Townsville Enterprise Annual Report 2015-16

TOWNSVILLE ENTERPRISE

ANNUAL REPORT

CELEBR ATING

YEARS

What’s inside

PURPOSE / STRATEGIC PILLARS / VALUES THE ROLE OF TOWNSVILLE ENTERPRISE BOARD OF DIRECTORS COMMITTEES A WORD FROM OUR CHAIR AND CEO POLICY AND INVESTMENT TOURISM AND EVENTS MEMBERSHIP AND BUSINESS DEVELOPMENT MEMBERS OUT AND ABOUT MEMBERSHIP LIST LEADERS OF THE FUTURE TOWNSVILLE NORTH QUEENSLAND BY NUMBERS FINANCIAL REPORT

Principal Partner

Major Partner

PURPOSE CONNECT, GROW AND PROMOTE TOWNSVILLE NORTH QUEENSLAND STRATEGIC PILLARS POLITICALLY POWERFUL

ECONOMIC LEADERSHIP

Influence all levels of Government as a respected, apolitical and bold advocate for Townsville North Queensland

Work with regional Stakeholders to deliver a shared Economic Development Agenda focused on enabling infrastructure, increasing visitation and investment attraction whilst providing economic information, credible research and insight on Townsville North Queensland.

PROUD AND ENGAGED MEMBERSHIP Ensure Members are engaged, well informed and proud ambassadors for the region and the organisation

CAPABLE AND ACCOUNTABLE Financially sustainable, with a team of high performers who can leverage the passion and capabilities of all Stakeholders to achieve regional growth

VALUES EXCELLENCE

PARTNERSHIPS

APOLITICAL

CREATIVE

BOLD

Accept nothing less than quality in everything we do

Work together, inspire each other and use external membership relationships to achieve strategic priorities

Strive for what is good for the region and not what is good for politics

Be innovative and imaginative in creating an exciting and vibrant future

Be courageous and stand by our convictions

Front cover image: Victoria Bridge by Megan MacKinnon

Townsville Enterprise Annual Report 2015/16

Image: Townsville City and Ross Creek by Megan MacKinnon

03 3

The role of Townsville Enterprise Townsville Enterprise is the primary engine

Townsville Enterprise hosts a significant

The Company’s purpose is to connect, grow

for economic development, charged with

number of corporate events featuring

and promote Townsville North Queensland.

leveraging the region’s assets and strengths

national and international speakers.

to drive jobs, growth, infrastructure

The valuable contribution of its Partners and

investment and improve quality of life.

In addition to its role as the peak Economic

Members makes it possible for Townsville

It is an organisation determined to deliver

Development Organisation, Townsville

Enterprise to advocate across a broad

for the Townsville North Queensland

Enterprise is also the Regional Tourism

section of Government and industry sectors

region and its people.

Organisation and Convention Bureau for

to secure funding, project approvals and

Townsville North Queensland.

policy support for essential infrastructure,

Townsville Enterprise represents the

investment and promotion of Townsville

Townsville North Queensland region, which

It is a not-for-profit, apolitical, membership

includes the five Local Government Areas of

based organisation, advised and influenced

Townsville, Charters Towers, Hinchinbrook,

by a Board of Directors, Finance Audit &

the Burdekin and Palm Island, and is one of

Risk Committee and Strategic Advisory

Australia’s true regional powerhouses.

Committees.

INFRASTRUCTURE ADVOCACY

INFLUENCE GOVERNMENT POLICY

EDUCATE INVESTMENT FUTURE ATTRACTION LEADERS & BUSINESSES

North Queensland.

GROW VISITATION

ENHANCE VISITOR EXPERIENCE

TOWNSVILLE NORTH QUEENSLAND COMMUNITY The support of Townsville Enterprise Members and Partners enables the organisation to connect, grow and promote Townsville North Queensland.

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Townsville Enterprise Annual Report 2015/16

Townsville Enterprise is the primary engine for economic development, charged with leveraging the region’s assets and strengths to drive jobs, growth, infrastructure investment and improve quality of life.

Image: Looking west from Castle Hill at sunset by Megan MacKinnon

Board of Directors

CHAIRMAN

DEPUTY CHAIRMAN

Chief Operating Officer Townsville Airport Pty Ltd

Mayor Townsville City Council

Kevin Gill

Joe Joe Carey Carey

Cr Jenny Hill

Ranee Crosby

Director Director Carey Carey Accountants Accountants PtyPty LtdLtd

Chief Executive Officer Port of Townsville Limited

Prof Sandra Harding

Moya Steele

Vice-Chancellor & President James Cook University

Partner MacDonnells Law

Peter Honeycombe

Managing Director Honeycombes Property Group

Laurence Lancini

Paul Victory

Managing Director Lancini Group of Companies

Sandra Yates AO Chairman Australian Festival of Chamber Music

General Manager SeaLink Qld / NT Pty Ltd

COMPANY SECRETARY Michelle Warrington

Committees FINANCE AUDIT & RISK COMMITTEE

TOURISM AND EVENTS STRATEGIC ADVISORY COMMITTEE

ECONOMIC DEVELOPMENT STRATEGIC ADVISORY COMMITTEE

Joe Carey (Chairman) Carey Accountants Pty Ltd

Paul Victory (Chairman) SeaLink Qld / NT Pty Ltd

Ranee Crosby (Chairman) Port of Townsville Limited

Aileen Cull Queensland Country

Amanda Byrne Queensland Airports Ltd

Mark Adams Northern Management Group

Peter Duffy wilson/ryan/grose Lawyers

Pamela Ellis Ellis Developments

Stuart Cunningham Core Developments NQ

Kevin Gill Townsville Airport Pty Ltd

Mark Evans Paronella Park

Kathy Danaher Sun Metals Corporation Pty Ltd

Luke Guazzo Lancini Property & Development

Andrew Hodgson Quest Townsville on Eyre

Richard Harvey Glencore Xstrata

Observer: Patricia O’Callaghan Townsville Enterprise Limited

Annie Ilett Tourism Operators and Businesses Magnetic Island (TOBMI)

Peter Lindsay OAM Associate Member

Observer: Michelle Warrington Financial Advisor/Company Secretary

Jeff Jimmieson Townsville City Council Simon Millcock Townsville City Council Brad Morgan The Ville Resort–Casino Associate Professor Laurie Murphy James Cook University Lewis Ramsay Townsville Bulletin Fred Nucifora Reef HQ Great Barrier Reef Aquarium Patricia O’Callaghan Townsville Enterprise Limited Bridget Woods Townsville Enterprise Limited Observer: Kevin Gill Townsville Airport Pty Ltd Observer: Lynne Banford Tourism and Events Queensland

Simon Millcock Townsville City Council Michael Mitchell Queensland Rail Carl Valentine PwC Isabelle Yates Townsville Airport Pty Ltd Patricia O’Callaghan Townsville Enterprise Limited Michael McMillan Townsville Enterprise Limited Observer: Kevin Gill Townsville Airport Pty Ltd Observer: Paul Holden Department of State Development Observer: Glen Graham Mount Isa to Townsville Economic Development Zone Inc (MITEZ)

Observer: June Powell Department of State Development

Townsville Enterprise Annual Report 2015/16

07 7

Kevin Gill Chairman

Patricia O’Callaghan Chief Executive Officer

A word from our Chair and CEO...

When we were created 25 years ago, the

The Plan encompasses four strategic pillars:

In Tourism and Events, Townsville

mantra of Townsville Enterprise was to

Politically Powerful, Economic Leadership,

Enterprise, Townsville City Council and the

harness the power, influence and intellect

Proud and Engaged Membership, and

Port of Townsville have worked together

of our key stakeholders and community

Capable and Accountable. Under these

to deliver Townsville North Queensland as

to set the agenda. The agenda not only for

pillars the Plan identifies key strategic

an extremely attractive destination port

today but also the agenda for tomorrow,

issues that must be addressed or

for a burgeoning cruise and naval ship

and to be the architect that ensures those

leveraged to continue to connect, grow and

industry. This will be achieved through

visions become realities and those projects

promote Townsville North Queensland.

the recently launched Townsville White and Grey Ship Attraction Plan 2016–2021

leave legacies for future generations.

We will continue to work with Regional

and several targeted marketing strategies

Over the past 12 months, amongst some

Councils to develop the skills and industries

selling our destination to world-class

of the toughest economic times our region

of the future as we encourage private

cruise lines. Edutourism is also a thriving

has experienced, Townsville Enterprise

investment that will leverage the half a

industry, where more than 3,500 room

made the strategic decision, at a time when

billion dollars’ worth of infrastructure

nights and over $700,000 was injected

Councils and Members were financially

and policy program that has been set in

into the local economy. This was a direct

challenged, that it would go into deficit

place by the three levels of Government.

result of a Townsville Enterprise supported educational tourism strategy targeting

of almost half a million dollars to begin

international education groups.

the program of rebuilding at a time it was

Securing a sustainable water resource

needed most. We built, in partnership with

continues to be a key priority to achieve for

the Mayor of Townsville and the Townsville

Townsville North Queensland. Townsville

The Townsville North Queensland Emerging

Bulletin, one of the strongest 18 month

Enterprise was successful in securing $2.2M

Leaders Program continues to go from

advocacy programs this region has seen

in Federal funds to determine the viability of

strength to strength, with the third cohort

across the Local, State and Federal elections.

a new dam at Hell’s Gate. This is a significant

of the region’s future business leaders

We invested into innovative projects across

step forward in ensuring long-term water

completing the Program in 2015–16.

tourism and events and started exploring

security for the region and will also provide

The fundamental objective of the Emerging

new opportunities in digital and Asia.

facts on whether 49,000 hectares of arable

Leaders Program is to strengthen the

land can be developed for agriculture, as the

participants’ business acumen and

Lower Burdekin did over two decades ago.

understanding of how to keep the Townsville

To date, we have secured over half a billion

North Queensland region developing.

dollars’ worth of projects through partner advocacy programs. In only its second

Support across all three levels of

year, the Townsville North Queensland

Government to deliver the full $250M for

The role and relevance of Townsville

Bid Fund achieved significant success,

the stadium component of the Integrated

Enterprise has strengthened over the past

securing 12 separate events, 72,332 guest

Stadium and Entertainment Centre was

year. Townsville is an economy in transition

nights and $18.2M in economic value.

also achieved in the past 12 months. This

and whilst adversity can take down some

project was announced simultaneously

communities, we believe it is strengthening

Members of our tourism industry are

as part of the landmark Federal

ours. Our new Strategic Plan sets the road

finally recording some of the best numbers

Government’s City Deals initiative – the

map for the next five years and we thank

in a decade, and we are working with

first of its kind announced in Australia.

the Mayors, Chambers of Commerce, Board, Team, Volunteers and our 329 Members

the Townsville City Council on policy frameworks, such as City Deals, that will

We are one step closer to delivering

and Stakeholders for working with us to

shape our region for generations to come.

the necessary infrastructure that will

clearly articulate the projects and policies

strengthen pathways for increased

behind the strategy. Whilst there are

Despite using reserves to fund these

development and future projects in our

always improvements to be made, we are

advocacy programs, our organisation

region. Adani’s Integrated Rail, Port,

definitely moving in the right direction, with

has returned to surplus against a

and Mine Project is unique. There is no

ongoing partnerships the key to our success

planned deficit 12 months earlier than

other project that has the critical mass

over the next 12 months and beyond.

expected. Strong strategic oversight,

in terms of jobs or economic stimulus

an overhaul of operational expenditure

for Northern Queensland. It is vital we

and the identification of new revenue

continue to support the strategic opening

streams led to this achievement.

up of the Galilee Basin, and it remains at

The recently launched Townsville Enterprise

the forefront of our advocacy activities.

2016–2021 Strategic Plan sets the direction of the organisation for the next five years.

Townsville Enterprise Annual Report 2015/16

09 9

Funding of $250M was secured for the Stadium component of the Integrated Stadium and Entertainment Centre after seven years of advocacy and a strong community campaign.

Image: Castle Hill reflected in the Townsville Yacht club Marina by Megan MacKinnon

Policy and Investment When opportunity knocks, Townsville

Closely linked to securing the Stadium was

Improved access remained high on the

Enterprise has never hesitated to open the

the need for change around Government

agenda with air, road and rail assuming a

door, and 2015–16 certainly presented an

procurement policies and the emphasis

primary focus. A partnership with Jetstar

abundance of opportunities for our region.

placed on engaging local contractors to

enabled Townsville Enterprise to actively

deliver projects. Advocacy on this issue

travel to meet with airline representatives

A trifecta of elections across Local, State

resulted in much public pressure on

to discuss opening new international

and Federal Governments delivered

Governments to address their policies

routes from Papua New Guinea, Singapore

opportunities to raise the need for

and emphasise the importance of local

and Auckland. Closer to home, Townsville

infrastructure investment and policy

contractor requirements within the

Enterprise joined forces with Regional Shire

changes in Townsville North Queensland.

assessment criteria on project tenders.

Councils and the Mount Isa to Townsville

Funding of $250M was secured for the

Defence Procurement Policies were

to advocate for an upgrade to the Hann

Stadium component of the Integrated

highlighted as presenting a great

Highway. A funding commitment to seal the

Stadium and Entertainment Centre after

opportunity for local businesses,

remaining sections of this road was given in

seven years of advocacy and a strong

particularly in regard to building

the lead up to the Federal election. A project

community campaign. This was led by

regional skills and capacity. The Turnbull

consistently raised by Townsville Enterprise,

Townsville Enterprise, supported by the

Government’s announcement in May of

the Townsville Eastern Access Rail Corridor

Townsville City Council, the Townsville

its Australia–Singapore Comprehensive

(TEARC), finally received national attention

Bulletin, the National Rugby League

Strategic Partnership will see over $1B of

with the Federal Government’s $150M

(including Cowboys Co-Captain Johnathan

infrastructure investment injected into

commitment toward the project. The TEARC

Thurston) and a number of local businesses.

Townsville North Queensland over 25 years.

will allow longer trains into the Port of

Funding was committed by State and

Townsville Enterprise will continue to

Townsville, reduce bottlenecks at the Port

Federal Governments and the National

work with the Federal Government and

and provide vital capacity for the growing

Rugby League, while Townsville City Council

Defence to ensure their Procurement

tonnage demand on the Mount Isa rail line.

purchased the land where the Stadium

Policies around this partnership provide

will be located. Construction is expected

opportunity for the region’s businesses.

Economic Development Zone (MITEZ)

to commence midway through 2017.

Townsville Enterprise Annual Report 2015/16

11

Policy and Investment (continued) Securing key utility infrastructure that

In February 2016 Townsville Enterprise

focus for employment remained firmly fixed

allows industry and population growth

submitted a proposal to the Federal

on local and regional infrastructure projects

across the region was well supported

Government to review the feasibility

that would provide immediate stimulus.

by the community. The key focus areas

of developing a new dam at Hell’s Gate

were energy and water, with forward

and investigate upgrades required to

The second edition of Opportunity

momentum gained on both priorities.

the Burdekin Dam’s existing facilities.

Townsville North Queensland highlighted

Federal funding has been confirmed

the continued investment in the region

for the Hell’s Gate component.

despite a number of major regional setbacks

Increasingly high energy costs have crippled the growth of industries in the region and

and external influencers. By June 2016

across Northern Australia for several years.

The Northern Australia Agenda presented

there were 75 projects under construction

Townsville Enterprise led the push from

many opportunities for innovation and

valued at $5.1B and over 45 projects at the

Townsville North Queensland for this to

investment for new industries. One

stages of ‘investment ready’ or ‘seeking

be addressed. The collaborative efforts of

initiative announced was the establishment

funding’, estimated to be worth $1.67B.

industry, Governments, community and

in Townsville of a Cooperative Research

advocacy groups, including Townsville

Centre (CRC) that will enable scientists and

The major opportunity for economic

Enterprise, contributed to a reduced

researchers to work directly with industry

growth and large scale employment is

increase to the funds recoverable by

to develop game-changing projects, led

currently the strategic opening up of

Ergon Energy to deliver power. When the

by industry needs. As the commercial

the Galilee Basin for mining, specifically

merger between Energex and Ergon Energy

hub for Northern Australia and centre

ensuring Adani’s Carmichael Mine, Rail

was announced, Townsville Enterprise

for major industries, Townsville was both

and Port Project reaches fruition. Adani,

strongly and successfully advocated for

the logical and strategic choice for the

an international energy and infrastructure

the headquarters of this new entity, Energy

CRC’s new site, a bid Townsville Enterprise

company, has committed to fund the

Queensland, to be based in Townsville.

successfully advocated to secure.

trunk infrastructure required, providing

As Townsville’s water reserves dropped,

These opportunities met with their share

significantly reducing start-up costs for

community support increased towards

of hardships as the region experienced

other companies and the Government.

improved infrastructure and expansion

one of its most economically challenging

This Project proposes the delivery of 10,000

of existing facilities to provide greater

years. Unemployment was brought to

jobs (direct and indirect) with thousands

water security for residents and industry

the forefront of political agendas with a

to be sourced from within the Townsville

across Townsville North Queensland.

number of larger employers reducing their

North Queensland region, contributing

This shone a much needed spotlight

local workforce and others closing their

$22B in taxes and royalties to Federal and

on the disparity in resources allocated

doors entirely. The mining sector’s decline

State Governments over the next 30 years.

toward water storage between South East

continued to present adversities for the

Townsville Enterprise will continue to

Queensland and Northern Queensland.

region’s unemployment levels, however the

support Adani to realise this opportunity.

a user-pays process for companies,

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Townsville Enterprise Annual Report 2015/16

By June 2016 there were 75 projects under construction valued at $5.1B and over 45 projects at the stages of ‘investment ready’ or ‘seeking funding’, estimated to be worth $1.67B.

Image: Development in the Townsville CBD by Megan MacKinnon

In 2015–16 the Bid Fund secured 12 events, resulting in 72,332 guest nights and $18.2M in economic value.

Image: Flinders Street at sunset by Megan MacKinnon

Tourism and Events Tourism and Events across the Townsville

their invaluable service staffing the two

Guide was advertised in the Courier Mail and

North Queensland region have experienced

Visitor Information Centres as well as a

Sydney Morning Herald. The 2016–18 Holiday

significant growth over the past 12 months.

trial Visitor Information Service located

and Travel Guide was released with 70,000

This is a direct result of strategically

at the Breakwater Ferry Terminal.

copies distributed across the country.

domestic and international tourist markets,

Over the course of the past 12 months,

Collaboration with Tourism and Events

as well as increased events acquisition.

Townsville Enterprise, in partnership

Queensland and 16 local tourism operators

with Tourism and Events Queensland,

was undertaken to launch a month

The Townsville North Queensland Bid

achieved 22 major destination media

long strategic destination marketing

Fund experienced considerable success

stories equating to more than $4.4M in

campaign. This campaign included online

and growth in the number of events, guest

PR value for the region. This included

holiday deals, social media and online

nights and economic value secured for the

coverage in the Wall Street Journal and

advertising, print media, an Instagram

region. In 2015–16 the Bid Fund secured

on Queensland Weekender, Sunrise

familiarisation, development and promotion

12 events, resulting in 72,332 guest nights

and Better Homes and Gardens.

of a Great Barrier Reef eBook, all in

targeting cruise ship, edutourism, and

generating $18.2M in economic value.

partnership with Webjet and Tripadvisor,

Upcoming events include the 2017 BMX

Townsville Enterprise implemented a

achieving more than 40,000 clicks to the

Queensland State Championships, the

robust digital and social media strategy for

Townsville North Queensland website.

2018 Long Course Weekend, the 2019 Little

destination marketing, achieving significant

Athletics Queensland State Championships

growth across the three key social media

New initiatives introduced included the

and the 2017–2019 Mountain Bike Australia

channels (Facebook, Instagram and Twitter).

Townsville North Queensland Ambassador

Festival. The Townsville North Queensland

The organisation also utilised social media

Program. This free online tourism induction

Bid Fund is funded by Townsville Enterprise,

advertising for reactive campaigns during

course targets all areas of customer service

Townsville City Council, Tourism and

key flight sale periods, reaching over

in the region, with key regional and tourism

Events Queensland, Townsville Airport

325,000 people and generating more than

operator messaging delivered. In addition

and a number of hotel operators.

8,000 clicks to the campaign websites.

to the Ambassador Program, the Townsville

In support of the events attracted by

In partnership with Tourism and Events

by participants of the Townsville North

the Bid Fund, the Townsville Enterprise

Queensland, Townsville Airport and the

Queensland Emerging Leaders Program,

Tourism Volunteer Program has seen

Townsville Bulletin, Townsville Enterprise

and Tourism and Events Queensland, is a

significant expansion through the Welcome

launched a number of online blogs, eBooks

dedicated physical space that aims to foster,

to Townsville Program, partnering with

and short videos. Printed collateral,

support and raise the profile of events

regional events and cruise ship arrivals to

including the 2016 Alive with Events Guide,

through the provision of marketing, business

provide an enhanced welcome experience

was distributed throughout the News

development and logistical resources.

for visitors and attendees. The Townsville

Limited syndication from Bowen to Port

Enterprise Tourism Volunteers continued

Douglas while the online version of the

North Queensland Events Hub, established

Townsville Enterprise Annual Report 2015/16

15

Tourism and Events (continued) Together with the Port of Townsville

groups to the region. The targeted

and Members of the White and Grey

demographic for this initiative was short-

Ship-Attraction Committee (WGSAC) the

term, faculty led, study abroad students

Townsville White and Grey Ship Attraction

from universities across the USA. With an

Plan 2016–2021 was developed. The Plan

investment of $40,000 of State Government

targets at least 30 white ship (cruise)

funding over three years, the strategy has

visits to Townsville each year, and to

resulted in more than 3,500 room nights

extrapolate maximum tourism spend from

and over $700,000 of direct income injected

visiting Defence personnel on grey ships.

into the Townsville North Queensland

Securing the berthing of MS Amsterdam

region (1,732% return on investment). With

in February 2016 proved to be a key

this solid platform now in place, the region

turning point in progressing the region’s

will benefit from an increase of 54% in

cruise industry. The truly exceptional

participating edutourism groups, delivering

welcome experience, coordinated by

over $1M directly to local tourism operators.

Townsville Enterprise for 1,200 passengers, continues to be mentioned by cruise

Townsville Enterprise, together with

lines around the world. Additional early

Members of the Edutourism Consortium,

successes for the WGSAC include the

submitted a proposal to the State

development of new tourism products

Government’s International Education and

from 2017 onwards, the improvement of

Training Strategy requesting study tours

the welcome and departure experiences

and study abroad teaching and learning be

at Quayside Terminal and the introduction

considered a priority within Queensland’s

of a free shuttle bus for passengers

International Education Strategy. The

for the duration of each ship’s visit.

submission sought funding toward the growth of this market for Queensland and

Since 2013, the Townsville North

recognition that the international education

Queensland tourism industry has been

market extends beyond enrolments

developing and implementing a long term

into higher education institutions.

strategy to attract international education

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Townsville Enterprise Annual Report 2015/16

Since 2013, the Townsville North Queensland tourism industry has been developing and implementing a long term strategy to attract international education groups to the region.

Image: Topless car on Magnetic Island by @barekiwi

Membership and Business Development Ensuring that the benefits of being a

the dedicated account managers within

Communication with Members remains

Member of Townsville Enterprise address

Townsville Enterprise. Considerable work

a priority. The monthly Member’s

the economic climate and needs of its

was undertaken to convey membership

e-newsletter continues to be well received,

Members is paramount. 2015–16 saw

benefits more effectively and increase

with readership up 4% on the previous year.

a full review of benefits in consultation

networking events and opportunities to

Advocacy Alerts, introduced in December

with Members. Feedback, ideas and

allow Members to communicate directly

to provide Members critical updates

opportunities were provided by Members

with each other. Member feedback

on the organisation’s advocacy efforts,

via an online membership satisfaction

following these networking events

received great support with strong opening

survey, focus groups and one-on-one

indicated that they are considered very

and engagement rates. There were 94

meetings. The information captured through

useful for leveraging potential business

individual news and media opportunities

this process was also used in shaping the

opportunities amongst Members.

shared with Members in 2015–16, an

organisation’s 2016–2021 Strategic Plan.

increase of 8% on the previous year.

Over the past 12 months, Townsville

As a result, the membership base of

Enterprise held 25 events with a total of

Townsville Enterprise acknowledges

Townsville Enterprise is in a healthy state,

1,681 attendees. This enabled Members to

the valuable input from Partners and

with growing numbers of Members looking

become directly involved in key discussions

Members to its advocacy process with

to leverage off the benefits and services

impacting the future of the region.

all levels of Government, contributions

available. The past year has seen Townsville

Regular events providing a platform for

to campaigns, participation in industry

Enterprise concentrate on delivering

relevant information sharing included:

development activities and support

quality benefits, ensuring Members

for projects to develop the region.

continue to work proactively with the

• Industry roundtables

organisation toward the development of

• Chair/CEO roundtables

the Townsville North Queensland region.

• Domestic and international delegations • Panel discussions

This position has been attributed to a

• Networking functions

renewed focus on closer engagement and

• Business breakfasts/lunches

alignment with Partners and Members by

M

.5 $9

1,681 18

6

94 Townsville Enterprise Annual Report 2015/16

Our Members LIFE MEMBERS Alison Ferry Emeritus Professor Edward Scott AM

SeaLink Queensland Pty Ltd Suncorp Bank Townsville Catholic Education Office TOLL Australia

Geoffrey Plante

LEVEL 4

Graham Jackson OAM

Adani Mining Pty Ltd AECOM Aurizon Operations Limited Commonwealth Bank Coutts Redington Pty Ltd CPB Contractors Pty Ltd Mad Cow Tavern and Wild Goose Brews & Chews NSS Puma Energy Telstra Corporation Townsville Taxis Tropical Coast Tourism Tropic Distributors Pty Ltd Wilmar

Greg Peel John Bearne

PRINCIPAL Townsville City Council

MAJOR Townsville Airport Pty Ltd

PLATINUM Townsville Bulletin Southern Cross Austereo

GOLD Ergon Energy Corporation Limited Glencore Xstrata James Cook University Port of Townsville Limited Sun Metals Corporation Pty Ltd DUO Magazine Grant Broadcasters Jetstar Group Paradise Outdoor Advertising Success Business Magazine

LEVEL 3

Crowe Horwath NQ

Allure Events Townsville Anittel ANZ Banking Group Limited B M Webb Holdings Pty Ltd Carey Accountants Pty Ltd Colliers International (Townsville) Pty Ltd Cowboys Leagues Club Delta Office Solutions Hotel Grand Chancellor Intersport Super Warehouse Jardine Lloyd Thompson Jayco Townsville Loloma Investments MacDonnells Law – Townsville Northern Queensland PHN NQGP Pty Ltd St Patrick’s College Townsville TAFE Queensland North Tropical Ice Watpac Construction Pty Ltd wilson/ryan/grose Lawyers

BRONZE

LEVEL 2

SILVER Charters Towers Regional Council Grant Broadcasters Hinchinbrook Shire Council Laurence Lancini Constructions Parkside Developments Queensland Rail Limited The Ville Resort–Casino

COPPER

AE Smith Australian Institute of Marine Science Bendigo Bank Burdekin Shire Council CQ University Department of Defence Dexus Property Group Honeycombes Property Group Hutchinson Builders Lend Lease Communities (Townsville) Pty Ltd Mike Carney Toyota Northern Management Group Palm Island Aboriginal Shire Council Queensland Country Queensland Investment Corporation RPS Australia East Pty Ltd

20

1300 SMILES Limited AEC Group Ltd Alluvium Consulting AON Risk Solutions Arthur J Gallagher & Co ARUP Pty Limited Base Backpackers Magnetic Island Breakwater Marina Brewery, The Brothers Leagues Club Cactus Jack’s Restaurant Cassowary Coast Regional Council CastleTown Shoppingworld Choice Training Community Training Australia Connolly Suthers Lawyers

Core Developments NQ Cox Rayner Architects Digimen, The Ede Events Elders Insurance Townsville Elders Real Estate Emanate Legal Escape Travel Especially Australian Fantasea Cruising Magnetic Flanagan Consulting Group Fuji Xerox Business Centre (Townsville) Gema Catering and Events GHD Pty Ltd Grace Removals Grand Central Industries (Holdings) Pty Ltd Grand Hotel and Apartments Hastings Printers Jacobs Engineering Group Inc. Keyes & Co Knight Frank – Townsville Laird O’Regan Lotsa Print and Design Maidment Development Group Mariners North Holiday Apartments Martin Locke Homes Mater Health Services North Queensland Limited MEGT (Australia) Ltd Mendi Corporate Services Mercure Townsville Michel’s Restaurant Milford Planning Consultants Minelec Pty Ltd Museum of Tropical Queensland New Home Solutions North Queensland Toyota Cowboys NPS Corporate Oaks Gateway on Palmer Oaks M on Palmer Oracle Studio PDS QLD Pen to Paper Pty Ltd Pink Noise Creative PwC Queensland Rail Travel Quest Townsville Quest Townsville on Eyre Reef and Rainforest Research Centre Limited ReefHQ Great Barrier Reef Aquarium Regional Express (REX) Rider Levett Bucknall RMS Engineering and Construction Pty Ltd Rockfield Technologies Australia Rowes Bay Beachfront Holiday Park Ruswin Rydges Southbank Townsville Skill360 Australia Limited Skilled Group Ltd Sunland Group Sunsuper Terry White Chemists, The Willows

Townsville Enterprise Annual Report 2015/16

TP Human Capital UDP Townsville Pty Ltd Wingate Communities V8 Supercars Australia Pty Ltd Yongala Dive Pty Ltd

LEVEL 1 360 Cre8ive Enterprises Adrenalin Snorkel and Dive Adventure Australia Treks and Tours Adventurethon Affordable Charters Airnorth Allure Hotel & Apartments Amaroo on Mandalay Aquarius on the Beach Aquascene Charters Arcadia Village Motel Aussie Outback Oasis Cabin & Van Village Australian Festival of Chamber Music Beach House Motel, The Beet Bar, The Big 4 Walkabout Palms Caravan Park Billabong Sanctuary Bluewater Caravan Park Boom Logistics Ltd Brazier Motti Budd Photography Bungalow Bay Koala Village Burdekin Theatre C Bar Café Campbell’s Coaches Cardwell Rainforest & Reef Visitor Information Centre Castaways Resort & Spa Mission Beach Charters Towers Visitor Information Centre City Oasis Inn Community Information Centre Townsville Cruise Whitsundays and Awesome Adventures Oz Detour Coaches Dancenorth Ellis Developments QLD Essentially Fresh Event Cinemas Evolution Financial Planning Extrastaff Finlay Homes Frontier Voice & Data Frosty Mango FTEC QLD Pty Ltd Get Branded Gilberton Outback Retreat Hamilton Island Harshmellow Media & Design Herbert Hotel Hidden Valley Cabins Hinchinbrook Marine Cove Resort Industry Queensland Itara Apartments Jade Holland JAM JCU Halls of Residence

Townsville Enterprise Annual Report 2015/16

JCU Student Association JCU Vet JESI Management Solutions Pty Ltd Jewellery By Design Kernow Charters Towers Kwik Kopy Printing Townsville Learning Partnerships Liddles Air Service Pty Ltd Longboard Bar & Grill Make your Own Adventure Marketing Factory, The Melvilles Entertainment Michele Hyde at Remax Mudpickers Boat Hire Mungalla Station Murdering Point Winery Nautilus Aviation North Australian Publishing Co Pty Ltd Ocean Breeze by The Strand Orchid Guest House Orpheus Island Resort Paronella Park PBR Australia – Iron Cowboy Peppers Blue on Blue Resort – Magnetic Island Perc Tucker Regional Gallery Pilgrim Sailing Pinnacles Gallery Pleasure Divers Quayside Terminal Rambutan Riverway Arts Centre Scan Tech 3D SeaLink Travel Secura Lifestyle Smiiiles Townsville Southern Cross Ten Qld Texas Longhorn Wagon Tours & Safaris Tony Ireland Stadium Tour Townsville Tourism Operators & Businesses Magnetic Island (TOBMI) Townsville & James Cook University Rowing Club Townsville Bush Oasis Caravan Park Townsville Central Hotel Townsville Civic Theatre Townsville Helicopters Townsville History Walking Tours Townsville Rotary Markets Townsville RSL Stadium Townsville Watersports Townsville Yacht Club Tropical Homes Tropical Travel & Accommodation TYTO Wetlands Information Centre Undara Experience Virginia Park Station Wambiana Station Winton Visitor Information Centre / Winton Shire Council WT Partnership Zesty Rentals

ASSOCIATE Aaron Organ Andrew Cripps MP Andrew Miller Betty Webb Burdekin Tourism Association Cardwell Visitor & Heritage Centre Cathedral School of St Anne & St James, The Christopher Rockemer Coast to Country Housing Company Colin Harkness Cootharinga North Queensland Dale Last MP David Lynch Dolan Hayes Dyan Mitchelhill Gregory Campbell Ian Macdonald, Senator Innisfail Visitor Information Centre Jayne Arlett John Hathaway Julia Creek Dirt & Dust Festival Magnetic Island Community Development Association Mark Budd Mission Beach Tourism Inc National Trust of Australia (Qld) Ltd NQ Dry Tropics Palm Island Community Company Patrick Hinchy Peter Lindsay OAM Roxanne Grey Sandra Moore SOLAS Inc. Stephen Bailey Therese Smith Townsville Museum & Historical Society Inc Townsville Running Festival Tully Visitor & Heritage Centre

RECIPROCAL Ayr Chamber of Commerce Chamber of Commerce & Industry Queensland Charters Towers Chamber of Commerce HIA – North Queensland Hinchinbrook Chamber of Commerce, Industry and Tourism Home Hill Chamber of Commerce Master Builders North Queensland Mount Isa to Townsville Economic Development Zone Inc (MITEZ) North Queensland Club RDA Townsville & North West Qld Inc Tourism Whitsundays Townsville Business Development Centre Townsville Business Women’s Circle Townsville Chamber of Commerce Townsville Region Indigenous Business Network

21

Leaders of the future The third Townsville Enterprise Emerging

entrepreneurs, advocacy groups,

The results Emerging Leaders have

Leaders Program saw 20 business

philanthropists and humanitarians.

achieved speak for themselves and the local

owners, professionals and industry

Participants attended several roundtables

community can feel confident their future

executives from Townsville and Charters

where they were exposed to a wide variety

city leaders have the potential to guide the

Towers successfully graduate in May.

of issues concerning the region, providing

region into its most successful era yet.

opportunities for them to become directly The 2015–16 Emerging Leaders completed

involved in the growth and development

Four projects were successfully

14 monthly modules that gave them direct

of Townsville North Queensland.

delivered by the Emerging Leaders:

opportunities and challenges that impact

Almost half of the cohort secured various

• The Bishop Michael Putney Fellowship

the Townsville North Queensland region.

board positions with local organisations

• RSPCA Take The Lead Campaign

The Emerging Leaders met with high

by the time they completed the Program.

• Townsville North Queensland Events Hub

profile dignitaries including the Prime

The participants also collectively

• iNQ Central

Minister, Minister for Foreign Affairs,

generated over $5.5M in new business

Chief Executive Officers, Chief Financial

as a direct result of the relationships

Officers, and national and international

forged and opportunities presented.

and exclusive exposure into the industries,

The objective of the Bishop Michael Putney Fellowship, and the first project within the Fellowship, was raising money to employ an identified researcher to investigate youth suicide in the North Queensland Rugby League community. The project team raised $80K, as well as collaboratively creating the scope for the research with key stakeholders including the NRL and the QRL. The outcome was to have a ’Best Practice’ document that can be issued and implemented into schools and Rugby League clubs. The project team will continue its work beyond graduation.

‘Take The Lead’ is a committee of volunteers assisting the local RSPCA with a wide range of matters including public awareness, implementing responsible pet ownership programs and fundraising. The committee will remain an ongoing entity that will work in collaboration with the RSPCA to benefit both animals and the wider community.

The Townsville North Queensland Events Hub is a dedicated physical space managed by an Events Development Consultant. The Hub aims to foster and support local events to raise their profile through providing marketing, development and logistical resources, which is a first of its kind. The Hub has been established with the ultimate goal of increasing event attendance and injecting tourism dollars into the local economy.

The project team assisted in establishing Townsville’s first Innovation Hub. This was developed from a concept and created a strategy through community forums and engaging key stakeholders to provide a collaborative working space for entrepreneurs and start-ups within the region. The team was instrumental in securing the site for the Innovation Hub that now hosts several seed tenants.

Townsville Enterprise Annual Report 2015/16

23

Townsville North Queensland by numbers TOWNSVILLE NORTH QUEENSLAND ECONOMY*

$13.5B

238,233

$343K

Gross Regional Product

Current Regional Population

Median House Price

REGION AT A GLANCE*

KEY INDICATOR

2015

2016

Business Confidence

-0.5

3.2 (PwC September 2016)

Unemployment Rate

7.9%

6.4% (ABS September 2016)

Persons Employed

112,900

97,400 (ABS September 2016)

Median House Price

$342,500 (March 2015)

$343,000 (QMM Volume 31)

Building Approvals (July 2014–April 2015)

3,340 Cumulative Total July 14–June 15

3,107 Cumulative Total July 15–June 16

Domestic Overnight Visitors

924,000 Y/e June 2015

1,165,000 Y/e June 2016

International Overnight Visitors

123,000 Y/e June 2015

123,000 Y/e June 2016

NATION AT A GLANCE* Australia GDP Growth

Reserve Bank of Australia September

3.3%

2016

Inflation as at June 2016

www.rba.gov.au/statistics/tables/ #interest-rates

RBA Cash Rate

as at September 2016

www.rba.gov.au/statistics/tables/ #interest-rates

Population as at March 2016

www.abs.gov.au/AUSSTATS/abs@.nsf/ mf/3101.0

1.0%

Unemployment Rate

www.abs.gov.au/AUSSTATS/abs@.nsf/ mf/1345.0?opendocument#NationalAccounts

Average Price Residential Dwellings Reserve Bank of Australia

5.7%

$614K

September 2016

1.5%

Queensland Gross State Product REMPLAN April 2016

$305,354M

Queensland Population 24,051,400

as at March 2016

www.abs.gov.au/AUSSTATS/abs@.nsf/ mf/3101.0

4,827,000

*Figures reflect the latest data available

24

Townsville Enterprise Annual Report 2015/16

GROSS REGIONAL PRODUCT

Growth of the Townsville North Queensland economy has slowed however an increase of 7.2% was still achieved despite major reductions in the Mining, Manufacturing and Information Media and Telecommunications industry sectors.

$13.5B

$12.6B

April 2016

January 2015

The standout industry sectors which grew significantly in the region (greater than 10% growth) included: Administration and Support Services

Public Administration and Safety

Professional, Scientific and Technical Services

These sectors absorbed the reductions and provided the region with continued growth.

These industry sectors added a combined total of $1,217.5M growth to the local economy.

These numbers indicate the resilience of Townsville North Queensland’s economy.

The region’s diversity enabled retractions in some industry sectors to be compensated by the region’s other industry sectors.

Rental, Hiring and Real Estate Services

Retail Trade

Electricity, Gas, Water and Waste Services

Health Care and Social Assistance

The region’s diversity is the key to managing and reducing risks and external shocks within the local economy.

The combined economy of the Townsville North Queensland and North West Queensland regions has had a significant retraction. The economy has reduced from $17,272.8M (January 2015) to $16,918.3M (April 2016). This retraction is due to the

Agriculture, Forestry and Fishing

Accommodation and Food Services

completion of mine construction and the move to mine operations (example is that 4,000 people are needed to build a concentrator but only 300 people to operate it). This also meant a major reduction in the support industries, ie manufacturing. These two industries combined moved from being 30.6% to 19.0% to the economies of the North West Queensland and Townsville North Queensland regions.

FIGURE 1 VALUE ADDED GROSS REGIONAL PRODUCT – TOWNSVILLE NORTH QUEENSLAND Rental, Hiring & Real Estate Services 14.1% Public Administration & Safety 13.1% Manufacturing 8.2% Construction 7.8% Health Care & Social Assistance 7.8% Education & Training 6.1% Retail Trade 5.3% Transport, Postal & Warehousing 4.8%

$13.5B April 2016

Financial & Insurance Services 4.7% Electricity, Gas, Water & Waste Services 4.6% Professional, Scientific & Technical Services 4.3% Wholesale Trade 3.6% Agriculture, Forestry & Fishing 3.2% Accommodation & Food Services 2.7% Mining 2.5% Administrative & Support Services 2.4% Information Media & Telecommunications 2.2% Other Services 2.0% Arts & Recreation Services 0.7% SOURCE: REMPLAN, APRIL 2016

Townsville Enterprise Annual Report 2015/16

25

Townsville North Queensland by numbers (continued) GROSS REGIONAL PRODUCT (CONTINUED) FIGURE 2 VALUE-ADDED GRP – TOWNSVILLE NORTH QUEENSLAND AND NORTH WEST QUEENSLAND

Rental, Hiring & Real Estate Services 14.1% Rental, Hiring & Real Estate Services 13.1% Public Administration & Safety 13.1% Mining 11.3% Manufacturing 8.2% Public Administration & Safety 11.3% Construction 7.8% Manufacturing 7.7% Health Care & Social Assistance 7.8% Construction 7.4% Education & Training 6.1% Health Care & Social Assistance 6.9% Retail Trade 5.3% Education & Training 5.4% Transport, Postal & Warehousing 4.8% Retail Trade 4.7% Financial & Insurance Services 4.7% Transport, Postal & Warehousing 4.6% Electricity, Gas, Water & Waste Services 4.6% Electricity, Gas, Water & Waste Services 4.2% Professional, Scientific & Technical Services 4.3% Financial & Insurance Services 4.0% Wholesale Trade 3.6% Professional, Scientific & Technical Services 3.6% Agriculture, Forestry & & Fishing Fishing 3.4% 3.2% Agriculture, Forestry

$16.9B April 2016

Accommodation Food Services 2.7% Wholesale Trade & 3.3% Mining 2.5% Accommodation & Food Services 2.6%

Administrative & Support Support Services Services 2.3% 2.4% Administrative & Information Media Other Services 1.9%& Telecommunications 2.2% Other Services 2.0%& Telecommunications 1.8% Information Media Arts & Recreation Services 0.5% 0.7% Arts & Recreation Services SOURCE: REMPLAN, APRIL 2016

TOP FIVE REGIONAL ECONOMIES BY GRP IN NORTHERN AUSTRALIA APRIL 2016 STATE

REGION

GRP ($M)

WA

PILBARA

$27,128

NT

NORTHERN TERRITORY

$23,139

QLD

TOWNSVILLE NORTH QUEENSLAND

$13,501

WA

EAST PILBARA

$7,747

WA

PORT HEDLAND

$3,971 Source: REMPLAN, April 2016

26

Townsville Enterprise Annual Report 2015/16

ESTIMATED POPULATION Townsville maintained population growth into 2015, with a growth rate of 1.6% bringing the city’s population to an estimated 192,038. In the broader region, Townsville North Queensland grew by a collective 1.3% over the year, to an estimated total population of 236,629.

PROJECTED POPULATION The most recent projections show the Townsville North Queensland region is expected to reach a population of 361,098 by 2036, an increase of 1.9% per year over 20 years. Townsville City is expected to have 314,362 persons by 2036, with an annual growth rate of 2.3% per year.

Source: Australian Bureau of Statistics, Regional Population Growth, March 2015 Release

TOWNSVILLE NORTH QUEENSLAND BY 2036

361,098

314,362

TOWNSVILLE CITY BY 2036

REGIONAL POPULATION FORECASTS TO 2036

17,831

12,433

11,352

2,671

BURDEKIN

CHARTERS TOWERS

HINCHINBROOK

PALM ISLAND

Source: OESR, data as at Dec 2015

Townsville Enterprise Annual Report 2015/16

27

The past year has resulted in a surplus of $22,606 against a planned budget deficit of $96,500

Image: Castle Hill from Queens Gardens by Megan MacKinnon

TOWNSVILLE ENTERPRISE LIMITED FINANCIAL REPORT 2015/2016 Your directors present this report on the entity for the financial year ended 30 June 2016.

Directors The following persons were directors of Townsville Enterprise Limited during the whole of the financial year and up to the date of this report: Kevin Gill – appointed 26/05/2008 Jenny Hill – appointed 25/05/2012 Joe Carey – appointed 11/02/2011 Ranee Crosby – appointed 15/05/2014 Sandra Harding – appointed 20/02/2013 Peter Honeycombe – appointed 14/11/2013 Laurence Lancini – appointed 12/10/2005 Paul Victory – appointed 14/11/2013 Moya Steele – appointed as director 21/10/2015 and continues in office at the date of this report Sandra Yates – appointed as director 19/08/2015 and continues in office at the date of this report

Principal Activities The Company’s principal continuing activities during the year consisted of the promotion of tourism and economic development in North Queensland.

Review of operations Comments on the operations and the results of those operations are set out below: Operating revenue for the year ended 30 June 2016 totalled $3,045,952 (2015: $3,089,499). The operating surplus/(deficit) for the year totalled $22,606 (2015: $(424,878)).

Significant changes in the state of affairs There were no significant changes in the Company’s state of affairs during the financial year ended 30 June 2016 other than those matters disclosed in the financial report. The directors are not aware of any future developments which will have a significant impact on the operations of the Company.

Matters subsequent to the end of the financial year Since the end of the financial year the directors are not aware of any matters or circumstances not otherwise dealt with in the report or accounts that have significantly affected the operations of the Company, the results of those operations or the state of affairs of the Company in subsequent financial years.

Developments and expected results of operations Return to surplus on the back of record advocacy achievements and operational activity The past year has resulted in a surplus of $22,606 against a planned budget deficit of $(96,500). This has been achieved via recommendations from the Board and Management to reduce operational expenditure via consolidation and continual improvement of systems as well as identification of new revenue streams.

Townsville Enterprise Financial Report 2015/16

Over the past 12 months, Townsville Enterprise has worked with key stakeholders to deliver game-changing outcomes for the Townsville North Queensland region. Highlights include: • S upport across three levels of Government to deliver the full $250M towards the Integrated Stadium and Entertainment Centre through a landmark City Deal initiative that will be the first in Australia.

• $150M towards the Townsville Eastern Access Rail Corridor.

• A pproximately $4M of funding towards water feasibility studies in the Burdekin River System.

• Commencing the first international flights out of the Townsville Airport from Townsville to Denpasar.

• $ 42.6M towards the Hann Highway.

• Securing the headquarters of Energy Queensland for Townsville.

Townsville Enterprise will continue working closely with all levels of Government and the community to ensure the projects are delivered in a timely manner.

In Tourism and Events, keys strategies are continuing to deliver tangible results for the community. In the 2015/16 financial year the Townsville North Queensland Bid Fund helped secure twelve events expected to inject more than $18.2M in economic value into the region and generate 72,300 guest nights. Events secured include the 2017 and 2018 Mountain Bike Australia Festival which will incorporate a spectacular elite level race down Castle Hill and a BMX Queensland State Championships expecting to attract over 3,000 visitors for a week and inject $5.3M into the local economy. The Edutourism Strategy has realised a 26% increase of visitors, 3,545 room nights and over $693K additional annual direct income into the region whilst five cruise ships were welcomed, delivering 1,791 passengers / 590 crew and $1.25M economic expenditure.

The Emerging Leaders Program has been well supported with 19 participants working on four major community projects. The Emerging Leaders Program is designed to develop a pool of leadership talent that will drive the progress of the region and aims to enhance the critical skills, knowledge and aptitude that is required to be able to step up and become a community or industry leader.

Townsville Enterprise has also released its Strategic Plan 2016 – 2021, which sets the direction of the organisation for the next five years.

The Plan was developed following a refocussing of priorities over the past 18 months during which time we have seen unity between city leaders and strong collaboration deliver international status for the Townsville Airport, the headquarters of Energy Queensland based in Townsville and support across three levels of Government to deliver an Integrated Stadium and Entertainment Centre.

The Board will continue to invest members’ funds prudently and wisely with a view to securing projects and initiatives of regional relevance which are catalytic to the development of our city and region.

Environmental regulations No significant environmental regulations apply to the Company.

29

DIRECTOR

QUALIFICATIONS

KJ Gill

DIRECTOR

QUALIFICATIONS

SL Harding B. Com, CA Chairman 4 years 3 months Director 8 years 1 month Chief Operating Officer – Townsville Airport Pty Ltd, Mt Isa Airport, Longreach Airport Special Responsibilities Member – Finance Audit & Risk Committee

BSc (Hons) ANU, MPub.Admin UQ, PhD NCSU, Hon Doc JIU, FACE, FQA, FAICD, FAIM Director 3 years 4 months Vice-Chancellor and President – James Cook University Director – Regional Australia Institute Council Member – Australian Institute of Marine Science Director – Cowboys Rugby League Football Club Limited Member – Trade and Investment Policy Advisory Committee Member – Australia-China Council Board Deputy Chair – Foundation of Australian Literary Studies Director – Advance Cairns Director – Australian American Education Leadership Foundation Commissioner – Australian Centre for International Agricultural Research Commission Member – Queensland Futures Institute Council Director – Westpac Bicentennial Foundation Board

JL Hill BSc MPHTM Deputy Chairman 4 years 1 month Mayor – Townsville City Council Chairman – Townsville Breakwater Entertainment Centre Joint Venture Acting Chairman – Local Government Association of Queensland Chairman – Townsville Local Disaster Management

JW Carey B. Com, CPA, Dip FP, Authorised Rep Securitor Pty Ltd Director 5 years 4 months Director – Carey Group of Companies Deputy Chairman – Cowboys Leagues Club Limited Chairman – Cowboys Leagues Club Finance Audit & Risk Committee Director – Cowboys Rugby League Football Club Limited Chairman – Cowboys Rugby League Football Club Limited Finance Audit & Risk Committee Special Responsibilities Chairman – Finance Audit & Risk Committee

PE Honeycombe B.Bus, FAICD, FAIM Director 2 years 7 months Managing Director – Honeycombes Property Group

L Lancini Director 10 years 7 months Managing Director – Lancini Group of Companies Director – Cowboys Leagues Club Limited Director – Cowboys Holdings Pty Ltd Director – Cowboys Community Fund Ltd Chairman – Cowboys Rugby League Football Club Limited Member – Qld Division Council of the Property Council of Australia, Vice-President of State Council

RL Crosby LLB, GAICD Director 2 years 1 month Chief Executive Officer – Port of Townsville Limited Director – Northern Queensland Primary Healthcare Network Deputy Chair – Queensland Ports Association Member – Townsville Committee Australian Institute of Company Directors Member – James Cook University Finance Committee Member – Queensland Ministerial Freight Council Special Responsibilities Chairman – Economic Development Strategic Advisory Committee

MA Steele BA.LLB, MUDIA, MAICD Director 8 months Partner – MacDonnells Law Director – MA Steele Pty Ltd Director – SunWater Limited

PA Victory MA, Grad Dip Bus, BA Director 2 years 7 months General Manager – SeaLink Qld/NT Pty Ltd Special Responsibilities Chairman – Tourism and Events Strategic Advisory Committee

SL Yates AO Director 10 months Chairman – Australian Festival of Chamber Music 30

Townsville Enterprise Financial Report 2015/16

MEETINGS OF DIRECTORS

Auditor’s Independence Declaration

The numbers of meetings of the Company’s board of directors and of each board committee held during the year ended 30 June 2016, and the number of meetings attended by each director, were:

Full meetings of directors

Meetings of Finance Audit & Risk committee

A

B

A

B

Kevin Gill

6

6

3

7

Jenny Hill

4

6

–

–

Joe Carey

6

6

7

7

Ranee Crosby

6

6

–

–

Sandra Harding

6

6

–

–

Peter Honeycombe

5

6

–

–

Laurence Lancini

3

6

–

–

Moya Steele

4

4

–

–

Paul Victory

5

6

–

–

Sandra Yates

4

5

–

–

A = Number of meetings attended.

B=N umber of meetings held during the time the director held office or was a member of the committee during the year.

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out below.

This directors’ report is signed in accordance with a resolution of the Board of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

Kevin Gill Director Townsville 24 August 2016

AUDITOR’S INDEPENDENCE DECLARATION UNDER S307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF TOWNSVILLE ENTERPRISE LIMITED I declare that, to the best of my knowledge and belief, during the year ended 30 June 2016 there have been: n o contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. n o contraventions of any applicable code of professional conduct in relation to the audit. i.

Directors’ benefits Since the end of the previous financial year no directors have received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of the emoluments received or due and receivable by directors) by reason of a contract made by the Company or a related corporation with the director or with a firm they are a member of or a company in which they have a substantial financial interest to the financial statements.

Crowe Horwath NQ

Insurance of officers During the financial year, Townsville Enterprise Limited paid a premium to insure the directors and secretaries of the Company.

Under the arrangement the premium is unable to be disclosed.

Townsville Enterprise Financial Report 2015/16

Mark Andrejic Principal Townsville 31 August 2016

31

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Note

2016

2015

$

$

2,296,293

2,036,512

Revenue and Other Income Revenue

2

Other income

3

749,659

1,052,987

3,045,952

3,089,499

(1,124,757)

(1,447,546)

(1,564,927)

(1,697,294)

Depreciation and amortisation expense

(101,408)

(99,892)

Travel

(125,622)

(147,911)

Total Revenue and Other Income Expenses Other expenses

4

Employee benefits expense

Finance costs Administration Total Expenses Surplus/(Deficit) for the year attributable to the members of Townsville Enterprise Limited Other comprehensive income for the year Total comprehensive income for the year attributable to the members of Townsville Enterprise Limited

(2,834)

(3,335)

(103,798)

(118,399)

(3,023,346)

(3,514,377)

22,606

(424,878)

–

–

22,606

(424,878)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 Note

2016

2015

$

$

Assets Current assets Cash and cash equivalents

5

1,167,720

1,203,479

Trade and other receivables

6

168,262

515,982

Other Total current assets

5,077

15,098

1,341,059

1,734,559 249,351

Non-current assets Property, plant and equipment

7

222,699

Intangibles

8

49,491

80,552

272,190

329,903

1,613,249

2,064,462

Total non-current assets Total assets Liabilities Current liabilities Trade and other payables

9

67,159

42,812

Tax payable

10

54,650

79,916 65,427

Employee benefits

11

65,998

Borrowings

12

9,786

9,786

Other

13

116,277

584,676

313,870

782,617

Total current liabilities Non-current liabilities Employee benefits

14

49,925

45,210

Borrowings

15

35,986

45,773

Total non-current liabilities Total liabilities Net assets

85,911

90,983

399,781

873,600

1,213,468

1,190,862

711,968

887,356

Equity Reserves Retained surpluses Total equity

16

501,500

303,506

1,213,468

1,190,862

The above statement of financial position should be read in conjunction with the accompanying notes 32

Townsville Enterprise Financial Report 2015/16

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Reserves (Note 16) Balance at 1 July 2014 Deficit for the year attributable to members of the entity

Retained Surplus

Total Equity

$

$

$

876,124

739,616

1,615,740 (424,878)

–

(424,878)

11,232

(11,232)

–

Balance at 30 June 2015

887,356

303,506

1,190,862

Balance at 1 July 2015

887,356

303,506

1,190,862

–

22,606

22,606

(175,388)

175,388

–

711,968

501,500

1,213,468

Transfers to/from reserves

Deficit for the year attributable to members of the entity Transfers to/from reserves Balance at 30 June 2016

The above statement of changes in equity should be read in conjunction with the accompanying notes

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2016 Note

2016

2015

$

$

(2,917,711)

(3,927,814)

Cash flows from operating activities Payments to suppliers and employees (inclusive of GST) Receipt of grants Receipts from members and customers

731,244

745,782

2,169,285

2,721,734

(17,182)

(460,298)

Interest received

35,492

41,837

Net cash from operating activities

18,310

(418,461)

Cash flows from investing activities Payments for property, plant and equipment Payments for intangible assets Proceeds from sale of assets

(44,282)

(98,236)

–

(18,280)

–

16,000

(44,282)

(100,516)

Net proceeds/repayments from finance lease obligations

(9,787)

55,560

Net proceeds from/(repayment of) finance lease obligations

(9,787)

55,560

(35,759)

(463,417)

1,203,479

1,666,896

1,167,720

1,203,479

Net cash used in investing activities

Cash flows from financing activities

Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Cash and cash equivalents at the end of the financial year

5

The above statement of cash flows should be read in conjunction with the accompanying notes

Townsville Enterprise Financial Report 2015/16

33

NOTES TO THE FINANCIAL STATEMENTS NOTE 1. SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) New, revised or amending Accounting Standards and Interpretations adopted Townsville Enterprise Limited has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting period.

Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Where grant revenue is received whereby Townsville Enterprise Limited incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the Statement of Financial Position as a liability until the service has been delivered to the contributor otherwise the grant is recognised as income on receipt.

Service Revenue Revenue arising from the rendering of a service is recognised upon the delivery of the service to the clients.

Other Revenue Other revenue (which includes campaign and event income and project income) is recognised when it is received or when the right to receive the payment is established.

All revenue is stated net of the amount of the goods and services tax (GST).

(b) Basis of preparation These general purpose financial statements have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board (‘AASB’), and associated regulations and the Corporations Act 2001, as appropriate for not-forprofit oriented entities.

(d) Income tax As Townsville Enterprise Limited is a charitable institution in terms of subsection 50-5 of the Income Tax Assessment Act 1997, as amended, it is exempt from paying income tax; no provision for income tax has been raised.

Historical cost convention The financial statements have been prepared under the historical cost convention.

(e) Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in the relevant accounting policies within note 1 and is based on historical experience and on other various factors, including expectations of future events management believed to be reasonable under the circumstances.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

(c) Revenue recognition Revenue is recognised when it is probable that the economic benefit will flow to the Company and the revenue can be reliably measured.

Revenue is measured at the fair value of the consideration received or receivable.

Membership or Partnership Membership or partnership revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income in respect of the period to which it relates.

Grants Grant revenue is recognised in the Statement of Profit or Loss and Other Comprehensive Income when Townsville Enterprise Limited obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be reliably measured.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

34

A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. (f) Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts also form part of cash and cash equivalents for the purpose of the statement of cash flows and are presented within current assets cash and cash equivalents on the statement of financial position. (g) Trade and other receivables Trade receivables are measured at amortised cost using the effective interest method. Trade receivables are generally due for settlement within 30 days.

Other receivables are recognised at amortised cost.

Townsville Enterprise Financial Report 2015/16

(h) Property, plant and equipment Plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line or diminishing value basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Leasehold improvements Plant and equipment Motor vehicles

10–50% 5–20% 20–25%

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Company.

Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits. (i) Intangible assets Intangible assets are initially recognised at cost. The gains or losses recognised in profit or loss arising from the de-recognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset.

The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption of useful life are accounted for prospectively by changing the amortisation method or period.

Software Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their expected benefit, being their finite life of three to five years.

Billabong Visitor Information Centre Kiosk (right to use) Townsville Enterprise has an agreement with the Billabong Sanctuary for the right to use the kiosk constructed on their site. Townsville Enterprise Limited incurred the original construction costs (whilst ownership resides with Billabong Sanctuary) which in agreement with Billabong Sanctuary gives Townsville Enterprise Limited the right to use the facilities for the life of the agreement. Townsville Enterprise Limited will amortise the cost over the life of the agreement. (j) Trade and other payables These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

Townsville Enterprise Financial Report 2015/16

(k) Employee benefits Short-term employee benefits Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date or where no right to defer settlement exists, are recognised in current liabilities in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits The liability for long service leave is not expected to be settled within 12 months of the reporting date is recognised in noncurrent liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are recognised at the expected cash outflow when the liability is settled. Long-term benefits are accounted for employees who have achieved five or more years of service with the Company. (l) Goods and Services Tax (‘GST’) and other similar taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office (ATO). In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included in other receivables or other payables in the Statement of Financial Position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from or payable to the ATO are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the ATO. (m) Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance leases.

Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values.

Leased assets are depreciated on a straight-line basis over the estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease terms.

35

NOTE 2. REVENUE 2016

2015

$

$

NOTE 5. CURRENT ASSETS – CASH AND CASH EQUIVALENTS 2016

2015

$

$

1,167,720

1,203,479

1,167,720

1,203,479

Sales revenue Sale of Assets

–

8,435

Cash at bank and on hand

Other revenue Interest

35,491

45,173

Rent

10,543

10,445

278,644

227,392

2016

2015

Advertising Income

71,160

83,186

$

$

Partnership Income

815,973

856,008

Trade receivables

168,187

515,830

Membership Income

833,443

694,872

Accrued revenue

–

–

Contra Membership Income

216,461

81,359

75

152

34,578

29,642

168,262

515,982

2,296,293

2,028,077

2,296,293

2,036,512

Campaign and Event Income

Other Revenue

NOTE 6. CURRENT ASSETS – TRADE AND OTHER RECEIVABLES

Sundry debtors

NOTE 7. NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT

NOTE 3. OTHER INCOME 2016

2015

$

$

Government Grants

691,940

745,782

Marketing Packages

10,598

32,900

Project Income

34,225

216,032

Sponsorship Income

12,896

58,273

749,659

1,052,987

NOTE 4. OTHER EXPENSES 2015

$

$

6,621

20,957

Consultants and Contractors

290,793

321,634

Facility Expenses

162,200

178,757

10,372

5,593

135,517

82,573

Trade and Exhibition

83,873

169,959

Sponsorship and Membership Expenses

27,045

156,997

Vehicle Expenses

11,757

13,950

Web Development and Maintenance Expenses Design Printing and Reproduction

Advertising Expenses

258,180

344,608

Employee related Expenses

32,627

69,582

Entertainment Expenses

19,929

16,684

Information Technology Expenses

58,551

58,075

4,690

2,285

18,602

5,892

1,124,757

1,447,546

FBT Other Expenses

36

Less: Accumulated depreciation

Plant and equipment – at cost Less: Accumulated depreciation

Motor vehicles – at cost Less: Amortised borrowing costs

2016

Audit and Accounting Expenses

Leasehold improvements – at cost

Less: Accumulated depreciation

Total non-current assets

2016

2015

$

$

245,486

245,486

(160,226)

(135,678)

85,260

109,808

283,446

239,166

(191,394)

(159,499)

92,052

79,667

71,378

71,378

(587)

–

(25,403)

(11,502)

45,387

59,876

222,699

249,351

Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below: Leasehold Improvements Balance at 1 July 2015

Motor Plant and Vehicles Equipment

Total

$

$

$

$

109,808

59,876

79,667

249,351

Additions at cost

–

–

44,282

44,282

Borrowing costs

–

(587)

–

(587)

Disposals

–

–

–

–

(24,548)

(13,902)

(31,897)

(70,347)

85,260

45,387

92,052

222,699

Depreciation expense Balance at 30 June 2016

Townsville Enterprise Financial Report 2015/16

NOTE 8. NON-CURRENT ASSETS – INTANGIBLES

NOTE 13. CURRENT LIABILITIES – OTHER

2016

2015

2016

2015

$

$

$

$

Billabong VIC Kiosk (right to use)

93,986

93,986

Accrued expenses

25,948

36,696

Less: Accumulated amortisation

(54,855)

(31,358)

Revenue received in advance*

90,329

547,980

39,131

62,628

116,277

584,676

90,898

90,898

(80,358)

(72,974)

10,360

17,924

49,491

80,552

Computer Software – at cost Less: Accumulated amortisation

Total intangible assets

Reconciliations Reconciliation of the written down value at the beginning and end of the current financial year is set out below: Billabong VIC

Computer Software

Total

$

$

$

Balance at 1 July 2015

62,628

17,924

80,552

Additions at cost

–

–

–

(23,497)

(7,564)

(31,061)

39,131

10,360

49,491

Amortisation expense Balance at 30 June 2016

*R evenue received in advance relates to grant income and membership invoices paid in 2015-16 for 2016-17 year.

Membership invoices for the 2017 financial year were raised in July 2016 which differed from the treatment applied in the prior year where invoices were raised in June.

NOTE 14. NON-CURRENT LIABILITIES – EMPLOYEE BENEFITS

Long service leave

2016

2015

$

$

Trade payables

56,768

30,855

Other payables

10,391

11,957

67,159

42,812

$

$

49,925

45,210

NOTE 15. NON-CURRENT LIABILITIES – BORROWINGS

Finance lease obligations

2016

2015

$

$

35,986

45,773

NOTE 16. EQUITY – RESERVES 2016

Visitor Information Centre – Capital reserve General reserve

NOTE 10. CURRENT LIABILITIES – TAX PAYABLE 2016

2015

$

$

54,650

79,916

NOTE 11. CURRENT LIABILITIES – EMPLOYEE BENEFITS

Annual leave

2015

The lease liabilities are effectively secured as the rights to the leased assets, recognised in the statement of financial position, revert to the lessor in the event of default.

NOTE 9. CURRENT LIABILITIES – TRADE AND OTHER PAYABLES

GST/PAYG Tax payable

2016

2016

2015

$

$

65,998

65,427

2015

$

$

–

175,388

711,968

711,968

711,968

887,356

NOTE 17. CONTINGENT LIABILITIES Townsville Enterprise Limited has no contingent liabilities at 30 June 2016 and 30 June 2015.

NOTE 12. CURRENT LIABILITIES – FINANCE LEASE OBLIGATIONS

Finance lease obligations

Townsville Enterprise Financial Report 2015/16

2016

2015

$

$

9,786

9,786

37

NOTE 18. KEY MANAGEMENT PERSONNEL DISCLOSURES

NOTE 22. EVENTS AFTER THE REPORTING PERIOD

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity is considered key management personnel. The Board of Directors of Townsville Enterprise Limited are designated key management personnel in accordance with the definition provided.

No director receives remuneration for their role on the Board. Other management personnel for 2015/2016 include Patricia O’Callaghan (Chief Executive Officer), Ms Tracey Lines (General Manager Economic Development) and Ms Bridget Woods (Executive Manager Tourism & Events).

No matter or circumstance has arisen since 30 June 2016 that has significantly affected, or may significantly affect the Company’s operations, the results of those operations or the Company’s state of affairs in future financial years.

TOWNSVILLE ENTERPRISE LIMITED DIRECTOR’S DECLARATION In the director’s opinion:

• t he attached financial statements and notes thereto comply with the Corporations Act 2001, the Australian Accounting Standards Reduced Disclosure Requirements, the Corporations Regulations 2001 and other mandatory professional reporting requirements; 2016 2015

$ $ • t he attached financial statements and notes thereto give a true Key management personnel and fair view of the Company’s financial position as at 30 June 497,471 463,033 compensation 2016 and of its performance for the financial year ended on that

date; and NOTE 19. COMMITMENTS

• t here are reasonable grounds to believe that the Company will be 2016 2015 able to pay its debts as and when they become due and payable. $ $

Lease commitments – operating Signed in accordance with a resolution of the sole director made pursuant to section 295 (5) (a) of the Corporations Act 2001.

Committed at the reporting date but not recognised as liabilities payable On behalf of the directors Within one year 107,127 106,220 One to five years

423,973

531,100

531,100

637,320

Operating lease commitments comprise of the lease arrangements on Enterprise House and storage facilities.

NOTE 20. RELATED PARTY TRANSACTIONS Key management personnel Disclosures relating to key management personnel are set out in note 18.

Kevin Gill Director Townsville 24 August 2016

Transactions with related parties There were no transactions with related parties during the current and previous financial year outside of the normal course of business.

Receivables from and payables to related parties There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties There were no loans to or from related parties at the current and previous reporting dates.

NOTE 21. ECONOMIC DEPENDENCY Townsville Enterprise Limited receives funding from Tourism and Events Queensland (TEQ) and partnership funding from the Townsville City Council (TCC). Funding from TEQ is $638,039:2015-16 ($673,195:2014-15) per financial year whilst sponsorship from TCC is $740,000:2015-16 ($734,000:2014-15) per financial year. At the date of this report the Board of Directors have no reason to believe TEQ or the TCC will not continue to support Townsville Enterprise Limited.

38

Townsville Enterprise Financial Report 2015/16

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF TOWNSVILLE ENTERPRISE LIMITED Report on the Financial Report We have audited the accompanying financial report of Townsville Enterprise Limited (the Company), which comprises the statement of financial position as at 30 June 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report The directors of the Company are responsible for the preparation and fair presentation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Townsville Enterprise Limited, would be in the same terms if provided to the directors as at the date of this auditor’s report.

Opinion In our opinion, the financial report of Townsville Enterprise Limited is in accordance with the Corporations Act 2001, including: (i)

giving

a true and fair view of the Company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Corporations Regulations 2001.

Crowe Horwath NQ

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

Mark Andrejic Principal Townsville 31 August 2016

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Townsville Enterprise Financial Report 2015/16

39

TOWNSVILLE ENTERPRISE

ABN: 58 053 020 536

Enterprise House 6 The Strand, Townsville Queensland, 4810 Australia Phone: Fax: Email:

+61 7 4726 2728 +61 7 4726 2700 tel@tel.com.au

townsvilleenterprise.com.au

40

Townsville Enterprise Annual Report 2015/16