General Council Meeting - · PDF fileGeneral Council Meeting: ... General Manager Central...

General Council Meeting

Meeting of the Central Highlands Regional Council held in the Council Chambers, 65 Egerton Street, Emerald on

Tuesday, 28 November 2017

Commenced at 2.30pm

CO

UN

CIL

MIN

UT

ES

CENTRAL HIGHLANDS REGIONAL COUNCIL

GENERAL MEETING OF COUNCIL

TUESDAY 28 NOVEMBER 2017

MINUTES CONTENTS

PRESENT .................................................................................................................................................... 2 APOLOGIES ................................................................................................................................................ 2 LEAVE OF ABSENCE ................................................................................................................................. 2 CONFIRMATION OF MINUTES OF PREVIOUS MEETING ......................................................................... 2 General Council Meeting: 14 November 2017 .............................................................................................. 2 Review of Upcoming Agenda Items .......................................................................................................... 2 MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS .... 2 PETITIONS (IF ANY) ................................................................................................................................... 3 COMMUNITIES ............................................................................................................................................ 3 Development Application - RAL021.1-2017 - RES Australia Pty Ltd C/- iCubed Consulting .......................... 3 CORPORATE SERVICES ............................................................................................................................ 7 Operational Plan 2017-2018 Q1 Performance Report .................................................................................. 7 Monthly Financial Report - October 2017 ..................................................................................................... 7 INFRASTRUCTURE AND UTILITIES .......................................................................................................... 8 Rolleston Township Flood Mitigation Options Study ..................................................................................... 8 CENTRAL HIGHLANDS DEVELOPMENT CORPORATION ....................................................................... 8 Digital Telecommunications Audit and Action Plan (DTAAP) ........................................................................ 8 Central Highlands Economic Master Plan (CHEMP) ..................................................................................... 9 DEPARTMENTAL UPDATES ...................................................................................................................... 9 Departmental Updates .................................................................................................................................. 9 GENERAL BUSINESS ................................................................................................................................. 9 CLOSED SESSION .................................................................................................................................... 10 Vacant Land Management Plan and Business Process Model ................................................................... 11 Sale of Land - Write Off Balance - Assessment No 17885 .......................................................................... 11 Request Rate Write Off - Cancelled Leasehold Properties – Assessments 3733 and 16289 ...................... 11 Capricorn Highway (27A-27B - Clermont Street) Planning - Flood immunity, traffic capacity and safety

upgrade .............................................................................................................................................. 12 Departmental Updates ................................................................................................................................ 12 Regional Collaboration ............................................................................................................................... 12 CLOSURE OF MEETING ........................................................................................................................... 12

MINUTES – GENERAL COUNCIL MEETING – TUESDAY 28 NOVEMBER 2017 – PAGE 2

MINUTES – GENERAL MEETING HELD AT 2.30PM TUESDAY 28 NOVEMBER IN THE CENTRAL HIGHLANDS REGIONAL COUNCIL CHAMBERS, EMERALD OFFICE

PRESENT Councillors Councillor (Crs) K. Hayes (Mayor), G. Godwin-Smith (Deputy Mayor) Councillors (Crs) P. Bell AM (attended at 2.33pm), C. Brimblecombe, M. Daniels, A. McIndoe, G. Nixon, C. Rolfe and G. Sypher Officers Chief Executive Officer S. Mason, General Manager Communities D. Fletcher, General Manager Corporate Services J. Bradshaw, Acting General Manager Infrastructure and Utilities M. Parker, Acting General Manager Commercial Services D. Voss, General Manager Central Highlands Development Corporation S. Hobbs, Minute Secretary M. Wills APOLOGIES Nil LEAVE OF ABSENCE Nil CONFIRMATION OF MINUTES OF PREVIOUS MEETING General Council Meeting: 14 November 2017 Resolution: Cr Rolfe moved and seconded by Cr Brimblecombe “That the minutes of the previous General Council Meeting held on 14 November 2017 be confirmed subject to minor amendment.” 2017 / 11 / 28 / 001 Carried (8-0)

Attendance Cr Bell attended the meeting at 2.33pm Business Arising Out Of Minutes Nil Outstanding Meeting Actions Item10 – Cr Brimblecombe asked if legal advice had been received with regards to the Community Organisations Rates Concession and the Central Highlands (Qld) Housing Company. CEO Scott Mason advised that the legal advice has been obtained from King and Company Solicitors, challenged and is being reviewed. Advice will be circulated to Councillors once it has been received. Review of Upcoming Agenda Items Nil MATERIAL PERSONAL INTEREST, CONFLICT OF INTEREST, PERSONAL GIFTS AND BENEFITS Nil


PETITIONS (IF ANY) Nil Attendance Principal Planner Strategic Land Use J. Webster and Town Planner A. Murray attended the meeting at 2.39pm

COMMUNITIES Development Application - RAL021.1-2017 - RES Australia Pty Ltd C/- iCubed Consulting Executive summary: An application has been lodged by iCubed Consulting on behalf of RES Australia Pty Ltd seeking a development permit for reconfiguring a lot from one (1) lot into two (2) lots and creation of an access easement on land located at Munro Road, Emerald described as Lot 138 on DSN609. The parcel of land proposed to be subdivided in 225.005 hectares of rural land and seeks to create one lot at approximately 168 hectares and one 57 hectare lot. The larger lot contains an approval to establish a renewable energy facility (solar farm) which is proposed to commence construction this financial year. The smaller lot is proposed to continue to be used for productive agricultural purposes. Resolution: Cr McIndoe moved and seconded by Cr Godwin-Smith “That the application for Reconfiguring a Lot: one (1) lot into two (2) lots and creation of an access easement on land located at Munro Road, Emerald described as Lot 138 on DSN609, is approved subject to the following conditions:

APPROVED PLANS The development will be carried out in accordance with the stamped approved plans and documentation as detailed in the following schedule and any amendments arising through conditions to this approval:

TimTiming:

Prior to Council issuing a compliance certificate for the survey plan.

AMENDED APPROVED PLANS The reconfiguration is to be carried out in accordance with an amended plan incorporating the following:

An appropriately located proposed house site on Lot 1; or

Voluntarily enter into a covenant with Council which restricts the construction of a house of Lot 1.

Timing: Within ninety (90) business days of this development permit taking effect.

3. ACCESS EASEMENT

Design and construct a property access and driveway to serve proposed Lots 1 and 2 within the development in accordance with the Capricorn Municipal Development Guidelines Standard Drawing No. CMDG-R-040, Revision E.

Document Name Reference Revision Date Prepared by

Proposed Emerald Solar Farm Munro Road, Emerald –

Subdivision Plan 16-253 A 25/07/2017

iCubed Consulting Pty Ltd


The nominal carriageway width for the driveway shall be a minimum of 6m. A gravel shoulder shall be provided on both sides of the above driveway. The width of the access easement must be sufficient to accommodate the carriageway, shoulders and all services proposed to be contained in the easement area, a minimum of 10m.

The access driveway will be constructed in line with standards required in the related approval OPW294.1-2017. In addition the driveway will be constructed of material that does not generate dust.

The access easement document must include provisions that detail responsibility for maintenance and renewal of the access easement, any cost sharing provision that the land owners must abide to to facilitate the maintenance and renewal works.

Timing:

Prior to release of survey plan.

4. GENERAL – APPROVED PLANS – PLAN CERTIFICATION

Certification must be provided from a Cadastral Surveyor that the lots have been created in accordance with the approved plan.

Timing:


5. GENERAL – RELEASE OF SURVEY PLANS

Council will not endorse or release the survey plan for this development until such time as:

All conditions attached to this approval have been fully satisfied;

Letter of compliance is received demonstrating the developments compliance with all conditions of this approval; and

All outstanding rates and charges relating to the site have been paid.

Timing:


6. BUILDINGS AND ENCUMBRANCES

Provide evidence that all buildings and structures including associated utility services and connections (e.g. electricity, effluent disposal and water) are wholly located within the lot they serve within the proposed development.

Timing:


7. ELECTRICITY SUPPLY

The applicant must submit to Council, prior to Council’s compliance assessment of the subdivision plans, a copy of the ‘Certificate of Supply’ from an authorised electricity supplier (ie Ergon) as evidence that the electricity supply (sufficient for the ultimate use of each lot) is available to all approved lots.

Timing:


8. TELECOMMUNICATIONS

The applicant must submit to Council, prior to Council’s compliance assessment of subdivision plans, documentation from an authorised telecommunications service provider confirming that satisfactory arrangements have been made for the provision of underground telecommunications services to all approved lots.


Timing:


9. PROVISION OF WATER ALLOCATION FOR AGRICULTURAL PURPOSES

(a) Lot 2 must have access to 288ML of irrigation water every calendar year. Evidence of access to 288ML of irrigation water per year must be provided to council to its satisfaction.

OR

(b) Detailed reporting must be provided outlining the productive agricultural activity proposed on the respective proposed lot. The reporting must include, but not be limited to, the following details:

i. Establishment costs; ii. On-going operating costs; and iii. Expected returns.

Upon acceptance of the activity by Council a lease, less than 10 years, covering the area within the subject proposed lot boundary is to be established. Once the accepted activity has commenced on the land an officer from Council will inspect the site to confirm commencement. At this stage the approved lot can be created and will be subject to 10 (a), as changed to respond to the subject lots required water usage.

Timing:

(a) Prior to Council issuing a compliance certificate for the survey plan and at all times thereafter upon Council’s request.

(b) As specified in the timing of the condition.

10. INFRASTRUCTURE EASEMENT - WATER

An Infrastructure Easement for the purpose of water supply is to be provided through Lot 1 to benefit Lot 2 to ensure all lots have access to an irrigation channel, Easement B as illustrated on the approved plan. The easement document must include provisions that detail responsibility for maintenance and renewal of shared infrastructure, including any cost sharing provision that the land owners must abide to to facilitate the maintenance and renewal works.

Timing:

Prior to release of survey plan and maintained thereafter.

11. PROVISION OF DOMESTIC WATER SUPPLY

Provide all existing and future dwellings within this development with a potable water supply sufficient for domestic purposes. Ensure that this water supply is provided by means of a rainwater tank or tanks. Provide evidence to Council that all existing dwellings are supplied with provisions of water supply.

Timing:

To be addressed at any future buildings works stage and at all times thereafter.

12. ONSITE SEWERAGE TREATMENT AND DISPOSAL

All sewerage generated from any new dwellings shall be treated and disposed on using on-site methods. The on-site treatment and disposal shall comply with AS1547:2012 On-Site Domestic Wastewater Management and the Queensland Plumbing and Wastewater Code 2011.

The on-site treatment and disposal system shall be designed in compliance with a report by an On-Site Sewerage Evaluator.


The on-site treatment and disposal system must be designed, installed and managed at each of the proposed allotments to reduce the risk of impact on human health and the environment resulting from contact of floodwaters with domestic wastewater.

An application must be approved by the Council’s Plumbing Inspector for a Plumbing Compliance Permit with conditions for on-site treatment prior to construction and an on-site sewerage treatment and effluent disposal system.

Timing:

To be addressed at any future buildings works stage and at all times thereafter.

13. STORMWATER DRAINAGE

All stormwater, with the exception of rainwater captured onsite in rainwater tanks, must be drained from the site and carried without causing annoyance or nuisance to any person, to the lawful point of discharge. The lawful point of discharge for stormwater is any natural gullies and/or water courses. If water is to be drained to the Sunwater drainage channels consent must be provided from the owners of these lots to facilitate such an arrangement.

Timing:

Prior to Council issuing a compliance certificate for the survey plan and at all times thereafter.

14. DEVELOPMENT STANDARDS – CIVIL WORKS CONSTRUCTION - HOURS OF OPERATION

Limit the hours of operation for the construction of all works within the development to between 6.30am and 6.30pm Monday to Saturday. Construction works are not permitted to be carried out on Sunday or public holidays without the prior written approval of the Chief Executive Officer.

Timing:

During the construction of Operational Works associated with this development.

15. WORKS – APPLICANTS EXPENSE All works, services, facilities and/or public utility alterations required by this approval or stated condition/s, whether carried out by Council or otherwise, are to be at the developer’s expense unless otherwise specified.

Timing:


ADVICE NOTES

A. INFRASTRUCTURE CHARGES Infrastructure charges for this development have been levied in accordance with Central Highlands Regional Council Charges Resolution (No. 12) 2017. An Infrastructure Charges Notice has been issued and attached to this Decision Notice.

B. WATER ALLOCATION Condition 9 has been included based on the technical information supplied to council. Subsequent to productive rural activities being established on the approved lots, the owner may submit to council sufficient information which demonstrates the operations of viable rural activities using less than 120ML per calendar year. Pursuant to councils consideration of this information the amount of irrigation water the lot must have access to may be reduced through a permissible change. This approach will also be employed where the development is established under 10(b) to ensure a sufficient water supply remains available to service the developed pursuits.

C. ACCESS CONSTRUCTION

Condition 4 requires the driveway and access construction to be completed with a material that does not generate dust i.e. concrete, bitumen. This is to ensure that the irrigated productive


agricultural uses that may be carried out on Lot 2 are not adversely affected by dust nuisance which can have a detrimental impact on fruit growth.”

2017 / 11 / 28 / 002 Carried (5-4)

Attendance Principal Planner Strategic Land Use J. Webster and Town Planner A. Murray left the meeting at 3.04pm Manager Finance S. Fogg attended the meeting at 3.04pm

CORPORATE SERVICES Operational Plan 2017-2018 Q1 Performance Report Executive summary: The Local Government Regulation 2012 requires a written assessment of the organisation’s progress towards implementation of the annual Operational Plan be presented to a meeting of the council at regular intervals of no more than three months. This report is to advise council of the organisation’s performance in delivering the Operational Plan activities and services during the first quarter and to present the first performance report in its new format. Resolution: Cr Nixon moved and seconded by Cr Brimblecombe “That Central Highlands Regional Council adopt the Operational Plan Performance Report for the first quarter ending 30 September 2017 in accordance with Section 174 of the Local Government Regulation 2012.” 2017 / 11 / 28 / 003 Carried (9-0)

Monthly Financial Report - October 2017

Executive summary:

A Financial Report which summarises the financial performance and position of the Central Highlands Regional Council is presented each month to provide a snapshot on Council’s financial performance. While this report complies with statutory obligations, it is also intended to provide additional information to keep Councillors informed in relation to relevant financial matters of Council. Resolution: Cr Brimblecombe moved and seconded by Cr Godwin-Smith “That Central Highlands Regional Council receive the Monthly Financial Report for the period ended 31 October 2017.” 2017 / 11 / 28 / 004 Carried (9-0)

Attendance Manager Finance S. Fogg left the meeting at 3.31pm


INFRASTRUCTURE AND UTILITIES Rolleston Township Flood Mitigation Options Study Executive summary: The Rolleston Township Flood Mitigation Options Study, by SMEC, dated 23 November 2017, was commissioned by the Central Highlands Regional Council in response to the 2010 flooding of Rolleston. During the flood event five domestic dwellings were flooded and the town’s water supply and sewerage infrastructure were compromised. The final report with mitigation options and recommendations is presented to Council for endorsement. Resolution: Cr Nixon moved and seconded by Cr Brimblecombe “That Central Highlands Regional Council receive the final report of Rolleston Township Flood Mitigation Options Study, by SMEC dated 23 November 2017. And further; That Central Highlands Regional Council refer the recommended mitigation options for Council water supply infrastructure and sewerage system, for consideration in the forward capital works program, including seeking resilience grant funding opportunities for the proposed works.” 2017 / 11 / 28 / 005 Carried (9-0)

Attendance Central Highlands Development Corporation Regional Development Officer C. Spalding attended the meeting at 3.35pm

CENTRAL HIGHLANDS DEVELOPMENT CORPORATION Digital Telecommunications Audit and Action Plan (DTAAP) Executive summary: To make the region attractive to work, live, play and study, it is imperative that the Central Highlands becomes a leader in quality digital connectivity. Gravelroad Consulting were engaged to conduct and deliver a Digital and Telecommunications Audit and Action Plan for the Central Highlands region. The final documents have been reviewed and accepted by representatives from both Central Highlands Development Corporation and Central Highlands Regional Council, and are presented for final endorsement by Council. Resolution: Cr Sypher moved and seconded by Cr Godwin-Smith “That Central Highlands Regional Council endorse the Central Highlands Digital Telecommunications Action Plan 2017 – 2022 and the Central Highlands Digital and Communications Audit (July 2017).” 2017 / 11 / 28 / 006 Carried (9-0)


Central Highlands Economic Master Plan (CHEMP) Executive summary: To outline the priority initiatives that are needed for a structured approach to facilitate the continued economic growth of the Central Highlands, Central Highlands Development Corporation in partnership with Central Highlands Regional Council engaged KPMG to deliver the 2017-2022 Central Highlands Economic Master Plan (CHEMP). The CHEMP is now finalised and ready for endorsement by Council. Resolution: Cr Rolfe moved and seconded by Cr Daniels “That Central Highlands Regional Council endorse the Central Highlands Economic Master Plan – An Economic Master Plan to 2047 and Action Plan for 2017-2022 final (September 2017).” 2017 / 11 / 28 / 007 Carried (9-0)

Attendance Central Highlands Development Corporation Regional Development Officer C. Spalding left the meeting at 3.44pm

DEPARTMENTAL UPDATES Departmental Updates Executive summary: The following information provides an update on key activities for the Office of the Chief Executive Officer for the following:

Australian Local Government Association – 2017 National Local Roads and Transport Congress Considered by Council.

GENERAL BUSINESS (Verbal matters raised by Councillors either as a question, acknowledgement and or additional follow-up by officers)

Cr Rolfe provided an update with regards to the activities of Central Highlands Regional Resources Use Planning (CHRUPP) and that they will be moving to new premises in Ruby Street in early 2018. Cr Rolfe also meet with Gladstone Port Authority, Gladstone Regional Council, Regional Development Australia and Growing Central Queensland and Mayor of Banana Shire Council in Gladstone on Monday 27 November 2017 regarding the access roads to the Gladstone Port. Cr Rolfe said that she has offered support on behalf of the Bowen Basin Regional Roads and Transport Group (BBRRTG) and Council to support funding submissions for the connection roads from the Capricorn and Dawson Highways to the port roads to improve the supply chains. Cr Rolfe also advised that the Gladstone Port are having issues with the container ships not coming into the port. Cr Sypher advised that the Capella Cultural Centre 25 year anniversary is being celebrated on 3 March 2018. There is a small community group working on a plan for this celebration and that the plan will then go to the Capella Community Reference Group and that a small amount of funding maybe requested for this celebration.


Cr Nixon advised that at the Springsure Community Reference Group Meeting held on 27 November 2017, they were advised that there are 44 coal ships waiting to be loaded with coal off the Port in Gladstone which is affecting the mines in our area and others as they cannot get trains or drivers for the trains. Sojitz Meteor Downs is moving ahead and are trying to get machinery in before they closedown in December and to avoid the Christmas traffic. Mr Daniel Fletcher, General Manager Communities provided an update on the Nogoa November Event that was held on Saturday 25 November 2017. This event was well supported by the community and the feedback was positive and that they would like to see it happen again next year.

CLOSED SESSION Into Closed Session Resolution: Cr McIndoe moved and seconded by Cr Brimblecombe “That Council close its meeting to the public in accordance with Section 275 (1) (d) (h) of the Local Government Regulation 2012 and that Council staff involved in the closed discussions remain in the room.”

2017 / 11 / 28 / 008 Carried (9-0)

The meeting was closed at 4.28pm

Attendance Land Development Officer P. Ngwira attended the meeting at 4.28pm

General Manager Community Services D. Fletcher, General Manager Corporate Services J. Bradshaw, Acting General Manager Infrastructure and Utilities M. Parker, General Manager Central Highlands Development Corporation S. Hobbs, Minute Secretary M. Wills left the meeting at 4.28pm Vacant Land Management Plan and Business Process Model Attendance Land Development Officer P. Ngwira left the meeting at 5.24pm

Sale of Land - Write Off Balance - Assessment No 17885 Request Rate Write Off - Cancelled Leasehold Properties – Assessments 3733 and 16289 Capricorn Highway (27A-27B - Clermont Street) Planning - Flood immunity, traffic capacity and safety upgrade Departmental Updates – QTC Regional Collaboration Out of Closed Session Resolution: Cr McIndoe moved and seconded by Cr Nixon “That the meeting now be re-opened to the public.” 2017 / 11 / 28 / 009 Carried (9-0)

The meeting was opened at 5.31pm


Attendance Minute Secretary M. Wills attended the meeting at 5.31pm Vacant Land Management Plan and Business Process Model Executive summary: The Vacant Land Asset Management Plan and Business Process Model present the details of the vacant land owned and trust land under the control of Central Highlands Regional Council (CHRC) and the action plan relating to the draft Vacant Land Management Strategy (the Strategy) which was adopted ‘in principle’ by Council on 13 June 2017. The action plan will assist in the successful implementation of the recommendations contained within the Strategy. Resolution: Cr Godwin-Smith moved and seconded by Cr Daniels “That Central Highlands Regional Council endorse the Vacant Land Asset Management Plan and the Vacant Land Asset Business Process Model as amended. And further, that Central Highlands Regional Council adopt the Vacant Land Management Strategy which was adopted ‘in principle’ on 13 June 2017 as amended.” 2017 / 11 / 28 / 010 Carried (9-0)

Sale of Land - Write Off Balance - Assessment No 17885 Executive summary: The purpose of this report is to recommend to write-off the balance of outstanding rates on properties that were sold for arrears of Rates and Charges. Resolution: Cr Nixon moved and seconded by Cr Sypher “That Central Highlands Regional Council approve the write-off of outstanding rates and charges for Assessment number 17885 to the total amount of $3,065.83.” 2017 / 11 / 28 / 011 Carried (9-0)

Request Rate Write Off - Cancelled Leasehold Properties – Assessments 3733 and 16289 Executive summary: The purpose of this report is to recommend the write-off outstanding rates on properties where they have been surrendered back to the State of Queensland and Council has limited powers to recover the outstanding monies. Resolution: Cr Nixon moved and seconded by Cr Brimblecombe “That the Central Highlands Regional Council write off the outstanding rates debt of $6,668.11 on Rate Assessment 3733 and $32,545.80 on Assessment 16289, as there are no further avenues available to Council to pursue this payment from previous owners.” 2017 / 11 / 28 / 012 Carried (9-0)


Capricorn Highway (27A-27B - Clermont Street) Planning - Flood immunity, traffic capacity and safety upgrade Executive summary:

The Capricorn Highway (Duaringa-Emerald) - Gregory Highway (27A to 27B) flood immunity, traffic

capacity and safety upgrade project is being funded by Department of Transport and Main Roads and

progressed in partnership with Central Highlands Regional Council. The project oversight is by a Planning

Steering Committee consisting of senior officers from both organisations and including the Mayor Kerry

Hayes . The Project Steering Committee is operating under an agreed Terms of Reference, has been

meeting regularly since formation, has now developed a Strategic Assessment of Service Requirements for

the project, to be considered and approved by the Department of Transport and Main Roads Infrastructure

Investment Committee made up of the Director-General and Departmental heads.

Considered by Council. Departmental Updates Executive summary: The following information provides an update on key activities for the Office of the Chief Executive Officer for the following:

Queensland Treasury Corporation – Regional Collaboration Considered by Council. Regional Collaboration Resolution: Cr McIndoe moved and seconded by Cr Brimblecombe “That Central Highlands Regional Council work with the Queensland Treasury Corporation on regional collaborative initiatives to access markets and mitigate risks through participation in a working group. Further, that Council delegate to its Chief Executive Officer, this responsibility.”

2017 / 11 / 28 / 013 Carried (9-0)

CLOSURE OF MEETING There being no further business, the Mayor closed the meeting at 5.35pm. CONFIRMED MAYOR DATE

Prepared For: Central Highlands Regional Council And Central Highlands Development Corporation

September 2017

Central Highlands Digital And Communications – Action Plan 2017 - 2022 1 | P a g e

CONTENTS ........................................................................................................................................ 1

1. INTRODUCTION ......................................................................................................................... 2

2. BACKGROUND ........................................................................................................................... 2

3. USING THIS DOCUMENT............................................................................................................. 3

4. CURRENT CHALLENGES .............................................................................................................. 4

5. DIGITAL AND COMMUNICATIONS ACTION PLAN - METHODOLOGY ............................................. 5

SKILLED LABOUR IN THE REGION ................................................................................................................. 7

REGIONAL ECONOMIC BENEFIT ................................................................................................................... 8

6. IDENTIFYING SERVICES GAPS...................................................................................................... 8

CONSULTING WITH CONSUMERS, PEAK BODIES............................................................................................... 8

USING THE MAPPING TOOL – A CASE STUDY.................................................................................................. 9

WORKING WITH SERVICE PROVIDERS ..........................................................................................................10

7. INFRASTRUCTURE CHOICES AND A SAMPLE COST MODEL ..........................................................11

8. CHRC - DIGITAL ENGAGEMENT OPTIONS ...................................................................................15

9. FUNDING OPPORTUNITIES TO CLOSE GAPS................................................................................16

FEDERAL GOVERNMENT GRANTS ...............................................................................................................16

Regional Growth Fund ....................................................................................................................16

Stronger Communities Programme ..................................................................................................16

Community Development Grants Fund.............................................................................................16

Black Spot Projects .........................................................................................................................17

Outback Way (Queensland, Northern Territory and Western Australia) .............................................17

Local Government Financial Assistance Grant...................................................................................17

QUEENSLAND GOVERNMENT GRANTS .........................................................................................................17

State Infrastructure Fund ................................................................................................................17

CENTRAL HIGHLANDS REGIONAL COUNCIL ....................................................................................................18

PRIVATE INVESTMENT .............................................................................................................................18

10. ACTION PLANS ......................................................................................................................19

11. RECOMMENDATIONS ............................................................................................................24

APPENDIX 1: APPROACHING THE NBN TO RESOLVE COMMUNICATIONS GAPS – SERVICES GAP ENQUIRY TEMPLATE .......................................................................................................................................25

APPENDIX 2: SUMMARY OF PROJECT DELIVERABLES .........................................................................26

APPENDIX 3: SAMPLE COSTED PROJECTS ..........................................................................................28

APPENDIX 4: USING THE ONLINE MAPPING TOOL .............................................................................32


This digital and communications audit of the Central Highlands Region, undertaken on behalf of the Central Highlands Regional Council (CHRC) and Central Highlands Development Corporation (CHDC) is a companion document to the audit document and the related coverage mapping tool shown in figure 1. The audit document provides a detailed assessment of digital and telecommunications infrastructure in the region in order to identify what infrastructure/enablers currently exist throughout the Central Highlands Region and how the region can best utilise them.

This document identifies a number of infrastructure and service gaps across the Central Highlands Region and provides case study identification of what actions might be progressed to improve services provision. The aim is to develop the Central Highlands digital and telecommunications capability to achieve sustainable economic and lifestyle benefits for the region.

The Central Highlands is a prosperous and vibrant region, which has a diverse economy based on:

A globally competitive coal mining industry,

Traditionally robust and resilient agricultural and horticulture sectors,

Dynamic small and medium businesses,

A growing tourism market supported by major natural attractions such as the Carnarvon Gorge and the Gemfields, and

Professional and government sectors.

Government at all levels acknowledges the vital economic value of high speed broadband infrastructure being universally available to business and residential customers. It is also important that competitive services are available as far as possible to support price and service quality competition. Broadband services are now a universal communications medium for voice, video and data services for both busi ness and residential users.

In many parts of Australia, particularly regional and remote areas, economies of scale do not permit the provision of high density services seen in larger metropolitan and urban areas.

“Technological progress is a fundamental driver of productivity growth and increased liv ing standards in Australia. New economic modelling finds that Australians are each better off by $4,663 per year (in 2016 dollars) as a result of general digital technology uptake, which increases the productivity of workers and businesses, improves the quality of products and services, and reduces prices. This benefit is equivalent to a 6.6% increase in Australia’s gross domestic product (GDP) per capita over the previous decade (Qu et al. 2016). The contribution of digital technologies to the Australian economy is forecast to be $139 billion by 2020, when it will equate to 7% of Australia’s GDP (DAE 2015a). This represents the size of Australia’s digital economy and illustrates the significant role technologies such as cloud platforms, data analytics, artificial intelligence (AI) and the Internet of Things (IoT) will play in driving economic growth in Australia.” Australia’s Digital Pulse, Deloitte Access Economics. 2017


The National Broadband Network initiative intends to deliver 21st Century telecommunications broadband services across the country to close the gaps in telecommunications infrastructure and facilitate a competitive retail services market through acting as a wholesaler.

While the NBN has been rolling out, Telstra and the other telecoms carriers have understandably slowed or stopped their infrastructure investment where it may compete with the NBN. This situation means the NBN is seen to be the main infrastructure provider of new age telecommunications infrastructure since 2008 when the NBN was announced. In practical terms, many regional areas which have relied on ADSL1 have had no further investment in broadband delivery technology and so many ADSL DSLAMS 2 that provide this basic service were not augmented and in many areas there are no spare ports on the DSLAMs for new connections.

The NBN is now well advanced in its rollout and in the Central Highlands Region, there is limited cable service in Emerald and Blackwater to connect premises. For the rest of the region, the NBN provides connectivity via fixed wireless or satellite connection.

The NBN cost for a national rollout has changed considerably since the start and we are seeing compromises of the original infrastructure plans to spread connectivity more widely and at a lower cost per premise connection. In regional and rural areas where connectivity costs per connection are high, it is likely that fewer premises will achieve the same connectivity as in the cities and at the time of writing (July 2017) it is becoming clear that many in the telecommunications supply-side market, and consumers believe that there are and will be gaps in NBN infrastructure that will limit service quality in terms of download and upload speed and potential congestion at busy times. The purpose of this project has been to show how to identify these gaps, overlay them with other relevant telecommunications infrastructure that may assist, and then plan what actions can be taken to alleviate the potential problems in the lack of modern telecommunications services.

This Action Plan is dependent on the Audit document and the Google Earth Mapping Tool (refer Appendix 4 Using the Online Mapping Tool) that has been developed to illustrate where every residential and business premises is located in the Central Highlands Region, and show what communications options each premise has for communication – phone or data connections. The Audit document and mapping tool present a snapshot of the telecommunications infrastructure and capability in July 2017, and a number of gaps have been identified where services do not meet the expectations of consumers. When there is a need to assess the telecommunications services available in the region from any service provider or group of service providers, the mapping tool allows a spatial representation of any ‘gaps’ that may result from a lack of capable infrastructure in the region.

1 Asynchronous Digital Subscriber Line (using old copper cables – a range of 2-4km from the Telstra exchange building)

2 Digital Subscriber Line Access Multiplexer

Google Earth Telecommunications Mapping

Tool for Central Highlands

Region

Figure 1: Audit and Action Plan + Google earth Tool


This document describes in detail how any ‘gap’ can be assessed and action options to addres s the problem for that part of the region.

The purpose of the document is to identify communications needs that are not being met by the NBN, or other service providers in any part of the Central Highlands Region.

Where it is confirmed that needs are not being met by existing services, a Broadband Services Gap Enquiry form is completed that in the first case is submitted to the NBN as the service provider with the primary responsibility for the provision of broadband services in Australia. The NBN will con sider whether it can extend its infrastructure to the areas of concern and will advise what it can offer and the cost to extend its infrastructure. This is the most attractive option because the NBN has significant economies of scale and acts as a wholesaler meaning that many Retail Service Providers (RSPs) can then compete to offer services to business and residential customers.

If the NBN cannot offer services for an acceptable price to the community, the same requirements are presented to other service providers who may be interested in extending their networks in the region to meet demand requirements.

There are a number of deliverables for this project which are summarised in Appendix 2, and the outcomes in Audit and Action Plan are summarised there. Sample costed projects are in appendix 3.

As a starting point, the following challenges have been noted:

Insufficient (ADSL) ports for growing consumption. The NBN activity has meant Telstra and other Internet Service Providers (ISPs) have largely stopped investing in DSLAM (Digital Subscriber Line Access Multiplexer) equipment used to deliver broadband over copper lines and so in many areas, there are no ports left for new connections. This problem is being alleviated by the NBN rollout and in time the ADSL services will be turned off, meaning this once dominant delivery technology will be no longer available. When ADSL services are turned off, as is planned by the NBN, the alternative will be one of NBN cable, fixed wireless or satellite. Note the count of services by the NBN for FttN services in Emerald for example against for ADSL in table 4 in the Audit document shows FttN at 2,628 available connections, while ADSL available connections (assuming no DSLAM port shortages) are 8,637. This means that about 6,000 connections will have to connect to the NBN Sky Muster satellite service if the aging ADSL service is turned off.

Customer premises connection to cable is limited. Fibre connectivity to client premises is difficult to cost justify for the NBN in smaller towns and rural areas. A number of alternative are being delivered including Fibre to the Node (FttN), Fibre to the Curb (FttC), Hybrid Fibre Coax (HFC), fixed wireless, and the new NBN satellite services. In the Central Highlands area, Emerald and Blackwater have limited cable access under construction with the NBN, with the planned extent for Emerald shown to the right. Fixed wireless services are for the Gemfields area and at the time of writing, all other customers in the region will have NBN satellite service.

During natural disasters access can be cut for long periods of time. This is based on limited backhaul connections to major communication hubs such as Brisbane, and we are aware of the vulnerability of these links for Telstra in recent years, in January 2013 and August 2016 for example. The NBN does not invest in new backhaul cables so is reliant on the currently available cables into

Figure 2: Sample NBN Cable Coverage


the region, principally owned by Telstra, the RBBP3 and Queensland government cables owned by Queensland Rail and Ergon (Energy Queensland) and Powerlink. In this context the multiplicity of fibre cables in the region are not used as effectively as they could be to reduce the impact of natural disasters. If these fibre optic cables are used more extensively because backhaul prices can be reduced, the region will inherently be less affected by natural disasters because more network assets are in use.

There are black spots in different parts of the region. The Federal government has a mobile black spot program and in December 2016 three new mobile base stations were announced for the Central Highlands Region – Takarakka Bush Camp, Carnarvon Wilderness Lodge and the Carnarvon Gorge Visitor Centre, all to be provided by Optus via satellite backhaul connection. The next round of black spot coverage will be announced in 2017. We understand there will be many other black spots in the region, principally for competitively priced broadband services.

We describe the intervention process in the methodology diagram opposite:

The first step is to respond to any message from members of the public or from Council that there may be a lack of modern communications capability in the Central Highlands Region. This section of the methodology discusses how to assess a claimed issue using the Google Earth mapping tool, and assemble information needed to determine the viability of building new network infrastructure.

The Broadband Services Gap Enquiry process requires an understanding of the type and extent of the problem, and we refer to Appendix 1 for a template to complete to ensure the scope of the problem isdefined. This template captures the requirements for an NBN enquiry but will also meet the requirements of other infrastructure providers in due course.

The next step is to open the Google Earth mapping tool for the Central Highlands and locate the area of the problem, and switch on all the service layers to determine what service coverage options are there for the users. This information is also added to the enquiry template in Appendix 1.

The final step is to confirm whether there is a gap, or whether an available service has not been tried yet. Available services might include mobile data services (Telstra, Optus, Vodafone), third party wireless service providers and NBN satellite for example.

3 Regional Backbone Blackspot Program – Federally funded cable from Brisbane to Darwin and passing through the Central

Highlands region.

Broadband Services

Gap Enquiry

Members of the Public, Peak Bodies,

Council

Assess Gap with

Google Earth

Mapping Tool

Confirm Gap?

Gather Data - Demand Level, Type,

Location

Advise

Available

Alternatives

No

Start

Yes

Figure 3: Determining Service Gaps


If it is the case that there are available services that might meet requirements, the enquiry is closed because the gap is not confirmed and the enquiry is answered in that there appears to be a potential solution to close the gap.

By way of further example, a group of users may experience difficulties in accessing the School of the Air4 using NBN satellite services during times of heavy use, but there may be a third party wireless service provider that has better service performance for all or some of the affected users.

If there remains a problem, the Services Gap Enquiry template is completed and becomes the input to the intervention options that are described in the second part of the methodology on the next page.

We recommend that when a services gap is identified and confirmed with the mapping tool, the first intervention option is to approach the NBN northern regional office5 and advise that their infrastructure is not meeting the needs of broadband consumers in the specific part of the region identified before.

The NBN will assess the information provided in the form in appendix 1, if the applicant pays an application fee. The NBN reply will be to provide a cost to build out their cable or fixed wireless network to meet the requirements in the Broadband Services Gap Enquiry template. This response may or may not be acceptable to the community pf people seeking improved services.

If the NBN offer is not acceptable, the next step is to consider what other infrastructure providers may be interested, and the Broadband Services Gap Enquiry template will serve to get this enquiry process underway. This is a Go to Market process where an Expression of Interest (EoI) process is established that uses the enquiry template to provide a response.

We expect that all the major telecommunications companies and local providers be provided with the EOI – for example Telstra, Optus, Vodafone, South West Wireless, Big Air and Wi-Sky at the time of writing have some level of infrastructure in the region and could extend it if their business requirements were to be met. We expect that in all cases, these providers may conclude that there is a shortfall of revenue against capital cost to extend their network. This capital contribution should be a requirement in their response.

4 http://www.australia.gov.au/about-australia/australian-story/school-of-the-air

5 Contact Bruce McDonald NBNCo on [email protected] or 0407 141 760

Gather Data - Demand Level, Type,

Location

Apply to NBN

Willing to

Support?

Funding

Available?Yes

Assess Infrastructure and Funding Options

Feasible?

No

No

Stop

Go to Market for Funds, Suppliers

Successful? Stop

Start

Infrastructure

Build

Yes

No

No

Yes

Yes

Figure 4: Process to alleviate identified gaps

mailto:[email protected]


A likely outcome of every enquiry in this part of the methodology is that every solution, whether from the NBN or others will require infrastructure investment and that there will be a ‘gap’ in funding that has deterred this investment to date.

This funding gap will have to be negotiated with the community seeking improved services and the options for closing the gap to a point of project viability for the service provider may include:

1. Demand commitment from a minimum number of consumers. For example if 50 consumers agree to take service for two years, this might give the service provider confidence they will recover their investment.

2. Application for State and Federal funding. There are a number of government funding options discussed in Section 11 that may be accessed to support new infrastructure.

3. Use of local assets. Buildings, water tanks and radio masts that are already in place might reduce the capital costs of installation of telecommunications equipment, thereby contributing to closing a capital expenditure gap.

4. Reducing installation costs. In some cases a community may be able to fund or provide equipment and or labour to erect radio masts, plough in a fibre optic cable, locate and install equipment shelters and so on.

5. Gap funding. A community may be willing to make a one-off payment to close a funding gap to have better telecommunications services.

Skilled Labour in the Region

The requirements and opportunities for skilled labour in the region is discussed here in two contexts:

i) Deployment and Operation of Digital and Communications Infrastructure. The installation of network infrastructure to provide broadband services is itself in two parts:

a. Distribution infrastructure – cable deployment and radio system installation is installed by national contractors with some local skills as they are available, mostly trades for excavation, mast and tower deployment and so on. This practice is common and only some local skilled labour in the region would be used in this way.

b. Customer infrastructure – an ongoing activity that uses local skilled resources to connect homes, undertake maintenance and repairs for the national service providers. As with item a. above this activity is normal in the industry and local resources will be contracted as necessary. Skills required are normal electrical and communications experience, with minimal specialist training required.

ii) Establishment of Local Businesses that Require Digital and Communications Infrastructure. Again, there are two parts to this skills requirement.

a. Normal business and residential activity – most businesses are increasingly reliant on broadband services to operate effectively, increasingly with ‘cloud’ based applications. The same is true for residential users and the skills needed to operate in both areas of business and residential use are not difficult to acquire.

b. New business and economic growth – many new business opportunities can be undertaken in any location that has good connectivity and which allows wide geographical interaction with suppliers and customers. The generally lower costs of accommodation and staff resources in regional areas can make establishing business in regional areas attractive to entrepreneurs.


The Development Corporation and Council have strong economic development goals for the region and these can be enhanced in some cases where there is low cost high speed connectivity available. The case studies shown in this document illustrate some potential for economic development. In these cases, information technology skills needed for these new businesses are likely be come from larger cities and be attracted to the region by lower costs and access to clients.

Regional Economic Benefit

We have discussed the widespread acceptance of economic enablement that comes from broadband connectivity – our quotation in Section 1 summarises the essential nature of this form of communications.

Perhaps more importantly is the potential economic disablement that results from a lack of acceptable connectivity. Farming is as reliant on cloud computing access as other businesses, and in regional and rural areas, some constraints will apply when only satellite services are available for example, compared to fixed line services. As important, education and health services are increasingly able to be delivered or augmented with broadband technology, and constraints in connection speed or reliability will limit the value of these services.

Consulting with Consumers, Peak Bodies

During the development of the communications Infrastructure audit, a number of consultation sessions were conducted in the following locations, attended by:

Emerald - Sandra Hobbs, CHDC - Terry Urquhart, Emerald Agricultural College - Gai Sypher, Central Queensland University - Richard Weston, Vanderfield - Liz Alexander, CHDC (one-on-one) - Michelle Jensen, Head of Campus, Capricornia School of Distance Education (by phone)

Blackwater - Steve Knight, Department of Science, Information Technology and Innovation - Sue McCosker, department of State Development

Springsure (all one-on-one) - Alison McIver, Coordinator Area Office Springsure/Rolleston, Central Highlands Regional Council - Sandy knight, Librarian (part time), Springsure and Rolleston Libraries - Jennifer Symons, Mitre 10 Springsure - John Noffke, Noffkes’ Rural Real Estate & Livestock P/L

By phone: - Trina Patterson, Bottle Tree Downs, 20km north from Rolleston - Patricia Godwin, cattle property owner, 100km west of Springsure - Bernadette Paine, Myola, 110 south west of Springsure

The Gemfields - Peter Brown, Rubyvale Gem Gallery


The key issues to come out of the consultations were:

High speed broadband in the towns was generally poor. However, as most are utilising ADSL via existing telephone lines, the quality is largely dependent on distance from the Telstra exchange. It should be noted that in time the ADSL services will be turned off and users will be dependent on NBN or other service providers.

Mobile coverage tends to cut out at around 10kms from each town. This results in disconnected communities, as well as severely impacting business operations, especially agribusiness. It also poses a significant safety issue, not only for locals, but for tourists, as the region is highly desirable to tourists, especially the ’grey nomads’.

In relation to satellite, NBN’s Sky Muster, despite some problems in the first few months after it was deployed, it now appears to be providing good service with download speeds over 24mbps and upload speeds of over 4mbps. As more users are connected to the satellites, there may be more congestion and reduced performance for customers.

For the fifty odd families with children engaged in distance education data limits are the key i ssue. With 15 hours of audio-visual time per student per week, at around 1 GB per hour, data limits are eaten up quickly. However, there has also been a recent announcement by the Minister that NBN will be doubling its data limits from October 2017.

Using the Mapping Tool – A Case Study

An example of the use of the mapping tool is presented below – connectivity for the Emerald Agricultural College on 26274 Capricorn Highway, Emerald QLD 4720. At present the College uses ADSL services from the Emerald Exchange Service Area, and NBN policy at present is that ADSL will be turned off in approximately two years. According to current NBN plans, the college will not receive cable connections (located about 700m away) or fixed wireless services, so NBN satellite appears to be the only option. The map below shows the location of the College on the Capricorn Highway and its proximity to the NBN cable rollout closer to the metropolitan area.

EAC

Figure 9: Location of the Emerald Agricultural College on the Capricorn Highway.


The Services Gap Enquiry Gap template in appendix 1 would seek the follow ing information from the College:

Current and preferred broadband capacity for staff, administration and students

Distance from the nearest NBN distribution infrastructure – about 750m

Distance from the nearest available fibre optic cable – likely the RBBP cable in the Capricorn highway less then 100m away.

Coverage options for wireless services from Telstra, Optus, Vodafone and third -party service providers.

This document should be presented in the first case to the NBN northern regional office (contact details provided in appendix 1). We recommend a preliminary discussion before making a formal application and paying the application fee for a detailed design and costing for the potential solution.

In this preliminary meeting the question should be asked – without prejudice – whether this location and demand estimate is likely to result in a cost effective response f rom the NBN. If the answer is positive, we suggest the region submit the NBN application and payment. Our advice is that an NBN solution is the most beneficial for any such enquiry because there would be a choice of retail service providers and regulated wholesale prices.

If the NBN response is unacceptable for any reason, we suggest the same mapping and documents are presented to the carriers and service providers mentioned earlier. Infrastructure options are likely to include microwave links to a service provider node, or a fibre optic link to a local cable and the provision of high speed services to the College.

Working with Service Providers

It is recommended that the Region use the Google Earth mapping tool and community feedback to confirm the gaps identified in this document, and find others as appropriate. This information in preliminary form should be presented to the NBN for comment, and then to Telstra, Optus, Vodafone and then the third party service providers such as South Western Wireless, Big Air and Wi-Sky. The case study in Section 7.2 may be an appropriate example, perhaps with another from a more remote part of the Region. Refer the bauhinia example in Appendix 3.

This preliminary market sounding activity will help the region to understand how to use the mapping tool and in discussions with the service providers, form initial relationships, set expectations with the service providers and provide a broad understanding of the terms under which service providers will engage with the region.


In most cases, the infrastructure costs involved in connecting areas of demand will be a fibre optic cable extension from the commercially available cables shown in the Google Earth mapping tool and in the example maps in this document, or for more remote demand, via microwave links that would have to be constructed from the same fibre optic cables.

Unit prices for this infrastructure are as follows:

Laying fibre optic cable: - all minimum of 10km for these costs:

In urban areas - $200/$500 per meter

In regional areas - $50 - $70 per meter

In rural areas - $40/$70 per meter Microwave links - $20,000 to $50,000 per 50km link, not including masts and equipment accommodation. In all cases connection of these fibre or microwave links would be at the cost of the service provider and should not be part of a ‘gap’ cost determination. In broad terms, a non-technical user of this document can develop a high-level understanding of the cost to resolve a gap on the following basis: There are two elements to bringing high speed services to an area that is (for example) going to be reliant on satellite service from the NBN:

1. Backhaul capacity from a fibre termination point – in Emerald for example. This is most likely to be either the installation of a new fibre optic cable from the fibre termi nation point to the site where distribution will start, or microwave radio over the same distance. The range and cost implications of these approaches are as follows for the Emerald Agricultural College, as an example:

a. Fibre optic cable lay – assume 3km from an existing point of interconnect in Emerald to the college site. Cost to lay cable estimated to be on average, $75/m and so expected cost to the College is $225,000.

b. Microwave radio link – up to 100Mb/s from a line of sight rooftop in Emerald to the College has the following costs:

i. Microwave radio link - $20,000

ii. Cable connection to the Emerald end of the link – assume $20,000

Total cost is expected to be $40,000.

Note that while the fibre optic cable is more expensive, it will have greater inherent capacity than microwave and will not be affected by unusual atmospheric weather conditions that could temporarily interrupt a radio link.

2. Distribution – within the College to staff and students. We are unaware of existing cabling at the College that might be used to distribute signals to users but assume for the sake of costing illustration here that College administration cabling will be re-used so there is no additional cost, and that new WiFi connections for student connections might be $5,000 to $10,000. Normally, these distribution costs are borne by the client – the College in this case.


In summary for the Agricultural College, which appears to be left on satellite services once the NBN is fully deployed, the ideal case is to connect the College site via a fibre optic cable that connects in the city to an existing fibre termination point. On the basis of the cable laying conditions we have observed from the fibre connection point to the College, the cost would be in excess of $200,000. We assume this may be unacceptable if all this cost is to be borne by the College. The microwave radio link connection is more likely to be acceptable at around $40,000 and due to the relatively short distance of the radio path, likely to be acceptable reliable. Regarding the distribution costs discussed in item 2 above, this cost would be met by the College and possibly their chosen service provider. The approach to the service provider market once the problem has been identified (refer to the Services Gap Enquiry Template in appendix 1) and quantified with the mapping tool as suggested in the Recommendations in Section 11 – the first approach is the NBN to determine whether they will extend their network, in this case to reach the College. This is the preferred approach because users at the College will have the benefits of multiple service providers using the extended NBN infrastructure . We have provided the NBN contact details in Appendix 1. The next step is to invite interested industry providers to consider providing the service. This should be in the form of an Expression of Interest (EOI), using the same form as provided in Appendix 1. At the time of writing in September 2017, we recommend contacting at least the following companies for their comment and potential offers: Telstra Mike Irwin National Local Government Business Support Specialist Local Government & Smart Cities |

Premier Business | Telstra Business P 07 5656 4685 | M 0414 180003 | E [email protected] W www.telstra.com/business Optus <tba> South West Wireless Geoff Peach, Chief Executive Officer [email protected] Mobile: 0419 956 440 Big Air 1300 244 247 Level 1, 203 Pacific Highway St Leonards NSW 2065

We expect that in most cases, from the NBN to Big air and others, if the gap in the Central Highlands is to be closed, there is a capital funding shortfall to be met in some way. Section 9 lists the funding options from government and the like. It may be that the beneficiary – the College in this case – can fund the shortfall entirely or in part. Figures 3 and 4 earlier show the generic process. Figure s 10 and 11 on the following pages takes these diagrams and provide a specific example for the Agricultural College to illustrate this specific example:

tel:(07)%205656%204685

mailto:0414%20180003


http://www.telstra.com/business

tel:0419%20956%20440


The College is confirmed as having a potential problem from the NBN rollout plans provided in the mapping tool – it will only receive satellite (Sky Muster) service. This may be a problem for the College because it can be difficult to provide satellite based services to many staff and students. It is necessary to collect demand data from the College – their current consumption and needs for the future for College administration and students. We now have the Services Gap Enquiry Template (Appendix 1) completed.

Emerald College Case Study

Satellite Only Service from NBN Identified From Mapping

Tool

Start the Process to Identify and Close the Gap

Mapping Tool Identifies 3km fibre gap, 2km microwave

radio link path

Work with Ag College to Confirm Demand, Connection

Speed

Figure 10: Gap Analysis and Closure Process – Emerald Agricultural College.


A review of the fibre optic cables layer on the mapping tool shows that there are fibre optic cables nearby, and that either a fibre cable from a nearby connection point is one option, with a microwave radio link the other option. We have provided unit costs for these technologies in this document. This allows an approximate cost to be determined in this case for fibre and microwave radio connections to the site ($225,000 and $40,000 respectively). We now present the completed template to the NBN for advice on whether they can provide improved service to the College, and if so, at what cost – shown here as $x. If this cost is acceptable and can be funded – say by the College, the problem is resolved. If $x is too high, the same completed template is presented as an Expression of Interest (EOI) to the companies discussed earlier (Telstra, Optus, SWW, Big Air). Costs to close the gap will come back, and the same process of determining how to meet the funding requirement is required – the beneficiary (the College), the vendor/service provider in part, the government funding sources described in Section 9. If funding is available, the project can be completed and new high speed broadband services provided to the College.

Emerald College Case Study - Contd

Work with Ag College to Confirm Demand, Connection Speed

NBN Enquiry Results in Cost of $x - ok or not?

EOI Process to Other Potential Service

Providers - Telstra, Optus, SWW, Big Air etc

Is there a solution?

What is the capital gap to deliver the new

Infrastructure? How to fund - the beneficiaries,

the service provider, government grant?

Figure 11: Gap Analysis and Closure Process – Emerald Agricultural College.


In developing any plan for upgrading regional communications and digital capacity, local government has a major role to play. The following table 1 outlines CHRC’s options for engagement, along with the potential benefits and risks.

It is generally agreed that there are four options and three levels of commitment. They are:

1. Primary: CHDC plays the primary role by using Council facilities and funds to invest in and operate a telecommunications network as a public utility;

2. Partial: CHDC plays a partial role by making available Council facilities, but relies heavily on a private partner(s), particularly for operations, marketing, and financing; and

3. Facilitator: CHDC uses governmental and other levers to facilitate the ability by private sector partner(s) to play all the roles.

4. Status Quo (do nothing): Leave outcomes to the NBN and other service providers, although maintain a close watch on gaps and issues using the processes and mapping tool provided in this project.

Level Model Regional Benefit Regional

Risk Example Case

Primary Bui ld and operate a

regional telecommunications network

Counci l control

Regional coverage Customer service

and community

accountability

Financial return

Operational sustainability

Pushback from incumbents

Publ ic backlash i f unsuccessful

This might resemble the South

West Wireless organization – providing a ‘layer’ of high speed services to consumers who do not

wish to use the NBN. WE do not assume this is an attractive option due to the risk, lack of telecoms

ski lls and the matter of competing with loca l companies .

Partial Provide Council infrastructure and or funds to the private

sector to build and operate the regional telecommunications

network

Reduced Council control

Opportunity for future expansion

Potential for increased competition

Financial risks Operational

sustainability

Pushback from incumbents

Publ ic backlash i f unsuccessful

Potentially l ikely where Counci l needs telecoms assets (likely fibre or radio l inks ) for i ts own

operational purposes , and for a margina l cost, can provide additional capacity for connecting

other customers. More likely than the ‘Primary’ option and

management and operation can be provided by expert thi rd parties .

Facilitator Uti l ise Council resources (ie. Grant

funds, aggregated demand) to encourage private

sector to deliver an end-to-end service

Reduced Council investment or ri sk

Shared risk and reward across sectors and community s takeholders

Uneven coverage Lack of local

control

Partnership confl icts going

forward Incremental

investment can be risky

Most l ikely – using the mapping tool and methods set out in these

documents to identify and find ways to close telecommunications gaps.

Status Quo

Do nothing Ni l Council investment

Competitive disadvantage against other regions

A practical option, but a ll the evidence at the present time (September 2017) indicates that the NBN wi ll not be able to meet a l l the needs of customers, and if this is the case, there are

economic costs for the Region in having relatively poor broadband services.

Table 1: CHDC – Digital Engagement Options


When a capital cost to extend services to meet consumer demand has been assessed with the NBN or another service provider, as discussed above, there may be value in exploring funding options from government sources as set out below:

Federal Government Grants

Regional Growth Fund

The Government will provide $472.2 million over four years from 2017–18 to establish a Regional Growth Fund.

The Regional Growth Fund will include $272.2 million to provide grants of $10.0 million or more for major transformational projects which support long-term economic growth and create jobs in regions undergoing structural adjustment.

Also in the Regional Growth Fund is $200 million for the Building Better Regions Fund (BBRF) for four years from 2017–18, building on the commitment to the BBRF at the 2016 election, to allow more regional communities across Australia to benefit from the fund. This brings the total Australian Government commitment to the BBRF to nearly $500 million from 2017–18 to 2020-21.

The BBRF will invest in eligible projects in regional and remote Australia, outside the major capital cities of Sydney, Melbourne, Brisbane, Perth, Adelaide, and Canberra. Successful projects will be required to deliver economic and social benefits, and grant funding is available through two funding streams:

The Infrastructure Projects Stream supports projects that involve construction of new infrastructure, or the upgrade or extension of existing infrastructure.

The Community Investments Stream funds community development activities including, but not limited to, new or expanded local events, strategic regional plans, leadership and capability building activities.

Stronger Communities Programme

The Australian Government will make available an additional $22.5 million to deliver a third round of the Stronger Communities Programme (SPC) in 2017–18, to fund small capital projects in local communities that will improve local community participation and contribute to vibrant and viable communities across Australia.

Under the program, $150,000 will be available in each Federal Electorate in 2017–18. Applicants will be able to seek a grant of at least $5,000 and up to a maximum of $20,000 and will be required to match the SPC grant in cash or in–kind on at least a dollar for dollar basis.

The input of the community is a key element of the SPC. Each Member of the House of Representatives is required to establish a community consultation committee, to identify projects for consideration under the program.

(Applications for round three opened on 7 August 2017)

Community Development Grants Fund

The Community Development Grants Fund provides funding for critical projects where the local community has identified the need for new or upgraded facilities. Projects range from new sporting facilities, to upgrading community centres and small-scale infrastructure projects.

Community Development Grants Fund projects contribute to the local economies, create jobs and boost the confidence within a region. To date, funding of more than $941.2 million has been committed to more than 750 projects including more than 450 projects from the 2016 Federal Election.


Black Spot Projects

Black Spot Projects will receive funding of $624.5 million from 2013-14 to 2019–20, to help make roads safer for motorists, cyclists and pedestrians. Each State and Territory receives a share of the total funding, based on population and crash data.

Black Spot Projects will continue to receive $60.0 million a year from 2020–21 for road safety works such as roundabouts, crash barriers and street lights at places where there have been serious crashes or where serious crashes are likely.

More than 60 per cent of road deaths and a significant proportion of serious injuries occur outside metropolitan areas. In line with national road safety policy objectives, approximately 50 per cent of Black Spot funds in each State (other than Tasmania, the ACT and the Northern Territory) are reserved for projects in non-metropolitan areas. This ensures that crash locations in rural areas are treated.

Outback Way (Queensland, Northern Territory and Western Australia)

The Australian Government is investing $42.0 million from 2014–15 to 2018–19 towards the $75.8 million Outback Way project to upgrade sections to improve safety and access to remote areas. The project will unlock the potential benefits of the Outback Way, benefitting Indigenous and remote communities and the Australian economy, particularly in the areas of tourism, mining and freight.

The Australian Government has committed an additional $100.0 million to continue upgrading the Outback Way across Queensland, the Northern Territory and Western Australia. Funding between these jurisdictions has been notionally allocated, with actual funding splits to be informed by an investment strategy to be developed by the Australian Government in consultation with the jurisdictions.

Local Government Financial Assistance Grant

The Local Government Financial Assistance Grant program established under the Local Government (Financial Assistance) Act 1995 provides financial assistance to local governments across Australia to enable them to meet local priorities. The Australian Government is continuing the Financial Assistance Grant program which will provide an estimated $8.8 billion to local government over the period 2017–18 to 2020–21—approximately $2.5 billion per year. The funding is untied and consists of two components:

a general purpose component which is distributed between the States and Territories according to population; and

an identified local road component which is distributed between the States and Territories according to fixed historical shares.

Queensland Government Grants

State Infrastructure Fund

The Queensland Government is providing $2 billion over five years, from 2015–16, to build the priority infrastructure needed to support economic growth and liveability into the future.

This supports the implementation of the State Infrastructure Plan (SIP) and further demonstrates this government's commitment to planning and delivering infrastructure.

This new fund will focus on infrastructure projects that will enhance productivity, support jobs and are ready to be brought to market quickly, so that we continue to underpin productivity and jobs growth in Queensland.

New programs established under the SIF are:

Works for Queensland, $200 million—supports regional councils to undertake job-creating maintenance and minor infrastructure projects. More than 700 projects have been approved and

https://www.dilgp.qld.gov.au/infrastructure/state-infrastructure-plan.html


councils estimate the works will support, sustain or create almost 6,000 jobs in regional towns and cities battling high unemployment. Under the 2017–18 State Budget, an additional $200 million is being provided for the Works for Queensland program — this takes total government funding to $400 million. The Works for Queensland program will continue to fund job-creating maintenance and minor infrastructure works to ultimately improve the condition, quality or lifespan of local government assets. The department will work with eligible councils to distribute funding allocations and identify projects. Learn more about this program

Maturing the Infrastructure Pipeline Program, $20 million—aimed at fast tracking early stages of the infrastructure project pipeline by developing strategic assessments and preliminary evaluations for projects. These were initially identified through consultation and outlined in Part B of the State Infrastructure Plan. New proposals from local government have also been requested. The program will involve moderated assessment and prioritisation processes through two tranches of work: - Rapid assessment: working with industry to rapidly assess the viability and feasibility of proposals and future opportunities identified in the State Infrastructure Plan.

- Early stage assessment: working with local government to assess the potential of infrastructure proposals to support those that increase economic productivity and enhance liveability in Queensland's regions.

Central Highlands Regional Council

It has been noted previously that CHRC could contribute to the advancement of telecommunications throughout the region by investing cash, budgeted on the basis of it being utility infrastructure, necessary for the development of the economy, community and safety for the region.

Council could also make available, some of its existing infrastructure, such as water towers, buildings, etc. where transmission devices could be located.

Private Investment

There is also the possibility that private organisations, or individuals could be willing to contribute. Service providers might be encouraged to invest in the expansion of their networks if critical demand mass could be aggregated, or potential users willing to meet or offset some of the capital cost involved in delivering the necessary infrastructure.

https://www.dilgp.qld.gov.au/local-government/grants/works-for-queensland

https://www.dilgp.qld.gov.au/local-government/grants/works-for-queensland


The following action plans relate to CHRC’s and CHDC’s stated priority projects. We have added to these, a set of actions to deliver optimal broadband connectivity to each of the communities throughout the region.

Priority Area Requirement Action Responsibility

Estimated

Completion and Comments

Logistics & Transportation

CQ Inland Port (Yamala)

Logistics hub requires high speed synchronous communications

SWW have installed a tower and working with the developers to deliver commercial grade

telecommunications.

South Western

Wireless

CHRC

Project developers

End 2017 – this may be an adequate solution for this site for the

moment.

Airport precinct (including Innovation Hub, i.e. facil ities for hot

desking, networking, start-ups, etc)

To encourage industry to locate to the airport business hub, a

necessity will be reliable, high speed communications

SWW advises that they are building new capacity to deliver services to the airport. A

second diverse l ink would be desirable. Having a fibre

connection would help sell the hub to prospective tenants (Refer Appendix 3)

South Western

Wireless

CHRC

Project developers

2018 – the wireless connectivity will be relatively quickly provided and can

meet growing needs. If the site becomes large, a

fibre optic cable service infrastructure connecting all

buildings should be considered as an essential part of any Development

Application where ducts and cables are installed during

construction at marginal (low) cost.

Education Precinct

Central Queensland University

They have an existing Telstra fibre connection. Their issue is

communicating with remote students

Advise students of the options for either satell ite, or where possible wireless

services.

CQU

South Western

Wireless

TBA – student connectivity involves SWW, 3G/4G mobiles,

current ADSL, NBN services etc. We recommend a

Student Connectivity Guide be prepared using the mapping tool.


Education Precinct

Agricultural College Due to poor ADSL connectivity the college is unable to

provide broadband to the student dormitories, or independent l iving

quarters. The ADSL connection will

l ikely be turned off within 2 years, leaving the college with satell ite being

the only option.

If SWW can deliver communications to the Ag-Grow site, they

should be able to provide commercial grade broadband to the college

Ag College

South Western

Wireless

See detailed case study in this document – Section

7.

Business Precinct

Entertainment &

Evacuation Centre (fibre access via the Ag College)

Refer Ag College

above

Refer Ag College above Refer Ag College above Refer Ag College

above

Emerald CBD The CBD will have

NBN FttN connection. This may not suit some

businesses requiring commercial grade broadband.

Free public WiFi is also desirable

Investigate SWW or

other wireless operators able to provide commercial grade

broadband, as well as free public WiFi. Telstra Air can also provide this service.

CHRC

NBN

SWW

Telstra (Air)

Other wireless

operators

Ongoing – while

most business customers are expected to find

acceptable service from NBN infrastructure, some special

requirements, such as synchronous connectivity, may

not be available and so the South West Wireless and similar companies

will provide these services.

Stock & Produce Precinct

Ag Grow Being an annual event, but only for 3 days, WiFi would

be the best solution

SWW provide free WiFi service to Ag-Grow this year. This should

become a permanent facil ity.

Ag-Grow

management

SWW

2017 and onwards

Saleyards & meatworks

The site would benefit from buyers

and sellers being able to have broadband connectivity

The sale yards will have NBN FttN connectivity.

It could then be possible to provide a mesh WiFi service across the site. An alternative is the

SSW base tower is close by.

Saleyard

management

Meatworks

NBN

SWW

From the time NBN FttN infrastructure

is in place – assume 2018.


Showgrounds The site would

benefit from buyers and sellers being able to have broadband

connectivity

The sale yards will have

NBN FttN connectivity. It could then be possible to provide a mesh WiFi service across the site.

An alternative is the SSW base tower is close by.

Showgrounds

management

CHRC

NBN

SWW

From the time NBN

FttN infrastructure is in place – assume 2018.

Emergency Response

Carnarvon Gorge (arguably the

current 3 x satell ites will be insufficient for an emergency

response given their 200m radius range)

The proposed Optus small cell

satell ite 4G base stations at the visitor area, wilderness lodge

and bush camp should provide necessary capability for emergency

response

Recommend no further action in relation to

broadband infrastructure, as travellers mostly rely on mobile connectivity to

be made available by the Optus service that will also provide connection to Telstra

customers.

CHRC

Optus

No action – ongoing watching

brief and act as per the methodology in Figures 3 and 4.

Blackdown Tablelands

Currently only opportunity is

satell ite. Could possibly be an option for future mobile blackspot

funding similar to Carnarvon Gorge.

Apart from satell ite There could be a

possibility to deliver microwave connection from the Telstra exchange at

Woorabinda (25km).

NBN

CHRC

No action – ongoing watching

brief and act as per the methodology in Figures 3 and 4.

Fairburn recreation

area & township

Maybe currently

receiving ADSL connection. The area doesn’t appear in any NBN

planning, even fixed wireless so will rely on NBN satell ite.

There appears to be Optus 4G mobile coverage proposed

for the area.

Investigate with NBN re

fixed wireless, or should be in range for SWW. In relation to mobile coverage, hold

discussions with Optus and Telstra.

CHRC

NBN

SWW

Optus

Telstra

Further

investigation is needed using the methodology in figures 3 and 4.

Central Highlands Communities

Emerald High speed

broadband and free public WiFi

NBN deploying

consumer grade broadband FttN to most of Emerald. The remaining areas should

be able to util ise SSW. Businesses requiring commercial grade

should assess other options, including SWW.

CHRC

NBN

SWW

Residents and

businesses not

receiving NBN connection

NBN completion of FTTN in 2018. Gaps readily filled by South West Wireless.



Blackwater High speed broadband and free public WiFi

NBN deploying consumer grade broadband FttN. SWW

plans to be deployed by Christmas 2017.

CHRC

NBN

SWW

2017 for NBN, South West Wireless and

mobile providers otherwise.

Springsure High speed broadband and improved mobile coverage out of town

NBN planning to deploy consumer grade broadband FttN by Dec 2018. SWW plans to be deployed by September 30 2017.

CHRC

NBN

SWW

Optus

Telstra

2017 and 2018

Rolleston High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. Wireless is the only other opportunity. SWW is ready to deliver broadband services as well as WiFi at the visitor centre and swimming pool.

CHRC

NBN

SWW

2018 for SWW – recommend confirmation with SWW.

Capella High speed broadband and improved mobile coverage out of town

NBN planning to deploy consumer grade broadband FttN by Dec 2018. Businesses requiring commercial grade, assess other options.

CHRC

NBN

2018 for NBN FttN. No other options other than NBN satell ite.

Recommend a closer review of options using the

methodology in figures 3 and 4.

Tieri High speed broadband

NBN deploying consumer grade broadband FttN. Businesses requiring commercial grade, assess other options.

CHRC

NBN

2018 for NBN FttN. No other options

other than NBN satell ite. Recommend a

closer review of options using the methodology in figures 3 and 4.

The Gem Fields High speed broadband and improved mobile coverage throughout the area

NBN has deployed fixed wireless which has limited connectivity due to topography. Mobile is the only alternative.

CHRC

NBN

Optus

Telstra

Completed as far as the NBN is concerned. There are gaps and

further investigation is needed using the

methodology in figures 3 and 4



Comet High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. SWW is installing a tower to provide connectivity

CHRC

NBN

SWW

Optus

Telstra

2018. At present only SWW is the only terrestrial (non

satell ite) provider.

Bluff High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. There are alternate fibre-based possibilities.

CHRC

NBN

Q-Rail

Optus

Telstra

Further investigation is

needed using the methodology in figures 3 and 4.

Dingo High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. There are alternate fibre-based possibilities.

CHRC

NBN

Q-Rail

Optus

Telstra

Further investigation is needed using the methodology in

figures 3 and 4.

Duaringa High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. There are alternate fibre-based possibilities. CHRC has deployed free WiFi utilising Telstra 4G

CHRC

NBN

Telstra

Q-Rail

Further investigation is

needed using the methodology in figures 3 and 4.

Bauhinia High speed broadband and improved mobile coverage out of town

NBN is offering satellite only. There is the possibility of a Telstra wireless solution.

CHRC

NBN

Telstra

Optus

Further

investigation is needed using the methodology in figures 3 and 4.


As stated above, the demand for high speed broadband services is accelerating and regional and rural areas will require the same level of services as consumers in metro and urban areas. It is likely that this demand will not be met as readily in regional and rural areas, simply because the economies of scale for the NBN and other service providers are less attractive for their infrastructure investment.

For this reason, the Central Highlands Region understands that they may have to assess communications shortfalls and determine strategies to improve these services. This document with the Digital and Communications Audit and Mapping Tool will support considered intervention in the telecommunications market.

We recommend:

Testing the Mapping Tool to identify areas of need as shown in the Audit document.

Review the Sample Costed Projects in Appendix 3 and use them to start the Action Plan activity. This will provide experience in the use of the deliverables for this project, and the use of the Methodology in Section 5.

Preparing 2-3 Services Gap Enquiry templates and presenting them to the NBN for preliminary consideration.

Determine whether formal application will be made to the NBN, in partnership with communities where demand is not being met.

Approach other service providers with the same Services Gap Enquiry templates to identify interest and costs to establish new infrastructure.

“Digital technologies have a significant role to play in facilitating economic growth and development. By enhancing productivity, improving connectivity and driving innovation across the economy, they can play a critical role in the business world and the broader economic landscape.

Businesses and industries that previously had low levels of digital engagement will begin to adopt web, mobile and social media in an increasingly connected digital world.

The rapid pace of technological transformation means that technologies once considered futuristic innovations are now being increasingly applied among Australian businesses and used across the workforce.

This transformation may be particularly disruptive in areas such as mining, manufacturing and agriculture – as these industries have a greater capacity to be affected by physically manifested technological developments.”

Australia’s Digital Pulse, Deloitte Access Economics. 2017


–

The NBN understands that some customers will not find their standard residential based services will meet their needs. This may be the case more often in regional and rural areas where large areas are dependent on fixed wireless and satellite services. If the information gathered in Figure 3 earlier is prepared in the format below, it can be submitted to the NBN for a response, so long as a fee of $6,000 is paid:

Area of Interest – Provide Maps with Premises Locations

Description of Requirements

Contact Person Name

Contact Person Role

Contact Details

Number of Business Users

Number of Residential Users

Current NBN Services in Use - Business

Current NBN Services in Use - Residential

Comments

Non NBN Services in Use - Business

Non NBN Services in Use - Residential

Comments

The NBN will liaise with the contact person and in time will advise whether they can assist , though an additional cost, to determine if NBN can provide a network extension and the related cost.

If either the solution or the cost is unacceptable to the region it moves to the consideration of other options that will effectively attract new service provider infrastructure to the region to address the issues in the table above.

At the time of writing (July 2017), the NBN manager responsible for infrastructure in regional Queensland is Rob Bognar and all enquiries regarding a review of needs as shown in Table 1 and appendix 3 should be referred to him as follows:

Rob Bognar

Industry Engagement Consultant, Business Segment, Enterprise & Government Direct +61 7 3648 5222| M +61 412 603 225| E [email protected] Ground Level, 44 Southgate Avenue, Cannon Hill QLD 4170

Or as a backup,

Bruce McDonald – Regional Deployment Manager

[email protected]

0407 141 760 1800 687626

tel:(07)%203648%205222

tel:0412%20603%20225




Deliverable Action / Response Document Reference

Provide recommendations for future actions

Provide a set of recommendations Section 11 Recommendations

Identify a ll challenges faced

Insufficient (ADSL) ports for growing consumption

Customer premises connection to fibre is limited

During natural disasters access can be cut for long periods of time

There are black spots in many parts of the region

Section 4 Current Challenges

Identify the opportunities that exis t with attributed short and long term action i tems

Develop Action Plan This document

Identify the economic viability and market demand digital and telecommunication connectivi ty

New economic modelling finds that Austra lians are each better off by $4,663 per year (in 2016 dollars) as a result of general digital technology uptake. This benefit is equivalent to a 6.6% increase in Austra lia’s gross domestic product (GDP) per capita over the previous decade (Qu et

a l . 2016) It i s anticipated that these figures could be increased for regional areas based on the

additional benefits of reducing the costly i s sues of time and distance.

Austra lia’s Digital Pu lse, Deloitte Access Economics. 2017

Conduct consultations with s takeholders

This has been an integral part of the scope for this project – meetings with residents and businesses were arranged by the

CHDC. Unfortunately, there was generally a poor turnout. We have taken the ini tiative of directly approaching individuals and businesses to understand their issues and options as a substitute for

the poor response to the arranged meetings.

Section 7.1 Consulting with Consumers, Peak Bodies

References to a lready existing CHRC, CHDC and other relevant s trategies

This project has been undertaken cognisant of the soon to be released “Centra l Highlands Economic Master Plan

2017-2022”, the proposed Airport Precinct, as well as advanced planning for the CQ Inland Port at Yamala and the

Emerald medical Village

CHDC webs ite


Deliverable Action / Response Document Reference

Identify how local businesses and res idents can access the best opportunities to connect

To show all alternate connectivity options Section 8 Infrastructure Choices

Provide sufficient content to

ensure the Central Highlands, Queensland is considered for

potential funding

Al l published State and Federal

Government grant funds were identified a long with their current status and

approval cri teria

Section 9

Budget to Close the Gaps

Ski lled labour availability

There are four types of skills labour ava ilability discussed – from the

deployment and operation of communications infrastructure, to the use

in business and home and for entrepreneurial new business.

Discussed in Section 5 at the end of the

Methodology Section

Regional economic benefit

There is increasing economic disablement

where connectivity services are poor, and this is the larger focus of this project – how to meet minimum requirements of

bus iness and residential users in the region.

Discussed in Section 5 at

the end of the Methodology Section

Cost modeling for identified action i tems(from Audit del iverables)

This is a process described in detail in the Methodology section of the Action Plan, with costed approaches in Appendix 3

See Appendix 3


We have listed four projects here that the Audit have shown may experience poor or worse connectivity than they do at present. In each case we have used the template from Appendix 1 to describe the project and then shown how to cost the solution in broad terms and how to approach the market for assistance.

Sample 1 – Emerald Agricultural College


Emerald Agricultural College – Address 26274 Capricorn Highway, Emerald


This college is approx. 1km from the planned NBN cable rollout for Emerald and relies on ADSL services which are expected to be turned off post NBN rollout completion for the Central highlands region. This means that the NBN Sky Muster satellite service is likely to be the only NBN option. There is a need for connectivity for college administration and at times for more than 100 students.

Contact Person Name

Contact Person Role

Contact Details


10 Number of Residential Users

100+


Sky Muster Current NBN Services in Use - Residential

Sky Muster Comments


ADSL Non NBN Services in Use - Residential

ADSL Comments

This site will benefit from multiple NBN cable access services to the site and they could be extended from the existing or planned NBN FttN network shown in the figure opposite. In the first case the NBN should be approached for a cable access service to the site. The cost for this extended service, if offered, will have to be met by the College or other supporters.

If the NBN option is not acceptable a telecommunications carrier, or group of carriers should be approached for proposals to connect the site. These may include Telstra, Optus, Vodafone, Big Air, SWWC and Wi Sky for example. The proximity of fibre optic cables in the Capricorn highway opposite the College will allow the potential service providers to assess the connection costs and recurring costs to provide a service for the College. Some or all of the initial cost might be absorbed by the service providers in return for a long-term supply contract with the college.

If a fibre optic connection were to be made to the college, the cost might be $200,000+ to connect from a Point of Interconnect to the College administration building. Some or all of this cost might be met by the service provider, but it is likely the College will have to contribute to this cost and will have to prepare a business case to justify the improved education outcomes for students attending the College. Note – we have provided a detailed case study for this site in Section 7.

EAC


Sample 2 – Bauhinia Community


Bauhinia Community – 16km south east of Emerald, this is a group of 36 premises. At present it will receive NBN service via the Sky Muster satellite.


A local wireless distribution solution might work best for this community, with most premises within 1km of the central group of buildings. Assume that there is demand for 5-10 connections.

Contact Person Name

Contact Person Role

Contact Details


3 Number of Residential Users

7


Sky Muster Current NBN Services in Use - Residential

Sky Muster Comments


Mobile broadband where available.


Mobile broadband where available.

Comments

The NBN will have to be asked to propose a non -satellite service here and this may be impractical to deploy FttN or fixed wireless for this small community. If this is the case, this site will benefit from local wireless distribution with backhaul to the nearest Telstra node approximately 10km to the south of Bauhinia. It should be noted that this Telstra node location is provided by the Pitney Bowes GNAF data used to plot business and residential demand locations and the location and current status of this node would have to be confirmed.

A likely option is to purchase backhaul from Telstra at this site and install a single microwave radio to the distribution node at Bauhinia. Equipment costs are estimated to be:

Backhaul microwave radio to the Telstra site to the south - $20,000 incl antenna masts and assuming equipment accommodation is provided at both sites.

Backhaul microwave radio to the Emerald to the north west - $30,000 incl antenna masts and assuming equipment accommodation is provided at both sites.

Local distribution equipment - $10,000 incl installation, with site equipment at approx. $400 per site.

9 km


Sample 3 – Emerald Airport


Emerald airport is on the edge of the NBN FttN coverage area and should have its own dedicated fibre connection – in part because the airport precinct is planned to include a technology hub intended to attract specialist companies that need very high speed access.


A fibre connection to the Airport for the operation of the airport and potentially to all the airport tenants and for the planned technology hub clients. South West Wireless plans radio connectivity to this site in 2018.

Contact Person Name

Contact Person Role

Contact Details


5+ Number of Residential Users

N/A


Unknown Current NBN Services in Use - Residential

N/A Comments


Unknown Non NBN Services in Use - Residential

N/A Comments

This project opportunity is underpinned by the base demand from the airport business and if the NBN cannot assist in this requirement for any reason, the opportunity could be placed in front of Telstra, Optus, Vodafone, Nexium, Vocus and other organisations able to provide and operate fibre based services. The distance to the airport from Emerald is approximately 4km, and a dedicated fibre link may cost in the region of $200,000.

A simple business case is needed to identify the current and future demand at the airport. When the layout of the airport buildings is known, an estimate of the installed cost of duct systems for fibre optic cables to the buildings is needed. We recommend a review of the Development Application and site layouts to determine whether asking for developers to install cable ducts for fibre optic cables is desirable. Because the cost of duct installation during construction is very low in comparison with later installation of ducts, we believe that mandating a fibre and duct design for the airport precinct is a prudent approach.


Sample 4 – Yamala – CQ Inland Port


CQ Inland Port is located at Yamala, only 25 km from Emerald, Queensland. The CQ Inland Port site has been identified in the Central Highlands Regional Council Planning Scheme (2016) as Special Industry Zone which is further surrounded by a greater area zoned industrial investigative. Louis Dreyfus Cotton Gin is already based at the Yamala site.


Such a logistics hub requires high speed synchronous broadband to enable national and global supply chain communications.

Contact Person Name

Contact Person Role

Contact Details


10 – 20 (according to site plan)

Number of Residential Users

Nil


Nil Current NBN Services in Use - Residential

Nil Comments


It is possible that the cotton gin has a Telstra fibre connection


Nil Comments

Given the large volumes produced by the cotton gin, it is highly likely that it will have some form of commercial grade broadband. This would likely be Telstra fibre. The expansion of this to cover all future operations on the site could be investigated. An alternative would be to investigate the possibility of gaining access to either the RBBP (light red), or Queensland Rail (dark red) fibre.

As both are adjacent to the port site, cost estimate would be $50,000 depending on distance to a point of interconnect.


The Google mapping tool as shown in figure 2 below can be used to identify the location of each of the various modes of telecommunications infrastructure throughout the region. Each individual infrastructure is included as a layer that can be turned on or off as required. This is done in the “Places” panel on the left of the map by simply ticking, or unticking the adjacent box. In the example below, the first 5 boxes relating to mobile coverage are turned off.

Figure 5: Example of the Google mapping tool (Mobile coverage is turned off for better visibility of fibre routes)

The respective fibre route layers are:

Light red - RBBP

Light green - Energy Queensland

Dark red - Queensland Rail Dark blue - Powerlink

There are 4 communities where the NBN has deployed, or is currently deploying infrastructure (ie. Emerald, Blackwater and Tieri – Fibre to the Node [FTTN], and The Gemfields – Fixed wireless). They are shown in Places as ‘overlays’ and by zooming into these the specific locations coverage areas can be better seen.

To utilise the mobile coverage maps as shown in figure 6 below, simply turn the appropriate one on. Due to them having an opaque background, better clarity can be achieved by using the transparency slide at the bottom of the Places panel.


Figure 6: Example of the Google mapping tool (showing Optus’ 4G coverage)

Figure 4 below shows a corridor, 20km either side of each fibre route. Within that 20 km corridor, the cost to gain access to the fibre and build a trunk line tends to be quite viable. To turn that layer tick the fifth item on the Places list (CH GA 20km radii plots).

Figure 7: Example of Google mapping tool (Showing 20km corridor around fibre routes)


In order to identify the specific locations of businesses and non-business (ie. Residential and unknown on G-NAF), toggle between the top two items in the Places list, as shown in figure 8 below. These can be further enhanced by zooming into a specific location and selecting an individual button, which will provide address and latitude/longitude information.

Figure 8: Example of Google mapping tool (Showing business and non-business addresses)

ADDENDUM TO CENTRAL HIGHLANDS DIGITAL AND COMMUNICATIONS AUDIT AND ACTION PLAN

22nd November 2017

Re: Continuation of ADSL Services in NBN Coverage Areas

In our report on the digital and communications audit and action plan, we advised in July 2017 that it was NBN policy to require ADSL services to be turned off in areas where NBN cabling was installed – Fibre to the Premises (FttP), Fibre to the Node (FttN), Fibre to the Curb (FttC) and Hybrid Fibre Coax (HFC). As we understand it, this policy was to force as much traffic onto the NBN network as possible and encourage Internet Service Providers (ISPs) to become Retail Service Providers (RSPs) for the NBN. In areas covered by NBN fixed wireless and satellite services, this requirement to terminate ADSL services was not applied.

We are now aware that there is no immediate requirement for the termination of ADSL services anywhere, and this is helpful in that it provides customers with better choice. However, there are many areas where ADSL services are completely used by customers and so no new users can be added. Service providers are generally not inclined to invest in new ADSL equipment because of the NBN threat to a return on investment for ADSL and in time the ADSL equipment will come to end of life and will be unlikely to be able to be replaced.

This information supersedes that provided on Pages 4 and 10 of the Action Plan, including the case study of the Emerald Agricultural College. However, the situation there remains that the existing ADSL connection at the college is insufficient to enable WiFi to be utilised to provide connectivity to the live-in facilities.

Ian Gordon Director / Paul Stapleton Senior Consultant

Central Highlands

Economic Master Plan

An Economic Master Plan to 2047 and Action Plan for 2017-2022 Central Highlands Development Corporation Final September 2017

Contents 1 Executive Summary 1

2 Introduction 6

2.1 Context 6 2.2 Scope 8

3 Economic Baseline 10

3.1 Pillar One: Export Drivers 13 3.2 Pillar Two: Population Services 23 3.3 Pillar Three: Workforce 28 3.4 Pillar Four: Governance 31 3.5 Central Highlands Economic Snapshot 33

4 What is coming for the Central Highlands? 34

4.1 Understanding key global disruptors 34 4.2 What impact may disruptors have on the economy? 36

5 Developing an Economic Master Plan for the Central Highlands 39

5.1 Methodology 39 5.2 Summary of stakeholder engagement 39 5.3 Key objectives for the region’s economy 43

6 Central Highlands 2047 Economic Master Plan 46 6.1 30 Year Vision for Central Highlands Economy 46 6.2 Achieving Economic Aspirations 49 6.3 CHEMP 2017-2022 Action Plan 51 6.4 Infrastructure to unlock economic opportunities 69

7 Implementing the CHEMP 2017 – 2022 Action Plan 70

Inherent Limitations

This report has been prepared as outlined in the Scope Section. The services provided in connection with this engagement comprise an advisory engagement, which is not subject to assurance or other standards issued by the Australian Auditing and Assurance Standards Board and, consequently no opinions or conclusions intended to convey assurance have been expressed.

The findings in this report are based on a qualitative study and the reported results reflect a perception of Central Highlands Development Corporation (CHDC) but only to the extent of the sample surveyed, being CHDC’s approved representative sample of management, personnel, and stakeholders. Any projection to a wider group of stakeholders is subject to the level of bias in the method of sample selection.

No warranty of completeness, accuracy or reliability is given in relation to the statements and representations made by, and the information and documentation provided by, CHDC management, personnel, and other stakeholders consulted as part of the process.

KPMG have indicated within this report the sources of the information provided. We have not sought to independently verify those sources unless otherwise noted within the report.

KPMG is under no obligation in any circumstance to update this report, in either oral or written form, for events occurring after the report has been issued in final form.

The findings in this report have been formed on the above basis.

Third Party Reliance

This report is solely for the purpose set out in the Scope Section and for CHDC’s information, and is not to be used for any other purpose or distributed to any other party without KPMG’s prior written consent.

This report has been prepared at the request of CHDC in accordance with the terms of KPMG’s engagement letter/contract dated 16 March 2017. Other than our responsibility to CHDC, neither KPMG nor any member or employee of KPMG undertakes responsibility arising in any way from reliance placed by a third party on this report. Any reliance placed is that party’s sole responsibility.

Electronic Distribution of Reports

This draft KPMG report was produced solely for the use and benefit of CHDC and cannot be relied on or distributed, in whole or in part, in any format by any other party. The final report dated 1 September 2017 and KPMG accepts no liability for and has not undertaken work in respect of any event subsequent to that date which may affect the report.

Any redistribution of this report requires the prior written approval of KPMG and in any event is to be complete and unaltered version of the report and accompanied only by such other materials as KPMG may agree.

Responsibility for the security of any electronic distribution of this report remains the responsibility of CHDC and KPMG accepts no liability if the report is or has been altered in any way by any person.

KPMG | 1

© 2017 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Liability limited by a scheme approved under Professional Standards Legislation.

1 Executive Summary The Central Highlands Development Corporation (CHDC) in partnership with Central Highlands Regional Council (CHRC) and KPMG have together prepared an economic master plan for the Central Highlands region. The master plan builds on the solid foundations for economic development in the region established in 2013 through the endorsement and implementation of the region’s first economic development strategy.

The 2047 Central Highlands Economic Master Plan (CHEMP) and associated 2017-2022 Action Plan has been developed in consultation with a broad range of industry, government and community stakeholders.

The CHEMP outlines a robust 30 year vision for the Central Highlands economy that is underpinned by four key pillars of the region’s economy – Export Drivers, Population, Workforce and Governance. This vision has been developed to build on existing strengths and opportunities, and presents an opportunity for continued partnerships with government and the private sector to propel the Central Highlands economy towards a strong future for the community by 2047.

Supporting the realisation of this economic vision for the region requires a targeted and staged series of action plans to ensure momentum towards this vision is maintained and recast at strategic intervals of time. For the Central Highlands, a four phased approach to achieve the longer term Vision has been suggested.

KPMG | 2



These stages are:

1. Strengthen existing activity: Deepening and broadening existing industry sectors and establishing the foundations of enabling infrastructure. Fostering enhanced collaboration across industry, community and government to identify and pursue emerging opportunities.

2. Attract investment to realise existing and emerging opportunities Attracting investment and activity to the region to grow the productive performance of newly established and existing industry activities.

3. Harness emerging opportunities Supporting the conversion of opportunities presented through emerging technologies and industrial change.

4. Realise aspirations and reset for the future: A region that reflects the economic and local community aspirations identified previously. The economy is strong and has leveraged opportunities presented through global change. Refocus aspirations for a new phase into the future.

The CHEMP 2017-2022 Action Plan will assist CHDC, CHRC and other partners to guide economic development activities on a strategic pathway for the next five years with clear direction to achieve the longer term 30 Year Vision for the region’s economy and local community.

The CHEMP 2017-2022 Action Plan has been developed with key objectives and actions aligned to each of the four pillars of the region’s economy. These include:

KPMG | 3



OBJECTIVES 2017-22 ACTIONS

PILLAR 1: EXPORT DRIVERS

1. Promoting comparative advantage

1.1 Regional Branding

2. Expansion and diversification of existing sectors

2.1 Domestic and international market development

2.2 Expansion into high-value crops, livestock and horticulture

2.3 Exploration of by-product use

3. Energy independence and renewables

3.1 Supporting a 24/7 economy

3.2 Harnessing opportunities for renewables

3.3 Promotion and optimisation of energy comparative advantage

4. Expansion of research and development activities

4.1 Research and development activities relating to the agriculture, resources education and training and other industry sectors.

4.2 Coordinated rehabilitation and end of mine life research

4.3 Industry representation in research activities

5. Improved connectivity

5.1 Improved freight and logistics

5.2 Supply chain optimisation

5.3 Increased digital capacity and reliability

6. Increasing the ease of doing business

6.1 Connectivity to markets

6.2 Small business support and education

6.3 Core business sharing agreements

6.4 Innovation and start-up incubation

7. Stability and rehabilitation of the resources sector

7.1 Effective and formalised lifecycle planning in collaboration with the resources sector.

8. Optimising water trade, security and capacity

8.1 Water supply optimisation and ongoing supply certainty and reliability

8.2 Leverage resources investment

9. Increasing tourism activity

9.1 Better coordination and engagement to support growth and diversification

9.2 Local operator capacity building

PILLAR 2: POPULATION SERVICES

10. Supporting a local workforce

10.1 Supporting and promoting livability

11. Improved community investment

11.1 Targeted community investments

11.2 Multi-purpose community spaces

12. Access to and use of open data

12.1 Open and reliable data

KPMG | 4



13. Improved education and associated services

13.1 Agricultural Education

13.2 Digital education and training

PILLAR 3: WORKFORCE

14. Skill development and enhancement

14.1 Complementary skills development, training and retraining

14.2 Specialist education and employment destination

14.3 Joint public / private small business education

PILLAR 4: GOVERNANCE

15. Improved collaboration and partnerships

15.1 Collaborative investment decisions

15.2 Leverage the collective weight of the wider region

15.3 Stronger collaborative advisory functions

16. Frameworks that support economic activity

16.1 Efficient planning frameworks

16.2 Infrastructure to support economic activity

It is acknowledged that infrastructure plays a critical role in economic development. Through consultation activities to support the development of the CHEMP 30 year Vision and the CHEMP 2017-2022 Action Plan, a number of infrastructure projects were identified as being particularly critical to achieving the desired economic outcome for the Central Highlands0F

1.

IDENTIFIED INFRASTRUCTURE PRIORITIES

Project Description

Multi-purpose Centre A multi-purpose piece of community infrastructure to facilitate sports, culture, tourism and other community events.

CQ Inland Port An inter-model freight facility to transfer goods from the road network over short intra-regional distances to rail for long haul distances.

Central Highlands Meat Processing Plant and Intensive Beef Industry Precinct

A meat processing facility in Emerald as part of the Agribusiness Precinct that can process 100,000 head of cattle a year.

Central Highlands Business Incubator and Innovation Hub

A technology and business start-up incubator and innovation space to develop innovative solutions or products across all sectors of the region’s economy.

Grain and Pulse Processing Facilities

Processing facilities for grain, pulses and other plant products to promote regional value-adding.

Emerald Medical Village Stage 2 $7 to $12m investment in the expansion of the Emerald Medical Village.

Emerald Saleyard Complex Expansion to the 5.1ha saleyard complex, currently processing 2,000 head a week of cattle.

1 This list of infrastructure projects have not been assessed in terms of their contextual suitability, ability to generate benefits for the

region or ability to be delivered – it is important to fully explore each identified project, potentially through a Business Case process, to determine suitability to progress.

KPMG | 5



Aged Care Facilities Aged care facilities in key locations across the region, including Springsure, to support the region’s aging population.

Project Regeneration $18.5m investment in Yamala 180Kt Grain Facility by GrainCorp, including high-speed rail loader.

It is intended that CHDC will continue to have a lead role in the implementation of the 2017-2022 Action Plan in close collaboration with the CHRC, industry representatives and community members.

The region’s economic future is a priority for not just CHRC and CHDC – all members of the business community and community more generally will be impacted by the economic outcomes realised within the region in the future. Fundamentally, the implementation of the CHEMP 2017-2022 Action Plan, as well as future economic development planning and activities should focus on the following:

• Partnerships between key leaders, industry representatives, business owners and community members will be critical to long term success – instilling a sense of wider community ‘ownership’ of the region’s economic future will assist in leveraging innovation and knowledge across a range of sectors and activities.

• Investment should be focused and aligned to not only shorter term economic objectives, but also to the longer term economic aspirations for the region – providing structure and clear ‘goal posts’ to measure ongoing performance of economic development activities.

• Innovative thinking and flexibility to adapt to change and harness opportunities will be essential – ensures that the Central Highlands is not ‘left behind’ in a rapidly changing global environment.

• Clear and targeted action planning should be undertaken on an iterative basis – building on the frameworks and success of previous economic development and planning activities.

With clear strategies in place for 2017-2022, and a view towards the next 30 years, the Central Highlands economy is in a prime position to leverage the progress made in 2013-2016, and continue to expand its economic weight and productivity in a Queensland and broader context, without losing the unique factors that make the Central Highlands economy distinct from other regions and beneficial to its community.

KPMG | 6



2 Introduction

2.1 Context Regional Overview

The Central Highlands region is a local government area in Central Queensland, Australia, encompassing an area over 60,000 square kilometres. Its communities and surrounding rural areas include the Arcadia Valley, Bauhinia, Blackwater, Bluff, Capella, Comet, Dingo, Duaringa, Emerald, Rolleston, Sapphire Gemfields (Anakie, Sapphire, Rubyvale and Willows Gemfields), Springsure and Tieri and the Tropic of Capricorn runs through the region.

The area includes one of Australia’s largest coal reserves, the Bowen Basin, and is neighboured by the Galilee Basin, recognised as one of Australia’s new mining areas. The Central Highlands is rich in minerals and agriculture, with irrigation from water storage in Nogoa and Comet rivers, and boasts the largest sapphire-producing fields in the Southern Hemisphere. The region’s wealth of natural resources and agricultural value has seen it attract significant investment over an extended period of time which has benefited the local communities and economy.

The region is strategically located at the gateway to western Queensland, is in close proximity to the coast and has good connectivity to other regions within Queensland and more broadly.

Figure 1 – Central Highlands region

The Central Highlands’ community is central to the region and its economy. It is important to understand the key characteristics of the people that live, work and grow in the region in order to plan for the economic future of their region.

KPMG | 7



Key Demographic Statistics

The region’s economy is fundamentally supported by the community of the Central Highlands.

According to REMPLAN estimates, there are currently 31,083 residents and 16,710 jobs in the Central Highlands. Population is forecast to grow at a compound annual growth rate of 1.1% to 2021 however has experienced slight decline (-1.2%) since 2014.

Estimates indicate that the region has relatively low unemployment rates – 3.8% unemployment in December 2016 compared to the Queensland average of 6.1%. The strength in employment is fundamentally underpinned by activities associated with the key industry sectors of mining and resources, construction and agriculture. In addition to these key sectors of regional employment, there is strong representation across other supporting sectors of employment such as health, education and transport and logistics.

The region is considered to have a relatively low degree of disadvantage compared to other areas of Queensland. The Central Highlands has a SEIFA score, which is an index of relative socio-economic disadvantage of 1033, which is lower than the score for Brisbane (1048) but higher for Queensland (1002). This degree of advantage is an indication that the community in the Central Highlands is benefitted by substantial enough contributions to their way of living (including housing, employment, social services, etc.) to raise them above the Queensland average.

The Central Highlands community is supported by and consists of a number of key stakeholders that contribute to economic activity and community activity more generally.

Key Stakeholders

The Central Highlands Regional Council (CHRC) and its not-for-profit supporting entity Central Highlands Development Corporation (CDHC) are at the forefront of the region’s leadership – particularly with respect to planning and supporting the region’s economy. In addition to CHRC and CHDC, there are a number of key industry and supporting service stakeholders that operate, live and work in the region. All key stakeholders within the region are part of the community itself and as such, it is recognised that there are a number of contributors that are dedicated to ensuring that the communities and economy continue to experience sustainable economic growth into the future.

A key opportunity and remit from key leaders in the region for more effective ‘ownership’ of the region’s future from broader community representation.

Previous Economic Planning Activities

In 2013, CHDC in partnership with CHRC developed and launched the Central Highlands Development Strategy 2013-2016. This three year strategy was the first dedicated economic planning activity undertaken in the region and it provided the focus and articulation of actions needed to facilitate economic growth and development in the region.

The strategy outlined a strong vision for a diversified Central Highlands economy that aligned to the Queensland State Government’s vision for a four pillar economy driven by construction, resources, tourism and agriculture. The vision was developed on the basis that it builds on existing sectoral strengths and opportunities, and presents an opportunity for continued partnership with government, the private sector and non-for-profit entities to drive economic growth and further diversification in Central Queensland.

This strategy has been well executed by the Central Highlands Development Corporation and their industry and Local Government partners. By structuring the CHDC team to focus on the critical sectors of resources, agri-business and tourism, as well as providing an ongoing business development focus, the team have delivered on the 2013 strategy and seen the region through a period of subdued coal prices.

The success of the Central Highlands Development Strategy 2013-2016 is acknowledged, and it provides a strong platform for this new phase in economic planning and strategy for the Central Highlands.

KPMG | 8



The Central Highlands 2047 Economic Master Plan

The Central Highlands 2047 Economic Master Plan (CHEMP) presents an opportunity for the CHDC, CHRC and industry to pause, lift their eyes and reconsider the economic future that they aspire to for their region building on the strong foundation established through the delivery of the Central Highlands Economic Development Strategy 2013-2016.

It presents an opportunity to reconsider the strategy that is driving the delivery of these aspirations. To acknowledge what is working well and to identify the areas where new ideas could be incorporated.

Strong industry initiatives have been established around agri-business and tourism over recent years. Coal prices have rebounded and the potential for the Galilee Basin to be unlocked is now more real than ever. The brief for the Economic Master Plan highlights that the CHDC team have a breadth of ideas and initiatives in mind that could build on recent developments to drive the next wave of economic development in the Central Highlands.

In order to develop a robust framework for achieving longer term economic aspirations and goals for the region, the establishment of a clear vision, framework for decision making and a series of action plans to drive immediate activity will be necessary.

The development of the CHEMP (and associated short term action planning) and ensuring that these are embedded into the day-to-day activities of CHDC, CHRC and industry and community partners will be critical to the success of the Master Plan and the realisation of the economic aspirations set for the region in the future.

2.2 Scope The preparation of the CHEMP and associated action plan has been undertaken according to a clear scope of works and framework to ensure that the CHEMP is reflective of not only key economic data and statistics, but also reflects the sentiment of key stakeholders and wider community as well as key global trends and opportunities.

This report and the scope of activities to prepare it includes:

• A summary Economic Baseline that explores the four key pillars of the region’s economy

• An overview of key Global Disruptors that will influence the economic future of the Central Highlands

• An overview of the methodology utilised to prepare the CHEMP and associated action plan including outcomes from stakeholder consultation activities

• The Central Highlands 2047 Economic Master Plan which includes:

• A vision for the region’s economy over a 30 year timeframe

• An overview of the process to achieving the identified 30 year vision

• The CHEMP 2017-2022 Action Plan which identified clear objectives and actions to guide economic development planning and investment activities over the next 5 years

• An overview of key infrastructure priorities that were identified as important to enabling economic activities in the region

• An overview of the implementation considerations for delivering the CHEMP 2017-2022 Action Plan and subsequent stages of planning to achieve the 30 year vision for the future of the region

• Appendices including:

• Overview of data and sources utilised to prepare the CHEMP and CHEMP 2017-2022 Action Plan

KPMG | 9



• A detailed economic baseline of the region

• Other key inputs considered in the preparation of the CHEMP and CHEMP 2017-2022 Action Plan

The subsequent sections follows the above structure.

Audience

It is intended that this report and in particular the the CHEMP and CHEMP 2017-2022 Action Plan will be used as a key reference for daily activities and decision making undertaken by CHRC and CHDC. More broadly, it is anticipated that industry and community representatives will use the CHEMP and CHEMP 2017-2022 Action Plan as a frame of reference for their own activities with a view to supporting and facilitating the economic future for the region that has been identified.

Information and Sources

The CHEMP, CHEMP 2017-2022 Action Plan and documentation prepared to assist in their development have been compiled utilising a number of different data sources. Primary data sources included the 2011 ABS Census, ABS data more generally, data from the QLD Government Statistician’s Office (QGSO) Regional Database, Tourism Research Australia, the Public Health Information Development Unit (PHIDU) Social Atlas, and the REMPLAN Central Highlands Economic Profile as at February 2017.

To supplement these statistical accounts, a diverse range of reports and strategic documents were consulted, including strategies pertaining to specific industries, reports on infrastructure and transport, the QLD Department of Agriculture and Fisheries 2013 Agricultural Land Audit, and both CHRC and CHDC strategic documentation.

KPMG | 10



3 Economic Baseline Overview

This economic baseline provides a view of the economy and also the trends that informs its future direction. This economic baseline addresses the following questions:

• How many jobs are in the Central Highlands, what kind and who fills them?

• How many jobs outside of the Central Highlands are filled by Central Highlands residents, what kind and where?

• How many jobs inside of the Central Highlands are filled by non-residents (non-resident workers), what kind and where?

• Where do non-resident workers live and how do they interact with the local economy?

• How does the Central Highlands economy compare to QLD?

• What major changes have occurred since 2011’s Census and what might the structure of the economy look like now?

• Outside of the four major export driving sectors identified – Resources, Agriculture, Tourism and Construction – what growing sectors are emerging in the region?

• What additional capacity exists in the region’s workforce, businesses or infrastructure?

• What is the unemployment rate, GRP, value-added contribution and other headline economic figures, and where are they trending?

In part due to the age of several data sources, such as the 2011 ABS Census, and the difficulty in accurately forecasting current figures in a region undergoing such dynamic transformations, this baseline does not form a complete socio-economic profile of the region itself. Instead this document aims to provide information to inform future decision making in the Central Highlands region, including high-level trends, disruptors and future considerations.

In late 2017/early 2018, the full 2016 ABS Census will be updated, along with many dependent downstream analysis and data sources. After this full release, supporting demographic information about the region and its workforce may be added or refreshed to keep the CHEMP up-to-date.

Context

Since the last Census in 2011, significant changes have occurred in the Central Highlands economy. Much of the available demographic data in 2011 emphasised strong economy and population growth off the back of a continuing mining boom. Since then the resources sector has undergone a transition and several pending projects, coal in particular, have stalled or gone into administration. The region has subsequently had a period of negative growth followed by relatively low, positive growth. In 2017, there are many signs that the resources sector has stabilised and a few, targeted investments into coal and gas projects are beginning to gain momentum.

It is anticipated that 2016 Census data will show that the region has many of the same characteristics as it did at the time of the 2011 Census, particularly in relation to employment. However, based on separate sources of information, it is anticipated that data will show potentially significant declines in mining and related engineering employment and business numbers. This key difference in employment profile of the region has likely resulted in a more evenly distributed set of businesses and jobs across industry sectors than it did in 2011. This provides an opportunity to continue to diversify and stabilise the region’s economy into the future, while leveraging those targeted resources investments for near-term growth and jobs.

KPMG | 11



Overall, the Central Highlands economy is in transition following a strong mining boom and agricultural sector laid the foundations for a thriving regional centre. While its headline economic figures – Gross Regional Product (GRP), employment rate and measures of economic growth – have all declined since the resources sector began contracting, the outlook for the region is strong.

The region’s unemployment rate (4.1%), labour force participation (75% in 2014) and growth rates in population (2.1%pa 2011 to 2016) all indicate a region with a strong economic baseline relative to the state average, albeit a region with slower growth in recent years. The issue for the region is more about growth and counter-acting low labour supply and skill gaps to adequately service future economic opportunities. Currently, the labour force is only growing at 1.1% a year, which will make increasing output for the region difficult without continuing to rely on non-resident workers.

The region’s major industries are resources, agriculture, construction relating to mining, and tourism. In 2011, resources accounted for 57% of the region’s $8.596bn economic output and 34% of employment. Construction, agriculture and tourism contributed 10%, 4% and 3% to economic output in 2011, illustrating the dominance of the resources sector at the time, particularly as it relates to coal mining activity. Employment for these sectors was more evenly distributed with 9%, 9% and 7% respectively. The proportion of mining and construction activity in the region is likely to have changed significantly since 2011.

Recent data also suggests that business counts have declined significantly since 2011, implying loss of some businesses and a consolidation of others. While not a negative trend for the economy in isolation, it points to a lack of small business and diversified economic growth.

What makes up the Central Highlands economy?

The region’s economy is fundamentally underpinned by four key economic pillars:

Figure 2 – Economic Pillars. Source: KPMG, 2017.

1 Export Drivers – key industries largely orientated towards the export of goods. These industries include the resources, agricultural, tourism, and construction.

2 Population Services – key social infrastructure and services such as education and health.

3 Workforce – the total labour capacity and capabilities of the economy, both resident and non-resident.

4 Governance – the systems and frameworks that organise, control and support the region’s other key sectors.

Infrastructure is considered to be a key enabler of economic activity and contributes to all four pillars of the economy.

KPMG | 12



These pillars provide a foundation for planning the economic future of the region and are outlined in more detail separately below. Understanding the current baseline and future trends for each pillar is critical to developing a robust and comprehensive Economic Master Plan for the Central Highlands.

An overview of these four key pillars is provided in subsequent sections of this Economic Baseline.

KPMG | 13



3.1 Pillar One: Export Drivers

3.1.1 Overview of key industry sectors A fundamental pillar of the Central Highlands economy is the economic benefits from the key, export-orientated industries that operate in the region. These industries include mining, agriculture, construction. For the purposes of this analysis, tourism, which is not specifically export-orientated, is also included due to its important economic contribution and strategic role in the future of the region.

Understanding these export drivers is important as they attract a large amount of commercial investment to the region and, for the short to medium future, are the primary drivers of economic development and employment. In many ways, these industries are the targets that all other pillars of the region’s economy (people services, workforce and governance) aim to support, stimulate and shape.

The distribution of the Central Highlands’ economy in 2011, as outlined in Table 1, was heavily geared towards these export drivers.

Export Drivers accounted 9,814 jobs in 2011 which is 59% of all jobs in the region compared to 21.8% of jobs in Queensland in the same sectors.

Economic activity is underpinned by employment in resources, agriculture, tourism and construction

Region impacted by the coal price slowly declining long-term, other commodities are uncertain with forecasts showing short-term volatility

The rise of automation, renewables and the digital economy are beginning to influence the region’s export drivers and employment profiles

KPMG | 14



Table 1 Top 10 Employment Sectors in 2011 and 2017 Estimates

Category Resident Non-resident Total Jobs% of

Total State

average of total (%)

Mining 3108 2,585 5,693 34.07% 2.66%

Construction 834 669 1,503 8.99% 9.26%

Agriculture 1348 97 1,445 8.65% 2.81%

Tourism1F

2 972 201 1,173 7.02% 7.18%2F

3

Retail Trade 910 119 1,029 6.16% 11.06%

Education & Training 891 20 911 5.45% 8.04%

Healthcare & Social Assistance

624 67 691 4.14% 12.13%

Other Services 541 134 675 4.04% 3.97%

Transport, Postal & Warehousing 523 76 599 3.58% 5.37%

Public Administration & Safety 506 55 561 3.36% 6.83%

Top 10 Total 10,256 4,024 14,280 85.46% 79.03%

2011 Total 12,163 4,547 16,710 n/a n/a

2017 Estimated Total3F

4 15455 3100 18,555 n/a n/a

Compound Annual Growth Rate (2011-2017) 4.9% -7.4% 2.1% n/a 1.2%

Table 1 – Top 10 Employment Industries in Central Highlands and QLD proportions. Source: CHDC Economic Profile, 2017.

Given the large changes to the top two sectors of mining and construction as a result of the downturn in mining, the distribution is likely to be less skewed. However, it is still likely that mining is the highest employing sector in the region and, without any alternative boom in any particular industry, many of the other sectors would maintain roughly the same proportion.

Resources

The region’s proximity to the Galilee, Bowen and Surat Basins make it one of Queensland’s largest areas for coal, energy and gas production. The region’s mining and resource activity includes underground and open-cut thermal and coking coal mining, minerals, liquefied natural gas (LNG) and coal seam gas (CSG) extraction, quarrying, and gemstones extraction. Despite this range of resources, the predominant commodity is coal, with CSG/LNG growing, and gemstone extraction restricted to low volumes of sapphires (mainly for tourist fossicking purposes or mined to create souvenirs).

At a high level, in 2015/16 the resources sector includes 61 businesses in the region, representing a decline of 9% from the previous year and a compound annual growth rate since 2009 of -1.9%. This decline forms part of the evidence base for the end of the mining boom in the region and the potential that other indicators, such as employment, may have declined accordingly.

2 Tourism is a composite measure, in this case determined by REMPLAN using ABS data from 2011, which combines

proportions of other tourism-related sectors such as ‘accommodation and food services’ (almost 80% of the total) and aggregate these parts to estimate tourism as a sector.

3 Accommodation and Food Services as a proxy 4 Total jobs is accurate to December 2016 according to QGSO, non-resident estimate is based on official July 2017 forecasts,

and resident population is the difference between the total and non-resident population estimate.

KPMG | 15



The resources sector employed 34% of the region’s labour force in 2011, with 45% coming from non-resident populations. This employment proportion is 15 times higher than the state average of 2.7%.

Critical infrastructure for this sector is adequately supplied by rail investments and various export terminals on the nearby eastern coast, to the extent that current capacity does not limit resources, but inhibits access by other sectors like agriculture. Furthermore, rail capacity may limit future growth if further investment is not planned for the medium to long term. Other than rail, which predominantly services the coal sector, gas pipelines form another critical piece of infrastructure in order to service the fledgling LNG exports in or near the Central Highlands.

Coal is a major economic contributor to the region, but it has shown considerable decline since its economic contribution was last surveyed in 2011. In the 2015/16 financial year, more than $4bn in coal was traded through the Port of Gladstone, a large proportion of this coal comes from the Central Highlands region, or passes through it.4F

5 The figure below (Figure 3) outlines the value of coal exports from the Port of Gladstone from 2006 to 2016. The figure makes clear the decline in exports since 2009.

Figure 3 – Value in AUD of coal exports from the Port of Gladstone from financial years 2006 to 2016. Source: QGSO Regional Database, 2017.

The current and proposed resource operations in the Central Highlands are outlined in Figure 4. The data underpinning this figure highlights the continued prevalence of coal projects in the region despite the winding down of the mining boom.

5 QGSO Regional Database, 2017

$-

$1

$2

$3

$4

$5

$6

$7

$8

$9

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Billi

ons

FY06 to FY16 Gladstone Exports for Coal

KPMG | 16



Figure 4 – Map of future projects, including coal and LNG pipeline projects. Does not include rail, gas field and other infrastructure projects. Does not include existing operations. Future project status is current as at December 2016. No Category A or C projects (those with FID, and those with lodged EIS but no FID respectively) are in Central Highlands but are referenced in the figure elsewhere. Source: QGSO, 2016, Bowen and Galilee Basins non-resident population projections, 2017 to 2023.

The resources sector provides mixed economic opportunities for the Central Highlands in the long-term. The current concentration of activity around one main commodity – coal – means that the sector is vulnerable to changes in prices and supply interruptions, without having the diversity of products to moderate these highs and lows. Moreover, the over-reliance on non-resident populations to service this sector can cause planning and investment inefficiencies that need to be considered in the long term.

Agriculture

The Central Highlands has a substantial focus on agriculture and several long-term competitive advantages in the global market. Core agricultural products include beef, grains, pulses, citrus, table grapes and several others, but the region also has capacity to diversify significantly in the future.

Understanding and supporting this high-growth sector will be critical to diversifying the region’s economy and maximising the use of shared export-orientated bulk infrastructure left over from the resources sector’s peak (including roads, rail, ports etc.). While agriculture is well-placed to grow significantly in the near future, the sector is also exposed to the same disruptors and challenges as other export industries. As a result, the rate of change in agriculture will accelerate, and innovative and adaptive planning will be required to enable the sector to harness economic opportunities.

The headline figures for the sector in 2015/16 indicate mixed short-term prospects with 1,175 businesses in 2015/16, a decline of 0.7% from the year before.

While agriculture is increasingly impacted by technology, unlike mining and other resources’ projects it is a significant employer of labour servicing a range of activities such as local value-adding, packing, distribution and delicate/small crop harvesting. This means that growth in agriculture could mean strong local employment growth above the rates seen in other export sectors.

KPMG | 17



In 2011, the sector employed roughly 9% of the region’s labour force, with over 93% coming from the resident population. While this is significantly smaller than the resources sector, its proportion may have increased given the changes since 2011 and the decline in the mining sector. Moreover, the agricultural sector provides an important baseline for resident employment and economic output, less vulnerable to the variation experienced in the mining sector.

The Fitzroy / Central Queensland region in which the Central Highlands sits has highly productive agricultural land with agricultural production across the region accounting for 11% of Queensland’s total production.5F

6 The Central Highlands represents around 53% of the region’s top 10 products.6F

7 Between 2010-11 and 2014-15, the gross value of total agricultural commodities produced in the Fitzroy region increased at a compound annual rate of 14.8% to $1,330 million. 7F

8

The Fitzroy region’s main agricultural products, measured as a proportion of Queensland’s total agricultural production, are livestock, cotton, wheat, sorghum, and forestry. Figure 5 outlines the estimated value of various agricultural products for the Central Highlands, using 2016 production levels and 2010/11 Agricultural Census estimates of the region’s share. The Central Highlands contributes a large proportion of all these categories for the region, particularly as it relates to beef cattle (44%), sorghum (86%), wheat (82%), and cotton production (80%).8F

9 Other products include citrus and grapes. While the latest official data places the value of production of the citrus harvested at less than $4m, a high-level estimate suggests that the value could be up to ten times higher. The large discrepancy presumably relate to data confidentiality issues, as statistics cannot be released when there are too few data contributors in one particular region9F

10. Forestry is largely an east-coast industry and doesn’t feature prominently in the Central Highlands.

Figure 5 – Estimated Value of Agricultural commodities produced in the Central Highlands, 2016. Source: CHDC via ACIL Allen Consulting, 2017, using ABS, Value of Agricultural Commodities Produced, Australia, 2014-15, ABS 2010/11 Agricultural Census, and REMPLAN – as developed as an input to ‘Agribusiness Regional Stocktake: Baseline Data to Drive Growth’, confidential report to the Central Highlands Development, Emerald, 31 July 2017 (unpublished)

Critical infrastructure supporting the agriculture sector includes a range of rail, road and water infrastructure. Access to the more efficient rail network is often mitigated by supply contracts and control exerted by the resources sector, which reserves capacity on the rail network in case of its

6 ABS, 2015. Value of Agricultural Commodities Produced, Australia, 2014-15, Australian Government, Australia. 7 ABS, 2015. Value of Agricultural Commodities Produced, Australia, 2014-15, Australian Government, Australia. 8 ABS, 2015, Value of Agricultural Commodities Produced, Australia, 2010-11; Value of Agricultural Commodities Produced,

Australia, 2014-15, Australian Government, Australia. 9 Department of Agriculture and Fisheries, 2013. Queensland Agricultural Land Audit, QLD Government, Australia. 10 ACIL Allen Consulting, 2017, Agribusiness Regional Stocktake: Baseline Data to Drive Growth, confidential report to the

Central Highlands Development, Emerald, 31 July 2017 (unpublished)

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

Cattle Sorghum Cotton Wheat Grapes Pulses Maize Mandarin

Mill

ions

Estimated Value of Agricultural Production in the Central Highlands for 2016

KPMG | 18



own rise is output. Consequently, road networks to the Port of Brisbane are common for agricultural products and pose significant logistical issues.

Regarding water infrastructure, water security in the region is generally considered quite strong. The region is serviced by Fairbairn Dam, a number of smaller weirs and a relatively comprehensive irrigation network. However, minimising water loss, unlocking future capacity and optimising water use and flexibility are ongoing policy considerations for the sector.

Tourism

Tourism is an important part of the services economy future of Queensland and Australia in the long term. While not explicitly an export-orientated sector, the sector relies on many of the same fundamental factors as the other export drivers in this pillar and can form a pivotal role in stabilising a regional economy over-reliant on goods exports.

The Central Highlands has many natural environments and quality services ideal for a thriving regional tourism industry. From large national and state parks such as Carnarvon Gorge, to the Sapphire Gemfields (a 900 square kilometres series of sapphire fossicking attractions that is one of the world’s largest sapphire fields10F

11), there are many examples of viable long-term tourist attractions for the region.

Because tourism as a sector isn’t captured in many standard statistical accounts (like the ABS Census), finding reliable figures for tracking the tourism industry in the Central Highlands is difficult and existing measures often combine various tourism-supporting sectors (like Accommodation and Food Services) into one composite measure.

Analysing data that is available, the headline figures for the sector in the region for 2014/15 included a total of 260 tourism-related businesses, a 10% growth in tourism spending and 7% increase in overnight stays from the previous year. Using four year averages from 2012 to 2015, the largest sources of foreign visitors to the region in 2015 were New Zealand (roughly 29,000 visitors by 2,000 visitors), the UK and Germany. Overall, an estimated total of 1.36m overnight stays occurred in 2015, 84% of which were domestic visits. Tourism generated over $230m in spending into the region in 2016.11F

12

These headline figures suggest that tourism has the potential to grow at above-average rates and counter-act the lower growth (or decline) of other major sectors.

In 2011, the tourism sector was estimated to employ 7% of people, roughly the same as the state average.

Overall, the Central Highlands has natural asset advantages that serve as long-term enablers for the tourism sector. Effectively leveraging these advantages will require regional coordination and diversification outside of traditional driving markets and accessing new customer bases.

Construction

The construction sector is a fundamental component in building the infrastructure of an economy and community. In the Central Highlands, this activity mainly focusses on residential construction – building homes for residents and non-resident workers – and engineering construction – building transport or industrial infrastructure, mostly roads and large mining project infrastructure like conveyors.

The headline figures for the sector show that in 2015/16, 412 construction businesses operated in the region, representing a decline of 5.1% from the previous year and a 0.5% compound annual growth rate (2009 to 2016).

In 2011, the construction sector employed 9% of the region, slightly less than the state average due to its low volumes of residential and commercial construction.

11 CHDC, 2017. 12 REMPLAN 2016, utilising 2015-16, Australian Bureau of Statistics (ABS), Tourism Satellite Account

KPMG | 19



The Central Highlands had maintained a reasonably sized construction industry relative to the state average as a result of significant transport and mining infrastructure. However, given recent trends, this is likely to have diminished. While the sector may not be significantly larger than the state average in 2017, it still plays a critical role in building the supporting infrastructure for economic growth and maintaining infrastructure for the resources sector.

Overall, the construction sector in the region is in a state of transition reflecting the slowdown in the resources sector and will require more conventional residential and light commercial building in order to stabilise its levels of employment and economic activity. Stabilisation will also reduce the reliance on non-resident workers currently being flown in to service surge demand for discrete mining or transport projects.

Diversification into new construction activity will also be key to the future success of the sector as the demands for infrastructure change to be more environmentally conscious, energy efficient, digitally connected and technology-enabling.

3.1.2 Infrastructure enablers The availability of physical infrastructure is a critical component to economic growth. While the Central Highlands is well serviced by transport, water and resources infrastructure, many elements of energy and digital infrastructure remain lacking. For instance, the structure of the energy network is such that the region is reliant on a few key transmission lines that could disconnect the whole region from the energy grid in the case of extreme weather or localised outages.

The regional transport network is critical to the economic development of the Central Highlands as it facilitates the transport of export goods to domestic and overseas markets, enables importation of critical technology such as mining equipment, and increases the avenues for tourism sector growth. Figure 6 outlines the main road and rail infrastructure in the region. From this figure it is evident that the Central Highlands is a pivotal regional centre, connecting the west of Queensland to major ports on the east coast and connecting the region to northern regional NSW.

The region is, however, dependant on a handful of major highways and particularly reliant on just one – the Capricorn Highway through Blackwater to Rockhampton. Rail networks largely follow the road network and therefore are equally reliant on a few major lines.

KPMG | 20



Figure 6 – Central Queensland Regional Transport Network. Source: QTRIP 2017, Fitzroy Regional Profile

The trend for infrastructure investment in a region is a key measure of the future direction of economic output and growth. Recent market scans of the major infrastructure projects planned in the region highlight the continued resources sector focus of the region, especially coal, closely followed by shared services that both agriculture and mining sectors use such as rail investments. This represents a short-term strategy to double-down on historical strengths for the region, particularly as many market conditions and technology for resource projects improve.

Table 2 outlines the various spending by sector and type in the Central Highlands as at March 2017. It is clear from the data that resources related investment is almost 99% of all investment pending. However, tens of millions of dollars are being invested in housing and community infrastructure throughout the region, highlighting a focus on community capacity building after the mining boom.

Table 2 Project Spending on Infrastructure Category Not Started In Progress Completed Total

Within Central Highlands 8,687.3m 112.2m 40.9m 8,840.4m

-Community 7.3m 4.6m 15.8m 27.7m

-Retail - - - -

-Industrial - 0.2m - 0.2m

-Residential - 38.0m - 38.0m

-Workforce Accommodation

- - - -

KPMG | 21



Table 2 Project Spending on Infrastructure -Rail - - - -

-Roads - 38.3m 22.0m 60.3m

-Flood Restoration / Mitigation

- 1.5m 3.1m 4.6m

-Tourism - 0.5m - 0.5m

-Mining 7,780.0m - - 7,780.0m

-Energy 900.0m - - 900.0m

-Water & Sewerage

- 29.2m - 29.2m

Nearby Central Highlands 71,247.0m 2,090.0m - 73,337.0m

-Rail 4,200.0m - - 4,200.0m

-Mining 64,797.0m 2,090.0m - 66,887m

-Energy 2,250.0m - - 2,250m

Total 79,934.3m 2,202.2m 40,9m 82,177.4m

Table 2 – Major projects not started, in progress and completed recently in and around the Central Highlands as of March 2017. Source: Central Highlands Development Register, 2017.

The rail network is particularly critical to the Central Highlands economy. It services the agriculture and resources sectors, but predominantly carries coal to export.

The below-rail network in the region consists of a mix of ownership arrangements, with Aurizon owning the Blackwater Rail System and Queensland Rail owning the Central Western System.

The Blackwater Rail System services the Southern Bowen Basin coal mines and carries product to the export coal wharves (RG Tanna and Barney Point) and to local users. The Blackwater Rail System runs from Emerald to Gladstone, and includes the section of the North Coast Line between Rockhampton and Gladstone. The Blackwater Rail System predominantly transports coal product.

In contrast, the Central Western System that adjoins the Aurizon Blackwater Rail System at Emerald and runs from Emerald to Hughenden via Longreach and Winton, primarily carries grain, livestock and containerised freight. This rail network can suffer load constraints as it is only a narrow gauge line (1067mm) and therefore cannot accommodate rail freight tonnage above a certain level – for instance 75 tonnes of coal per carriage12F

13.

Access to the rail network on these systems is regulated under a third party access regime overseen by the Queensland Competition Authority, which enables competitors to use this essential infrastructure at commercial terms, enabling effective competition in the market. As a result, however, there can be conflicts between resources and agricultural goods for accessibility to the rail freight network. As demand for the network increases, there will be additional pressures on the network to accommodate all resources in a diversified Central Highlands economy.

The Emerald Airport is a small, regional airport historically designed to facilitate the large volumes of non-resident workers (so called Fly-In-Fly-Out or ‘FIFO’ workers) for the coal mining projects in the region. It is serviced by QantasLink, Virgin Australia and Alliance Airlines with expansion potential into more direct flights to regional cities and air freight capabilities. Agribusiness in particular has opportunities in air freight for high-value crops.

13 http://www.theaustralian.com.au/business/opinion/narrow-gauge-rail-pose-huge-limitations-on-transport-efficiencies/news-

story/1095fac29a7dacf5624b21f96c0a1ab5

KPMG | 22



Since the reduction of FIFO workers, Emerald Airport travel numbers have reduced significantly – the numbers peaked in 2012/13 at 310,640 passengers and has contracted every year since at a rate between -7% and -15%. In the six months to December 2016, just 107,281 passengers were recorded, less than 2015 (113,128) and 2014 (124,811).

13F

14

Digital infrastructure is also a key consideration that spans the threshold between physical and intangible infrastructure solutions. In terms of physical capacity within the region, the copper wire network and various satellite solutions are still the predominant form of assets, providing limited access to the internet and slower than adequate speeds.

The digital infrastructure and capabilities of the region will be one of the strongest game-changers in the near future. Access to reliable, high-speed internet and mobile connectivity will become an increasingly important part of the Central Highlands’ engagement with the digital economy and optimisation of existing industries like mining and agriculture. It is important to understand the game-changing effect of internet access to the innovation of businesses and the development of a modern, stable resident worker population.

However, as noted above, current digital infrastructure is limited. Poor connectivity has been a consistent issue in the region and both the quality of connectivity and accessibility are important factors.

3.1.3 Non-infrastructure enablers Economic development is enabled not just by the built environment of a region, but by the systems, non-infrastructure and ‘soft’ or digital infrastructure that supports it. These factors provide important context for the future trajectory of the Central Highlands and its key export-orientated industries.

Particularly in the context of regional areas and a widespread focus on public finances, regional economies benefit greatly from the potential cost-effective development of supporting non-infrastructure solutions to economic development. For instance, instead of expensive investments in new road capacity, better freight route planning and coordination may relieve efficiency issues.

The Central Highlands has several strategic frameworks, collaborative intergovernmental and industry organisations and economic development initiatives to support economic growth.

Strategies cover many standard economic topics such as infrastructure, housing, liveability, employment and investment. Similarly, regional organisations tend to focus on specific industries, infrastructure and economic opportunities in general. However, the effectiveness and completeness of these support structures needs to be considered as anecdotal evidence suggests they aren’t always aligned, targeted, or extensively engaged.

14 CHDC Economic Profile, 2017.

KPMG | 23



3.2 Pillar Two: Population Services

3.2.1 Overview of key industry sectors Population services provide the critical foundations for any economy to live, learn and work effectively. It is important to understand these services – such as healthcare, education and social services – to develop a sustainable population, support this community to be healthy and happy in order to maximise productivity, and be resilient and innovative enough to meet future challenges.

Education

Education as a service and the development of the workforce pillar are very closely related, therefore this section will discuss themes and trends applicable to both in some manner, focused primarily on education outcomes of the region and educational institution capacity.

The Central Highlands has a reasonable amount of education institutions and services given its regional location and population size. It offers primary, secondary and tertiary education (both public and private) across the region with fair coverage in most towns. Access to the charitable funds of resource companies has also allowed selected, albeit uncoordinated, investments in community infrastructure such as schools, playing fields and even a science centre.

Key tertiary institutions include the Central Queensland University (CQU) campus in Emerald, the Emerald Agricultural College (EAC) under the auspices of Queensland Agricultural Training Colleges (QATC), and a range of local Registered Training Organisations (RTOs). The region also provides tertiary education to students outside the Central Highlands in the broader Central Queensland region.

Primarily, the EAC and CQU provide the majority of training for the region and form a critical foundation of capacity and opportunity. The RTOs mainly specialise in niche accreditations in safety, construction, agriculture and resources but not extensive trade qualifications or degrees.

There has been $15.8m invested in community infrastructure completed recently, with an additional $41.1m planned or in progress

There are 2,317 jobs in Population Services sectors (14%) in 2011, compared to 30% Queensland average

The Central Highlands population has an average life expectancy of 71 years compared to 80 years for Queensland

Key industries include healthcare, education, aged care, legal and family support, and community services

The rising cost of healthcare, policy shift towards primary and home care rather than hospitals, increasing focus on self-funding retirement are having an increasing impact on Population Services in the Central Highlands

KPMG | 24



The EAC is one of only three QATC colleges run by the State Government and provides agrarian skills training and qualifications including cattle production, irrigated and dryland cropping, and animal husbandry. It is complemented by a 9,300ha cattle farm for cattle production and stock handling training. It also coordinates with local state and independent schools to transition school leavers and graduates into the college.

The CQU Emerald campus offers a range of courses including the keystone undergraduate qualification – the Bachelor of Agriculture – and a raft of Certificate I to Certificate III qualifications in English and various trades. Its primary focus is on distance education to other courses offered in more metropolitan CQU campuses across QLD (business, marketing, etc.) and vocational education in trades and English following its acquisition of Central Queensland TAFE.

At the primary and secondary levels, the region includes reasonable amounts of both public and private schools (29 in total), some with their own initiatives (particularly in secondary schools) to educate students in relevant skills and subjects such as agriculture. At this end of the system, secondary completion rates and advancement rates to higher education are both lower than the state average. For example, the region has a 17% school leaver participation rate in higher education, which is almost half the 31% state average. 14F

15

Conversely, the region has a very strong Vocation Education and Training (VET) sector with 30 VET students per 100 people compared to the state average of 22 per 100 people.15F

16

School attendance and completion rates are a potential issue for the region. In 2011, fulltime secondary school participation at aged 16 was 68%, lower than both the Brisbane rate of 86% and the state average of 78%. In the same period, people who left at or before Year 10, or didn’t attend school at all, totalled 8,448 people (44%) compared with Brisbane’s rate of 26% and the state average of 37%.16F

17 Lower Year 12 and tertiary education completion rates in part reflect the strong VET component of the sector and required skillsets in the dominant resources sector.

In the long term however, this may reduce the uptake of science, technology, engineering and mathematics (STEM) skills required to perform the technology-focused jobs of the digital age. As disruptors such as the transition to blue to white collar work intensifies, secondary students will increasingly need to graduate with more advanced skills in STEM to be able to qualify for future employment opportunities.

The smaller RTOs in the region play a critical part in the broader education sector as they typically have greater flexibility with course content and can specialise to an extent that larger institutions often can’t. Examples of qualifications include OH&S, Standard 11 certification (surface and underground coal mining) and many other safety and technical trade related courses. Consideration should be given to the coordination of a diverse group of agile, small RTOs that specialise in specific trades, skills and qualifications.

Apprenticeships and traineeships are also important elements in workforce development. While there are apprentice and traineeship support services available in the region, many businesses are anecdotally unsure of how they can best use these services and how to make a complaint or ask for redress if the service is unsatisfactory. Consideration should be given to programs or workshops explaining the processes and support available to apprentices, trainees and businesses employing them.

Industry engagement by educational institutions will be critical in developing a plan for education requirements in the region, particularly given the prevalence of vocational education. The low labour supply and evidence of skills shortages mean that industry and education bodies will need to collaborate to time and structure degrees and qualifications to adequately supply the future workforce needs of industry. In particular, early engagement with resource project proponents will be critical to align student numbers with project employment needs.

However, these institutions should also consider education needs outside the Central Highlands as a significant proportion of the Central Highlands workforce still lives outside the region. Given the

15 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia 16 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia 17 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia

KPMG | 25



increasingly global nature of education services and the Central Highlands position at the cross-roads of western Queensland, northern NSW and the east coast, the region could provide niche, industry-specific training and qualifications in rural health, agriculture and resources/engineering.

Health

Healthcare is a critical support service to any economy and this is only amplified in the context of a regional, agriculture- and resources-driven economy. It is important to understand how the health system responds to the health of the population to optimise productivity in both educational and commercial endeavours.

At a high level, the region has health capabilities as outlined by the governing Health and Hospital Services (HHS) in Figure 7.

Figure 7 – Health facilities across the Central Queensland HHS region. Source: 2017 Edition CQ GP Referral Directory.

The map illustrates that Central Highlands has a secondary-level hospital at Emerald, multipurpose clinics Blackwater and Springsure, and three outpatient facilities north of Emerald. In addition to these large facilities, GP services are spread across the region and a GP Super Clinic operates in Emerald.

Regional locations often struggle without the utility of nearby, large hospitals under the current model of care, but primary care access (such as GP visits) can be equally challenging. Contrary to this trend, and possibly as a result of the Emerald GP Super Clinic, Emerald’s accessibility to services including healthcare in 2014 was relatively close to Brisbane’s accessibility. Just 3.8% of people over 18 years old had difficulty accessing services because of transport issues (Brisbane was 3.6%) and only 2.6% of over 18 year olds experienced cost barriers to their healthcare (compared to 2.5% for Brisbane).

17F

18

However, 4.6 GP services were provided per resident in the Central Highlands in 2010 (during the mining boom), which is significantly less than the state average of 5.5 services per resident or even

18 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia

KPMG | 26



the Brisbane figure of 5.2 services per resident. 18F

19 While more recent data is not available, and the GP Super Clinic may have addressed some of these issues, a 16.4% lower rate of GP services than the state average is poor for a region with a significantly lower health outcomes.

Several disruptors have the potential to further improve the accessibility and effectiveness of health solutions regionally, including the introduction of more advanced tele-health, predictive health analytics using remote sensor arrays, and the use of robotics (e.g. with a specialist based out of a metropolitan area controlling the robot in Emerald).

The physically demanding nature of work on agricultural properties, in construction and long-haul transport, and especially in mining and any extractive industry means that despite reasonable access to healthcare, life expectancy in the region is 71 years compared to the state average of 80 years.19F

20 This indicates the health pressures of living regionally and working blue-collar employment for entire careers.

Again, improvements in technology and disruptors such as automation may improve the life expectancy of the region and even begin to close the gap between the state average and the Central Highlands.

However, accessing all these benefits to health outcomes is heavily reliant on the rate of adoption for new models of care and new technologies. In many ways, these technologies will be easier to implement in major cities first, meaning that the disparity between metropolitan and rural areas could worsen before it improves.

For an analysis of the health workforce see the next pillar’s section on ‘Workforce’.

Social and Community Services

Social and community services cover a range of social support services, as well as sports and recreation. These services are important to the economy because they provide the lifestyle and utility required to attract people to live and work in the region. In addition, several services cater to more urgent and serious, or ‘acute’, needs such as mental health, disability support, family and young parenting support, and homelessness. These services prevent social, health or criminal justice problems in the future and form an essential part of a stable and cohesive community.

There is currently limited provision of acute community services in the Central Highlands. For instance, there are two official mental health practitioners according to the Central Queensland HHS, one adult-focused and one child-focussed. Of the major service providers for other community services, Anglicare, Centacare, and the St Vincent De Pauls Society all operate services ranging from domestic violence and more general crisis accommodation to specialist homelessness and youth services. However, some of these services are coordinated or even based out of other parts of the broader Central Queensland (e.g. Rockhampton). Anecdotal evidence suggests that these services are stretched quite thinly across the region and are particularly worried about the impacts of recent funding reforms.

Community programs including sport and recreation clubs are anecdotally highly volatile and over-reliant on dedicated individuals to drive program outcomes and continuity. Targeted funding and more coordination from any number of sources (schools, government, etc.) could provide more stability to these programs and address a need in the community. Without successful opportunities in the community to engage and maintain an active lifestyle, many prospective workers won’t be drawn to the region and existing residents will be encouraged to leave.

Access to childcare was nominated in previous strategies as a significant barrier to workforce participation for those currently not participating in the Central Highlands labour-force and 33% of residents in 2011 provided unpaid childcare.20F

21

This may have changed since the last Census, however the demand for community services like childcare and family support services will only grow as the population of the region grows and

19 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia 20 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia 21 PHIDU, 2017. Social Atlas of Australia, Creative Commons, Australia

KPMG | 27



becomes more stabilised (more working families). It is critical that social and community services, even less acute social support services like sports and recreation, are adequately invested in and coordinated if the region is to attract key industries, workers and general population growth while minimising the social stressors.

For an analysis of the social and community services workforce see the next pillar’s section on ‘Workforce’.

KPMG | 28



3.3 Pillar Three: Workforce

3.3.1 Overview Workforce is a critical part of any functioning economy and includes the people, skills and potential skills within the economy.

Understanding the trends for skills and employment into the future, both within the region and globally, is pivotal in preparing for and leveraging the challenges and opportunities of the economy over the next 3-5 years and beyond.

Distribution and Transition

The distribution of the Central Highlands’ economy in 2011, as outlined in Table 1 in the previous section, was heavily geared towards the export drivers – mining, construction, agriculture and tourism.

Viewed from another perspective, the top 3 occupations in 2011 focused heavily on trades and management – drivers / machinery operators (25%), tradespeople (22%), and managers (13%). This distribution is difficult to forecast without more recent data.

However, given that all three occupations are potentially equally applicable across a number of sectors (agriculture, tourism, transport, construction etc.), it is possible this distribution is largely unchanged.

These rough employment distributions mark the starting point, current strengths and weaknesses for the region’s workforce. Given the enormity of the challenges and opportunities facing all economies

There is a total of 19,315 people considered to be in the labour force which constitutes a 75% participation rate of total regional population

The labour force is has experienced moderate growth of 1.2% compound growth in recent years (Dec 2011 to Dec 2016)

There are 16,710 jobs within the region – of which, approximately 80% live in the region

The region’s unemployment rate of 4.1% (Mar 2017) is significantly lower compared to Queensland’s average of 6.1%

Key industries that contribute to Workforce activities include distance education and vocational education

There has been nationally stagnant wage growth in recent times, with the forecast to remain low and even negative in real terms over the medium term

The rise of automation and agile business combined with an ageing population will impact the region’s economic activity

KPMG | 29



in the future from disruptors, this employment baseline indicates that the Central Highlands will need to focus on further workforce development in essential services, professional and scientific services, and technology-focused skillsets.

From a population services perspective, all major education, healthcare and social assistance employment categories are significantly less than the state average. As the stability and average age of the population rises over time, these sectors will require significant investment in workforce training.

For instance, healthcare and social assistance employment (4.14%) is almost one-third of the state average (12.13%). As the stability and average age of the population rises over time, these sectors will require significant investment in workforce training and associated aging services.

Similarly, education and training, precisely aligned and pivotal to workforce development, is also significantly less than the state average (5.45% versus the state’s 8.04%). This proportion may need to increase in the region because of significant medium-term trends towards greater retraining, mature age education, education for international students, higher education and post-graduate qualifications, and advanced technical training.

Labour Force and Residency

Workforce residency is a significant consideration for the Central Highlands. There are advantages in both resident and non-resident worker populations, however at an economy-wide level in the long-term, it is financially and strategically better to maximise resident workforce populations than non-resident ones.

Non-resident workers can be useful to meet the needs of spikes in economic activity (such as a new mine) where the local workforce is insufficient to fully staff or support the activity. However, non-resident workers do not contribute as much to the local economy in terms of taxes and private expenditure. Compounding the issue, non-resident workers still access critical infrastructure such as roads, hospitals and short-term accommodation – they pay neither council rates that support roads nor spend as much of their income locally supporting businesses.

As long as economic activity is not stalled by a strategic focus on resident employment (i.e. blocking project approvals because they use non-resident workers), policies and investment should be focused in the long term on the maximisation of resident worker populations and the minimisation of non-resident populations.

The growth in the region’s labour force is also critical to economic development, because it represents the potential of the region to sustain and grow the economy – see Table 3. The Central Highlands currently has a larger labour force in proportion to its population (the Labour Force Participation Rate, or LFPR) than the state average. Similarly, the region’s unemployment rate is also low, meaning that for those people wanting work in the region, only 3.8% are currently not employed. This data would suggest that the region is at full employment with little if any capacity in the local workforce.

Table 3 Labour Force Comparison (Local Vs State) Forecasts

Year (as at June)

2016 (Central Highlands)

2016 (QLD)

Proportion / Difference

2021 2026

Population 33,173 4,853,048 0.7% 35,116 36,964 5yr CAGR* (%) 2.1% 2.04% +2.9% 1.4% 1.3%

Labour force participation rate

76% 70% +8.6% n/a n/a

Unemployment rate

3.8% 6.1% -38% n/a n/a

KPMG | 30



*Compound Annual Growth Rate over the five years prior to the year in question (2016, 2021 or 2026)

This is both a significant advantage and possible disadvantage. It is an advantage because it implies that few opportunities in the region’s economy are not being exploited simply because people are discouraged from working or unavailable. Conversely, it means the available resident supply of labour for new opportunities is limited. This is evidenced by the high proportion of non-resident workers in the region – workers attracted to come to the region because local, appropriately skilled workers could not be sourced from the resident population.

Without steady growth in appropriately skilled workers, opportunities may be unmet because of a high cost of the unavailability of labour, or the inefficient reliance on non-resident worker populations may continue to grow.

KPMG | 31



3.4 Pillar Four: Governance 3.4.1 Overview Effective and responsive governance structures are an essential framework and system of coordination for regional economies to optimise, advocate and collaborate.

It is especially important for regional areas to have strong governance as the rate of change and volatility of certain sectors will require rapid and coordinated responses. Similarly, regional areas can experience challenges in advocating for investment from institutions based in coastal cities especially where business cases require inter-regional benefits assessment and whole of supply chain economic returns.

The Central Highlands has many conventional structures for governance, including local government, region-based organisations (many whole of Central Queensland or Fitzroy Basin based), industry bodies and community organisations.

Few whole-of-region governance structures appear evident in the region – i.e. a structure that connects industry, community and local government together – however, at this point, Central Highlands Regional Council (CHRC), through the Central Highlands Development Corporation (CHDC), undertakes the broad share of this role.

3.4.2 Participants in governance activities

Local Government

The CHRC councillors and leadership team perform roles expected of public representation and community involvement being driven by the councillors and organisational management largely governed by the ELT and supporting staff.

Council initiatives to foster the economic development of the region include significant funding towards the CHDC, the Economic Development Incentive Framework (EDIF), economic profiling conducted currently by REMPLAN, and a general suite of industry engagement activities.

The EDIF provides a selection of cost savings and possible marketing opportunities for new projects or businesses with strategic value to the region – currently these focus on agriculture and tourism development. Benefits include a reduction in rates, fees or other payments, a payments schedule for fees and the potential for joint marketing opportunities. The approval process is case by case and was roughly budgeted at $150,000 of rate relief in the 2014/15 financial year.21F

22 It applies to investments over $1m or the creation of over 10 full-time positions. Several other conditions also apply including no negative competition with existing industries and no negative environmental impacts.

Inter-council governance and collaboration in the region is primarily facilitated by the Central Queensland Regional Organisation of Councils (CQROC) and Fitzroy Basin Association (FBA).

The CQROC comprises representatives from the Banana Shire, Central Highlands Regional, Gladstone Regional, Livingstone Shire, Rockhampton Regional and Woorabinda Aboriginal Shire Councils. It focusses on the agriculture sector through joint initiatives and investments, particularly supply chain improvements such as the Inland Port (and intermodal freight facility) and the Meat Processing Plant. Overseeing these specific projects is the Growing Central Queensland program that aims to drive growth in agribusiness for the region.

The FBA also focused on agriculture, with a specific focus on the environment, water security and biodiversity as it relates to the community and agricultural industries.

22CHRC, 2015. Development Incentives Guidelines, CHRC, Australia.

KPMG | 32



Industry

Industry representation in the region is facilitated by a number of sector-specific and general organisations from the Queensland Resources Council (QRC) to the FBA.

The CHDC is a unique component of the regional governance framework as an independent, but council-funded, economic development organisation. It is commonly considered the economic development arm of the CHRC given that is reports to the CHRC and is partially funded by it. In many instances, economic development organisations, such as Chambers of Commerce, are partially funded by private contributions or memberships to form a representative industry body and minimise the impact on public finances.

The CHDC has several existing industry partnerships including BHP Billiton Mitsubishi Alliance (BMA), Qantas, and the QRC. While BMA has contributed to the extent of having an embedded BMA-funded Business Development Officer in the CHDC, Qantas and the QRC partnerships appear to focus on coordination and joint planning for specific issues like the Emerald Airport and the future development of the mining sector.

It is important to note that agriculture and resources have considerable representation at national, state and local levels within the region whereas the tourism sector in the Central Highlands may not be leveraging broader sector based opportunities for collaboration and support through industry representatives. It is important to consider the implications of governance and collaboration within and outside the region across all sectors and ensure efforts are sufficient in scope and adequately aligned to the strategic aims of the region.

Community

Community infrastructure and services are governed in the region largely by local government, small unincorporated organisations like sporting clubs, and community industry groups.

Environmental and water catchment planning bodies such as the Capricornia Catchments Inc., the Central Highlands Regional Resource Use and Planning Cooperative (CHRRUP), and the Dawson Catchment Coordinating Association (DCCA) all aim to plan, monitor and develop the environment and water sources within the Central Highlands and Central Queensland more broadly.

KPMG | 33



3.5 Central Highlands Economic Snapshot The Central Highlands economy has relatively strong headline indicators and performance, particularly given the unique challenges of maintaining and growing the economy of some inland, regional cities in Queensland. Its employment is strong, several education and health indicators are positive and the region’s overall socioeconomic status is above the state average. Below is a summary of the current economic standing of the region – including the identification of what this means for economic planning processes in the future.

KPMG | 34



4 What is coming for the Central

Highlands?

4.1 Understanding key global disruptors It is important to understand what may influence the region’s economy in the upcoming decades. There is significant change on the horizon for the Central Highlands’ economy. The disruptors impacting all industries and the community are broad and numerous – from technology, climate change and the rise of Asia, to ageing workers, agile business and the digital age. In addition, export drivers are also vulnerable to traditional market forces even without technological or social disruption, especially commodity prices.

The rate of technological, social and economic change is accelerating and economy’s need to be prepared to adapt to these changes quickly and with minimal negative impacts on communities. Not only are the number of disrupters increasing, but the rate of change and adoption is also sharply increasing. This is important for the Central Highlands because it reflects the need to plan for disruptors and be aware of the impact of rapid technological change on its economy and society.

The exponential growth of technology means that technology will be over a billion times more advanced in 30 years – see Figure 8.

Figure 8 – the exponential growth of technology over 30 years. Source: KPMG, 2017.

0

0.2

0.4

0.6

0.8

1

1.2

1 11 21 31

Pow

er o

f Tec

hnol

ogy

Billi

ons

Number of Years from 2017

Potential Exponential Growth Over one billion times more advanced techology in 30 years

>1 thousand times more powerful in 10

years

>1 million times more powerful in 20

years

>1 billion times more powerful in 30

years

KPMG | 35



There are many global disrupting forces of technological, social and environmental change that impact the global economy. These forces apply equally to export-orientated regions like the Central Highlands. These disruptors – sometimes called ‘mega-trends’ – significantly impact the consumer base, labour force and general ways of doing business across all industries. According to the CSIRO22F

23, the main disruptors over the next 30 years for Queensland are outlined in Figure 9.

• The rise of Asia (particularly China and India);

• Protecting our natural advantages in resources, biosecurity, and the environment;

• The new digital and knowledge economies, including infrastructure and resources services, ICT services, and urban and environmental services;

• Urbanisation and the strain on critical infrastructure; and

• Healthy ageing and the development of lifelong learning and contribution.

Figure 9 – QLD Disruptors based on the CSIRO. Source: KPMG, 2017.

23 CSIRO, 2009. Signposts for Queensland: An Analysis of Future Pathways, CSIRO, Australia.

Rise of Asia

The rise of Asia will significantly increase the demand for clean food and high-quality agricultural produce for the booming Asian middle class. Because domestic supply in this region of high-quality and clean produce is sometimes limited, Australia’s high environmental and biosecurity standards provide opportunities to supply this demand. This will provide opportunities in tourism, resources and agriculture.

Leveraging natural resources and environment

Similarly, the drive to leverage our resources and environment will increase as the Asia-Pacific grows in size, desires more luxury eco-tourism experiences, and demands more energy and construction materials. However, the increase in reliable and cheap domestic supplies of these commodities will pose an ongoing challenge and encourage the Central Highlands to value-add or innovate more wherever possible to maintain competitive advantage.

This will provide opportunities in tourism, manufacturing, construction, resources and agriculture.

The digital economy

The digital economy is another critical disruptor and opportunity for the region, as traditionally analogue industries and low-tech products like agriculture and tourism face pressures to more agilely supply products online to a global marketplace. New processes and enabling technology will drive change and opportunities in all goods and services, but especially in agriculture, tourism and essential services.

Urbanisation and healthy ageing

Urbanisation and healthy ageing pose similar challenges and opportunities as disruptors for the region. On the one hand, urbanisation in cities may drive the growth of regions like the Central Highlands that have copious supplies of land for development. But, limited infrastructure investment in the region means that trade routes and essential services will still be stressed by the increase in population and development without significant strategic investments in critical infrastructure, services and coordination. Similarly, the young average age of the population in the Central Highlands limits the immediate impact of an ageing population, but the challenge in providing the necessary level of care for some high needs older residents will continue to grow as issues like chronic disease follow their current trends.

KPMG | 36



These trends broadly align with several other reports over the last decade, including by Trade and Investment Queensland23F

24, CSIRO (from a national and global perspective)24F

25, and the Planning Institute Australia25F

26.

Understanding these pillars is important to the long-term economic strategy and aspirations of the region, especially given the region’s prominent mining and agriculture sectors that account for over half of the economy and are inherently linked to the fluctuations of global demand 26F

27.

4.2 What impact may disruptors have on the

economy? The opportunities on the doorstep for the Central Highlands economy are immense, and the rate at which these opportunities will present is likely to be rapid. It is important to ensure that the region’s economy is in a position with established frameworks and processes to leverage the opportunities presented through these emerging disruptors.

It is important to understand how this disruptors may impact the region’s economy. It is anticipated that all four pillars of the region’s economy will be presented with opportunities borne through the emergence of global economic disruptors. These are outlined in more detail below and overleaf.

Export Drivers

It is acknowledged that export drivers is the most significant contributor to the region’s economy. It is particularly important to recognise that some global disruptors will have more of an impact on the region’s economy and export drivers specifically than others. In particular, it is anticipated that the Central Highlands’ economy will be most impacted by:

• Automation – the resources and agriculture sectors already have many automated and technology-enabled activities such as mine truck navigation, real-time mine convergence, harvesting, monitoring and crop treatment, and processing of many raw products. In addition to the existing impacts of automation, there is evidence that a significant amount of further automation is likely over the medium term. In particular, agriculture is considered one of the sectors with the greatest opportunities for embracing new technology, including automation27F

28.

• Rise of Asia – the increase in demand for clean food and protein in the growing markets of China, India and south-east Asia (Indonesia, Malaysia, etc.) provides significant opportunities for the agriculture sector, particularly grazing in beef and other livestock. Similarly, coal exports, while potentially in long-term decline, are benefited significantly by demand for coal for steel production and energy in countries like China and India. Conversely, there will be challenges in adequately servicing increasingly large volumes in commodities and changing preferences for food, energy and other exported goods.

More specifically, there are a number of potential disrupters that will influence infrastructure within the region. These are outlined below and cover a range of mostly technology-based disruptions.

• New materials – including the increased use of energy efficient and recycled materials.

• Advanced manufacturing and pre-fabrication – the ability for individuals to manufacture their own parts and products, coupled with the ability to build large modular structures using pre-

24 TIQ Investment Strategy 2017-2022, 2016. 25 CSIRO, 2012. Our Future World, CSIRO, Australia. 26 Planning Institute Australia, 2016. Through the lens: megatrends shaping our future, PIA, Australia. 27 CHDC Economic Profile, 2017. 28 StartupAus and KPMG et al., 2016. Powering Growth: Realising the Potential of Agtech in Australia, Startup Aus, Australia.

KPMG | 37



fabricated, albeit innovatively designed, structures. These development decentralise the field of construction and engineering, disrupt supply chains and the costs of goods and reduce the need for large on-site construction work.

• Big data and the internet of things – the increase in affordable data sensor arrays and embedded data in infrastructure has allowed more and more powerful data analytics around transport and infrastructure use. Similarly, the diverse range of economic activity that is underpinned by data-enabled infrastructure is empowered and provides greater flow-on opportunities for increased productivity, quality, automation and responsiveness.

Population Services

There are several disrupting forces acting upon the population services of all global economies, and the disruptors with the most relevance to the Central Highlands are outlined below.

• The ageing population – increased life expectancies and advancements in medicine have both extended natural lifespans and reduced premature deaths in developed countries like Australia. As a result, the types of services supplied and demanded in Australia, particularly preventative primary healthcare and aged care, have changed significantly. This is important to the Central Highlands because, despite having a relatively young population now, the demand and nature of services will continue to change just as rapidly with improvements in technology, a growing ageing resident population and the drive for longer working and learning lifespans.

• Policy reform and agile ways of doing business – population services are increasingly being expected to act like small businesses. Recent reforms to the disability and aged care sectors have strongly emphasised a consumer-directed care approach that mimics private sector behaviour, reduces regulation around service delivery options and shifts the funding burden away from government. These changes are important to understand as they make services less financially secure in the short-term and require significant operational changes to many essential services.

• Big data and automation – the increasing power of data analytics and robotics will significantly change the nature of population service delivery, including more predictive analysis, real-time data monitoring and automated systems. While the most immediate impacts will be felt in health and aged care, education and general community services will also experience challenges and opportunities. This is an important game-changer for rural communities if these disruptors can be embraced, because they have the capacity to ‘level the playing field’ by decentralising service delivery and reducing the impact of distance of sectors like education and healthcare.

• Tele-health, digital service provision and advancing analytics - Several disruptors have the potential to further improve the accessibility and effectiveness of health solutions regionally, including the introduction of more advanced tele-health, predictive health analytics using remote sensor arrays, and the use of robotics (e.g. with a specialist based out of a metropolitan area controlling the robot in Emerald).

Workforce

Given the enormity of the challenges and opportunities facing all economies in the future from disruptors, this starting point implies a workforce with future development needs in essential services, professional and scientific services, and technology-focused skillsets. Specifically:

• Sectors and potential skills of the future will require strategy planning and investment to appropriately supply industry with the workforce it needs. Currently, many of the projected important workforce or skills categories (STEM etc.) have a significantly lower proportion in the region than the state average.

• The transition towards advanced manufacturing will likely benefit from the core skills of existing manufacturing workers, as well as the importance of supporting infrastructure already enabling the region. It is important that consideration be given to how these skills can be transferred into highly trained, highly paid and stable jobs in the future (e.g. Advanced Manufacturing, R&D and agri-business).

KPMG | 38



• Allowing an older and longer-serving workforce because of longer life expectancies and the drive for healthy ageing;

• Changing the type of work performed by people as automation and technology-enabled labour drives productivity but restricts traditional, labour-intensive job growth; and

• The innovation imperative to adapt to changes in technology and market demand for workforce will create challenges for education institutions to keep pace with change.

Governance

There are several disruptors that can act upon the effectiveness of governance for the region, including:

• New funding models – public-private partnerships, market-led proposals and the increasing use of crowd-funding and venture capital all make traditional advocacy and investment strategies with state and federal governments less effective and less necessary; and

• Inter-governmental and inter-regional collaborative decision-making – new policy, planning and governance frameworks including the City Deals model, Northern Australia policy, and Regional Transport Plans increase the degree of cross-boundary collaboration and coordination in government decision-making and policy mindsets.

While the enormity of potential change opportunities resulting from global disruptors may be daunting, these disruptors also provide opportunities for key industries to be more productive, more efficient and generally service key markets more effectively. It is important to recognise the degree of change, potential challenges and supporting frameworks and initiatives necessary to leverage these opportunities for the region’s economy. These should be considered both in the short and longer term to ensure opportunities presented through global change can be harnessed for the benefit of the Central Highlands’ economy and community more broadly.

KPMG | 39



5 Developing an Economic Master

Plan for the Central Highlands

5.1 Methodology Over the course of developing this document, various activities were undertaken to provide a comprehensive and collaborative vision of the region and its economic aspirations.

An economic baseline was developed using the latest available data and forecast trends to provide a basis and lens with which to analyse community input and frame potential strategies and actions.

This baseline is summarised in the Executive Summary and appendices of this document.

Industry and community stakeholders were consulted in group and individual sessions on the major opportunities and measures for success that are relevant for the region’s 3-5 year future, as well as its 30 year aspirations. Feedback was also sought on the barriers, enablers, possible initiatives and required infrastructure that impact the successful realisation of these opportunities and aspirations.

Approximately 70 members of the community and industry were consulted, mainly through the group session workshops. To supplement, several key stakeholders were followed up separately by phone and email.

These results are summarised in Section 5.2.

The CHRC and CHDC were consulted regularly throughout the process and feedback from these sessions were incorporated at the draft, final draft and final stages of the process. Both the council members and the CHRC executive leadership team were consulted, including the alignment of this documents findings to the strategic frameworks of the CHRC, its Corporate Plan and relevant strategies.

Additional material was consulted in the form of reports and external analyses on global trends, prices, the region, state and national factors at play and any recommendations made publically regarding the economic development of the Central Highlands.

These are summarised in Section 5.3.

These activities were used to develop a series of high level objectives for the future of the region’s economy. These objectives form the basis of identifying actions and implementation considerations contained within the CHEMP.

A summary of the above methodology is provided in the subsequent sections.

5.2 Summary of stakeholder engagement Stakeholder engagement activities were conducted from 16 May 2017 through to 2 June 2017 in a variety of formats including group workshops (16 and 17 May) and supplementary teleconferences. The group workshops were undertaken in alignment to the four pillars of the region’s economy to

KPMG | 40



ensure targeted discussion and open opportunity to interact with representatives from similarly focused industry sectors.

A summary of the findings from these workshops as well as additional consultation activities undertaken with stakeholders via teleconference are provided below.

Industry and Export Drivers Key themes emerging from stakeholder consultation activities pertaining to specific industry and export drivers are outlined below:

• Comparative strengths – the need to analyse existing comparative strengths and stocktake capabilities and infrastructure was recommended to reinforce immediate economic strategies towards expanding and improving existing economic drivers such as mining and agriculture.

• Traditional value-adding and advanced manufacturing – the need for specific infrastructure such as the Emerald Meat Processing Plant, a goat processing plant, boutique abattoirs, a macadamia and/or oilseed processing plant, and general capability expansion into pulse processing, branding, tracking and new packing capacity.

• By-product utilisation – a specific opportunity was identified in the agriculture sector to better utilise by-products from production as other inputs or products such as bio-fuels.

• Intermodal supply chain optimisation – the need for the Central Queensland Inland Port and initiatives designed to optimise supply chains and transport networks. Examples include getting agriculture off the roads and more efficiently share the rail network. An aspiration included aiming to be the regional hub for trade.

• Airport development – elements of the airport were addressed regarding economic development including opportunities such as air freight capability upgrades, expanded airport services to Toowoomba and coastal regional cities, and helicopter services for tourism and business.

• Digital economy – Connectivity and digital infrastructure were consistently highlighted across many workshops, including the opportunity to use microwave wireless networks (South Western Wireless), LORAWAN sensor networks, develop central data storage, implement the internet of things concept, and develop big data analytics capabilities.

• Energy and resources – opportunities were highlighted in the renewable energy sector including solar, wind, biofuels and other renewables investment. This was viewed particularly in the context of energy independence from the grid, parallel battery technology investment, and a refreshed strategic view of mining and resources future in the region.

• Tourism – various tourism diversifications and improvements were highlighted such as agri-tourism as a counter-cyclical industry. Others include the opportunity to specialise in both investor / business tourism and agrarian sightseeing / experiences, the benefits of a strategic focus on packaging luxury experience, large scale regional events, and the optimisation of the existing driving market.

• Agriculture – a constant theme was the desire to have a major shift towards agricultural expansion and diversification, including horticulture, development of niche markets, establishing air freight capacity, and embracing innovation through agri-tech and innovative business examples like fully automated farms, or water and energy independent farming stations.

• Agile business – a broad theme also involved the optimisation of governance and planning processes to improve the ease of doing business in the region, particularly for start-ups and

KPMG | 41



SMEs. Elements of this opportunity included incubator spaces and initiatives to improve access to the basics required to grow a small business.

• Adaptability – overall a strategic focus was articulated that economic investment and initiatives should be directed towards economic fundamentals and core systems to allow flexibility to changes in market forces or conditions, such as commodity prices. Examples included so-called ‘forced cropping’ support initiatives, investment in product-agnostic infrastructure like certain roads, rail and digital infrastructure investment.

• Development of new and existing markets – an element of the feedback focused on new and emerging market development both domestically and internationally. Asian markets played a significant role in this feedback for all aspects of the economy, but especially agriculture, resources and tourism.

• Research and development – niche and collaborative research specialisations in areas such as agriculture and mining were emphasised. Specific suggestions included attempting to have one Australian Research Council Centre of Excellence in the region, expanding the purview of the Northern Australia CRC, and forming a joint agriculture/resources CRC or initiative to solve numerous joint issues for mutual benefit. The need for greater industry representation in R&D and other economic decisions was reinforced in this discussion.

• Centralising, contracting and outsourcing – it was identified that there was a potential opportunity in finding efficiencies in core business services like payroll, accounting, ITS, and equipment hire and management by providing these centrally (e.g. through a discrete role in CHDC), or via out-sourcing to third parties to promote consistency, efficiency and free up businesses to focus on customers and innovation more. Added benefits included the ability to share resources like machinery across the region through a third party rather than every party holding independent, capital-intensive fleets of vehicles, machinery and other equipment.

Population Services A summary of key themes that emerged through stakeholder consultation activities that relate to the Population Services pillar of the region’s economy is outlined below:

• Community infrastructure – critical infrastructure was highlighted as a key attractor and retention factor for skilled populations and a lifestyle development strategy. Examples include a multi-purpose facility to serve as things such as an agile small business incubator or business centre, convention centre, indoor sports, arts centre, or community hall etc. The improved targeting and coordination of private investment in community infrastructure and programs was also raised, citing concerns that investment was reactionary and disconnected.

• Digital – everything from digital literacy, the digital economy and business technology education was highlighted as requiring significant consideration. Combined with the need for digital infrastructure, digital connectivity is clearly an important issue.

• STEM – it was suggested that STEM skills need to be encouraged during early and pre-tertiary education as the basis of both professional and technical jobs in the future.

• Water security – issues regarding water security were highlighted, including ensuring towns have sufficient water supply, unlocking high value productive areas, minimising conflict with industry and irrigators, and investigating water trade regionally.

• Strong and stable population – the need for a manageable flow of people was raised during the consultations. Stakeholders suggested either a well-maintained, stable and self-contained resident population or a managed flow of residents throughout their lives. Regardless, strategies to address this included strong community programs, amenities and job opportunities.

KPMG | 42



• Flood and drought regional safe haven – opportunities and challenges were presented including continued work in flood-proofing and preparing for droughts and other extreme weather events, getting drought recognised as a natural disaster, facilities for the Local Disaster Management Group, and providing incentives and initiatives to attract industries (particularly agriculturalists) outside the region to relocate or diversify into the Central Highlands after natural disasters elsewhere (like Townsville).

• Regional health and ageing – it was identified that many local community groups and health providers were struggling with service provision in the region, particularly given the impending reforms for disability and aged care. Strategies and initiatives were requested to assist services in transition for NDIS, encourage aged care and health services towards primary care and treating chronic disease, and a significant retraining focus was emphasised to assist the ageing population.

Workforce Stakeholder consultation activities highlighted a number of key themes relating to Workforce which are summarised below:

• Reinforcing existing programs – the existing agriculture technical programs and the new Bachelor’s degree, along with strong vocational education, were all highlighted as key elements of the region’s education system that worked well and should be promoted.

• Upskilling – an opportunity was identified to strategically focus on upskilling locals in new sectors or skills like coding, agri-tech and sciences supporting the agriculture and resources space.

• Retraining – it was suggested that a retraining program be developed for permanently or temporarily underemployed workers, particularly resource and construction sector workers, or older workers looking to change skillsets.

• Regional hub for education – an aspiration was presented that the region could be a regional hub for agricultural education, rural health and distance education.

Governance As a fundamental pillar of the region’s economy, stakeholder consultation activities focused on a number of key themes relating to Governance. These are summarised below:

• Flexible approvals and planning – more flexibility in planning and approvals processes was highlighted as an issue. Frameworks were requested to better allow for stalled projects without causing issues, shifts in agricultural or resources demand, and product divergence as a result of global forces.

• Better regional collaboration – regional collaboration currently focusses on agriculture and small elements of tourism. Topics ranging from transport, infrastructure, small business and innovation don’t appear to have as prominent representation and this was identified as a potential opportunity upon which to improve.

• More industry collaboration and private funding – despite significant industry presence, private funding is often restricted to big mining projects and isolated, uncoordinated community projects. Consultations with both industry and community groups identified opportunities to better leverage private funding.

• Regional branding – a sense of regional brand and associated strategies was identified as a potential initiative, including internal and external marketing/education programs to educate people about the services and potential of the region.

KPMG | 43



Identified barriers to economic activity In addition to a number of opportunities and key themes relating to the four pillars of the region’s economy, several barriers to economic development and activities in the region were identified throughout the stakeholder consultation process. A summary of these barriers is provided below:

• Lack of digital connectivity, including both coverage and capacity across the region – the lack of digital connectivity is impacting the ability for people to connect to information and networks to undertake business and community activities.

• Low tourism industry engagement – the tourism industry of the Central Highlands is perceived to be under-represented in decision-making and regional collaborative networks, and disengaged from the development of trade tourism relationships such as retail travel agents and online travel sources.

• Containerised freight restrictions – most containerised freight is restricted to travelling along roads all the way to the Port of Brisbane, rather than using a more efficient rail route to somewhere like Gladstone, Rockhampton or Mackay. The necessary rail capacity and a port capable of managing containerised freight is required in the greater Central Queensland region to address this.

• Resources sector dominance of the rail network – the existing rail network is predominately used by the resources sector, forcing other sectors to rely on less efficient road networks to transport goods.

• Attracting people and workers – it is a challenge to retain and attract the necessary population and workforce to service industry skills shortages and build up the community’s capacity and stability.

• Maintaining community programs – community programs like sporting clubs, community services such as aged care, as well as general entertainment and lifestyle elements are difficult to maintain over the medium-term and can lack sufficient quality and range to retain and grow the region’s population.

• Brain drain to coastal cities – residents, particularly young residents, are leaving the region for higher education and many other specialisations, as well as simply lifestyle factors. This reduces the ability of the region’s education system and industry to properly build capacity in education and training, and properly service the skills needs of industry into the future.

• Over-reliance on non-resident workers for resource industry activities – due to the high variability in economic activity in the region, non-resident workers are often relied upon to fill skills gaps, which reduces the ability of the region to develop a stable labour force and population base, as well as places pressure on infrastructure.

• Labour and skill misalignments and shortages – industry representatives consistently highlight the lack of available labour in the region and the skills gap that forces them to either limit growth or hire more expensive non-resident workers.

5.3 Key objectives for the region’s economy The consultation and research process conducted in the development of this document has determined a number of key underpinning objectives that encapsulate the opportunities of the region

KPMG | 44



over the next five years. These objectives underpin the development of a targeted 5 year plan with discinct actions to achieve identified economic outcomes, and are also reflected in the longer term aspirations for the region’s economy.

The following objectives, aligned to the four pillars of the region’s economy, are the culmination of consultation activities and review of local and global economic trends as they relate to the future of the Central Highlands regional economy.

Industry and Export Drivers

1 Promoting comparative advantage – building on the existing strengths and long-term comparative advantages of the region to maximise the current economic profile of the region.

2 Expansion and diversification of existing sectors – diversify existing sectors using a strategic direction compatible with structural advantages in the region (geography, land, location, etc.) to grow and stabilise the region.

3 Energy independence and renewables – expansion and diversification of the energy exports and domestic capacity of the region, including a focus on renewables (biofuels, solar, etc.) and a constant, off-the-grid energy supply.

4 Expansion of research and development activities – specialising in research and development capabilities and infrastructure in fields with comparative advantages such as rural health, agricultural sciences, resources engineering, and environmental sciences.

5 Improved connectivity – comprehensive development of data connectivity and digital capabilities to address the inconsistent and low volume access to the internet and data systems in the region.

6 Increasing the ease of doing business – encourage the development of simple and flexible systems to support the planning, approval and execution of economic activity in the region.

7 Stability and rehabilitation of the resources sector – strategic focus on the stabilisation of the resources sector through diversification, project smoothing, industry coordination for legacy investment, promotion of resident workforces and a specific focus on the optimal rehabilitation strategy for terminated projects.

8 Optimising water trade, security and capacity – continuing the development and optimisation of the water network in the region, including building capacity, reducing issues like evaporation loss, and investigating the potential for water export to neighbouring regions and projects.

9 Increasing tourism activity – expand the offerings of the tourism sector to leverage natural assets and advantages such as eco-tourism, agri-tourism, and business tourism for non-resident workers and trade delegations; encourage the engagement of the trade tourism industry and the development of end-to-end packaged experiences; and encourage regional coordination and marketing.

Population Services

10 Supporting a local workforce – promote the development of a stable, appropriately skilled local workforce, including a focus on future skills like STEM and professional services.

11 Improved community investment – better coordinate and encourage investment in community infrastructure, especially regarding the private investment of funds from major companies.

12 Access to and use of open data – formulate a deliberate set of systems and capabilities to provide a local, centralised source of open data and analytics as an enabler for local organisations, start-ups and larger businesses.

13 Improved education and associated services – develop and better coordinate existing strengths in education such as agricultural sciences and trades to become a regional centre of excellence for these fields and adequately supply the local economy’s workforce requirements.

KPMG | 45



Workforce

14 Skill development and advancement – develop skills that are compatible to related sectors and transferable between occupations, including a focus on retraining, joint public/private business and skills education initiatives, and advancement of specialised skills for niche, future industries.

Governance

15 Improved collaboration and partnerships – development of significant industry and regional collaborative initiatives, to promote new funding models, investment attraction, and the collective weight of the broader Central Queensland region’s advocacy to various private bodies and governments.

16 Frameworks that support economic activity – develop agile and flexible approval and development frameworks to reduce the impact of regulation on the ability of business to adapt to economic shocks and market forces.

These objectives highlight the region’s desire for greater prosperity, stability, innovation, connectivity, social cohesion, coordination, reputation and responsiveness.

KPMG | 46



6 Central Highlands 2047 Economic

Master Plan The Central Highlands 2047 Economic Master Plan (CHEMP) is a strategic document to guide the economic development of the Central Highlands in order to achieve the region’s economic aspirations and vision over in the short and longer term.

The CHEMP outlines:

• The long term (30 year) Vision for the Central Highlands’ economy and local community

• The actions, roles and responsibilities necessary to work towards these aspirations in the next five years – this is referred to as the CHEMP 2017-2022 Action Plan

• The infrastructure required to achieve these aspirations

6.1 30 Year Vision for Central Highlands

Economy The articulation of longer term Vision for the economic future and community of the Central Highlands provides a means for aligning short term strategies and actions with longer term targets and desired outcomes. It provides a useful framework for future investment and the allocation of scarce resources to particular initiatives.

The aspirations outlined below have been identified through consultation exercises as well as investigation into the key ‘game changers’ coming for the region – they consider the rapid rate of change of key influences on the region’s economy including (but not limited to); technology, global markets and changing skills.

The region’s 30 year vision for the Central Highlands’ economy and community are outlined in the figure overleaf.

KPMG | 47



These aspirations are outlined in more detail below:

Emerald is a self-sustaining regional inland hub supporting successful and thriving communities. Emerald and other communities within the region benefit from services, opportunities and infrastructure that support a growing population and increased economic activity. Access to and use of services and opportunities should be equitable and broadly equivalent to the quality and accessibility of services in non-regional locations. This will support economic activities in the region to be more productive, increase employment opportunities, drive community outcomes, optimise operational efficiency and foster regional growth.

A diversified economy with a number of mature and thriving local industries

The region’s economy will be underpinned by advances in agriculture and be in a position to leverage opportunities presented in the resources, tourism, health, and education sectors. Harnessing the opportunities presented by advances in technology, agribusiness, social and economic disruption, research and development, and workforce training and education will support the region’s economy

KPMG | 48



to deepen its strengths in agriculture and diversify into other opportunities. These industries will be more efficient and productive, and contribute to solidifying the Central Highlands’ position as one of the nation’s most prominent and important food bowls, a destination for investment and the generator of economic activity contributing to the broader state economy.

A highly skilled, local workforce that supports our industries to adapt and grow in a changing environment. The growth of specific industry sectors and the changing ways of undertaking economic activity is supported by a stable workforce that has both the fundamental and advancing skills to support these activities. The ability for this workforce to live and work within the Central Highlands will forge a future for the region that has not only a robust and stable economy, but also a strong and cohesive social fabric that is adaptable to change and engaged in the region’s communities.

An established international reputation as a reliable source of clean, safe and quality agricultural production. A sustainable key food source supplying global markets.

The Central Highlands remains as one of the nation’s most successful agricultural producers and is competitive in both domestic and international markets. Advances in agri-technology and agribusiness practices will support producers and other supplementary industry activities (upstream and downstream in agricultural supply chains) to be more productive, have capacity to explore new methodologies and products, and be effectively engaged in decision-making that influences the agriculture sector.

High quality connectivity, both physically and digitially, to domestic and international markets, services and information

Physical, social and digital connectivity that is secure, stable, fast and efficient with sufficient capacity to support growth in industry activity and population, both domestically and internationally. The region includes physical infrastructure that supports multimodal transport and freight activity, the movement of people, and digital connectivity across all sectors of the economy. The community has access to information and data about their region, and are able to connect to services, information and activities both physically and digitally within and outside their region.

Celebration, protection and promotion of the region’s natural assets

The natural assets of the region – water, natural landscape, climate and environmental conditions are not only protected for the long term, but also leveraged in an economically productive way. The region’s water is effectively distributed and used to support economically productive activities and the region’s potential as a renewable energy producer has been explored and progressed. The region is predominantly self-sufficient in its energy production and use, and leverages its natural assets to contribute to ensuring reliable and effective energy network capacity. The region also benefits from tourism activities that are focused on experiences in the region’s unique environment.

Partnering with public and private sectors to implement governance structures that will promote the region being open for business and investment Active representation by industry in research and development, education and training, and governance activities associated with the growth and advancement of the region’s economy. The knowledge, experience and investment capacity of the private sector is leveraged effectively to ensure that economic development activities progress.

KPMG | 49



6.2 Achieving Economic Aspirations The achievement of the 30 year Vision for the Central Highlands’ economy and community requires a series of shorter term strategies and actions ideally covering shorter term periods of 3-5 years. Rapid changes in the local, national and global environments such as the disrupters discussed previously necessitate a long term plan to be flexible and re-assessed on a regular basis. Accordingly we suggest that a phased approach be adopted in achieving the longer term Vision providing the opportunity to re-assess and re-direct as necessary reflecting the impact of the rapidly changing environment.

We have outlined below a suggested four phased approach to achieve the longer term Vision.

5. Strengthen existing activity: Deepening and broadening existing industry sectors and establishing the foundations of enabling infrastructure. Fostering enhanced collaboration across industry, community and government to identify and pursue emerging opportunities.

6. Attract investment to realise existing and emerging opportunities Attracting investment and activity to the region to grow the productive performance of newly established and existing industry activities.

7. Harness emerging opportunities Supporting the conversion of opportunities presented through emerging technologies and industrial change.

8. Realise aspirations and reset for the future: A region that reflects the economic and local community aspirations identified previously. The economy is strong and has leveraged opportunities presented through global change. Refocus aspirations for a new phase into the future.

These four phases, unique to the Central Highlands context, build on the solid foundation and achievements that resulted from the delivery of the 2013-2016 Economic Development Strategy. It is recognised that clear planning and strategy has provided a platform for strengthening the region’s economy as it looks to the future and the opportunities that lie ahead.

KPMG | 50



The CHEMP 2017-2022 Action Plan will assist CHDC, CHRC and other partners to guide economic development activities on a strategic pathway for the next five years with clear direction to achieve the longer term 30 Year Vision for the region’s economy and local community.

KPMG | 51



6.3 CHEMP 2017-2022 Action Plan A plan for the next five years The CHEMP 2017-2022 Action Plan has been developed to provide a clear plan and strategy for achieving economic objectives for each pillar of the region’s economy. This shorter term strategy has been developed with reference to the overarching aspirations for the region’s economy in 30 years, the key themes and outcomes from stakeholder consultation and with a view of key opportunities for the region’s economy resulting from global change.

These action items recommended to harness key opportunities and barriers identified through consultation activities and in reference to the economic baseline and key global disruptors outlined previously and also provide for the execution of the region’s economic aspiration in the long term.

KPMG | 52



PILLAR ONE – EXPORT DRIVERS

Action Item Description Action Lead KPI Target Completion Date

Objective 1: Promoting comparative advantage

1.1 Regional branding

• Development of a consistent regional brand and marketing strategy for tourism and investment attraction.

• Leverage opportunities identified in the Regional Events Strategy, Marketing Strategy, Advocacy Strategy and CHAA Strategy to promote consistent regional branding within the Central Highlands as well as outside the region.

• Utilise a consistent regional brand when implementing the CHRC’s Regional Advocacy Strategy.

CHDC

With:

CHRC

a. Execution of CH Events and Marketing Strategy

b. Identification of resourcing to promote Sandstone Wilderness brand

c. Establishment of Sandstone Wilderness brand

d. Delivery of CHRC Advocacy strategy

e. Execution of the CHAA Strategy branding deliverables

f. Delivery of consistent regional collateral & assets (websites, imagery, templates, social media)

Ongoing to 2022

June 2018

End 2020

End 2020

End 2020

Dec 2018

KPMG | 53





Objective 2: Expansion and diversification of existing sectors

2.1 Domestic and international market development

• Investigate opportunities to deepen and extend the trade strength of existing markets and explore expansion opportunities into new domestic and international markets.

• Support businesses to be responsive to and prepared for the potential implications of Free-trade agreements, emerging markets, market trends and the utilisation of government bodies such as Trade and Investment Queensland (TIQ), AusTrade, and the Department of Agriculture and Fisheries.

• Support regional business innovation and development to progress international market and trade opportunities that grow the region’s manufacturing and industry sectors

CHDC

a. Execution of the CHAA Strategy

b. Level of stakeholder engagement to grow international market capacity

c. Increased regional economic growth through international trade market figures

End 2020

Ongoing to 2022

Ongoing to 2022

KPMG | 54





2.2 Expansion into high-value crops, livestock and horticulture

• Investigation of opportunities for diversification into value-added products with new high-value and specialised crops and agricultural products including horticulture.

CHDC

a. Delivery of Agri-business Feasibility Studies

b. Development and promotion of existing emerging industries

c. Relevant reaserch, industry partners and stakeholders identified

End 2020

2.3 Exploration of by-product use

• In partnership with key industry and government stakeholders, assess commercial viability of market led opportunities in relation to the use of by-products and waste products from agricultural and resource based activities as other inputs or products (e.g. biofuels)

CHDC a. Execution of the CHAA Strategy

b. Including the identification and promotion of feedstock and colocation opportunities

End 2020

Objective 3: Energy independence and renewables

3.1 Supporting a 24/7 Economy

• Promote and work with stakeholders to leverage continuous energy capacity and secure a greater degree of independence from the grid network to provide a 24/7 guaranteed energy supply advantage for business and communities.

CHRC a. Development of a Regional Management Strategy for Renewables

June 2018

KPMG | 55





3.2 Harnessing opportunities for renewables

• Investigate opportunities for renewables, especially renewables with comparative advantages in the region such as biofuels and storage technology to maintain energy security.

• Investigate opportunities to optimise existing renewable energy technologies in the region, for example, better alignment of solar energy infrastructure with water management and other land assets.

CHRC

CHDC

With:

CHRC

a. Development of a Regional Management Strategy for Renewables

b. Level of stakeholder engagement to formulate strategic industry partnerships to deliver energy and economic efficiencies

June 2018

June 2019

3.3 Promotion and optimisation of energy comparative advantage

• Partner with stakeholders to progress and promote the ‘behind the grid’ capacity and reduce risk of doing business in the Central Highlands as a point of economic differentiation to other regions.

CHRC

With:

CHDC

a. # of partnerships established

b. Economic growth figures indicating industry benefit

Ongoing to 2022

KPMG | 56





Objective 4: Expansion of research and development activities

4.1 Research and development activities relating to the agriculture, resources education and training and other industry sectors.

• Expansion of existing agriculture and trades education and training capabilities to establish a renowned centre of excellence in agricultural education and/or resources training.

• Expansion of agriculture and resources orientated research and development activities, including a focus on cross-sector collaborative research. Includes investigating opportunities.

• Consider the establishment of an investment framework to facilitate the delivery formal public/private funded research centre to embed innovation into the agriculture for the region.

• Bring late stage start-ups and SMEs together with leading mining sector corporates focused on innovation mining sector solutions to drive greater industry collaboration and commercialisation outcomes

CHDC

CHDC

CHDC

CHDC

a. Increased investment in facilities and services

b. Delivery of the CHAA Strategy

c. # Partnerships established

d. # number of regionally based researchers

e. Level of research investment specific to CHRC agribusiness industry sector

f. Level of regional benefit delivered as a result of research recommendations

g. Level of engagement with METS stakeholders

h. # research and innovative business development strategies implemented

Ongoing to 2022

End 2020

End 2020

June 2019

KPMG | 57





4.2 Coordinated rehabilitation and end of mine life research

• Explore opportunities to better engage with industry and other key stakeholders to improve coordinated planning/research capabilities for mine rehabilitation efforts, end of mine life research and development to maximise remediation and transition to other productive land uses.

CHDC a. Level of engagement with resource and industry stakeholders to develop strategic responses

End 2020

4.3 Industry representation in research activities

• Proactive and structured engagement with industry relating to research and development to provide funding, strategic direction, technical expertise, and commercialisation capabilities.

• Continue to partner with key research facilities, such as CHDC and CQU, to undertake targeted research in emerging industries specific to the Central Highlands (agri-tech, STEM, METS, health, education, etc.)

CHDC

CQU through Regional Engagement Committee

a. Level of engagement with industry and business sector

b. Level of investment into commercialisation capabilities

c. Delivery of the CHAA Strategy

d. Research and strategic response outputs

Ongoing to 2022

End 2020

Ongoing to 2022

KPMG | 58





Objective 5: Improved connectivity

5.1 Improved freight and logistics

• Investigate opportunities for the expansion of air freight and commuter services including route and airport expansion.

• Continue to support the delivery of the Central Queensland Inland Port and associated supporting industries at Yamala.

CHRC a. Implementation of the Airport Master Plan

b. # Stakeholders Engaged

c. Implementation of the Rail Siding and Intesection Development Plan

d. # partnerships with industry peak bodies

e. Implementation of strategic plan to further develop feeder road infrastructure networks

End 2018

5.2 Supply chain optimisation

• Supporting opportunities for local manufacturing and value-adding activities.

• Improve coordination between industry sectors to more efficiently utilise road and rail freight capacity including investigating opportunities to utilise latent rail capacity to transport expanded product sets and reserving capacity for agriculture transport.

• Engage with industry stakeholders to grow commitment to deliver local content outcomes

CHDC

CHDC

CHDC

a. Delivery of the CHAA Strategy

b. # Stakeholders Engaged

c. Undertake technical investigations

d. # proponents with commitment to local and regional content strategies

e. # businesses registered on Business Directory

f. Increased level of local spend by proponents

Ongoing to 2022

KPMG | 59





5.3 Increased digital capacity and reliability

• Deliver initiatives to support opportunities identified through the CHDC Digital Audit for investment in digital infrastructure, literacy, capabilities and the elimination of connectivity blackspots.

CHDC

With:

CHRC

a. Implementation of initiatives identified through the Digital Audit and Action Plan

End 2018

Objective 6: Increasing the ease of doing business

6.1 Connectivity to markets

• Develop strategies to improve the connectivity small businesses have to markets across sectors, regions, globally and to digital markets including investigating opportunities to leverage technologies presented by different telecommunications providers.

CHDC

a. Delivery of the CHAA Strategy

b. Delivery of the Business and Innovation Centre

c. Implementation of initiatives identified through the Digital Audit and Action Plan

End 2020

6.2 Small business support and education

• Partner with stakeholders for the delivery of small business support and education services to improve awareness of existing services and opportunities for improved productivity and effectiveness.

• Investigate and promote the use of emerging technologies, such as Blockchain and other enabling technology, to establish clear provenance and cumulative benefits for small businesses and producers in the region.

CHDC

With:

CHRC

a. Delivery of business development support activities

b. Delivery of the CHAA Strategy

c. Implementation of training strategies – through partnerships with industry stakeholders to deliver

June 2018

End 2020

Ongoing to 2022

KPMG | 60





6.3 Core business sharing agreements

• Facilitate discussions among “like“ small businesses to explore opportunities to share core business functions (eg. Payroll, HR etc.).

CHDC a. Development of a strategy that supports shared service delivery

June 2019

6.4 Innovation and start-up incubation

• Delivery of ‘incubator style’ spaces and investigate opportunities for pilot-funding for start-ups and small businesses and enterprises, including opportunities for contributions from industry stakeholders.

CHDC

With:

Advance Queensland

CHRC

a. ARIP funding approval

b. Business plan progression for delivery of Innovation Hub

c. # start-up support initiatives delivered

Dec 2017

Objective 7: Stability and rehabilitation of the resources sector

7.1 Effective and formalised lifecycle planning in collaboration with the resources sector

• Facilitate more effective and collaborative engagement between the resources sector and other local businesses to better plan and manage the impact of mine operations on the local community and businesses over the mine’s economic useful life.

State Government

a. Industry engagement activities

b. Establishment of stakeholder partnerships for planning activities

June 2019

KPMG | 61





Objective 8: Optimising water trade, security and capacity

8.1 Water supply optimisation and ongoing supply certainty and reliability

• Investigate opportunities to optimise the region’s water supply and ensure ongoing reliability.

• Collaboratively advocate for water security priorities and greater control and flexibility over the region’s water resources with the State Government. Advocacy should include industry, community and local government from across the region and Central Queensland more broadly.

CHRC a. Level of commitment and support from the Fairbairn Irrigation Network

b. Level of engagement with stakeholders to advocate for regional water security

End 2020

8.2 Leverage resources investment

• Investigate opportunities to better leverage investment by resource proponents into water security and capacity.

CHRC

With:

CHDC

a. # of shared infrastructure assets

End 2022

KPMG | 62





Objective 9: Increasing tourism activity

9.1 Better coordination and engagement to support growth and diversification

• Better engagement of tourism bodies and other regions to investigate new or expanding opportunities in the tourism sector including agri-tourism, experience packaging, natural asset tourism, and regional events.

• Investigate ‘destination marketing’ opportunities related to the promotion of the region’s Sandstone Wilderness experience.

CHDC

With:

CHRC

a. Develop and implement a Tourism and Marketing Strategy

June 2018 (develop)

June 2021 (implement)

9.2 Local operator capacity building

• Investigate opportunities to support the capacity building for local tourism operators in the Central Highlands.

CHDC a. Increased # businesses on Business Directory

b. Level of increase of economic growth to the region

Ongoing to 2022

KPMG | 63



PILLAR TWO – POPULATION SERVICES

Action Item Description Action Lead

KPI Target Completion Date

Objective 10: Supporting a local workforce

10.1 Supporting and promoting livability

• Adopt the suite of current or proposed strategies relating to lifestyle, in particular the Liveability Strategy and Youth Plan, to encourage population growth and retention.

• Establish a dedicated Liveability Taskforce to implement the Liveability Strategy, and other associated strategies, across all aspects of the economy including representation from industry and community bodies.

• Providing point of access to support employment attraction and retention

• Delivery of strategies profiling the liveability and opportunities of the Central Highlands region

CHRC a. Delivery of actions identified in the Liveability Strategy and Youth Plan

b. Delivery of platform supporting jobs advertising and employment opportunities

c. Increased advertising of jobs

d. Decreased length of times jobs left vacant

e. # strategies delivering consistent messages

End 2018

June 2018

Dec 2018

KPMG | 64






Objective 11: Improved community investment

11.1 Targeted community investments

• Facilitate formal coordination with industry and the community to better fund and deliver investment for targeted regional benefits.

CHRC

With:

CHDC

a. Identification of regional priorities advocated for

b. Level of investment for new industry and developments

c. Increased construction and spend

d. Increased whole of region spend on Development Register summary

Ongoing 2022

11.2 Multi-purpose community spaces

• Undertake feasibility assessments to consider the delivery of multi-purpose facilities potentially covering arts, conventions, sports, and town hall type functions to attract large scale events and support ongoing liveability in the region.

CHRC a. Delivery of Regional Master Planning Project

End 2019

Objective 12: Access to and use of open data

12.1 Open and reliable data

• Better promote and drive awareness of available sources of regional data sets and information to aid in industry, community and public sector decision-making.

CHRC

With:

CHDC

a. Level of stakeholder commitment to data share information

Ongoing to 2022

KPMG | 65






Objective 13: Improved education and associated services

13.1 Agricultural education

• Promotion and facilitation of agricultural training and education centres of excellence and initiatives.

• Supporting secondary, tertiary and other training organisations to invest in providing agriculturally focused education opportunities and facilities to support AgTech, MechTech and other targeted education activities to be delivered in the region.

CQU & Ag College

Central Highlands Primary and Secondary schools

a. Increased student numbers

b. Growth of education and training opportunities

c. Level of engagement of education stakeholders

Ongoing 2022

13.2 Digital education and training

• Investigate opportunities to support the delivery of and advocate for digitally enabled classrooms and education and training facilities to support ‘skilling for the future’ and STEM, METS & health focused education and training opportunities.

CQU & Ag College

a. # stakeholders engaged for specialised delivery

b. # strategic initiatives developed and delivered

Ongoing 2022

KPMG | 66



PILLAR THREE – WORKFORCE



Objective 14: Skill development and advancement

14.1 Complementary skills development, transition and retraining

• Work with industry to develop training and skills development opportunities that are complementary across sectors including opportunities for re-skilling.

• Develop strategies that target specific skills training and future workforce opportunities presented via emerging industry activities.

CHDC a. Level of stakeholder engagement and commitment to skilling for the future

End 2020

14.2 Specialist education and employment destination

• Facilitate and engage in the collaborative promotion of, and investment in, the region as an employment destination for specialist education and training courses with key industry partners.

CQU a. # stakeholders engaged

b. Increased level of commitment to skills attraction strategies

End 2020

14.3 Joint public/private small business education

• Partner with stakeholders to provide opportunities for collaborative training and exercises for small business support that are both industry and public sector led.

CHDC a. # strategies implemented to build capability of small business

End 2020

KPMG | 67



PILLAR FOUR – GOVERNANCE



Objective 15: Improved collaboration and partnerships

15.1 Collaborative investment decision

• Continue to support frameworks that facilitate improved collaboration between industry, community and public sector in investment decision-making and funding activities by providing a ‘seat at the table’ via representation on the CHDC Board.

• Investigate the establishment of formal governance structures to support the development of a CHDC membership base which would explore options for financial and strategic co-contributions from industry in economic development activities, to harness the collective experience, knowledge and capacity of key industry stakeholders.

CHDC Board

a. Review of terms of reference and Service Level Agreement

b. Recommendation to CHDC Board for consideration

June 2018

June 2018

KPMG | 68



PILLAR FOUR – GOVERNANCE



15.2 Leverage the collective weight of the wider region

• Continue to play a lead role in harnessing opportunities to leverage the experiences and activities in neighbouring regions through collaboration forums and other activities including the promotion of inland tourism.

• Leverage existing and emerging relationships and local context to support the implementation of the CHRC’s Regional Advocacy Strategy.

CHDC

CHRC

a. # industry forums delivered

b. # cross-regional initiatives

c. Level of engagement of cross-regional stakeholders

d. Delivery of Regional Advocacy Strategy

e. Level of implementation of actions / recommendations from strategy

Ongoing 2022

End 2018

15.3 Stronger collaborative advisory functions

• Evaluate the delivery of formalised, multidisciplinary advisory groups (such as those agri-business industry groups aligned to the CHAA Strategy such as the CHAA Strategic Advisory Group) to determine effectiveness.

CHDC a. # advisory groups implemented

b. Level of outputs of advisory groups against strategic responses developed

Ongoing 2022

Objective 16: Frameworks that support economic activity

16.1 Efficient planning frameworks

• Investigate opportunities to improve the efficiency of planning and approvals frameworks to promote investment and development activity within the region.

CHRC a. # strategies developed that improve efficiency

b. Economic value of increased investment and development activity

Ongoing 2022

16.2 Infrastructure to support economic activity

• Progress assessment processes for identified infrastructure priorities and projects.

CHRC a. # assessments completed

Ongoing 2022

KPMG | 69



6.4 Infrastructure to unlock economic

opportunities Infrastructure plays a critical role in economic development. A broad range of infrastructure assets – transport, digital, water, energy and others – are key enablers of activity and contribute to the productivity and growth of regions both in terms of economic activity as well as broader community development outcomes.

Through consultation activities to support the development of the CHEMP 30 year Vision and the CHEMP 2017-2022 Action Plan, a number of infrastructure projects were identified as being particularly critical to achieving the desired economic outcome for the region.

NOTE: The following list of infrastructure projects have not been assessed in terms of their contextual suitability, ability to generate benefits for the region or ability to be delivered – it is important to fully explore each identified project, potentially through a Business Case process, to determine suitability to progress.

IDENTIFIED INFRASTRUCTURE PRIORITIES

Project Description

Multi-purpose Centre A multi-purpose piece of community infrastructure to facilitate sports, culture, tourism and other community events.

CQ Inland Port An inter-model freight facility to transfer goods from the road network over short intra-regional distances to rail for long haul distances.

Central Highlands Meat Processing Plant and Intensive Beef Industry Precinct

A meat processing facility in Emerald as part of the Agribusiness Precinct that can process 100,000 head of cattle a year.

Central Highlands Business Incubator and Innovation Hub

A technology and business start-up incubator and innovation space to develop innovative solutions or products across all sectors of the region’s economy.

Grain and Pulse Processing Facilities

Processing facilities for grain, pulses and other plant products to promote regional value-adding.

Emerald Medical Village Stage 2 $7 to $12m investment in the expansion of the Emerald Medical Village.

Emerald Saleyard Complex Expansion to the 5.1ha saleyard complex, currently processing 2,000 head a week of cattle.

Aged Care Facilities Aged care facilities in key locations across the region, including Springsure, to support the region’s aging population.

Project Regeneration $18.5m investment in Yamala 180Kt Grain Facility by GrainCorp, including high-speed rail loader.

KPMG | 70



7 Implementing the CHEMP 2017 –

2022 Action Plan It is intended that CHDC will continue to have a lead role in the implementation of the 2017-2022 Action Plan in close collaboration with the CHRC, industry representatives and community members.

The role of CHDC as the region’s lead economic development agency will continue to be critical as will CHRC’s role from a leadership perspective, however the role of industry will be increasingly important. The region’s economic future is a priority for not just CHRC and CHDC – all members of the business community and community more generally will be impacted by the economic outcomes realised within the region in the future.

Fundamentally, the implementation of the CHEMP 2017-2022 Action Plan, as well as future economic development planning and activities should focus on the following:

• Partnerships between key leaders, industry representatives, business owners and community members will be critical to long term success – instilling a sense of wider community ‘ownership’ of the region’s economic future will assist in leveraging innovation and knowledge across a range of sectors and activities.

• Investment should be focused and aligned to not only shorter term economic objectives, but also to the longer term economic aspirations for the region – providing structure and clear ‘goal posts’ to measure ongoing performance of economic development activities.

• Innovative thinking and flexibility to adapt to change and harness opportunities will be essential – ensures that the Central Highlands is not ‘left behind’ in a rapidly changing global environment.

• Clear and targeted action planning should be undertaken on an iterative basis – building on the frameworks and success of previous economic development and planning activities.

With clear strategies in place for 2017-2022, and a view towards the next 30 years, the Central Highlands economy is in a prime position to leverage the progress made in 2013-2016, and continue to expand its economic weight and productivity in a Queensland and broader context, without losing the unique factors that make the Central Highlands economy distinct from other regions and beneficial to its community.

The information contained in this document is of a general nature and is not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute, nor should it be regarded in any manner whatsoever, as advice and is not intended to influence a person in making a decision, including, if applicable, in relation to any financial product or an interest in a financial product. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

To the extent permissible by law, KPMG and its associated entities shall not be liable for any errors, omissions, defects or misrepresentations in the information or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise).

© 2016 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Contact us

Peter Ball Partner – Advisory + 61 (7) 3233 9449 [email protected] Jemima Hutch Manager - Advisory + 61 (7) 3233 9425 [email protected] kpmg.com.au

General Council Meeting - · PDF fileGeneral Council Meeting: ... General Manager Central...

Documents

Transcript of General Council Meeting - · PDF fileGeneral Council Meeting: ... General Manager Central...