City Deals ...

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9th December 2016

Media Release
Premier and Minister for the Arts
The Honourable Annastacia Palaszczuk

Australia's first City Deal to drive economic growth and local jobs for Townsville

PRIME MINISTER

THE HON. MALCOLM TURNBULL MP


ASSISTANT MINISTER FOR CITIES AND DIGITAL TRANSFORMATION

THE HON. ANGUS TAYLOR MP

PREMIER OF QUEENSLAND

THE HON. ANNASTACIA PALASZCZUK

MAYOR OF THE CITY OF TOWNSVILLE

CR JENNY HILL

JOINT MEDIA RELEASE

Australia's first City Deal to grow Townsville's economy and transform the city centre was signed today by the Prime Minister, Queensland Premier and Townsville Mayor.

The City Deal marks a new era for Townsville, enabled by all three levels of government coming together to secure the economic success of Townsville and its people.  The deal will deliver an integrated package of initiatives to make Townsville more attractive to investors, increase jobs and growth, and revitalise the city.

Prime Minister Turnbull welcomed the historic Australia-first City Deal. The Townsville City Deal will give businesses and the community more confidence in making decisions about their city's future.

Governments have listened to the needs of local residents and businesses. Townsville needs confidence for industry and investors, and more jobs for the future.

We are bringing all our levers together across infrastructure, industry, trade and investment, defence, research and education, energy and resources to build a liveable city that's a great place to invest, work and visit.

Under the Deal, a new Townsville Development Corporation will deliver urban renewal to lead the revitalisation of Townsville.

Increased industry investment, export and jobs will be driven by an ambitious Industrial Development Board, to activate economic activity in the State Development Area near to the Port of Townsville.

Governments will identify opportunities to partner with the private sector including through the Commonwealth's new Infrastructure Financing Unit to accelerate investment in the proposed expansion of the Port, the Townsville Eastern Rail Access Corridor and associated State Development Area, and urban renewal in the waterfront and CBD. The Commonwealth has allocated $3 million to this work in addition to direct infrastructure funding, and will explore opportunities to leverage our financing vehicles such as the Northern Australia Infrastructure Facility and the Clean Energy Finance Corporation.

A joint Taskforce will be created to identify solutions for sustainable, long-term water supply for Townsville. A Smart City Strategy will provide a flagship for a modern digital city and Local Government.

Queensland Premier Palaszczuk welcomed Australia's first ever City Deal in Townsville.

The Deal will build North Queensland's potential and economic future as the economic gateway to Asia and Northern Australia. All three levels of government are committed to building a city that's a great place to invest, live and work.

Townsville's Mayor Jenny Hill hailed the Townsville City Deal as "a momentous 15-year commitment to bring to life a shared vision for Townsville".

Our combined government investments of $240 million – with $140 million from the Queensland Government and $100 million from the Australian Government -  and the Council's contribution of prime waterfront land, will see construction on the new Stadium commencing in 2017.

Financing expertise from the Commonwealth and Queensland governments will help the Council to progress development of a new entertainment and convention centre in the Waterfront precinct.

Townsville is the largest city in Northern Australia with a population of more than 190,000 people. It is projected to grow by around 42,500 people over the next decade.  The Townsville City Deal will help ensure that Townsville is well placed to lead economic development in Australia's north. 

The agreement of the City Deal is the beginning of a long-term collaboration.

We have achieved a significant amount since the deal was announced in June this year and there is still more work ahead of us to deliver the objectives of the City Deal. The next phase of work is development of a detailed implementation plan by March 2017. We will continue to engage the local community and the private sector to progress this work and support the people of Townsville to realise their full potential.

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Queensland City Deals

>> https://www.treasury.qld.gov.au/growing-queensland/queensland-city-deals/

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Brisbanetimes --> Big firms call for new SEQ city deal to deliver infrastructure boost

Talking points

    Queensland's biggest construction companies have called on the Queensland Government to do a"Townsville" in south-east Queensland and pitch a new City Deal for south-east Queensland.
    Australia's first City Deal assists growth in Townsville in 2016 by using federal funds to "seed" private sector investment to modernise urban areas.

Queensland's major construction and engineering companies have called on the state government to back a new city deal for south-east Queensland, as it did for Townsville in 2016, ahead of next Tuesday's budget.

The Queensland Major Contractors Association, the Infrastructure Association of Queensland and Construction Skills Queensland have put together their Major Projects Pipeline Report 2018.
Premier Annastacia Palaszczuk meets with Townsville Mayor Jenny Hill.

Premier Annastacia Palaszczuk meets with Townsville Mayor Jenny Hill.
Photo: Twitter

The report calls on thge federal and state governments to negotiate Queensland's second city deal, after the success of the Townville City Deal, signed by Premier Annastacia Palaszczuk in 2016.

"A south-east Queensland regional city deal has the potential to be the foremost city deal in the nation involving eleven separate councils," it notes.

"This second generation city deal can provide a structured, co-ordinated plan for the long-term funding of SEQ infrastructure by all tiers of government."

Council of Mayors (SEQ) chairman and Brisbane lord mayor Graham Quirk quietly began work on the second City Deal in 2017.

In their report three bodies point out that of $39.9 billion in big infrastructure projects planned for Queensland in the next five years, projects worth $16.1 billion are still unfunded.

This economic uncertainty is hurting the Queensland economy, it says.

The report says there are two years of improved growth ahead for Queensland after the big slump in 2015-16, but then "major uncertainty" as New South Wales and Victoria cement huge infrastructure projects.

The report points out: "Roads activity is expected to decline 44 per cent over three years following the peak in 2018-19 and non-water utilities activity, comprising mostly electricity and telecommunications work, is forecast to decline 65 per cent over the same period."

Much of the improved certainty in NSW and Victoria is linked to better "asset sale and recycling", the report says.

"This is particularly important in Queensland as the split in policy between Commonwealth and state on long-term asset leasing and capital recycling means using this option to raise infrastructure funding is not possible in the medium term, unlike the high-growth states of New South Wales and Victoria."

Queensland's Labor government opposes infrastructure asset sales.

Private sector infrastructure investment in Queensland is declining even after the end of the resources boom and Queensland's public sector is topping up the infrastructure sector in the short-term, it finds.

"The value of public sector projects that have funds committed or are currently under procurement now outstrip the private sector by a factor of six to one," the report finds.

"This indicates a significant skew from the historical average of 50-50 public-private investment in major engineering projects."

Treasurer Jackie Trad said the $45 billion directed to infrastructure funds in the 2018 state budget would attract private sector funds.

"Across the state, public infrastructure is a driver for transformative change, encouraging private investment and making our communities better places to live," she said.

"This budget recognises that and includes the biggest infrastructure spend since 2011, after the flood recovery."

The Major Projects Report now ranks Adani's $16 billion Carmichael Mine in the Galilee Basin as "unlikely to go ahead".

"There remains a very high risk that this project will not occur at all given the long-term price outlook for coal, as well as issues regarding project finance, costs, remoteness and environmental issues," it finds.

"Together, Galilee Basin projects in the list account for nearly $7.5 billion dollars of major project work, but these are classified as unlikely to proceed. The absence of these projects sees major project work effectively flatline from 2018-19."

The chief executives of the three industry groups; Peter Anusas, Steve Absom and Brett Schimming, said while public sector funds were returning, private sector infrastructure funds were drying up.

"This year's report highlights much lower levels of private sector investment than previous years, with $9.4 billion of projects classified as only prospective or considered unlikely to receive funding," they said.

It points to recent "disappointing" attempts by governments to generate private sector infrastructure investment; Queensland Treasury's market-led proposals and the federal government's Northern Australia Infrastructure Facility.

Each has produced just one private-sector infrastructure project; Brisbane's new cruise ship terminal at Luggage Point (state) and Western Australia's new Onslow Marine Support Base (NAIF).

However, NAIF has 17 other projects under due diligence, while Queensland Treasury has five other projects – including the Dexus $1.4 billion Waterfront Place redevelopment - now being considered for funding.

The report points out economic growth from Queensland's residential sector will soon fall, because the demand for apartments has been met.

"Private dwelling investment slowed to 2.8 per cent in 2016/17 and is expected to contract over the three years to 2019/20 inclusive," it says.

The report finds 22 projects valued at $23.8 billion are funded over the next five years and will employ 127,000 people.

However, if funding for the other projects could be secured from either the public or private sector an additional 4700 jobs each year for engineers, labourers, electricians and equipment operators.

It finds that Queensland's major project work has risen by 58 per cent in 2017-18 to $6.9 billion after two successive years of low activity.

"However, recovery in activity may be short-lived and decline again in 2019-2020 due to an identified lack of viable replacement projects," the report finds.