million tonnes for the processes and to participate in collaborative Carmichael Coal Mine. forums. These forums will support the mitigation of social impacts and the If all projects were to go ahead, at peak identification of regional opportunities. around 18 390 construction and 15 590 operational jobs could be created and total State development areas capital expenditure for all proposed mines, and associated rail and port infrastructure, (SDAs) is estimated at $55.8 billion. SDAs declared under section 77 of the These projects would also generate SDPWO Act are clearly defined areas of thousands of additional jobs in supply chain land established by the Coordinator- industries, such as training, technology and General to facilitate development, promote manufacturing. economic development and generate jobs. Mining proponents are responsible for SDAs provide an efficient system for the ensuring their mines and supporting assessment of development applications infrastructure projects are financially and play a critical role in Queensland’s viable. All Galilee Basin developments export-oriented economy. There are must meet strict environmental standards. currently nine SDAs and they typically take the form of one of the following:

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 industrial hubs for large-scale, heavy In April 2016, the Coordinator-General industry—located in close proximity to approved Adani’s SDA application for ports, rail and/or major road networks, Terminal 0, which provides for 40 million including the Abbot Point, Bromelton, tonnes per annum of additional coal Gladstone and Townsville SDAs throughput at Abbot Point and is critical to  multi-user infrastructure corridors—for helping facilitate the development of the the co-location of infrastructure such as Galilee Basin. rail lines, water and gas pipelines, and The Coordinator-General is also currently electricity transmission lines including assessing an application for rail the Callide Infrastructure Corridor, infrastructure within the Abbot Point SDA, Galilee Basin, Stanwell to Gladstone lodged by Adani on 22 February 2016. Infrastructure Corridor, and Surat Basin Work is also continuing with the local Infrastructure Corridor SDAs Native Title group through Juru Enterprises  major public infrastructure sites—for Limited, to provide further skills and example, the Lady Cilento Children's capacity building while undertaking land Hospital in the Queensland Children’s management activities within the Abbot Hospital SDA. Point SDA. The Coordinator-General is also The Coordinator-General will continue to investigating the potential for an SDA work with all proponents at Abbot Point to around the Port of Bundaberg. ensure a coordinated and effective approach The following provides an outline of to the development of key infrastructure activity conducted by the Coordinator- within the Abbot Point SDA. General and the department in relation to The Coordinator-General is currently SDAs in the 2015–16 financial year. undertaking a cumulative air quality impact assessment for Abbot Point, and is Abbot Point SDA undertaking preliminary scoping in relation Declared in 2008, the 16 885 hectare Abbot to infrastructure requirements for the Abbot Point SDA was established to facilitate Point SDA, including a potential upgrade to large-scale industrial development of the Bruce Highway intersection with Abbot regional, state and national significance, Point Road. given its proximity to the Port of Abbot These studies will help to inform and Point, access to both the Bruce Highway provide guidance to the Coordinator- and north coast rail line, and its General, with respect to land use planning considerable distance from Bowen. decisions regarding the location of existing, The Port of Abbot Point is identified as a new and expanding industries within the priority port under the SPD Act. The Abbot Point SDA. department has commenced work to inform master plan development for the Port of Bromelton SDA Abbot Point. Declared in 2008, the Bromelton SDA is In February 2016, the Coordinator-General strategically located on the rail network, approved an SDA application for the Abbot providing ready access to intrastate and Point Growth Gateway Project, which interstate markets. provides for the onshore disposal of dredge The Bromelton SDA is located around six material on unallocated industrial land next kilometres west of Beaudesert, and is an to the existing operational coal terminal to ideal location for industry in South East expand offshore berths and facilitate additional coal exports from Abbot Point.

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View of Bromelton SDA

Queensland, particularly high impact and expected to commence in late 2016 and freight and logistics operations. take up to 12 months to complete. Major industries established in the As part of the Building Our Regions Bromelton SDA include AJ Bush & Son’s Program, the government also committed rendering plant—with 75 full time $3.3 million to a $6.5 million joint funding employees and an annual turnover of $40 project with the Scenic Rim Regional million—and the Gelita gelatine Council and Queensland Urban Utilities to manufacturing plant—with 80 full time construct a 6.1 kilometre trunk water main. employees and an annual turnover of $55 The project will connect the Beaudesert million. Water Treatment Plant to the Bromelton SDA. This will enable the provision of In June 2016, the Coordinator-General reticulated water supply to industry approved the $30 million SCT Logistics precincts in the Bromelton SDA. The Project to establish an intermodal rail expected completion date is March 2018. freight facility and warehouses on land situated adjacent to the rail line. The Coordinator-General has issued eleven SDA approvals in the Bromelton SDA All of the project’s approvals have been since commencement of the Bromelton finalised and construction has commenced. SDA Development Scheme in November Stage 1 of the project will generate 200 2012. Six approvals were issued in 2015, construction and 130 operational jobs, with and two have been issued to date in 2016. the potential to create a further 200 operational jobs when the project Galilee Basin SDA progresses to subsequent stages. The Galilee Basin SDA, declared in June The department has assisted SCT Logistics 2014, supports the development of the by liaising with the relevant stakeholders, Galilee Basin and provides an efficient way including DTMR, Queensland Urban to transport coal to the Port of Abbot Point Utilities and the Scenic Rim Regional via two multi-user rail corridors. Council to ensure all necessary pre- requisites and approvals are in place for the Protection and implementation of the new facility. Galilee Basin SDA is a critical initiative to support the opening up of the Galilee Basin. The department is also currently liaising with SCT Logistics regarding local The Galilee Basin SDA generally procurement and local construction of its comprises two 500–600 metre-wide new rail facility. corridors from the Galilee Basin to the Abbot Point SDA—one rail corridor to Construction tenders for the $27.5 million service the central Galilee Basin, and a Beaudesert Town Centre Bypass were second corridor to service the southern called in June 2016. This is a vital piece of Galilee Basin. infrastructure to service the increasing freight demands in the Bromelton SDA As at 30 June 2016, the Coordinator- through improved access to the Mount General had approved 13 development Lindesay Highway. The project is jointly applications in the Galilee Basin SDA. This funded with the Scenic Rim Regional includes four quarries, one permanent non- Council. Construction of the bypass road is resident workforce accommodation, two

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Port of Gladstone

temporary workers’ camps, an airport and networks and Australia’s national highway. three rail infrastructure applications from It is well suited towards industries such as Adani, and a power station and a quarry transport and logistics, chemical from other applicants. manufacturing, and mining-related industry and processing. Adani has sought approval for five development applications for rail The majority of land within the Gladstone infrastructure from the Coordinator-General SDA is within state ownership (owned by covering their full 380 kilometre rail line either the Coordinator-General or the from mine to port, four applications within Minister for Economic Development in the Galilee Basin SDA and one Queensland). application within the Abbot Point SDA. Major industries established in the As at 30 June 2016, the Coordinator- Gladstone SDA include Rio Tinto’s General had approved three of the four rail alumina refinery, Orica’s chemical applications within the Galilee Basin SDA, manufacturing complex, Transpacific with one application still under assessment Industries' waste management and recycling and another application under assessment facility, Southern Oil’s northern oil refinery within the Abbot Point SDA. On 22 and the QGC, Australia Pacific and the December 2015, the Coordinator-General Santos GLNG gas plants. approved a material change of use for Rail Major public and private infrastructure Package 1 lodged by Adani in the Galilee within the Gladstone SDA includes gas, Basin SDA. water, slurry, and sea water pipelines, On 10 March 2016, the Coordinator- conveyors, roads and rail, with co-location General approved two material change of of infrastructure facilitated through multi- use applications for Rail Package 2 (rail user infrastructure corridors. infrastructure and non-resident workforce The Coordinator-General has progressively accommodation) and Rail Package 4 (rail purchased land in the Gladstone SDA infrastructure) lodged by Adani in the multi-user infrastructure corridors in order Galilee Basin SDA. to facilitate a coordinated approach to The Coordinator-General is assessing a infrastructure development. In July 2015, material change of use application for Rail the Coordinator-General purchased an Package 3 (rail infrastructure and non- additional 237 hectares of land within the resident workforce accommodation) lodged Materials Transport and Services Corridor by Adani on 7 May 2015. As at 30 June Precinct—the key multi-user infrastructure 2016, this application was in the decision corridor within the Gladstone SDA. stage. The Coordinator-General has recently approved Southern Oil Pty Ltd to establish Gladstone SDA a pilot project at their northern oil refinery Declared in 1993 and strategically located site within the Gladstone SDA. The pilot adjacent to the Port of Gladstone, the project will ‘value-add’ to the residual Gladstone SDA supports the development waste oil currently recycled at the site to of industry of regional, state and national test the further refining of the waste oil to significance with connections to major rail produce green diesel, and the addition of

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Port of Townsville

waste streams, such as bagasse, to The Coordinator-General is committed to supplement production. This is a great maximising development opportunities in example of biofutures in action and is the Townsville SDA and is actively indicative of the progress that is being working with a major landholder, Glencore, made in meeting Queensland Biofutures on master planning its landholdings to 10-Year Roadmap and Action Plan. facilitate and coordinate development. In addition, during 2015–16, the The Coordinator-General is currently Coordinator-General approved investigating options to develop an developments in the Materials Transport infrastructure charging strategy for the and Services Corridor Precinct to enable the Townsville SDA, in conjunction with Gladstone Area Water Board to undertake Townsville City Council and the infrastructure development. Department of Transport and Main Roads (DTMR). Queensland Children’s Hospital On 18 May 2016, Prime Minister Malcolm SDA Turnbull pledged $150 million towards the Declared in 2008, the 15.8-hectare construction of the Townsville Eastern Queensland Children's Hospital SDA was Access Corridor, a proposed rail corridor to established to facilitate the delivery of a provide increased rail capacity and more hospital and associated infrastructure. direct access to the Port of Townsville, Adjacent to Brisbane's existing Mater including bypassing residential areas and Children's Hospital, the area includes the CBD. development of the Lady Cilento Children's DTMR would be the lead agency for rail hospital, the Centre for Children's Health corridor implementation. and Research, associated infrastructure and an education precinct (to be used by If constructed, the Townsville Eastern Somerville House and St Laurence's Access Corridor would facilitate College). development of rail-dependent land uses in the Townsville SDA. The Coordinator-General approved three SDA applications in the Queensland During the past 12 months, the Children’s Hospital SDA in 2015–16. Coordinator-General has approved Aurizon’s $50 million freight terminal, a Townsville SDA service station (ancillary retail) and food and drink outlet, and a transport depot in The Townsville SDA was declared in 2003, the Townsville SDA. and is strategically located to support clusters of medium to large-scale industrial Aurizon’s freight terminal is an expansion development. of the existing Stuart rail yard and facilitates the relocation of the current rail The Townsville SDA comprises 4900 yard from the Townsville CBD. The freight hectares of land located approximately six terminal is currently under construction and kilometres south-east of the Townsville is due for completion in December 2016. CBD in proximity to the Port of Townsville.

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Aerial view of the port and study area of a potential SDA at Bundaberg

Consultation on the proposed SDA and its Potential SDA around the Port of boundary was undertaken from 27 June Bundaberg 2016 until 25 July 2016. Consultation In October 2015, the Queensland material included an information report that Government announced an investigation explained the investigations that informed into the possibility of a new SDA around the identification of the draft boundary, as the Port of Bundaberg including land on the well as potential land uses within the area, western side of the Burnett River. including buffers, environmental The Port of Bundaberg is the next port management and industrial uses. north of Brisbane and is the state’s only The Queensland Government wishes to other east coast trading port that is outside strike the right balance between the the GBRWHA. interests of stakeholders, including The first stage of the investigation, the landholders, proponents and the technical analysis, is nearing completion. community. The first stage has considered industry A final evaluation of a proposed SDA will opportunities, land use, infrastructure and be presented to the Coordinator-General, transport requirements and physical, informed by the technical component of the environmental and social impacts. investigation and the results of consultation. The project team worked closely with If the Coordinator-General is supportive of Bundaberg Regional Council, the Port of the proposal, a declaration process under Bundaberg and existing and potential the SDPWO Act will follow. industries to inform the investigations. The investigation identified that there is Priority ports master potential for industry on both the eastern planning and western sides of the Burnett River, with development of the eastern side more likely Priority port master planning is a key in the short to medium term and the western Queensland Government port-development side in the longer term. related commitment of Reef 2050. There are potential opportunities for an On 20 November 2015, the SPD Act SDA to capitalise on new trades that are commenced, which mandates master currently commencing at the Port of planning at the priority ports of Gladstone, Bundaberg, including gypsum imports, Abbot Point, Townsville and Hay silica sand exports and wood pellet exports. Point/Mackay. The master plans will aim to optimise the use of infrastructure and The investigation indicates an SDA could address operational, economic, also provide opportunities for regional- environmental and community scale industrial development, including relationships, as well as supply chains and mining support services and as well as surrounding land uses. developments in the biofutures sector. The Act also implements the government’s Areas of potential environmental and policy of prohibiting the sea-based disposal cultural value have also been identified of material generated by port-related capital along with buffer and flood conveyance dredging in the GBRWHA, unless it is areas. beneficially reused.

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Port of Gladstone

The Act provides for incremental Master planning requirements for priority development at the Port of Cairns by ports include a reasonable assessment of the allowing small scale volumes of capital types of port industry related development dredging in the inner harbour. This that may occur over a 30-year planning allowance is consistent with commitments horizon, as well as rigorous public given in Reef 2050 and recognises the consultation prior to finalisation. This importance of the port to the city of Cairns ensures a robust and transparent review and Far North Queensland. about how the master plans for priority ports will drive their sustainable The Act also provides for port master development into the long-term. planning guidelines. Following public consultation on a draft priority port master Townsville Port Expansion planning guideline, which closed in March 2016, the final guideline will be released in Port of Townsville Limited proposes an late 2016. expansion of the port to support forecast growth in trade from 12 million tonnes per Port master planning will provide certainty annum in 2012–13 to 48 million tonnes per for priority ports, their surrounding annum by 2040. precincts and their associated industry sectors and it will also ensure the reef's The Townsville Port Expansion Project outstanding universal value is an intrinsic includes the deepening and widening of consideration in all future port existing shipping channels, the construction development. of six new berths and the creation of a significant area of reclaimed port land. The The preparation of a draft master plan for proposal would provide 139 direct jobs at the priority port of Gladstone commenced the peak of construction and 180 permanent in 2015–16, as did work to inform the operational jobs. master plan development for the priority ports of Abbot Point and Townsville. In June 2015, the proponent advised that the project was being amended to be Early work on priority port master planning consistent with the government’s policies for Hay Point/Mackay will start later in for the protection of the Great Barrier Reef. 2016. In May 2016, Port of Townsville Ltd By the end of 2018, all master plans are supplied the preliminary draft of the expected to be in place. additional information to the EIS, following Master planning will preserve areas for the Coordinator-General’s request for future essentials that a growing port will additional information on key issues raised require, such as corridors for shipping in submissions during public consultation requirements, roads, rail lines, gas and on the draft EIS in 2013. water pipelines and power lines. The Coordinator-General is now working It will also ensure protection of sensitive with the proponent to complete the EIS environmental areas as well as areas that process. the surrounding community needs. The SPD Act identifies the Port of Townsville as a priority port for which

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Port of Gladstone

ongoing development is supported, but for The project is a declared coordinated which capital dredge material must be project undergoing an EIS, which includes either beneficially re-used, or disposed of detailed investigation of: on land.  potential water quality and marine Port of Gladstone impacts related to dredging and dredge material disposal The Port of Gladstone is Queensland’s  beneficial re-use options for disposal of largest multi-commodity port and the dredge material. world’s fifth largest coal export terminal, exporting 72 million tonnes in 2015. Major As part of its EIS investigations, GPC is exports from the port include coal, alumina, revisiting its spoil placement proposal. If cement, petroleum, aluminium and the project proceeds, it would create around agricultural products. The recent 100 construction jobs and 20 operational introduction of the LNG industry and the jobs. new Wiggins Island Coal Terminal are Master planning for the Port of Gladstone substantially increasing the throughput of that is required under the SPD Act, is the port. proposed to be finalised in March 2017. Gladstone Ports Corporation (GPC) The objective of master planning for all proposes to duplicate the existing priority ports is to optimise the use of Gatcombe and Golding Cutting shipping infrastructure and address operational, channel to accommodate more shipping economic, environmental and community traffic. Currently, the ability of the port to relationships, as well as supply chains and accommodate high numbers of vessels is surrounding land uses. limited by the shipping channel depth and lack of passing capacity. Cairns Shipping Development Project (Trinity Inlet) Without this channel duplication project, further vessel congestion and delays will Tourism operators in Far North Queensland significantly limit both the port’s capacity are keen to take advantage of forecast and associated economic development of strong growth in the cruise shipping Central Queensland and the state. industry. The project involves upgrading On 21 June 2016, Ports North announced infrastructure at the Port of Gladstone, that it has revised the Cairns Shipping including: Development Project to cap its proposed expanded capacity at ships up to 300 metres  dredging a new and existing 9 kilometre in length. Ships of this size cannot currently long channel to a depth of 16 metres and berth in the Port of Cairns and are required a width of 200 metres to anchor offshore.  disposing of approximately 12 million The project aims to widen and deepen the cubic metres of dredged material existing Trinity Inlet shipping channel,  installing new navigational aids for the upgrade wharf facilities, enhance naval channel duplication and relocating capacity and improve port efficiencies. existing aids.

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Regional Major Projects Forum in Cairns

The revised proposal requires less than one The state has entered into a fixed price quarter of the volume of dredging originally development agreement with Australian proposed and is expected to cost $120 Gas Networks Limited to design, deliver million, around one third of the previous and operate the pipeline—construction estimate. commenced in early 2016 and is on schedule to be completed and operational Ports North is now further investigating by January 2017. land-based dredge material placement sites, channel design and other environmental The pipeline route is almost entirely within assessments prior to submitting the revised existing road corridors and will have off draft EIS to the Coordinator-General. takes at strategic locations, as required along the route, to provide opportunities for The EIS studies have already supported future growth. separate approval of ‘voyager class’ ships to use the port. This has already led to an The project has engaged locally to utilise additional 40 000 passenger visits being the pool of resources available in booked into Cairns. Bundaberg. Agreements have been negotiated with a Bundaberg Port Gas Pipeline number of local contractors. Project The 28.5 kilometre Bundaberg Port Gas construction has created 55 jobs, including Pipeline is catalyst infrastructure to enable 42 positions locally. economic growth for the Bundaberg The department is working with the Region. The Queensland Government has Bundaberg Regional Council and local committed $18 million of funding over two industry stakeholders to further capitalise years for its construction. on the new pipeline and to secure new This project will enhance the existing gas industry and jobs for the Bundaberg region. network and integrate with the Wide Bay Economic modelling, commissioned by Gas Pipeline, and represents a significant Bundaberg Regional Council in 2014, investment in the region, with jobs created estimated a net annual economic impact to during construction works and flowing their local government area from this from additional activity due to gas project at $195 million and 765 full time availability. equivalent jobs. The provision of the Bundaberg Port Gas The pipeline will support the development of Pipeline will also provide the capacity to the new Knauf Plasterboard manufacturing offer opportunities for other companies facility located at the Port of Bundaberg. wanting to access gas—this will potentially result in a greater economic benefit by Knauf Plasterboard leveraging growth from the same infrastructure used by several end users. Knauf is a major supplier of plasterboard and associated products. It is investing $70 The department is working with EDQ and million to develop its facility. Australian Gas Networks Limited, owner of the Wide Bay Gas Pipeline, to deliver the This investment by Knauf Australia Pty Ltd project. is expected to create up to 200 jobs during

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Caley Valley Wetlands

construction and 55 new positions when The total value of the Springfield Health operational in mid 2017. City, once completed, will be around $2.5 billion. It will be a significant employment The department worked closely with the generator, creating around 9000 direct and proponent, council and the Port of indirect jobs. Bundaberg to obtain approvals and facilitate this investment. Abbot Point Growth Gateway Springfield—including Project Springfield Health Precinct The Port of Abbot Point in the Mackay, Isaac and Whitsunday region needs to be Greater Springfield is the largest privately expanded to meet export demand from owned master planned city in Australia and proposed Galilee Basin coal mines. continues to stimulate economic growth through new infrastructure and investment. In March 2015, the Premier announced a new approach to expanding the Port of The department is working with AVEO Abbot Point that will allow for the Group to promote local procurement and construction of a second trestle, increasing construction for 2500 retirement villas at a the port’s capacity from 50 to 120 million cost of $1.7 billion. AVEO Group, in tonnes per annum. partnership with Springfield Land Corporation, has started the civil works for The Abbot Point Growth Gateway Project this long-term project that will see many involves placing dredged material on new jobs and local construction unallocated industrial land, next to the opportunities. existing coal terminal on the area known as T2. This solution avoids disposing of Mater Hospital is another key developer at dredged material at sea or in the Caley Springfield’s Health City. The new 80-bed Valley Wetlands. Mater Hospital was officially opened in November 2015 with the Mater Hospital No dredging will be undertaken in the proposing to also build Stage 2 with up to marine park or in close proximity to coral 1000 beds. The department will work with reefs. This approach is consistent with the the Mater Hospital to promote local SPD Act and Reef 2050, which support on- procurement and construction opportunities land disposal of dredged material. should Stage 2 proceed. In October 2015, the department finalised In addition, the Dusit Thani Group is the EIS for the Abbot Point Growth building a $550 million resort development Gateway Project. This included four weeks at Brookwater. Stage 1 civil works have of public consultation, during which the started and the department is working department received over 55 000 closely with Springfield Land Corporation submissions. to support the establishment of important The final EIS was approved by the projects like this resort that will create Australian Government under the significant jobs, and have a positive impact Environment Protection and Biodiversity on the regional economy. Act 1999 in December 2015, subject to 29 strict conditions to protect the environment.

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Abbot Point

The project has now received all state and  water management and monitoring, federal approvals, subject to conditions. including treatment where necessary The project is now the responsibility of  power supply and generation North Queensland Bulk Ports. Works will  construction and operation of support not begin at Abbot Point until Adani has infrastructure including roads, quarries gained all its necessary project approvals and accommodation facilities. and demonstrated the financing of its The Coordinator-General’s Evaluation Galilee Basin projects. Report on the EIS was released on 4 December 2015. The Coordinator- Santos GLNG Gas Field General approved the project subject to Development Expansion strict environmental conditions to reduce the potential impacts on water, land and The Santos GLNG Gas Field Development biodiversity. Project would extend the Santos GLNG project by progressively developing coal The project would be undertaken in seam gas reserves across 35 petroleum accordance with Queensland’s strong tenements, comprising an area of 10 676 regulatory framework to manage square kilometres in the Bowen and Surat environmental impacts associated with basins. CSG developments and to ensure the industry develops in a responsible way. The project is located across the local government areas of Maranoa, Western Downs and Central Highlands Regional Resource development Councils, and Banana Shire Council and has the potential to result in substantial Aurukun Bauxite Project economic impacts over its 30-year life. The Aurukun bauxite deposit is a significant, undeveloped resource situated The project forecasts a construction in western Cape York. It is estimated to workforce of 1980 jobs at its construction contain up to 480 million tonnes of dry peak and an operational workforce of beneficiated bauxite and is one of a limited around 300. The project will draw on a number of large deposits in the world local workforce with minimum targets of currently available for development. 20 per cent during construction and 50 per cent during operation. A development agreement has been negotiated and executed between the state The maximum number of production wells and Glencore. The development agreement for the expansion is estimated to be 6100. is managed by the department and sets out The project will be developed incrementally confidential milestones that Glencore must and include: meet to develop the Aurukun bauxite  drilling and completion of gas resource. production, monitoring and underground Subject to Glencore obtaining all necessary gas storage injection wells approvals, the development of this resource  gas gathering, treatment, compression is expected to generate significant and transmission pipelines construction and ongoing operational jobs.

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It also has the potential to provide direct on time. On 23 May 2016, the Coordinator- and indirect benefits to the Aurukun and General extended the lapsing date of the Cape communities in the form of education, Amrun Project Coordinator-General’s training, business opportunities and Evaluation Report by three years, to 24 infrastructure upgrades. May 2019. These benefits are in addition to any The Office of the Coordinator-General benefits negotiated in an Indigenous Land continues to work with Rio Tinto on Use Agreement (ILUA) with the traditional compliance with the conditions set in the owners, as well as royalty contributions to project’s Evaluation Report, to streamline the state. conditions of approval and to remove regulatory duplication. As a first step, Glencore has applied for a mineral development licence over the Byerwen Coal Project resource and is continuing to engage with the Aurukun Shire Council and The Byerwen Coal Project will deliver representatives of the Native Title holders. significant economic benefits to the local region and Queensland. The department will work cooperatively with Glencore, the traditional owners and Investment costs for the project are the Aurukun community to progress this estimated at $1.76 billion. The direct value development. added to the regional economy during the operations phase is estimated to be $289 South of the Embley (Amrun) million per annum and an additional $143 million per annum to the wider Queensland Rio Tinto has begun expansion of its economy. bauxite mining operations near Weipa, with commencement of construction of the new Predicted royalties payments to the state Amrun mine, around 40 kilometres south of government alone are estimated at $13.2 the Embley River. billion over the 50-year life of the project. The Amrun Project includes an open-cut The project will provide significant mine, processing plant, bauxite stockpiles, a opportunities for local and regional new port with ship loading facilities and suppliers and businesses to benefit associated infrastructure. economically by providing goods and services to the mine during construction It is anticipated the $2.5 billion project will and operations. Queensland will benefit extend the life of bauxite mining in the area from flow-on activities. for another 40 years. It will provide up to 1100 jobs during peak construction and up Byerwen is a prescribed project—the to 1400 ongoing operational jobs as the Coordinator-General is monitoring the bauxite resources at the existing Weipa site project and approved the Byerwen Coal gradually decline. Project Biodiversity Offset Strategy in December 2015. Rio Tinto announced its financial investment decision for the Amrun Project On 15 April 2015, Mining Lease 70435— on 27 November 2015. Early works began one of the six mining leases required for the on site in February. project—was granted by the Minister for Natural Resources and Mines. The lease On 5 November the declaration of the commenced on 1 May 2015 allowing Amrun project as a prescribed project was construction to begin on the project’s rail extended by two years until 12 November spur on 8 December 2015. 2017 to allow the Coordinator-General to ensure that project approvals are completed

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The remaining leases have not yet been granted. The project will require up to 350 construction workers and 545 operational workers.

South Burnett Coal Project Following deliberations conducted during 2015–16, the Coordinator-General declared the South Burnett Coal Project a coordinated project on 18 August 2016. The project proposes an open-cut mine able to produce up to 10 million tonnes of thermal coal per annum for up to 30 years, for domestic and export purposes. It includes a transport corridor extending around 130 kilometres from the mine site at Kingaroy to the existing north coast rail line near Theebine. The proponent proposes to locate either a slurry coal pipeline or to reinstate rail in the transport corridor, which would enable the product to be transported to Gladstone. Capital investment for the project is estimated at $500 million to $950 million, being $200 million to $250 million for the mine site and $300 million to $700 million for the transport corridor. It is estimated that 600 direct jobs at peak construction will be required for the mine and corridor. Up to 550 jobs would be required during operations.

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Port of Mackay

Our performance in strengthening the regions

north Queensland. A final report is Key highlights expected by the end of 2016  assisting businesses to harness To strengthen Queensland’s regional opportunities from major projects. Since economies the department is: the Northern Gas Pipeline was announced in late 2015, the department  delivering the Building our Regions has delivered three industry events to program—the first round of successful connect local suppliers in the Mount Isa projects was announced on 21 December region with Jemena and McConnell 2015. Over $70 million of government Dowell as the project proponents. Over funding was committed to support 42 230 local operators and their staff projects. This investment will attract a attended these sessions further $158 million in investment from councils and other organisations. The  contributing funding to regional first round projects will support 687 jobs infrastructure under the Royalties for the in addition to flow-on economic Regions Program, for example development infrastructure associated with Charlton Wellcamp Industrial Park, including $10  maximising local employment and million towards the $21.06 million economic outcomes from major O’Mara Road Upgrade, as well as $20 investment projects. For example, million towards the $51 million 18 businesses, including four Indigenous Cleveland Bay Sewerage Treatment Plant businesses, attended a tailor-made Upgrade and $180,000 towards the supplier capability development $747,800 pontoon and gangway at workshop in Weipa on 12 and 13 March Wharf. 2016. The workshop program was developed by the Far North Queensland Regional Office with the Industry Building our Regions Capability Network (ICN) at the request Queensland has long been the nation’s most of the Western Cape Chamber of decentralised state which presents both Commerce and Western Cape Regional challenges and opportunities for economic Partnership Agreement in response to growth. The Building our Regions Program interest from local businesses in the $2.6 is ensuring the focus of economic growth is billion Amrun Project not confined to the state’s south-east.  leading the Lower Burdekin Catchment Introduced as a $200 million, two-year Development Project, which is showing program to invest in regional infrastructure how existing water infrastructure and projects administered by local governments, water resources can be better used to Building our Regions has now been support economic growth and jobs in extended with an additional $175 million.

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Bundaberg Multi-use Sports Centre funded through Building our Regions

The program is supporting job creation and  Julia Creek Membrane Bioreactor economic growth in regional communities Sewerage Treatment Upgrade— throughout Queensland. McKinlay Shire Council To help stimulate the regional economy and  St George Airport Infrastructure deliver jobs sooner, the two-year funding Upgrade—Balonne Shire Council commitment for Building our Regions was  Stage 1A Rubyanna Wastewater brought forward from 2016–17 to 2015–16, Treatment Plant—Bundaberg Regional essentially making $140 million for critical Council regional infrastructure available a year  Mareeba Wastewater Treatment Plant ahead of schedule. Upgrade – Treatment Plant Works— Building our Regions Round One projects Mareeba Shire Council were announced in December 2015. Of the  Miriam Vale Water Treatment Plant 42 successful projects, 13 started Upgrade—Gladstone Regional Council construction in the 2015–16 financial year,  Mount Morgan Sewerage Extension with the remainder expected to start no later Project—Rockhampton Regional Council than November 2016. As at the end of the  Tambo Sawmill Infrastructure 2015–16 financial year, funding agreements Upgrade—Blackall–Tambo Regional had been signed with councils for 33 Council. projects. The second round of Building our Regions, Work on one project—the Mechanical which was brought forward from 2017–18 Workshop Upgrade in Kowanyama—was to 2016–17, is also currently underway. In completed on 8 June 2016. This project July 2016, 40 local governments were provided upgrades to the mechanical invited to submit detailed applications for workshop at the council’s works depot and 63 projects. These projects are seeking included replacing the existing roof and combined total funding of over $91.1 upgrading the electrical wiring system. million. Other projects already under construction Successful Building our Regions Round include: Two projects are scheduled to be announced  Bulloo Park Redevelopment Stage 1— later in 2016, with construction to start no Quilpie Shire Council later than 30 June 2017.  Bundaberg Region Multi-use Sports and Of the program’s four funds, the department Community Centre—Bundaberg oversees the Regional Capital Fund, Regional Council Royalties for Resource Producing  Donohue Highway Emergency Landing Communities Fund and the Remote and Strip—Boulia Shire Council Indigenous Communities Fund. DTMR  Doomadgee to Burketown Optical Fibre continues to oversee the Transport Link Project—Burke Shire Council Infrastructure Development Scheme.  Evans Landing Boat Ramp Car Park – Building our Regions projects are delivering Stage 2—Weipa Town Authority benefits for their communities. The Donohue Highway Emergency Landing Strip project in Boulia Shire Council and the

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West Creek Channel upgrade funded through Royalties for the Regions

Tambo Sawmill in Blackall–Tambo upgrade of the Tambo Sawmill, enabling its Regional Council are two examples of re-opening after closure in 2011. Building our Regions projects delivering Construction started on 5 April 2016, almost jobs and community benefits within six six months ahead of time. The mill is months of successful projects being expected to be operational again by the end announced. of the year. Donohue Highway Emergency The project will enable the harvesting of Landing Strip 5700 tonnes of timber per annum and The Queensland Government and the Council reports that operation of the sawmill Australian Government provided 50/50 will create up to 17 ongoing positions. This funding to Boulia Shire Council to seal equates to six per cent of the Tambo approximately two kilometres of road to workforce. Additionally, the project has the provide an emergency landing strip, at an potential to inject around $1.3 million per estimated total project cost of $908 744. annum into the Tambo economy. Construction started in April 2016, Blackall–Tambo Regional Council aims to five months ahead of initial scheduling. This increase the population of the region through is an important project at a local, regional this project, with all the flow-on effects that and national level as it creates jobs; provides come with more people moving into a safer roads for locals, tourists and community. commercial operators; improves access to Building our Regions is an integral part of medical assistance; and provides greater Working Queensland and will continue to resilience in the wet season when roads may deliver critical infrastructure throughout be closed for more than 60 days. Queensland, create jobs, foster economic Local property owners will have improved development and improve liveability in access and reduced travel time for essential regional communities. goods and services. Royalties for the Regions The sealed two kilometre landing strip will enable faster access to medical treatment by Royalties for the Regions is an infrastructure the Royal Flying Doctor Service. funding program that has now ceased. The department is working closely with local The remoteness of this part of the state councils in delivering and acquitting the makes medical emergencies high risk. remaining projects funded through this Access to medical treatment currently relies program. on transporting patients to Mount Isa or Alice Springs, and a round trip to Boulia is Between 2012 and 2015, the program almost 450 kilometres by road and takes committed more than $485.3 million to 148 over five hours. regional community infrastructure, road and flood mitigation projects with a combined The Tambo Sawmill project cost of over $796.7 million. Of these, The Queensland Government is supporting 96 projects were completed and more than the people of Blackall–Tambo by providing $290 million of approved funding was $262 250 of funding towards the $487 250 distributed to councils as of 30 June 2016.

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Far North Queensland team at the Cairns Regional Major Projects Forum

By the time all projects have been  SWRED’s development of the Eromanga completed, the program will have supported Natural History Museum Business Plan, more than 2440 positions. including Stage 2 building designs which will support efforts to attract future The department is working with councils to funding for construction bring the projects to a close, with 65 per cent of projects completed as of 30 June 2016.  RAPAD’s independent mobile coverage assessment undertaken to better plan and Remote Area Boards and advocate for improved mobile telecommunications infrastructure. The regional development study will enable the local governments stakeholders and regional organisations to leverage Remote Area Boards undertake crucial carrier investment and improve mobile economic development projects in the most broadband coverage within the region. remote areas of our state—from the far north to the remote south-west. Developing North Queensland The Remote Area Boards are Cape York Since the June 2015 release of the Australian Sustainable Futures (CYSF), South West Government’s White Paper on Developing Regional Economic Development Northern Australia, the department has Association Incorporated (SWRED), Mount supported a number of complementary Isa to Townsville Economic Development initiatives. These have included: Zone (MITEZ), Central Western Queensland  supporting a number of forums such as Remote Area Planning, and Development the Townsville Economic Forum in Board (RAPAD), and Gulf Savannah October 2015 to discuss development Development (GSD). priorities with north Queensland mayors, Recent examples of the work undertaken by and the North Queensland Economic the Remote Area Boards include: Summit in November 2015 to promote  GSD and MITEZ’s work to link gas the region to over 250 investors users, manufacturers and industry players  playing a coordinating role in the initial to explore the further opportunities that information capture and subsequent can come from Jemena’s $800 million application review relating to the first pipeline project round of feasibility funding through the  MITEZ’s assessment into the best Australian Government’s National Water solution for water security for the North Infrastructure Development Fund West region, which has produced an (NWIDF). Two projects have been investment model to support a new water funded in the north storage solution for the region. The work o CSIRO is to undertake water resource done in conjunction with the department assessments to determine available has resulted in the region successfully water and best locations for water gaining federal funding to undertake a infrastructure in the Mitchell River feasibility study for a new dam on the catchment on Cape York Cloncurry River system o feasibility examination of Nullinga dam in the Cairns region.

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Northern Australia Infrastructure The department will work in partnership Facility with Queensland Treasury and DILGP From July 2016, the Australian to review potential projects in line with the Government’s $5 billion Northern Australia finalised eligibility criteria, assist proponents Infrastructure Facility (NAIF) will provide with their applications, and potentially have financial assistance to build transport, a monitoring and reporting role for funded energy, water and communications NAIF projects. infrastructure needed in our north. It is North West Queensland Minerals intended that the facility will unlock Province (NWMP) Taskforce potential in the northern Australian economy leading to job creation and investment. On 1 March 2016, the first meeting of the NWMP Taskforce was held in Mount Isa. Queensland is well placed to secure funds from the NAIF with proponents such as The taskforce is the connection between North Queensland Airports expressing industry and regional stakeholders and the strong interest in accessing the fund to assist North West Mining Inter-Departmental in delivering its proposed $1 billion Committee (NWM IDC). A local leaders development plan of the Cairns International group made up of regional mayors also met Airport. with the taskforce. The facility’s investment mandate was The NWM IDC is co-chaired by the released for a two-week public consultation department’s Deputy Director-General of period that closed on 29 March 2016. The Regional Economic Development Kathy consultation involved more than 75 Schaefer and Sue Ryan as Deputy Director- stakeholders, including financiers, project General of DNRM. proponents, construction and infrastructure The taskforce undertook a significant body sector experts, Indigenous organisations, and of work and met again on 21 June 2016. the Queensland, Western Australia and Recommendations have been drafted under Northern Territory Governments. two key themes of ‘Survive’—maintain On 3 May 2016, the Australian Government existing activity levels in the NWMP, and also announced the independent NAIF ‘Thrive’—delivering economies of scale by board, which will make investment securing new investments. decisions for the facility and finalise the The taskforce’s recommendations are being investment mandate by which investment considered by the NWM IDC. decisions will be governed. Following confirmation of the state’s role in North Burnett Minerals Province delivering this important initiative, it is The North Burnett region hosts a number of intended that the Queensland Government minerals projects, including gold, bauxite, will establish a master facility agreement ilmenite, copper, iron and kaolin. between the state and the appointed board Collectively, they are known as the North that stipulates the state’s obligations under Burnett Minerals Province; however, each the scheme. project is relatively small and lacks the scale Under the master facility agreement it is to overcome ‘first mover’ costs. proposed that the Queensland Government The announcement by Australian Bauxite of will establish an internal panel and a high-grade bauxite resource at Binjour in procedure for deciding whether a proposal 2012 elevates the minerals province with a meets the state’s economic growth agenda. project that has the production potential of three to five million tonnes per annum.

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Wide Bay Burnett Regional Economic Development Growth Forum—panel of mayors

A cost-effective transport solution is River system, as well as dealing with required to move this project into the various current proposals for new water production phase. This solution may provide infrastructure in the region. the enabling infrastructure for other smaller The department has worked closely with key resource projects to also advance to stakeholders, including the Gladstone Area production. Water Board and Sunwater to secure $2 The department continues to facilitate million from the NWIDF for the meetings of the North Burnett Minerals development of a business case for the Group. The group was formed in 2012 to Lower Fitzroy Weirs, including raising Eden seek collective solutions to identified Bann and the proposed Rookwood Weir. transport, energy and communication A number of feasibility studies have also infrastructure requirements. been funded in central Queensland through In 2014, the Queensland Government the NWIDF, including Hell’s Gate Dam, funded the Port of Bundaberg - a review of raising the Burdekin Falls Dam and the potential trade and port development Burdekin-Haughton Channel Capacity opportunities study which identified the Port Upgrade. These studies will identify as the probable export point for some of the opportunities to further develop the North Burnett Minerals Province projects. economic potential of Central Queensland. Together with other stakeholders, the The department, through Growing Central department has also funded the Scenario Queensland, has also focused on attracting based trade and transport infrastructure new investment and value adding to the study for the Port of Bundaberg catchment current agricultural production. area, which is a pre-feasibility study focused The Growing Central Queensland on identifying enabling infrastructure Investment Prospectus was launched during options. Beef Australia 2015. Since then, a number of potential new investment opportunities Supporting the growth of have been progressed. Bringing each of Central Queensland these to fruition will require access to secure water from the lower Fitzroy River. The department is collaborating with DAF, DNRM, Regional Development Australia Several investors have visited the region to Fitzroy and Central West and the six Fitzroy discuss potential large-scale feedlots while region local governments on the Growing current regional landowners are looking to Central Queensland initiative. expand and or diversify current production when additional water becomes available. Growing Central Queensland has recognised a number of trends that combine to identify The department is also undertaking a agriculture and agribusiness as the next feasibility study into value adding to current wave for global investment. The group is agricultural supply in fruit and vegetables. working to position Central Queensland as a This study is looking at new technology— preferred target for that investment. including high-pressure processing—to A key early consideration is maximising the support increased export of fresh fruit and availability of water in the lower Fitzroy vegetables.

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The study will quantify the raw horticultural The Australian Government has committed produce within regional Queensland that is up to $130 million to build Rookwood Weir, suitable and available for processing through contingent on the project obtaining the the identified technology and identify value- necessary environmental approvals, and added products (for example juices and cut acceptance of a viable business case. fruit) suitable to be manufactured. Lower Burdekin Catchment Further to this, the study will investigate, Development Project quantify and describe the trends and size of growth market opportunities for the The Lower Burdekin Catchment processed products, including potential Development Project will support economic customers. growth and jobs in North Queensland. New project opportunities requiring a water Findings from the study will also help allocation are being proposed for inform future agricultural opportunities development in the Burdekin region. along the lower Fitzroy River. The project aims to provide the Queensland Lower Fitzroy River Infrastructure Government with a clear understanding of Project the lower Burdekin's future development potential and identify how existing water The Gladstone Area Water Board and infrastructure and water resources can be SunWater propose to raise the existing Eden better used. Bann Weir and construct a new weir at Rookwood. The department worked with advisors from Psi Delta and PricewaterhouseCoopers, and Together, the weirs would capture and store other government agencies to deliver a 76 000 extra megalitres per annum of seven-part program of work. unallocated water that is available in the Fitzroy River for industrial and urban use in This included identifying the short-term Gladstone and Rockhampton, with some demand for water, water availability, an water potentially available for agriculture. assessment of surface and groundwater, and water quality and environmental The estimated total cost of the project is considerations resulting from the use of $495 million and will require a workforce of additional water. It also assessed up to 150 during the two-year construction infrastructure and capacity enhancement phase. options to meet the identified new demands It is a declared coordinated project under the through a financial and economic analysis. SDPWO Act and is going through an EIS The outcomes of the Lower Burdekin with the Coordinator-General. Catchment Development Project—together Public consultation on the project EIS with the feasibility study into raising the concluded in June 2016. Burdekin Falls Dam wall and the upgrades The Coordinator-General is currently to the Haughton Main Channel—will enable determining if sufficient information has greater understanding of the future potential been provided to allow the Coordinator- of the lower Burdekin and other areas that General to finalise the assessment. could access water from the Burdekin Falls Dam.

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Rockhampton industry breakfast

businesses, the regional workforce and for Agricultural and water the whole of these communities. development In response, the Murray–Darling Basin Regional Economic Diversification Program Nathan Dam and Pipelines Project aims to support regional communities with SunWater Limited proposes to build an structural adjustment and regional economic 888 000 megalitre dam on the Dawson diversification. The department leads three River, intended to provide a long-term, projects under this program: reliable water supply to mining, industrial  investment attraction and urban customers in the Surat Basin and the Dawson–Callide sub-regions of Central  economic diversification of businesses in Queensland. major project supply chain opportunities within the resources sector The project includes a 149 kilometre  economic development and tourism underground pipeline from the proposed diversification. dam, south through the Surat Basin to near Dalby. Capital cost of the project is The first of these projects—being delivered estimated to be $1.4 billion, with 425 direct by Balonne Shire Council—involves work jobs at peak construction and five direct on a number of initiatives that include the operational jobs. South West Rail Line, which has led to the formation of the South West Rail Alliance, As a declared coordinated project, the the Thallon Uplands Warehousing Project, project is going through an EIS process, and the Health Education Hub South-West that is currently being assessed with input from will be located in St George, and the Cubby key state and federal agencies. Station Solar Project. Proposals for major Murray–Darling Basin water abattoir and feedlot expansion in the Border recovery plan and regional Rivers are also being supported. economic diversification program The second project focuses on business The Australian Government implemented mentoring and accessing major project the Murray–Darling Basin Plan with the supply chains, with the department purpose of protecting and restoring the supporting Goondiwindi Regional Council environmental health of the Murray–Darling and Balonne Shire Council in delivery. river system. Regional businesses have benefitted, with 44 Both the Balonne and Border Rivers receiving mentoring with a focus on (Goondiwindi) regions are regarded as some resilience, business systems and looking for of the most impacted irrigation communities new opportunities. The majority of these across the whole Murray–Darling Basin. businesses have continued in the program with ongoing one-on-one mentoring support These irrigation communities have a from the private sector. significant agricultural focus and the businesses in these areas have built their Additionally, 45 businesses across the Basin income around that. The water recovery plan have engaged in programs aimed at assisting is likely to have economic impacts for those them to understand the major project

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environment and build their capability to Specialist maritime consultants, and engage at that level. environmental and agriculture experts have been engaged to undertake scoping studies The third project focuses on strategic and provide technical advice. tourism investment and infrastructure and is being delivered by Goondiwindi Regional The department has worked to secure the Council. Stage one of this project saw Southern Gulf’s economic potential with a completion of a feasibility study looking at a one-off dredging campaign undertaken in number of potential tourism sites and July 2016 where the Port of Brisbane’s tourism development opportunities in the dredger was diverted from the Port of Weipa Goondiwindi region. to undertake the $1.7 million project. This will assist in ensuring continued business at This report was approved by the Australian the Port of Karumba—a vital trade link for Government and $1.68 million was Northern Australia. committed towards the development of new tourism infrastructure projects across the This project has ensured that the port can Goondiwindi region in 2016. This will also continue to service existing clients and also create an estimated 25 jobs in the help to attract new business. construction of this infrastructure. Three Rivers Irrigation Project These initiatives, along with those being led by DNRM, DET and DAF, are assisting the The Three Rivers Irrigation Project aligns communities to take stock of their situation. with the government’s policy to support They are helping to consider how they can private sector initiatives to develop water value add to existing agricultural products and land resources in North Queensland to by introducing new product lines in increase jobs. horticulture, focus on exports, and use water The proposal by Stanbroke Pty Ltd is for more efficiently. cropping and irrigation of up to 15 000 hectares of cotton adjacent to the Flinders Southern Gulf development studies River, 90 kilometres south of Normanton. The department is currently investigating The project is located in the Gulf Region of opportunities for increased economic Northern Queensland, downstream of the development in the Southern Gulf region, junction of three rivers, the Flinders, particularly in relation to enabling Cloncurry and Saxby. infrastructure to expand phosphate mining The project would have a capital and live cattle exports. expenditure of more than $200 million and These investigations include scoping studies would create up to 100 on-site construction to establish a livestock finishing facility near jobs, and up to 75 operational jobs at peak Normanton for live cattle exports through production. the Port of Karumba. The project’s aim is to grow cotton for the Investigations also include the review of export market and to utilise cotton seed by- options for the export of phosphate rock product as supplementary feed for the from the NWMP through a port in the Gulf proponent’s existing beef cattle in the of Carpentaria. region. The department is working closely with A ginnery would be constructed once crop other agencies to draw together the available productivity was confirmed, approximately knowledge, in particular Ports North’s three to four years after the commencement expertise on port infrastructure and of cropping activities. The ginnery could be maintenance. expanded in the future to accommodate

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Artist’s impression of the North Queensland Stadium

other potential cotton projects that may be Great Barrier Reef lagoon, land clearing and developed in the region. downstream salinity associated with the dam raising. The Coordinator-General declared the project a coordinated project requiring an EIS on 29 June 2015. Regional infrastructure

Burdekin Falls Dam Feasibility North Queensland Stadium Study The department is working to deliver a new A reliable and cost-effective water supply is stadium in Townsville by the critical for continued economic growth and commencement of the 2020 National Rugby social development across Queensland. The League (NRL) season. Burdekin Falls Dam is Queensland’s largest On 16 November 2015, the Queensland water supply dam and is a critical part of Government approved the business case for north and central Queensland’s water the North Queensland Stadium, which infrastructure network. recommends a centrally located best- There has been a long-standing proposal to practice regional stadium in Townsville as raise the dam wall height by two metres, the preferred option. which would make available up to 150 000 With a total project budget of $250 million, megalitres of additional water per year. this option provides a 25 000 seated capacity Additional water from the Burdekin Falls stadium, which is 7000 seats more than Dam could meet the needs of mining currently available at the existing stadium. activities in the Bowen and Galilee Basins, Importantly, this option includes provision urban water security for Townsville, water for the integration of a potential for the Abbot Point SDA, new irrigated entertainment centre at a future date, if agriculture and hydroelectric generation. further funding becomes available. Funding has been granted under the Market sounding and financial modelling Australian Government’s NWIDF to were completed to assess alternative complete high-level demand and feasibility procurement options and recommend the studies for the Burdekin Falls Dam raising. approach that offered the greatest value-for- The department will manage the feasibility money. studies for the Burdekin Falls Dam raising in A state-led two stage managing contractor partnership with the Department of Energy model was confirmed as the optimal and Water Supply (DEWS) and SunWater— procurement solution for government to as the existing owner of the dam and pursue, with Stadiums Queensland as the downstream irrigation infrastructure in the recommended owner and operator. Burdekin Haughton Scheme. The Queensland Government has committed The studies will inform future decisions on $140 million to this important regional likely timing of the proposed dam raising. project. The National Rugby League and Other key issues to be considered include have also potential impacts on water quality in the pledged a $10 million upfront capital contribution.

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Construction of the Toowoomba Second Range Crossing. Photo courtesy of the Department of Transport and Main Roads.

The Federal Coalition indicated its $100 The department—working closely with million commitment for the stadium project NEXUS—has created an environment for is through its Smart Cities Plan. The Federal local businesses to have full, fair and Coalition made an election commitment to reasonable access to procurement formalise funding and associated conditions opportunities for the project. within six months of the 2 July 2016 federal The department has worked to maximise election. opportunities for local businesses to The North Queensland Stadium project is participate, with an ICN procurement expected to provide a much needed catalyst specialist embedded into the project. The to revitalise Townsville’s central business department, NEXUS and ICN delivered five district. information workshops in Gatton and Toowoomba with more than 1300 The proposed stadium is anticipated to result businesses and jobseekers in attendance. in jobs growth and skills development during the construction and operational To complement this work, the department phases of the project. This projected growth ran five information sessions in Gatton and will be experienced in the construction, Toowoomba to support businesses to services, tourism, retail, commercial and understand how to prepare for opportunities hospitality industries within the North in major projects—115 businesses Queensland region. participated. The project is expected to generate up to 750 Four sessions were also delivered by the full-time equivalent jobs throughout the department on how to effectively supply to design and construction stages. major projects—121 representatives attended. The procurement process for the delivery of the stadium will adhere to the relevant local NEXUS has also convened a Business industry policies, ensuring that opportunity Advisory Group, comprised of Toowoomba to tender is provided throughout the local and Lockyer Valley regional business supply chain. The department will also leaders and representatives from the implement a local content promotion department. This group meets monthly and strategy during the development of the provides advice on, and has oversight of, stadium. NEXUS’ local procurement activities.

Toowoomba Second Range Crossing Western Corridor Expansion The department has been working closely Project with DTMR to maximise local content Isis Central Sugar Mill Co Ltd has proposed opportunities from the Toowoomba Second the development of 7800 hectares in the Range Crossing Project. North Burnett as a new sugar-growing area. This new production will offset the trend of Construction of the $1.6 billion Toowoomba declining sugar cane area lost to Second Range Crossing Project started in horticultural production including April 2016. An estimated 1800 direct and macadamia and avocado crops. indirect jobs will be required during the life of the project. The new production area is important for the long-term viability of the existing sugar mill,

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Toowoomba Second Range Crossing. Photo courtesy of the Department of Transport and Main Roads.

and will also provide additional opportunity Guarantee could commence. The Premier for clean energy production and export wrote to the Prime Minister in February volumes through the Port of Bundaberg. seeking this outcome. Critical to the project’s development is the In addition, the Queensland Government has supply of sufficient irrigation water and the announced that workers retrenched from development of a cane rail network from the Queensland Nickel that did not receive an Isis sugar mill to Gayndah. exit medical will be able to access one from the Townsville Hospital and Health Service. Investment required is estimated to total $168 million and will create an additional 92 The Queensland Government’s Accelerated full time direct jobs. Isis Central Sugar Mill Works Program has brought forward the Co Ltd has sought assistance from the expenditure of more than $210 million in Queensland Government to gain access to capital works projects in the Townsville transport corridors and water allocations. region to support further job creation. The department has initiated a whole-of- Several government agencies continue to government technical working group to have oversight of the refinery and are facilitate the expansion of the cane rail working to ensure the refinery is maintained network and provide the required irrigation according to environmental and workplace water. health and safety conditions. The department also remains in contact with Rapid Response the liquidators of Queensland Nickel on Queensland Nickel Pty Ltd ceased operating activities occurring on behalf of creditors on 11 March 2016—792 people lost their owed. jobs as a result. Supply chain opportunities From January 2016, when Queensland In 2015–16, Regional Economic Nickel first announced redundancies, the Development staff delivered a number of Queensland Government has undertaken workshops around Queensland designed to concerted efforts to provide information to increase the ability of supply chain those workers and assist them in their enterprises to access opportunities arising transition to other employment. from major project and purchasing activity. Upon the January redundancy These included: announcement, the department initiated its Rapid Response Team, and has since  40 Tendering for Government Business provided support to over 650 workers workshops (841 participants, from 694 impacted by the closure through information enterprises) sessions, emotional counselling, financial  21 Building an Effective Capability counselling, re-employment opportunities Statement workshops (224 participants, and support service referrals. from 184 enterprises) On 15 April 2016 the Australian  three Accessing Supply Chain Government announced that the claim Opportunities workshops (49 process under the Fair Entitlement participants, from 44 enterprises).

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Artist’s impression of Queen’s Wharf Brisbane. Destination Brisbane Consortium. All rights reserved. Subject to planning approvals.

A number of events were also held in conjunction with DATSIP to improve Indigenous business capability. This included 19 workshops that covered procurement, tendering and business planning. The reach of workshops was increased through holding two webinars covering the tendering and business capability statement content. A further four customised workshops were held with the DHPW. Two of these workshops covered the Building and Asset Services requirements, and a further two covered tendering for an audience of social enterprises. Queen’s Wharf Brisbane supply chain opportunities were promoted at industry and community presentations. These varied from departmental officers speaking at South East Queensland, regional and national forums, to working in tandem with the Star Entertainment Group (previously Echo) to begin informing potential suppliers of the opportunities that might be on offer with the $3 billion Queen’s Wharf Brisbane integrated resort development. Preliminary work was also undertaken in 2015–16 on rolling out a dedicated 2016–17 Queen’s Wharf Brisbane Major Projects Series regional Queensland (supply chain) program.

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Advanced manufacturing—Bundaberg brewed drinks

Our performance in growing priority, new and emerging industries

biomedical and life sciences and METS as Key highlights having global growth potential and opportunities for diversifying and growing To grow priority, new and emerging Queensland’s economy and creating jobs. industries, the department: The department is working closely with  works closely with major stakeholders to industry to develop 10-year roadmaps and deliver the government’s vision in its action plans for each sector. support of economic infrastructure and In line with Advance Queensland, the the development of major projects of roadmaps and action plans will have a focus state and/or regional significance across on collaboration between industry and several industries, including advanced research bodies to transform ideas and manufacturing, aerospace, biofutures, research into commercial outcomes, growing biomedical and life sciences, defence, businesses and jobs. and mining equipment, technology and services (METS) This will contribute to Queensland being a destination of choice for businesses looking  is developing 10-year industry roadmaps and action plans for these priority sectors, to partner with industry-savvy researchers forming a key component of the and grow their export capability. Queensland Government’s $405 million Across the state, 37 forums have been held Advance Queensland Program to date with industry groups, peak bodies  established the Industry and and businesses to discuss opportunities in Manufacturing Advisory Group. these sectors.

Biofutures Priority industry sector roadmaps A future industry whose opportunities lie in value adding to Queensland biomass To build our competitive strengths, diversify (particularly cane) and waste streams, our economy and create the knowledge- biofutures has strong research capacity in based jobs of the future, the Queensland Queensland. Government's Advance Queensland Program According to the World Economic Forum, is driving innovation-led economic growth the global biorefinery products market is through increased collaboration between expected to reach US$1128 billion by 2022. government, industry and research organisations. Queensland is well positioned to become the biofutures capital of Australia because of the The department identified six priority state’s favourable climate and natural industry sectors—biofutures, advanced resources, energy-dense and productive manufacturing, defence, aerospace,

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Promoting the development of biofutures

feedstocks and strong agricultural expertise a pre-eminent Biofutures Industry Envoy all underpinning the production and and a Chair for Biofuels. manufacture of future biofuels, bioplastics The Queensland Government recently and biochemicals. provided financial assistance to assist MP, Premier and Southern Oil’s advanced biofuel Minister for the Arts, launched the demonstration plant in Queensland. Queensland Biofutures 10-Year Roadmap The demonstration plant will be located at and Action Plan in June 2016 at the 2016 Southern Oil’s Gladstone refinery. Once the BIO International Convention in San demonstration plant proves successful Francisco. It outlines a vision for a $1 billion Southern Oil Refining plans to build a sustainable and export-oriented industrial commercial facility in Gladstone with an biotechnology and bioproducts sector in estimated cost of $150 million and annual Queensland by 2026. output of 200 million litres of advanced Development of the Biofutures Roadmap biofuel suitable for military, marine and and Action Plan involved extensive aviation uses. consultation with industry, the research In addition, the department is working with sector, and across government to ensure that a number of Queensland universities and the proposed initiatives addressed the needs institutes providing world-leading research and challenges for the sector. and development on advanced biofuels, Funding of almost $20 million over three biochemical and bioplastics to explore years has been approved to implement the options for translation of this research into Roadmap and Action Plan including for the economic development outcomes for following major initiatives: Queensland.  $5 million Queensland Biofutures Advanced manufacturing Industry Development Fund to assist proponents achieve financial close or Advanced manufacturing incorporates niche bankable feasibility markets and products and a range of activities from design and research and  $5 million Queensland Biofutures development, to production distribution and Commercialisation Program to support after-sales service. The opportunities in this business partnerships with research sector are likely to be split between organisations to scale up technology and improving the offerings of existing increase novel product development and manufacturers and driving growth in technology demonstration capacity emerging industries, such as biomedical.  $4 million Queensland Biofutures Acceleration Program to identify On 24 February 2016, the government opportunities to support the development released a Queensland Advanced of new biofutures projects in partnership Manufacturing discussion paper, which was with industry developed in consultation with the Industry and Manufacturing Advisory Group.  $5.73 million for Biofutures Queensland to provide further support and assistance Consultation on the discussion paper— to industry, including the appointment of conducted in March 2016—included nine focus group sessions with small-to-medium

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Biopharmaceutical manufacturing—Pantheon Biologics

enterprises in Caboolture, Cairns, Gladstone, More than 800 Queensland METS Mackay, Maryborough, Springfield Lakes, companies currently operate across all Southport, Townsville and Toowoomba as aspects of the energy and resources industry well as discussions with research value chains. Queensland METS companies institutions, state and federal government are world leaders in mine safety, mine agencies, peak industry bodies and unions. rehabilitation and remediation processes, and technologies and contract mine The Advanced Manufacturing Roadmap and servicing. Action Plan is anticipated for release in late 2016. The department is currently developing the 10-Year Roadmap and Action Plan for the The Advanced Manufacturing Roadmap and METS sector—expected to be released in Action Plan aims to accelerate the transition late 2016—with targeted consultation of the Queensland manufacturing industry undertaken in conjunction with METS from broad based manufacturing to Ignited across eight locations during April advanced manufacturing where businesses and May 2016, with 132 representatives employ world-best technologies, systems from METS businesses, peak bodies and and processes to produce high-value, energy and resources sector focused research customised products in a sustainable institutions participating. manner. Helping to realise the sector’s continued Actions in the roadmap focus on delivering growth potential, the new $20 million METS increased industry productivity and Ignited Growth Centre was established by competitiveness, strengthening the adoption the Australian Government at QUT Gardens and adaptation of innovative technologies Point in October 2015—demonstrating and processes, and promoting and marketing confidence in Queensland’s strength as a the state’s achievements in advanced resource state. manufacturing. The Queensland Government’s contribution The department will continue to work with of $6 million over four years to METS the Industry and Manufacturing Advisory Ignited’s activities complements the federal Group, and industry more broadly, to ensure government’s investment in the the Advanced Manufacturing 10-Year establishment of this centre. METS Ignited Roadmap and Action Plan supports this is focused on strengthening Australia’s important sector to continue to innovate, position as a global hub for mining grow and prosper—providing sustainable innovation, and enhancing the global employment for Queenslanders. competitive advantage of the Australian Mining equipment, technology and METS industry sector. services (METS) Biomedical and life sciences As a mature Queensland industry, METS has considerable expertise across a range of As an emerging sector in Queensland, products and services. Exporting that opportunities lie in the commercialisation of expertise and further developing our emerging products and technologies, and research and product development in this investment attraction to the emerging health sector are significant opportunities. precincts across Queensland.

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Supporting the defence industry

The sector is forecast to undergo steady In recognition of the current and future growth globally—for example, the opportunities for Queensland’s defence pharmaceutical industry is growing at 4.8 industries, the Queensland Defence per cent per annum—and is driven by: Industries 10–Year Roadmap and Action Plan is currently being developed to position  increased demand for personalised and Queensland organisations to capitalise on preventative medicines opportunities in the defence supply chain as  consumer expectations and demand they become available over the next 10 to 20 including an ageing population years. It is expected to be released in late  the rise of infectious diseases. 2016 following consultation with industry In Queensland, the sector includes around and other stakeholders. 389 businesses employing around 6086 full Promotion of Queensland companies both time employees. The sector in Queensland nationally and internationally included has a total expenditure of around $2.85 participation at Pacific 2015 (Sydney), New billion and exports approximately $275 Zealand Defence Industry Association million of products and services. Forum (Wellington), Singapore Airshow The department released a Biomedical and (Singapore) and the Sanctuary Cove Life Sciences discussion paper in June 2016. International Boat Show (Gold Coast). The department undertook consultation on In May this year, the Australian and this discussion paper during July and August Singapore Governments announced that, 2016 to stimulate broad engagement with under the Comprehensive Strategic stakeholders. Workshops were held in Partnership between the two nations, Brisbane, Bundaberg, Cairns, Singapore will invest $2.25 billion to expand Maroochydore, Southport, Springfield, its training operations in Australia—mainly Toowoomba and Townsville. in Townsville and at the Shoalwater Bay The Biomedical and Life Sciences 10-Year Training Area near Rockhampton—during Roadmap and Action Plan is expected to be the next 25 years. released in late 2016 and will particularly The department is working with the focus on activities in human and animal Australian Defence Organisation and the health and disease. Singapore High Commission to ensure Queensland industry can take early Defence advantage of this significant investment. Defence is a key enabler of traditional industries and a significant contributor in its Aerospace own right to Queensland's economic Aerospace, both military and civil, prosperity. Defence industries support an encompasses all relevant technologies and estimated 6500 full time equivalent jobs. key support systems necessary for the During 2015–16 $3.8 billion in defence development, manufacture, modification, contracts was awarded to Queensland-based upgrade, testing, operation and maintenance companies which was a $200 million of flight vehicles and related ground increase on the previous year. systems.

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University of Queensland Hypersonics lab—aerospace industry

Queensland’s aerospace sector currently provides 4500 direct jobs in aircraft Industry and Manufacturing component manufacturing and repair Advisory Group (IMAG) services statewide, and contributed around IMAG was established in November 2015 to $600 million to the state economy in the provide high-level industry advice on 2014–15 financial year. strategic matters in relation to building and The Queensland Aerospace 10-Year promoting industry and manufacturing in Roadmap and Action Plan, currently under Queensland. It is also advising on the development and anticipated for release later Advanced Manufacturing Roadmap. in 2016, will set the scene to grow the IMAG provides support to the state’s $20.3 industry for the benefit of all Queenslanders. billion manufacturing industry and is Its development is well progressed and helping to position Queensland’s included extensive engagement with manufacturing businesses to maximise industry throughout the state. domestic and international opportunities by More than 100 participants from a diverse concentrating on: range of industry, academic and local  changing demand and emerging government stakeholders have provided very opportunities useful input throughout May and June 2016.  productivity and competitiveness A major opportunity identified through this  innovation and technology process was the application of remotely  local content, business costs and piloted aircraft technologies across other regulation. industry sectors. Chaired by the Minister for State The Unmanned Airborne Vehicle (UAV) Development, the group meets up to three Challenge, which encourages development times a year and includes six business of Science, Technology, Engineering and leaders, two union representatives and one Maths (STEM) skills from an early age, is representative from a peak industry body. supported by the department as part of the aerospace focus. It is conducted in two competitions—an open biennial challenge geared towards university-level competitors and a high school challenge held annually. The department supports both these events through prizes to the winning participants.

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Townsville industry breakfast event

Our performance in supporting enterprise and job creation

Key highlights To support Queensland enterprise and job maximum benefits for Queensland including creation, the department is: capital investment, associated infrastructure and jobs.  enabling Queensland-based firms to win over $1 billion in contracts under the The department provides support services Queensland Charter for Local Content and post-approval monitoring to projects reporting. Queensland Government that require multiple regulatory approvals, projects had a progressive spend value of are complex or sensitive in nature, require over $1.3 billion over 47 procurements for significant coordination across government, the 2015–16 period and respond to a recognised regional need or  tailoring the Accessing Supply Chain government priority. Opportunities Program to meet emerging The services include: demand from buyers and suppliers  engaging with major businesses and  progressing the North Stradbroke Island supply chains to identify regulatory Economic Transition Strategy impediments to the delivery of projects  coordinating 366 foreign investment  developing policy options and proposals through the Queensland recommended solutions to regulatory Foreign Investment Secretariat in the impediments to fast-track or streamline 2015–16 financial year. project approvals  applying statutory powers under the Project facilitation SDPWO Act to allow the Coordinator- The department is playing a key role in General to provide proponents with delivering the government’s priorities of job certainty on approvals pathways creation, regional growth, encouraging  engaging with regulatory agencies during innovation and delivering new infrastructure the approval stages to minimise delay through supporting and facilitating private  supporting major businesses in their sector projects. engagement of communities, local Departmental officers work across governments and landholders government, including local government, to  identifying other key contact points help ensure private sector project approvals within government are coordinated and timely to deliver the

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Carrara Sports Precinct

 supporting economic analysis and the The department is also working closely with development of regional economic five other projects located across regional strategies and policies to ensure major Queensland and South East Queensland that projects deliver maximum socio- may reach the construction commencement economic benefit stage within the next 12 months. Should  providing advice and information to these projects proceed, proponents have senior executives and government on estimated that over $260 million of capital project progress, matters of state interest will be invested and up to 180 construction or impact of government policy and 600 operational jobs created.  assisting in negotiations with service As these projects are private sector led, providers—for example, councils, DEWS decisions are made in response to market and DTMR. conditions. As such, the timing, expenditure For the period January to June 2016, 17 and job numbers associated with these major project proponents were provided projects is subject to change. with facilitation support assisting in 18 project milestones being met or regulatory Queensland Charter for Local issues addressed. Content On 20 January 2016, the Premier announced Queensland Government procurement a five-point plan to stimulate jobs in North provides a significant market opportunity for Queensland that included as one of the local Australian and New Zealand actions: ‘Facilitating key private sector businesses. In order to provide local industry projects—the government will work with with full, fair and reasonable access to this major project proponents to fast-track a market, the department administers the range of existing private sector projects’. Queensland Charter for Local Content. Under the five-point plan, projects were The charter has the core policy objective of prioritised on the basis of timing and level of maximising local content through greater support, with emphasis given to those more participation of capable local industry in advanced in development and renewable major government procurement activities. energy projects to reflect the government’s strong commitment to this sector. In 2015–16, 47 Queensland Government procurements which met the threshold The department provided intensive requirements of the charter submitted facilitation support to 10 projects located in reporting. This included 14 Commonwealth North Queensland to help fast track them to Games procurements—including the financial or construction readiness. Parklands Redevelopment, Carrara Sports Should all of these 10 projects reach Precinct, Coomera Indoor Sports Centre and construction, up to $25 billion of private Queensland State Velodrome. sector capital investment could be injected The 47 procurements had a progressive into the Queensland economy and up to spend value of more than $1.3 billion for 7000 construction jobs created, based on this period. Of this, Queensland-based firms information provided by the proponents. won more than $1 billion (79 per cent) of the value of the contracts awarded.

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Accessing the Glencore supply chain—Mount Isa Mines

Following consultation, an update to with local industry and improve supply strengthen the charter is currently being chain management efficiency. progressed. The update is seeking to: In 2015–16, the program was changed  consider local content earlier in significantly to meet emerging demand from procurement planning stages buyers and suppliers and changed to a three-  capture a wider suite of government stage program: procurements including major  Developing to Win, which includes procurements of goods and services workshops to assist enterprises become  enhance reporting and feedback. involved in supply chains in government and private sectors The implementation of the charter is supported by services delivered by QMI  Positioning to Win, which involves Solutions under the trading name of Industry workshops held in conjunction with a Capability Network Queensland (ICN Qld). major purchaser In 2015–16, the department purchased a  Improving to Win, these workshops range of ICN Qld services—primarily to assist enterprises to identify specific assist local suppliers to identify project process improvements they can make to opportunities, and to support project remain competitive and grow. proponents and prime contractors to gain This financial year, Positioning to Win visibility of local capabilities and provide workshops were delivered in Moranbah and full, fair and reasonable opportunity to local Mackay in conjunction with BHP Billiton suppliers. Mitsubishi Alliance, and in Mount Isa with Glencore. In total, these workshops were Accessing supply chain attended by 44 enterprises. opportunities In Mount Isa, six workshops under The Accessing Supply Chain Opportunities Developing to Win were delivered during (ASCO) program is a demand-led initiative July and August 2016. Workshops will be for both suppliers and project proponents. delivered with Jemena and McConnell For proponents, ASCO enables issues in Dowell to enable local businesses to access their supply chain to be identified and supply opportunities arising from the addressed. For suppliers, ASCO enables Northern Gas Pipeline Project. development of a strong customer focus and Attendees at previous Positioning to Win a sound understanding of the buyer workshops held with BMA have gone on to requirements in order to respond effectively win more than $90 million of work. to tender and procurement opportunities. Workshops delivered under the program Tendering for Government focus on the requirements of major Business (TFGB) workshops purchasers in major projects and in ongoing The TFGB program includes a series of operations. This allows a customised workshops designed to educate industry on solution for major project proponents government procurement processes and seeking to establish effective relationships ensure current and potential suppliers are

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maximising their success in winning year and has identified a need to increase government supply opportunities. sugar cane production and processing to 1 million tonnes per year. The program is aimed at supply chain focused, small-to-medium enterprises This level of production will underpin the looking to access Queensland Government viability of the existing sugar mill and open infrastructure projects such as hospitals, up opportunities for further value adding schools, roads, and equipment supply such as bio-fuels, co-generation, fibre-board opportunities such as emergency vehicles, and animal feed. This could result in marine craft and systems componentry. investments of $275 million and up to an additional 1000 full time jobs. The workshops also cover how to tender for general government procurement work, as Maryborough Sugar Factory has applied to well as how to find opportunities online. The the state government for access to knowledge and techniques obtained in the unallocated state land and for additional workshops can also be applied to tenders in irrigation water to achieve this level of the private sector. sustainable production. An abridged version of the session is The department initiated a technical working delivered in a webinar format to provide group to facilitate the identification of greater access and availability to a wider productive land and the allocation of audience via the internet. additional irrigation water. In the 2015–16 financial year, the Members of the technical working group department conducted 39 TFGB workshops include departmental representatives from attended by 813 participants from the department as well as DAF, DNRM, 671 enterprises. DTMR, DEWS, DILGP and the Office of the Coordinator-General. Enterprises attending the TFGB workshops won $61.5 million of work with government The technical working group met in in the 2014–15 and 2015–16 financial years. Maryborough on 21 April 2016. The group This value of work was won by 101 aims to provide a coordinated approach to enterprises. support Maryborough Sugar Factory in the acquisition of additional sugar cane growing Workshops were delivered at the Gold land, including water requirements. Coast, Sunshine Coast, Brisbane, Logan, Redlands, Toowoomba, Rockhampton, Townsville, Ipswich, North Lakes, Cairns, Interlink SQ intermodal hub Bundaberg, Gladstone, Mackay, Mount Isa, Interlink SQ is building a large intermodal Cloncurry, Maryborough, Warwick, Gympie facility at Charlton Wellcamp near and Airlie Beach. Toowoomba. The facility will use rail to Winning tenders can help businesses grow, transport products to the Port of Brisbane. become innovative and hire additional staff, The department has been working with supporting investment, industry and regional Interlink SQ to remove investment development and jobs growth. impediments such as road easements, rail access, gas, water and sewerage access. Maryborough Sugar Mill Construction is due to start in October 2016. Expansion Maryborough Sugar Factory processes an average of 750 000 tonnes of sugar cane per

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A modern working environment includes mobile technology solutions

Financial performance Chief Finance Officer Summary of financial Statement performance In overseeing the financial activities of the This section provides an overview of the Department of State Development, I assert that financial statements of the department for I have fulfilled the responsibilities of the Chief the 2015–16 financial year, which are Finance Officer listed in section 77 of the provided in detail at the ‘financial Financial Accountability Act 2009 including: statements’ section of this report.  financial resource management, including the establishment, maintenance Understanding the financial and review of financial internal controls statements  budget management The following comparison of the 2015–16  preparation of financial information, results with the 2014–15 results was including annual financial statements to considered and accepted by the department’s facilitate the discharge of the department’s Audit and Risk Management Committee at statutory reporting obligations the August 2016 meeting.  provision of advice on the effectiveness of Eight months of the comparative 2015 year, accounting and financial management in the Statement of Comprehensive Income information systems and financial controls contain transactions relating to Economic in meeting the department’s requirements Development Queensland (EDQ), Planning and Infrastructure functions that were  provision of advice concerning the transferred out of the department as part of financial implications of, and financial the 1 March 2015 machinery-of-government risks to, the department’s current and changes. projected services  development of strategic options for the department’s future financial management and capability.

I have provided a statement to the

accountable officer confirming that the financial internal controls of the department are operating efficiently, effectively and economically as required by section 77 of the Financial Accountability Act 2009.

Michael McKee Chief Finance Officer

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Analysis—operating result

2016 2015 Variance $’000 $’000 $’000 Total income 341,174 465,121 (123,947) Total expenses (327,965) (365,476) 37,511 Operating result before tax 13,210 99,644 (86,434) Income tax equivalent benefit/ – (35,127) 35,127 (expense) Operating result after tax 13,210 64,517 (51,307)

Other comprehensive income Asset revaluation surplus (5,901) 7,838 (13,739) Total comprehensive income 7,309 72,355 (65,046)

Income Figure 1 Income by category for the year ended 30 June 2016

Gains on disposal/ Other revenue remeasurement of Grants and other 0% assets contributions 5% 0% Appropriation revenue 44%

User charges and fees 51%

Total income for the year ended 30 June changes. With the transfer of EDQ, the 2016 is $341.17 million, representing department no longer records land sales, increased user charges revenue for the gain on disposal and re-measurement of Commonwealth Games venue and village investment assets. construction projects. The 2016 total is a The department’s significant income decrease of $123.95 million from 2014–15, categories are appropriation revenue and due mainly to the transfer of functions as a user charges and fees. result of the machinery-of-government

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Expenses Figure 2 Expenses by category for the year ended 30 June 2016

Depreciation Finance/ Revaluation and Other expenses borrowing costs decrement amortisation 6% 1% 0% 3% Supplies and Grants and services subsidies 60% 8%

Employee expenses 22%

Total expenses for the year ended 30 June The department’s significant expenses 2016 are $327.97 million, representing an categories are supplies and services and increase in supplies and services expenses employee expenses. for the Commonwealth Games venue and village construction projects. The 2016 total Total comprehensive income is a decrease of $37.51 million from For 2015–16, the total comprehensive 2014–15, due mainly to the transfer of income result is a surplus of $7.31 million. functions as a result of the machinery-of- This total includes a decrease in the asset government changes with the transfer of revaluation surplus of $5.90 million for EDQ, the department no longer records cost infrastructure and major plant and of land sales and taxes, and has decreased equipment. employee expenses.

Statement of financial position—Assets and Liabilities

2015–16 2014–15 Variance $’000 $’000 $’000 Total Current Assets 80,239 54,838 25,401 Total Non-Current Assets 348,872 372,425 (23,553) Total Assets 429,111 427,263 1,848 Total Current Liabilities 105,285 75,121 30,164 Total Non-Current Liabilities 69,312 80,868 (11,556) Total Liabilities 174,596 155,989 18,607 Total Equity 254,514 271,274 (16,760)

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Total assets as at 30 June 2016 are $429.11 million. Cash and cash equivalents increased by $33.84 million, due mainly to unspent appropriation revenue and advanced funding received for the Commonwealth Games village and venue projects. This was off-set by a decrease in property, plant and equipment of $23.04 million due to the on- going sales of Mary Valley properties and the sale of Coomera land assets. Total liabilities as at 30 June 2016 are $174.60 million, representing an increase of $18.61 million from 2014–15 due to increase in creditors payable for the construction costs for the Commonwealth Games village and venue projects and appropriation payable to Treasury.

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Structure

Figure 3 Departmental structure as at 30 June 2016

Minister for State Development Dr Anthony Lynham MP

Director-General Michael Schaumburg

Office of the Economic and Regional Business Solutions Major Projects Special Projects Coordinator- Industry Economic and Partnerships and Property Unit General Development Development Deputy Director- Deputy Director- Projects Chief Coordinator- Deputy Director- Deputy Director- General and Chief General Executive General General General Finance Officer Kerry Petersen David Edwards Barry Broe Colin Cassidy Kathy Schaefer Michael McKee

Land Acquisition Project Industry Queen’s Wharf Regional Legal Services and Delivery Development Development Economic Brisbane Development North State Office of the Chief Corporate Project Delivery Regional IRDs Development Economist Services Areas Regional Economic Property Development Strategic Policy Business Coordinated Queensland South and Legislation Operations Project Delivery

Community Hubs Engagement, Stakeholder and Partnerships Regional Strategy Communications Engagement and Programs and Media

Industrial Development Internal Audit

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Working at the Department of State Development

Governance

Office of the Coordinator-General Business Solutions and Partnerships The Coordinator-General administers the Business Solutions and Partnerships provides SDPWO Act and has wide ranging powers to specialist and corporate services, which plan, deliver and coordinate large-scale combine to offer the department support from infrastructure projects, while ensuring a base of specialised knowledge and environmental impacts are properly managed. expertise, best practices and technology. The majority of projects managed by the Coordinator-General are in Queensland’s DSD Board members significant minerals, energy, tourism, The DSD Board assists the Director-General agriculture, manufacturing and infrastructure to deliver our strategic objectives. Chaired sectors. Through enabling the delivery of by the Director-General, the DSD Board these projects, the Coordinator-General meets every two months. stimulates the economic and social development of Queensland. Members:  Deputy Directors-General Major Projects and Property  Coordinator-General Major Projects and Property facilitates,  Projects Chief Executive. develops and delivers significant project and property solutions to drive economic Michael Schaumburg, Director-General development outcomes for Queensland. Appointed July 2015 Economic and Industry Development Under the Financial Economic and Industry Development is Accountability Act leading industry attraction and facilitation; 2009 the Director- developing priority, new and emerging General is industries; and provides expert commercial accountable to the and economic analysis of projects and Minister for State programs to measure and promote Development and productivity. the for the efficient, effective and Regional Economic Development financially responsible performance of the Regional Economic Development provides Department of State Development. an integrated suite of business, industry and regional development services throughout Michael is a senior executive with 30 years the state, focusing on regional economic of experience in the infrastructure and growth to support regional employment. resource industries. He is a former Deputy Some services are provided on behalf of a Coordinator-General in the Department of range of Queensland Government State Development and Engineering departments. Manager of the Ports Corporation

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Queensland. At a senior executive level, he Director of Transport Planning and Policy was involved in the planning and for London; and Director of Transport development of major resource and Planning (SEQ) for the Department of infrastructure projects that include the Abbot Transport and Main Roads in the Point Growth Gateway Project, Fisherman’s Queensland Government in a wide range of Landing LNG Project and the proposed planning, design and construction roles. Yarwun Coal Export Terminal at Gladstone. David Edwards, Projects Chief Executive, Michael’s academic qualifications include a Special Projects Unit Bachelor of Engineering (Civil) (Hons), an Associate Diploma in Civil Engineering and Appointed July 2015 a Graduate Diploma in Business Administration. He is a graduate of the David's professional Australian Institute of Company Directors, a background is in Registered Professional Engineer of economics, Queensland and a Chartered Professional infrastructure, Engineer. He is also a fellow of the Institute project management of Engineers Australia. and public policy. He holds a Bachelor Barry Broe, Coordinator-General of Arts and a Bachelor of Economics and has had a Appointed April distinguished and successful career at senior 2012 levels of the state's public and private sectors in the field of economic policy and Under the SDPWO infrastructure development. Act the Coordinator- General is David’s current responsibilities include the responsible for delivery of Queen's Wharf Brisbane, the facilitation of large largest private property development in the scale public and nation, and other major IRDs, including a private projects that proposal on the Gold Coast. enhance the economic development of David was previously the Director-General Queensland, while ensuring environmental for the Department of State Development, and social impacts are properly managed. Infrastructure and Planning, the state’s Barry’s professional background is in central economic development agency. infrastructure, major projects and transport Prior to joining the department, David was across all aspects of planning, design, the Manager Strategy and Market funding, procurement, construction, Development at GHD and, before that, was operations and maintenance. With 30 years State Director for Queensland at Committee of diverse public sector experience, he has for Economic Development of Australia successfully planned, coordinated and (CEDA). delivered infrastructure and major projects in Queensland and overseas. In addition to his role with the department, David is a member of the State Advisory Barry holds a Bachelor of Civil Engineering Council for the Queensland CEDA, the as well as a Masters of Engineering and Chairman of Lifetec, a not-for-profit Technology Management. organisation supporting people with Barry’s work history includes the role of disabilities, and a member of the Board of Divisional Manager of Brisbane the Wesley Mission Brisbane, a not-for- Infrastructure in the Brisbane City Council; profit community service organisation that

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provides a range of services to support Kathy Schaefer, Deputy Director-General people in need. Regional Economic Development Colin Cassidy, Deputy Director-General Appointed July 2008 Economic and Industry Development Consistent with the Appointed August department’s vision 2013 for driving economic development in Colin joined the Queensland, Kathy state government in focuses on seeing 1991 after 10 years thriving regional in local government. economies and He has over 20 years communities supported by services and of experience in a opportunities to make them even better areas range of senior to live, work and invest. professional, policy and corporate leadership roles within the state public sector. Kathy’s leadership has strengthened the department’s network of regionally based Colin has led a number of major structural offices providing services and support and cultural reforms, legislation and including project facilitation, industry and policy programs and business enterprise development, regional supply improvement initiatives. He holds a Master chains, partnerships with regional economic of Urban and Regional Planning, Master of partners and links between proponents, Science (Environmental Studies) and a councils and stakeholders. Bachelor of Science. Kathy is committed to seeing vibrant and Kerry Petersen, Deputy Director-General dynamic regional economies and Major Projects and Property communities, promoting investment, exports and job creation. Appointed November 2015 Kathy’s academic qualifications include a Master of Business Administration, Kerry has 24 years Bachelor of Education, Graduate Diploma in of experience English as a Second Language Teaching and delivering capital a Diploma in Teaching. She received a works projects for Public Service Medal in the 2016 Australia the Queensland Day Awards. Government which has seen her Michael McKee, Deputy Director-General involved in the delivery of the Queensland Business Solutions and Partnerships and Conservatorium of Music, Suncorp Stadium, Chief Financial Officer Queensland State Library, Gallery of Modern Art (GOMA), Roma Street Parkland Appointed November and a variety of State Development capital 2015 works programs including education. Michael McKee's Kerry holds a Bachelor of Architecture and professional Graduate Certificates in Strategic Asset experience in the Management and Management. public sector has been predominantly

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based within the financial and business organisational performance and risk, services management area. Michael has ensuring we operate efficiently, effectively experience as Chief Finance Officer (CFO) and transparently. for a number of state organisations, more The DSD Board is comprised of the recently including iterations of the department's senior executive leadership and Department of State Development. meets every eight weeks with a strategic Michael has worked with multiple ministers governance focus. It focuses on strategy, and Directors-General during his career, risk, compliance, performance, operations, giving him great exposure to various internal controls, innovation, key change leadership styles, opportunities and management initiatives and corporate challenges. responsibilities. Michael is highly motivated to align The Leadership Team is comprised of the resources and performance reporting to the department's senior executive leadership and department's strategy and risks. This meets weekly with an operational focus. It motivation stems from his time spent discusses day-to-day topical operational training with the Queensland Auditor- matters to share information and signal General and an international Chartered potential changes to risk or strategy. Accounting firm, as well as studies along the way to becoming a Fellow of CPA Strategic planning workshops are held every Australia. four months to focus on the core elements of the strategic direction and implementation Accountability impediments and effectiveness, including rectification strategies to achieve all aspects The department adheres to the Public Sector of the department’s Strategic Plan. Ethics Act 1994 (PSE Act) and the Financial and Performance Management Standard Governance committees 2009 (FPM Standard), and maintains a governance structure with three key The functions and responsibilities of our governance forums that provide leadership governance committees—outlined at Figure direction. These are the DSD Board, the 4—are formally articulated in their Terms of Leadership Team and strategic planning Reference. workshops. At the highest level, the DSD Board and governance committees oversee

Figure 4 Departmental governance committees

DSD Board

Finance and Asset Information Audit and Risk Workforce Management Steering Committee Management Committee Committee Committee

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Finance and Asset Management communication technologies and Committee supporting systems/infrastructure The Finance and Asset Management  ensuring information assets are Committee (FAMC) is established to ensure identified, managed, secured and that the department can deliver services in available to support effective decision- the most efficient, effective and economical making manner. The FAMC’s role is to provide  identifying opportunities for assurance in: improvement and innovation  financial administration and reporting  establishing roadmaps, including  legislative compliance adoption of digital technologies, to implement strategy set by the DSD Board  internal controls. and Leadership Team in order to ensure The FAMC acts to review decisions and mobile and agile responses to emerging make recommendations to the Director- government and department priorities General and/or the DSD Board or  establishing governance arrangements Leadership Team regarding resourcing. In that adequately manage costs and risks particular, it focuses on issues relevant to the while enabling the achievement of verification and maintenance of the integrity benefits. of financial reporting and budget management in line with the department’s Membership of the ISC in 2015–16: strategic objectives.  Kathy Schaefer, Deputy Director-General Membership of the FAMC in 2015–16: Regional Economic Development (Chair)  Colin Cassidy, Deputy Director-General  Colin Cassidy, Deputy Director-General Economic and Industry Development Economic and Industry Development (Chair)  Kerry Petersen, Acting Deputy Director-  Barry Broe, Coordinator-General General Major Projects and Property  David Edwards, Projects Chief Executive  Michael McKee, Acting Deputy Director-General Business Solutions and  Kerry Petersen, Acting Deputy Director- Partnerships General Major Projects and Property  Stephen Johnston, Deputy Director-  Kathy Schaefer, Deputy Director-General General Local Government and Regional Regional Economic Development Services (DILGP)  Elizabeth Dickens, Director Office of the  Kathy Parton, Acting Deputy Director- Director-General. General Strategy, Governance and Information Steering Committee Resilience (DILGP)  The Information Steering Committee (ISC) Greg Chemello, General Manager comprises members of the department and Economic Development Queensland DILGP who meet to ensure the (DILGP) identification and subsequent  Stuart Moseley, Deputy Director- implementation of appropriate and effective General, Planning (DILGP). information management and technology systems and solutions. Audit and Risk Management Committee Key areas of focus for the ISC are: The Audit and Risk Management Committee  ensuring efficient and effective operation (ARMC) was established pursuant to the of information management and FPMS.

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The ARMC provides independent assurance  endorsing the ARMC Charter and the and assistance to the Director-General on the Internal Audit Charter for 2016–17 department’s:  receiving regular reports on internal audit  risks, control and compliance activities, including audits and reviews frameworks completed as part of the Internal Audit Annual Audit Plan 2015–16  external accountability responsibilities as prescribed in legislation and standards.  reviewing and considering the Queensland Audit Office (QAO) The ARMC Charter establishes the authority Strategic Audit Plan and the Client and responsibilities of the committee and Strategy for the department was prepared with reference to:  considering the scheduling, status,  relevant provisions of the FAA and findings and audit recommendations of FPMS QAO financial and performance audits  Queensland Treasury Audit Committee  overseeing the implementation status of Guidelines—Improving Accountability internal and external audit and Performance recommendations  better practice guidance issued by the  endorsing the department’s Risk Australian National Audit Office Management Framework and received  legislative, regulatory and other regular reports on the department’s risk requirements—promoting a culture of status lawful and ethical behaviour.  enhancing oversight of risk management The ARMC met on four occasions during as the department gains a greater 2015–16. awareness of the identified risks and mitigation strategies. Membership of the ARMC and remuneration (where applicable) in 2015–16 The ARMC considers that it has observed included: the terms of its Charter and has had due regard to Queensland Treasury Audit  Eric Muir—Chair and external member. Committee Guidelines. Remuneration: $7804.50  Joshua Chalmers, Partner PwC—external Government bodies member. Remuneration: $2400 The department administers grant funding of  Colin Cassidy, Deputy Director-General, $2.5 million on behalf of the state for the Economic and Industry Development GasFields Commission Queensland.  Kerry Petersen, Deputy Director-General, Operating under the Gasfields Commission Major Projects and Property Act 2013, the commission’s role is to  Matthew Andrew, Executive Director, manage and improve sustainable coexistence Industry Development. among rural landholders, regional Key achievements for the ARMC during communities and the onshore gas industry 2015–16 included: in Queensland.  reviewing and endorsing the Further information about the operations, department’s financial statements for the priorities and achievements of the year ended 30 June 2016 commission is provided in the GasFields Commission Annual Report 2015–16.  reviewing and endorsing the department’s Internal Audit Strategic Further information regarding other Plan 2016–19 and Annual Audit Plan government bodies within the department’s 2016–17 portfolio is provided as a stand-alone

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document available from the department’s  considering the most appropriate website at: implementation methodologies for www.statedevelopment.qld.gov.au/corporate training, resourcing, roles and -publications/annual-report.html. responsibilities, timing and reporting/escalation. Risk management Internal audit The department implements a risk management framework to identify, assess Internal audit is a key component of our and manage risks that may impact the corporate governance. fulfilment of its strategic objectives, service Pursuant to section 29 of the FPMS, the provision ability or program and project department has an established independent delivery. Internal Audit function and operates under The management of risk is undertaken by all an approved Internal Audit Charter. Systems staff, with project managers, management were in place to ensure the effective, and executive staff responsible for efficient and economical operation of the appropriate implementation of risk function. treatments in line with the department’s risk Internal Audit provides independent and appetite. objective advice to the Director-General and Assurance regarding the effectiveness of risk aids him in the discharge of his statutory management is provided to the Director- functions and duties as the accountable General by the ARMC. officer. Risk management is integrated into The scope of Internal Audit coverage for departmental activity through incorporation 2015–16 was set out in the Internal Audit in project and program management as well Strategic Plan 2015–18 and Annual Audit as strategic and operational planning. Plan 2015–16, which was endorsed by the ARMC and approved by the Director- In 2015–16, the department initiated an General. This plan followed a risk-based internal audit of its enterprise and strategic methodology, balancing emerging issues risk management approach in order to against reviews of core business and provide assurance of its suitability and transactional processes. Auditable areas effectiveness. As a result of the internal were identified based on consultation and audit findings, management accepted assurance mapping. recommendations for improvements. The Head of Internal Audit (HIA) is Jo A program of work to implement the Buckley, CA, B.Com. The HIA is directly recommended improvements began in April accountable to the Director-General for 2016, and is expected to be completed by leading an effective and efficient internal 2017. The improvements will further audit function and for ensuring the internal strengthen the department’s risk audit activity meets its objectives and adds management framework by: value to the department. The HIA reports  formally assigning risk management regularly to the ARMC, which reviews the roles and responsibilities to each work of the internal audit function. governance committee as appropriate The Internal Audit Charter has been  recalibrating the department’s risk prepared with reference to the relevant appetite statement and consequence and provisions of the FAA and the FPMS, the likelihood scales Institute of Internal Auditors International  strengthening treatment plan monitoring Professional Practice Framework, the

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Queensland Treasury Audit Committee Auditor-General conducted performance Guidelines—Improving Accountability and audits and whole-of-government audits, in Performance and the better practice accordance with the QAO Strategic Audit guidance issued by the Australian National Plan and advice to the Director-General. Audit Office. The charter was endorsed by QAO audits directly applicable to the the ARMC and approved by the Director- department included: General and is consistent with accepted auditing and ethical standards.  Auditor-General’s Report 1: 2015–16, Internal control systems 2014–15— Achievements of Internal Audit during tabled in Parliament 28 July 2015 2015–16 include:  Auditor-General’s Report 4: 2015–16,  developing and delivering a risk-based Royalties for the Regions—tabled in annual plan of audits endorsed by the Parliament 1 December 2015 ARMC and approved by the Director- The department is committed to ensuring General covering assurance about, and that grant programs are administered improving effectiveness of, governance, efficiently, effectively and economically financial controls, systems, project and to achieving value for money, in management, operations, compliance and accordance with the FAA. We also risk management acknowledge that the Financial  providing advisory services to the Accountability Handbook specifies department in order to improve risk requirements for grant program design, management, control and governance, program administration, evaluation and and business operations analysis.  completing audits and reviews as agreed Recommendation 1 relating to a two with the ARMC, resulting in appropriate stage grant assessment process will be management recommendations for implemented in round two of the improving governance processes and Building our Regions Program and the business operations remainder of the recommendations have  assessing the effectiveness and efficiency been implemented in the design and of key departmental financial and rollout of the processes and systems to operating systems, reporting processes manage round one of the Building our and activities Regions Program.  proactively following-up with  Auditor-General’s Report 6: 2015–16, management regarding their timely State public sector entities: 2014–15 implementation of internal and external financial statements—tabled in audit recommendations Parliament 3 December 2015  provision of secretariat services as  Auditor-General’s Report 13: 2015–16, outlined in the ARMC Charter Cloud computing—tabled in Parliament  adopting a co-sourced service delivery 29 February 2016. model for the provision of an effective Recommendations addressed to the internal audit function department were accepted and management  maintaining an effective working plans are in place to implement those relationship with the QAO. recommendations. Progress in implementing Auditor-General recommendations is External scrutiny monitored and followed-up by Internal Audit and reported to the ARMC for review In addition to his annual audit of the and noting. department’s financial statements, the

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Ethics and integrity  face-to-face training, managers workshops and ethics and integrity Our ethics and integrity framework ensures corporate governance topics systems, policies, procedures and resources  external training on ethics and integrity are in place to provide assurance that all related matters including the Queensland activities are conducted in an ethical, Ombudsman’s Office’s ‘Your Ethical accountable and transparent manner. It Compass’ covers:  policies and procedures with  managing complaints practical guidance  lobbyist contacts  specialist and personalised advice on  registering declarations of interests ethical matters through the Director,  registering gifts and benefits Ethics and Integrity  ethics advice and training  online tools, resources and support networks.  liaising with the Crime and Corruption Commission (CCC) The Director, Ethics and Integrity also:  managing public interest disclosures  manages complaints and allegations of alleged breaches of the code  preventing fraud and corruption.  maintains close cooperation and liaison The principles and values of the PSE Act are with the CCC explicitly and implicitly embedded in the  monitors trends and issues and department’s strategic planning process and implementation of improvements as a policies and procedures. result of lessons learned from cases Honesty, impartiality and accountability are and complaints. valued and promoted in all engagements The department provides annual reporting with employees, stakeholders, the general on complaints received, resolved and under public and the private sector. Ethical management. This information is available principles and values are incorporated in on the department’s website at: employees’ performance and development www.statedevelopment.qld.gov.au/contact- agreements. us/feedback-compliments-and- Departmental employees uphold the Code of complaints.html. Conduct for the Queensland Public Service In 2015–16, there were 16 complaints and receive regular training on the code lodged against employees of which six were starting at induction. substantiated. Management action was taken In 2015–16, 45 intensive workshop-style in response to these complaints. sessions were delivered to staff on topics related to ethics, integrity and preventing Information systems and fraud or corruption. Various training record management opportunities with ethics and integrity components are embedded within induction The department ensures its information is sessions, online training, and training accessible, clear, trustworthy, secure, valued sessions—which may be requested for and managed through good information and specific business units. recordkeeping practices. Information is then available at the right Active support is provided to managers and time for decision-makers to make informed staff in implementing the code with: decisions for customer service, program  the code accessible on the department’s delivery, management and administration. intranet and internet websites

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The ongoing use and maintenance of best information is retained for the practice information and records mandated periods management policies, procedures and o electronic business processes are systems ensures compliance with legal identified and embedded as business- requirements, continuous and timely service as-usual delivery and reduces risk. o proactive training initiatives, such as The department’s use of an electronic clear desk and information document records management system management awareness, reflect (eDRMS) enables the secure, effective and policies and procedures efficient management of correspondence,  reviewing document storage facilities to documents and records: 368 946 items were identify baseline storage requirements captured during 2015–16. Professional staff  establishing realistic performance goals maintain the integrity of this system and all and effective quality assurance programs staff are afforded appropriate record keeping training as part of induction.  improving information management maturity and awareness of legislative Additionally, the department uses the whole- compliance through tailored training of-government SAP and Aurion systems for finance and human resource management  retaining and disposing of public records respectively. in accordance with the Public Records Act 2002 and approved retention and Our proactive approach to information and disposal schedules. During 2015–16, records management includes: 1916 approved records were disposed of  implementing and maintaining an after their retention period expired. This Information Management Strategy that equates to an estimated $2500 annual includes clear and concise policy, saving in storage and security costs. procedures and work instructions No records were reported as lost or  managing programs, information and destroyed in 2015–16. recordkeeping systems that comply with The department utilises modern technology Queensland Government information platforms including Windows 8.1, Office standards and policies 365, VoIP and Wi-Fi to enable a more  developing an information management effective and efficient public service. digitisation strategy The rollout of mobile devices (tablets) in the  implementing ‘paper lite’ approaches, central business district complements the reducing physical paper holdings by 59 move to 1 William Street and ‘paper lite’ per cent and creating a culture where the working, and is enabling a mobile following principles apply: workforce. o born digital, stay digital strategies exist where new documents (received Workforce planning and or created) remain electronic performance o physical records are scanned to the eDRMS to maximise access by Workforce development decision-makers The department continues to focus on o eDRMS is used as the enterprise developing an agile and highly-skilled information management system workforce, and increasing the capabilities of our people. o current retention and disposal schedules are applied to ensure

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Activities to achieve this included:  availing senior leaders of an executive coaching panel enabling a tailored and  refreshing the department’s formal flexible development tool induction program including introducing a new leader on-boarding program  facilitating capability assessment and development programs for specialist  establishing a Workforce Committee to fields such as human resources in drive workforce development addition to development for emerging  conducting expressions of interest and high-potential leaders—two female processes to deploy highly skilled senior executives participated in the employees to internal priority projects Australian and New Zealand School of  establishing new sectorial teams to Government (ANZSOG) Executive specifically focus on priority industry and Fellows Program sectoral development  updating the department’s role  continuing learning and development descriptions to include a focus on the activities with an emphasis on balance development of technical, managerial and between leadership capabilities. o workplace learning—70 per cent of In 2015–16, the department implemented time action plans for whole-of-government o social learning—20 per cent of time workforce initiatives, including focus areas of domestic family violence, disability, o formal learning—10 per cent of time Indigenous, cultural capability and women. o internally and externally provided programs including those offered by Work-life balance options—such as flexible the Public Service Commission hours of work arrangements, various leave  establishing MyLearn, a central portal for types, compressed working week, part-time all Business Solutions and Partnerships arrangements, job sharing and training and development sessions telecommuting—are provided to assist employees. Employees can access facility  continuing the performance and space that can be used for carers and development process ‘MyPDA’, with breastfeeding. supervisors working closely with their teams to identify opportunities to upskill Workforce planning and profile  encouraging uptake of the MyMentor With a workforce of 593 full time equivalent program matching internal mentors and staff, strategic workforce planning is mentees to build a highly skilled undertaken at the departmental level and workforce with increased succession covers a five-year time horizon. planning opportunities. The program allows individuals to learn the Aligned to the department’s Strategic Plan, importance of fostering relationships, it seeks to address organisational trends and dealing with constructive advice and develop enterprise wide strategies. ultimately enabling job success In 2015–16, the department had a permanent  expanding the leadership development separation rate of 3.49 per cent. This is a program ‘Leadership Xchange’ to high- significant reduction from 2014–15 and a potential employees, providing monthly reflection of our commitment to the new hot topics face to face and live-streamed Employment Security policy. to regional areas Our workforce profile is depicted in the  providing a leadership video resource following graphs—Figure 5 and Figure 6. library on the department’s intranet

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Figure 5 Workforce distribution by salary and gender as at 30 June 2016

80 Female 70 Male 60

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Figure 6 Workforce distribution by age and gender as at 30 June 2016

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90 Female

80 Male

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Health and wellness initiatives women’s day and participated in a cross- agency pilot mentoring program for women. The department provides an environment that protects the health and safety of A domestic and family violence awareness everyone in the workplace. In 2015–16, campaign continued into its second year health and wellness initiatives included: calling for individuals to raise awareness by participating in the Darkness to Daylight  general health assessments available to challenge—raising money for donation. all staff—92 staff participated  skin cancer checks available to all staff— We encourage our staff to help shape our 116 staff participated, leading to 21 department and annually run a confidential referrals for further investigation employee opinion survey. As a result of feedback, we refreshed and re-launched our  flu vaccinations—250 staff participated Human Resources Network forum with the  ergonomic and posture care assessments view to continue collaborative discussions  employee assistance program including across the agency. support for staff impacted by domestic and family violence. Industrial and employee relations framework Injury and claims management All employees are covered by the Industrial The department seeks to continuously Relations Act 1999 and the Public Service improve our rehabilitation, return to work Act 2008. and injury management systems. From 1 June 2016, the State Government The systems in place include: Entities Certified Agreement 2015 applied to  timely, sound incident reporting processes all employees at the AO8 classification level (or equivalent) and below.  implementation of appropriate preventative actions where required Upon certification the modernised  prompt intervention when issues Queensland Public Service Officers and are reported Other Employees Award – State 2015 applied to all departmental employees with  emergency management and the exception of Senior Executive Service first-aid training. and Senior Officers. Diversity and inclusion The department has not been party to any The department encourages a diverse and industrial disputes during 2015–16. inclusive workforce, supported through a Advice and support is provided to managers Creating an Inclusive Workplace policy. The and employees in relation to entitlements, Indigenous employment strategy, which is in policies, processes and performance. its second year, allows for school-based and Improvements were also made to the new trainees to enter the workforce at processes associated with joiners, movers central or regional offices, and experience and leavers to provide a smoother work flow work conducted in various business groups. experience for end users and other We continue to support women’s career stakeholders. development through encouraging The department is committed to participation in ‘women in leadership’ implementing the new Employment Security events and hosted a panel discussion on and Union Encouragement policies. career development to recognise international women’s day, Queensland Consultation with the union was undertaken on a number of occasions, in particular to

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discuss the implementation of new organisational structures within the department and potential impacts on staff

Consultative Committee The Consultative Committee is the principal consultative body for unions and management within the department. It is created pursuant to Part 9 of the Certified Agreement 2009 (from 1 June 2016, the applicable legislative authority became Part 9 of the State Government Entities Certified Agreement 2015). In 2016–17, the committee will meet on a quarterly basis.

Work Health and Safety Committee The Work Health and Safety Committee’s roles and responsibilities are to:  assist in developing standards, policies and procedures, training programs and engagement of consultants relating to work health and safety  facilitate cooperation between the Director-General and employees regarding health and safety issues. The committee meets every three months. A comprehensive Work Health and Safety action plan was developed by the committee in the first quarter of 2015.

Retirements, redundancies and retrenchments During 2015–16, two employees received voluntary redundancy packages at a cost of $92 866.76.

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Financial statements

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Appendix 1 Legislation administered by the department

The Department of State Development is the Administrative Unit under the Administrative Arrangements Order (No 2) 2015 in relation to the Minister for State Development’s principal ministerial responsibilities. The Minister for State Development is responsible for the following Acts: Alcan Queensland Pty. Limited Agreement Act 1965 (except to the extent administered by the Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport) Amoco Australia Pty. Limited Agreement Act 1961 Ampol Refineries Limited Agreement Act 1964 Austral-Pacific Fertilizers Limited Agreement Act 1967 Central Queensland Coal Associates Agreement Act 1968 (except to the extent administered by the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply) (Sch pt VI) Central Queensland Coal Associates Agreement (Amendment) Act 1986 Central Queensland Coal Associates Agreement Amendment Act 1989 Central Queensland Coal Associates Agreement and Queensland Coal Trust Act 1984 Central Queensland Coal Associates Agreement Variation Act 1996 Century Zinc Project Act 1997 (ss14–17) Gasfields Commission Act 2013 Queen’s Wharf Brisbane Act 2016 (Chapter 5, Part 1) Queensland Industry Participation Policy Act 2011 Queensland Nickel Agreement Act 1970 (except to the extent administered by the Minister for Transport and the Commonwealth Games) Queensland Nickel Agreement Act 1988 State Development and Public Works Organisation Act 1971 Surat Basin Rail (Infrastructure Development and Management) Act 2012 Sustainable Ports Development Act 2015 Townsville Zinc Refinery Act 1996

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Appendix 2 Our contacts Brisbane offices Wide Bay Burnett regional office Main office—Bundaberg Brisbane Central offices visit Lv 1, 7 Takalvan Street, Bundaberg visit Lv 13, 61 Mary Street, Brisbane post PO Box 979, Bundaberg Qld 4670 visit 63 George Street, Brisbane tel +61 7 4331 5616 post PO Box 15009, City East Qld 4002 [email protected] tel +61 7 3452 7009 [email protected] Darling Downs South West regional office Main office—Toowoomba visit 128 Margaret Street, Toowoomba Regional offices post PO Box 825, Toowoomba Qld 4350 Far North Queensland regional office tel +61 7 4616 7306 [email protected] Main office—Cairns visit Ground Floor, Cairns Port Authority South East Queensland—North regional Building, Corner Grafton and Hartley Streets, office Cairns Main office—Maroochydore post PO Box 2358, Cairns Qld 4870 visit Lv 8, Mike Ahern Building, 12 First tel +61 7 4037 3209 Avenue, Maroochydore [email protected] post PO Box 1129, Maroochydore Qld 4558 Mackay Isaac Whitsunday regional office tel +61 7 5352 9706 [email protected] Main office—Mackay visit Lv 4, 44 Nelson Street, Mackay South East Queensland—West regional post PO Box 710, Mackay Qld 4740 office tel +61 7 4898 6800 Main office—Ipswich [email protected] visit Lv 4, 117 Brisbane Street, Ipswich North West regional office post PO Box 129, Ipswich Qld 4305 tel +61 7 3432 2400 Main office—Mount Isa [email protected] visit 1/75 Camooweal Street, Mount Isa post PO Box 2221, Mount Isa Qld 4825 South East Queensland—South regional tel +61 7 4747 3900 office [email protected] Main office—Gold Coast North Queensland regional office visit Lv 1, 7 Short Street, Southport post PO Box 3290, Australia Fair, Southport Main office—Townsville Qld 4215 visit Lv 4, 445 Flinders Street, Townsville tel +61 7 5644 3200 post PO Box 1732, Townsville Qld 4810 [email protected] tel +61 7 4758 3405 [email protected] Central Queensland regional office Main office—Rockhampton visit Lv 2, 209 Bolsover Street, Rockhampton post PO Box 113, Rockhampton Qld 4700 tel +61 7 4924 2914 [email protected]

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Appendix 3 Strategic Plan 2015–20 performance

The Department of State Development Strategic Plan 2015–20 sets out five strategic objectives:  influence policy and the investment environment  facilitate a major projects pipeline  strengthen the regions  grow priority, new and emerging industries  support enterprise and job creation. Our strategic plan ensures emerging risks and opportunities are strategically addressed, and it underpins and guides our work and actions. We align our lower-level divisional operational plans to the strategic plan. Progress in achieving the government’s objectives and commitments, the strategic plan and our service standards, is regularly measured and reported internally, as well as publicly through this annual report and the department’s Service Delivery Statements 2016–17. Our strategic plan articulates the performance measures the department’s Leadership Team use to gauge the effectiveness and efficiency of our service delivery. The following table outlines performance in 2015–16 against these measures.

Performance 2015–16 performance measure

Strategic objective: Influence policy and the investment environment

Private sector capital In 2015–16 $282.1 million of private sector capital investment was leveraged through industry facilitation. investment leveraged through industry This was achieved in a very efficient manner, with the Economic and Industry Development group of the department achieving facilitation. $33.20 in leveraged private sector capital investment for every $1 spent on service delivery. The Major Projects and Property group achieved $15 in leveraged private sector capital investment for every $1 spent on service delivery.

Staff and stakeholders The department held the inaugural Advance Queensland Innovation and Investment Summit on 27–29 April 2016. This consider DSD innovative highlighted some of the department’s priority industry sector and leading delivery of work including biofutures, advanced manufacturing, METS, economic development defence and aerospace to a targeted industry and investor outcomes. audience. In 2015–16 the department initiated the Engineering, Construction and Mining Innovation Hub in line with our position as a lead agency in the Advance Queensland initiative, with the appointment of a director to lead the project. The department also instigated a pilot of the Innovation Program to drive innovation and find solutions for challenges internal to the department—more than 50 staff volunteered to be part of the pilot. In the 2016 Employee Opinion Survey, 78 per cent of staff agreed that their manager supports them to identify innovative ways to improve how their work is done.

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Performance 2015–16 performance measure

Strategic objective: Facilitate a major projects pipeline

Maintain on-time, on- Of projects managed, facilitated or delivered, 91 per cent were on budget delivery and time, and 97 per cent were on budget. facilitation of major The Mission Beach Boating Infrastructure Project experienced projects. delay as a result of the construction tender being placed on hold pending community consultation. In addition, the GLASS Program reported a delay in schedule due to a review of program scope and confirmation of government policy. Only one part of a project experienced budget overrun—this was the demolition and remediation component of the divestment of the former Gold Coast Hospital site, which was impacted by an unexpected quantity of asbestos present. The department ensured that the asbestos was appropriately and safely dealt with, leading to some increased costs to ready the site for reuse. The cost overrun was accommodated within the overall site divestment project budget contingency administered by Property Queensland.

Projects facilitated through Streamlining of EIS assessment times continues with a 57 per cent time reduction being achieved since 2012. Quality has also been early project definition or enhanced through more robust project management procedures; development stages. more effective proponent liaison and strengthened, outcomes- focussed conditions. The assessment bilateral agreement with the Australian Government has been significantly improved through close and consultative liaison. The federal approval times following the Coordinator-General’s assessment have been reduced by 48 per cent since December 2013. In 2015–16 the Coordinator-General approved 19 SDA applications in SDAs, including the Abbot Point Growth Gateway Project and Adani’s Terminal 0 in the Abbot Point SDA. The department is providing facilitation support to a total of 115 projects in order to drive new industry investment, development and innovation leading to new jobs throughout Queensland.

Strategic objective: Strengthen the regions

Increased infrastructure In 2015–16, the Building our Regions and Royalties for the Regions programs enabled $512.9 million of investment in investment enabled through infrastructure that without program assistance, may have been regional grants programs. significantly delayed or unable to proceed in the same form.

Strategic objective: Grow priority, new and emerging industries

Growth in targeted In 2015–16, the department progressed the development of six priority sector roadmaps to assist the growth of these sectors to industry sectors. diversify the state’s economy and create knowledge based jobs.

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Performance 2015–16 performance measure

Strategic objective: Support enterprise and job creation

Regional enterprise In 2015–16, 39 Tendering for Government Business workshops were conducted, attended by 813 participants from involvement in supply chain 671 enterprises. The program educates industry on government for major projects procurement processes and ensures current and potential suppliers are maximising their success in winning government supply opportunities. Positioning to Win workshops were held in Moranbah and Mackay in conjunction with BHP Billiton Mitsubishi Alliance, and in Mount Isa with Glencore as part of the Accessing Supply Chain Opportunities Program.

Strategic objective: Empower our people

Maintain DSD’s position in The employee completion rate in the Employee Opinion Survey increased by 5 per cent. Employee Opinion Survey results. Results relating to employees acknowledging, and indicating their satisfaction with, actions taken against identified priorities in the previous 12 months were maintained. The strategic priorities identified by our staff through the survey were: • positive agency engagement—result maintained within 5 per cent • organisational leadership—result maintained within 7 per cent • innovation—result maintained within 2 per cent.

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Appendix 4 Performance against service standards

The department retained two service areas in 2015–16, which are:  Driving Business Development, Economic Growth and Job Creation  Assessing, Approving, Facilitating and Delivering Major Projects. Our core service areas describe the fundamental functions of the department, which our strategic objectives seek to deliver upon. In the Service Delivery Statements 2016–17, these service areas are described as:  Driving Enterprise Development, Economic Growth and Job Creation  Assessing, Approving, Facilitating and Delivering Major Projects. Service standards are set with the aim of defining a level of performance that is appropriate and expected to be achieved, enabling government and the public to assess whether or not agencies are delivering services to acceptable levels. The following tables report the department’s performance over the 2015–16 financial year against our service standards as articulated in the Service Delivery Statements 2015–16.

Service standard 2015–16 2015–16 2015–16 Target / Estimated Actual

estimate actual

Driving Business Development, Economic Growth and Job Creation1

Value of private sector capital investment 2 leveraged through industry facilitation (SD) $260M (EID) $260M (EID) $278.5M

State Development (SD) (MPO) $4M (MPP) $3.8M (MPP) $3.6M Major Projects Office (MPO)

Value of infrastructure investment enabled $230M Not applicable $284M through the Final Round Royalties for the Regions3

Private sector capital investment leveraged per 4 dollar spent on industry facilitation (SD) $31 (EID) $31 (EID) $33.20

State Development (SD) (MPO) $15 (MPP) $18 (MPP) $15 Major Projects Office (MPO)

Value of infrastructure investment enabled per $207 Not applicable $352.90 dollar invested in the management of the Final Round Royalties for the Regions5

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Assessing, Approving, Facilitating and Delivering Major Projects

Percentage of projects managed, facilitated or delivered which meet committed 75% 97% 91% timeframes6

Percentage of projects managed, facilitated 75% 97% 97% or delivered which meet approved budgets7

Discontinued measures

Percentage of land transactions being delivered 90% 100% 67% which meet committed timeframes8

Percentage of land transactions being delivered 90% 100% 100% which meet approved revenue targets9

Average percentage reduction in the assessment timeframes resulting from 10 streamlined processes: (CP) 50% (CP) 53% (CP) 57% Coordinated Projects (CP) (SDA) 45% (SDA) 67% (SDA) 62% Applications in State Development Areas (SDA)

achieved or exceeded not achieved

Notes: 1. For the 2016–17 SDS, this service area is amended to ‘Driving Enterprise Development, Economic Growth and Job Creation’. 2. During the 2015–16 financial year, the department underwent structural realignment, with the former State Development (SD) group being replaced with the Economic and Industry Development (EID) group and the former Major Projects Office (MPO) being replaced with the Major Projects and Property (MPP) group. The reduction in the value of capital investment reported by MPP is attributed to the delay in private sector capital investment for infrastructure in 2015–16, which will be carried forward to 2016–17. 3. In the 2016–17 SDS, this measure was amended to ‘Value of infrastructure investment enabled through the Building our Regions and Royalties for the Regions programs’. Therefore, there was no 2015–16 estimated actual reported on the measure as it was worded in the 2015–16 SDS. The 2015– 16 actual is reported in relation to the Final Round Royalties for the Regions only. 4. During the 2015–16 financial year, the department underwent structural realignment, with the former State Development (SD) group being replaced with the Economic and Industry Development (EID) group and the former Major Projects Office (MPO) being replaced with the Major Projects and Property (MPP) group. 5. In the 2016–17 SDS, this measure was amended to ‘Value of infrastructure investment enabled per dollar invested in the management of the Building our Regions and Royalties for the Regions programs’. Therefore, there was no 2015–16 estimated actual reported on the measure as it was worded in the 2015–16 SDS. The 2015–16 actual is reported in relation to the Final Round Royalties for the Regions only. The 2015–16 actual is higher compared to the 2015–16 target/estimate due to the increased value of investment enabled with an increase in the number of projects and estimated

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total project costs. The dollars invested in the management of the program did not increase with the higher value of investment enabled. 6. The Mission Beach Boating Infrastructure Project is reported as not meeting the original schedule. During 2015–16, project delivery was placed on hold while the scope was reviewed. There is now an agreed way forward for the project and a new delivery schedule established to reflect the revised project scope. In addition, the GLASS Program reported a delay in schedule due to a review of program scope and confirmation of government policy. 7. The demolition and remediation activities of the divestment of the former Gold Coast Hospital site was impacted by an unexpected quantity of asbestos present. The department ensured that the asbestos was appropriately and safely dealt with, leading to some increased costs to ready the site for reuse. The cost overrun was accommodated within the overall site divestment project budget contingency administered by Property Queensland. 8. Three transactions are included in this measure. The GLASS Program reported a delay in schedule due to a review of program scope and confirmation of government policy. This measure was discontinued in 2016–17 and will be reported within the ‘Percentage of projects managed, facilitated or delivered which meet committed timeframes’ measure presented in the service area ‘Assessing, Approving, Facilitating and Delivering Major Projects’. 9. Due to a change in focus, land transactions often do not have revenue targets and this measure has been discontinued. 10. This service standard is now reported within ‘Average number of business days taken by the department to process coordinated projects (CP) and development applications in State Development Areas (SDA) under the State Development and Public Works Organisation Act 1971’ in the 2016–17 SDS.

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Appendix 5 Compliance checklist

Annual Summary of requirement Basis for requirement report reference

Letter of • A letter of compliance from the ARRs—section 8 ii compliance accountable officer or statutory body to the relevant Minister/s

Accessibility • Table of contents ARRs—section 10.1 iii–iv 129 • Glossary

• Public availability ARRs—section 10.2 i

• Interpreter service statement Queensland Government i Language Services Policy ARRs—section 10.3

• Copyright notice Copyright Act 1968 i ARRs—section 10.4

• Information licensing QGEA—Information Licensing i ARRs—section 10.5

General • Introductory information ARRs—section 11.1 1–5 information

• Agency role and main functions ARRs—section 11.2 5–6

• Operating environment ARRs—section 11.3 6–7

• Machinery of government changes ARRs—section 11.4 66

Non-financial • Government’s objectives for the ARRs—section 12.1 11 performance community

• Other whole-of-government plans / specific ARRs—section 12.2 11–12 initiatives

• Agency objectives and performance ARRs—section 12.3 120–122 indicators

• Agency service areas and service ARRs—section 12.4 123–125 standards

Financial • Summary of financial performance ARRs—section 13.1 66–69 performance

Governance— • Organisational structure ARRs—section 14.1 70 management and structure • Executive management ARRs—section 14.2 71–73

• Government bodies (statutory bodies and ARRs—section 14.3 76 other entities)

• Public Sector Ethics Act 1994 Public Sector Ethics Act 1994 79 ARRs—section 14.4

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Annual Summary of requirement Basis for requirement report reference

Governance— • Risk management ARRs—section 15.1 77 risk management and • External scrutiny ARRs—section 15.2 78 accountability • Audit committee ARRs—section 15.3 75–76

• Internal audit ARRs—section 15.4 77

• Information systems and recordkeeping ARRs—section 15.5 79

Governance— • Workforce planning and performance ARRs—section 16.1 80–84 human resources • Early retirement, redundancy and Directive No.11/12 Early 84 retrenchment Retirement, Redundancy and Retrenchment ARRs—section 16.2

Open data • Consultancies ARRs—section 17 Department’s website ARRs—section 34.1

• Overseas travel ARRs—section 17 Department’s website ARRs—section 34.2

• Queensland Language Services Policy ARRs—section 17 Department’s website ARRs—section 34.3

• Government bodies ARRs—section 17 Department’s website ARRs—section 34.4

Financial • Certification of financial statements FAA—section 62 115 statements FPMS—sections 42, 43 and 50 ARRs—section 18.1

• Independent Auditors Report FAA—section 62 116–117 FPMS—section 50 ARRs—section 18.2

• Remuneration disclosures Financial Reporting From page 85 Requirements for Queensland Government Agencies ARRs—section 18.3

FAA Financial Accountability Act 2009 FPMS Financial and Performance Management Standard 2009 ARRs Annual report requirements for Queensland Government agencies

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Abbreviations

Abbreviation Description ARMC Audit and Risk Management Committee CCC Crime and Corruption Commission CHaPs Community Hubs and Partnerships DAF Department of Agriculture and Fisheries DATSIP Department of Aboriginal and Torres Strait Islander Partnerships DCCSDS Department of Communities, Child Safety and Disability Services DEWS Department of Energy and Water Supply DILGP Department of Infrastructure, Local Government and Planning DNRM Department of Natural Resources and Mines DPC Department of the Premier and Cabinet DSD Department of State Development DTMR Department of Transport and Main Roads eDRMS Electronic Document Records Management System EIS Environmental Impact Statement FAA Financial Accountability Act 2009 FAMC Finance and Asset Management Committee FIFO Fly-In-Fly-Out FPM Standard Financial and Performance Management Standard 2009 GC2018 Gold Coast 2018 Commonwealth Games GBRWHA Great Barrier Reef World Heritage Area GFCQ GasFields Commission Queensland NWIDF National Water Infrastructure Development Fund NWMP North West Queensland Minerals Province ICN Industry Capability Network IMT Information Management Technology IRD Integrated Resort Development ISC Information Steering Committee PDA Priority Development Area PR Act Public Records Act 2002 PSE Act Public Sector Ethics Act 1994 QAO Queensland Audit Office SDA State Development Area SPD Act Sustainable Ports Development Act 2015 SPDWO State Development and Public Works Organisation Act 1971 SDS Service Delivery Statement

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Glossary

Term Description Administrative arrangements Administrative Arrangements Orders set out the principal responsibilities of government ministers and their portfolios. Community hub A community hub is typically a collection of facilities clustered together on the same or adjoining sites to form a focal point for activities. Hubs can include facilities and services supporting:  sport and recreation  health and well being  education and learning  community services  public transport and active transport nodes  commercial spaces and offerings  cultural amenities  open spaces. The same integrated service benefits for clients and communities can be achieved through a ‘virtual’ hub, where services and functions are connected and delivered collaboratively even when services are located separately. Community partnership A community partnership is a commitment to a shared approach to the planning and delivery of services and facilities across a geographical area. Environmental Impact An environmental impact statement is a document prepared to Statement describe the potential impacts of a proposed activity on the environment. An EIS describes the impacts and documents ways to avoid, minimise or mitigate potential negative impacts of a project. Integrated resort developments An integrated resort development is a high-quality, mixed use destination aimed at providing tourism, leisure and entertainment facilities that appeal to as broad a demographic as possible, including the international market. An integrated resort development could include:  iconic architecture with expansive high amenity public realm  five or six star hotels  arcades, pools, salons, gyms and other recreational facilities  meeting and conference spaces  tourist attractions including maritime museums and aquariums  theatre and convention facilities  cinemas  boutique retail  bars  celebrity chef restaurants. Priority Development Area A priority development area is a site declared by the state government to facilitate the development of land in Queensland for economic development or community purposes. State Development Areas State development areas are clearly defined areas of land—for industry, infrastructure corridors and major public works— established to promote economic development in Queensland.

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Development in these areas is overseen by the Coordinator-General. Terms of reference Terms of reference describe the purpose and structure of a project, committee, meeting, negotiation or any similar collection of people who have agreed to work together to accomplish a shared goal. Whole-of-government Whole-of-government is a term used to refer to all Queensland Government departments and agencies.

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Department of State Development Address tel 13 QGOV (13 74 68) fax +61 7 xxxx xxxx [email protected]

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