Annual Report - 2015–2016 - 44 -

Our performance in strengthening the regions

Key highlights To strengthen Queensland’s regional economies the department is:

delivering the Building our Regions program—the first round of successful projects was announced on 21 December 2015. Over $70 million of government funding was committed to support 42 projects. This investment will attract a further $158 million in investment from councils and other organisations. The first round projects will support 687 jobs in addition to flow-on economic development

maximising local employment and economic outcomes from major investment projects. For example, 18 businesses, including four Indigenous businesses, attended a tailor-made supplier capability development workshop in Weipa on 12 and 13 March 2016. The workshop program was developed by the Far North Queensland Regional Office with the Industry Capability Network (ICN) at the request of the Western Cape Chamber of Commerce and Western Cape Regional Partnership Agreement in response to interest from local businesses in the $2.6 billion Amrun Project

leading the Lower Burdekin Catchment Development Project, which is showing how existing water infrastructure and water resources can be better used to support economic growth and jobs in

north Queensland. A final report is expected by the end of 2016

assisting businesses to harness opportunities from major projects. Since the Northern Gas Pipeline was announced in late 2015, the department has delivered three industry events to connect local suppliers in the Mount Isa region with Jemena and McConnell Dowell as the project proponents. Over 230 local operators and their staff attended these sessions

contributing funding to regional infrastructure under the Royalties for the Regions Program, for example infrastructure associated with Charlton Wellcamp Industrial Park, including $10 million towards the $21.06 million O’Mara Road Upgrade, as well as $20 million towards the $51 million Cleveland Bay Sewerage Treatment Plant Upgrade and $180,000 towards the $747,800 pontoon and gangway at Burketown Wharf.

Building our Regions Queensland has long been the nation’s most decentralised state which presents both challenges and opportunities for economic growth. The Building our Regions Program is ensuring the focus of economic growth is not confined to the state’s south-east.

Introduced as a $200 million, two-year program to invest in regional infrastructure projects administered by local governments, Building our Regions has now been extended with an additional $175 million.

Port of Mackay

Annual Report - 2015–2016 - 45 -

The program is supporting job creation and economic growth in regional communities throughout Queensland.

To help stimulate the regional economy and deliver jobs sooner, the two-year funding commitment for Building our Regions was brought forward from 2016–17 to 2015–16, essentially making $140 million for critical regional infrastructure available a year ahead of schedule.

Building our Regions Round One projects were announced in December 2015. Of the 42 successful projects, 13 started construction in the 2015–16 financial year, with the remainder expected to start no later than November 2016. As at the end of the 2015–16 financial year, funding agreements had been signed with councils for 33 projects.

Work on one project—the Mechanical Workshop Upgrade in Kowanyama—was completed on 8 June 2016. This project provided upgrades to the mechanical workshop at the council’s works depot and included replacing the existing roof and upgrading the electrical wiring system.

Other projects already under construction include:

Bulloo Park Redevelopment Stage 1—Quilpie Shire Council

Bundaberg Region Multi-use Sports and Community Centre—Bundaberg Regional Council

Donohue Highway Emergency Landing Strip—Boulia Shire Council

Doomadgee to Burketown Optical Fibre Link Project—Burke Shire Council

Evans Landing Boat Ramp Car Park – Stage 2—Weipa Town Authority

Julia Creek Membrane Bioreactor Sewerage Treatment Upgrade—McKinlay Shire Council

St George Airport Infrastructure Upgrade—Balonne Shire Council

Stage 1A Rubyanna Wastewater Treatment Plant—Bundaberg Regional Council

Mareeba Wastewater Treatment Plant Upgrade – Treatment Plant Works—Mareeba Shire Council

Miriam Vale Water Treatment Plant Upgrade—Gladstone Regional Council

Mount Morgan Sewerage Extension Project—Rockhampton Regional Council

Tambo Sawmill Infrastructure Upgrade—Blackall–Tambo Regional Council.

The second round of Building our Regions, which was brought forward from 2017–18 to 2016–17, is also currently underway. In July 2016, 40 local governments were invited to submit detailed applications for 63 projects. These projects are seeking combined total funding of over $91.1 million.

Successful Building our Regions Round Two projects are scheduled to be announced later in 2016, with construction to start no later than 30 June 2017.

Of the program’s four funds, the department oversees the Regional Capital Fund, Royalties for Resource Producing Communities Fund and the Remote and Indigenous Communities Fund. DTMR continues to oversee the Transport Infrastructure Development Scheme.

Building our Regions projects are delivering benefits for their communities. The Donohue Highway Emergency Landing Strip project in Boulia Shire Council and the

Bundaberg Multi-use Sports Centre funded through Building our Regions

Annual Report - 2015–2016 - 46 -

Tambo Sawmill in Blackall–Tambo Regional Council are two examples of Building our Regions projects delivering jobs and community benefits within six months of successful projects being announced.

Donohue Highway Emergency Landing Strip The Queensland Government and the Australian Government provided 50/50 funding to Boulia Shire Council to seal approximately two kilometres of road to provide an emergency landing strip, at an estimated total project cost of $908 744.

Construction started in April 2016, five months ahead of initial scheduling. This is an important project at a local, regional and national level as it creates jobs; provides safer roads for locals, tourists and commercial operators; improves access to medical assistance; and provides greater resilience in the wet season when roads may be closed for more than 60 days.

Local property owners will have improved access and reduced travel time for essential goods and services.

The sealed two kilometre landing strip will enable faster access to medical treatment by the Royal Flying Doctor Service.

The remoteness of this part of the state makes medical emergencies high risk. Access to medical treatment currently relies on transporting patients to Mount Isa or Alice Springs, and a round trip to Boulia is almost 450 kilometres by road and takes over five hours.

The Tambo Sawmill The Queensland Government is supporting the people of Blackall–Tambo by providing $262 250 of funding towards the $487 250

upgrade of the Tambo Sawmill, enabling its re-opening after closure in 2011.

Construction started on 5 April 2016, almost six months ahead of time. The mill is expected to be operational again by the end of the year.

The project will enable the harvesting of 5700 tonnes of timber per annum and Council reports that operation of the sawmill will create up to 17 ongoing positions. This equates to six per cent of the Tambo workforce. Additionally, the project has the potential to inject around $1.3 million per annum into the Tambo economy.

Blackall–Tambo Regional Council aims to increase the population of the region through this project, with all the flow-on effects that come with more people moving into a community.

Building our Regions is an integral part of Working Queensland and will continue to deliver critical infrastructure throughout Queensland, create jobs, foster economic development and improve liveability in regional communities.

Royalties for the Regions Royalties for the Regions is an infrastructure funding program that has now ceased. The department is working closely with local councils in delivering and acquitting the remaining projects funded through this program.

Between 2012 and 2015, the program committed more than $485.3 million to 148 regional community infrastructure, road and flood mitigation projects with a combined project cost of over $796.7 million. Of these, 96 projects were completed and more than $290 million of approved funding was distributed to councils as of 30 June 2016.

West Creek Channel upgrade funded through Royalties for the Regions

Annual Report - 2015–2016 - 47 -

By the time all projects have been completed, the program will have supported more than 2440 positions.

The department is working with councils to bring the projects to a close, with 65 per cent of projects completed as of 30 June 2016.

Remote Area Boards and regional development stakeholders Remote Area Boards undertake crucial economic development projects in the most remote areas of our state—from the far north to the remote south-west.

The Remote Area Boards are Cape York Sustainable Futures (CYSF), South West Regional Economic Development Association Incorporated (SWRED), Mount Isa to Townsville Economic Development Zone (MITEZ), Central Western Queensland Remote Area Planning, and Development Board (RAPAD), and Gulf Savannah Development (GSD).

Recent examples of the work undertaken by the Remote Area Boards include:

GSD and MITEZ’s work to link gas users, manufacturers and industry players to explore the further opportunities that can come from Jemena’s $800 million pipeline project

MITEZ’s assessment into the best solution for water security for the North West region, which has produced an investment model to support a new water storage solution for the region. The work done in conjunction with the department has resulted in the region successfully gaining federal funding to undertake a feasibility study for a new dam on the Cloncurry River system

SWRED’s development of the Eromanga Natural History Museum Business Plan, including Stage 2 building designs which will support efforts to attract future funding for construction

RAPAD’s independent mobile coverage assessment undertaken to better plan and advocate for improved mobile telecommunications infrastructure. The study will enable the local governments and regional organisations to leverage carrier investment and improve mobile broadband coverage within the region.

Developing North Queensland Since the June 2015 release of the Australian Government’s White Paper on Developing Northern Australia, the department has supported a number of complementary initiatives. These have included:

supporting a number of forums such as the Townsville Economic Forum in October 2015 to discuss development priorities with north Queensland mayors, and the North Queensland Economic Summit in November 2015 to promote the region to over 250 investors

playing a coordinating role in the initial information capture and subsequent application review relating to the first round of feasibility funding through the Australian Government’s National Water Infrastructure Development Fund (NWIDF). Two projects have been funded in the north o CSIRO is to undertake water resource

assessments to determine available water and best locations for water infrastructure in the Mitchell River catchment on Cape York

o feasibility examination of Nullinga dam in the Cairns region.

Far North Queensland team at the Cairns Regional Major Projects Forum

Annual Report - 2015–2016 - 48 -

Northern Australia Infrastructure Facility From July 2016, the Australian Government’s $5 billion Northern Australia Infrastructure Facility (NAIF) will provide financial assistance to build transport, energy, water and communications infrastructure needed in our north. It is intended that the facility will unlock potential in the northern Australian economy leading to job creation and investment.

Queensland is well placed to secure funds from the NAIF with proponents such as North Queensland Airports expressing strong interest in accessing the fund to assist in delivering its proposed $1 billion development plan of the Cairns International Airport.

The facility’s investment mandate was released for a two-week public consultation period that closed on 29 March 2016. The consultation involved more than 75 stakeholders, including financiers, project proponents, construction and infrastructure sector experts, Indigenous organisations, and the Queensland, Western Australia and Northern Territory Governments.

On 3 May 2016, the Australian Government also announced the independent NAIF board, which will make investment decisions for the facility and finalise the investment mandate by which investment decisions will be governed.

Following confirmation of the state’s role in delivering this important initiative, it is intended that the Queensland Government will establish a master facility agreement between the state and the appointed board that stipulates the state’s obligations under the scheme.

Under the master facility agreement it is proposed that the Queensland Government will establish an internal panel and procedure for deciding whether a proposal meets the state’s economic growth agenda.

The department will work in partnership with Queensland Treasury and DILGP to review potential projects in line with the finalised eligibility criteria, assist proponents with their applications, and potentially have a monitoring and reporting role for funded NAIF projects.

North West Queensland Minerals Province (NWMP) Taskforce On 1 March 2016, the first meeting of the NWMP Taskforce was held in Mount Isa.

The taskforce is the connection between industry and regional stakeholders and the North West Mining Inter-Departmental Committee (NWM IDC). A local leaders group made up of regional mayors also met with the taskforce.

The NWM IDC is co-chaired by the department’s Deputy Director-General of Regional Economic Development Kathy Schaefer and Sue Ryan as Deputy Director-General of DNRM.

The taskforce undertook a significant body of work and met again on 21 June 2016. Recommendations have been drafted under two key themes of ‘Survive’—maintain existing activity levels in the NWMP, and ‘Thrive’—delivering economies of scale by securing new investments.

The taskforce’s recommendations are being considered by the NWM IDC.

North Burnett Minerals Province The North Burnett region hosts a number of minerals projects, including gold, bauxite, ilmenite, copper, iron and kaolin.

Collectively, they are known as the North Burnett Minerals Province; however, each project is relatively small and lacks the scale to overcome ‘first mover’ costs.

The announcement by Australian Bauxite of a high-grade bauxite resource at Binjour in 2012 elevates the minerals province with a project that has the production potential of three to five million tonnes per annum.

Annual Report - 2015–2016 - 49 -

A cost-effective transport solution is required to move this project into the production phase. This solution may provide the enabling infrastructure for other smaller resource projects to also advance to production.

The department continues to facilitate meetings of the North Burnett Minerals Group. The group was formed in 2012 to seek collective solutions to identified transport, energy and communication infrastructure requirements.

In 2014, the Queensland Government funded the Port of Bundaberg - a review of potential trade and port development opportunities study which identified the Port as the probable export point for some of the North Burnett Minerals Province projects.

Together with other stakeholders, the department has also funded the Scenario based trade and transport infrastructure study for the Port of Bundaberg catchment area, which is a pre-feasibility study focused on identifying enabling infrastructure options.

Supporting the growth of Central Queensland The department is collaborating with DAF, DNRM, Regional Development Australia Fitzroy and Central West and the six Fitzroy region local governments on the Growing Central Queensland initiative.

Growing Central Queensland has recognised a number of trends that combine to identify agriculture and agribusiness as the next wave for global investment. The group is working to position Central Queensland as a preferred target for that investment.

A key early consideration is maximising the availability of water in the lower Fitzroy

River system, as well as dealing with various current proposals for new water infrastructure in the region.

The department has worked closely with key stakeholders, including the Gladstone Area Water Board and Sunwater to secure $2 million from the NWIDF for the development of a business case for the Lower Fitzroy Weirs, including raising Eden Bann and the proposed Rookwood Weir.

A number of feasibility studies have also been funded in central Queensland through the NWIDF, including Hell’s Gate Dam, raising the Burdekin Falls Dam and the Burdekin-Haughton Channel Capacity Upgrade. These studies will identify opportunities to further develop the economic potential of Central Queensland.

The department, through Growing Central Queensland, has also focused on attracting new investment and value adding to the current agricultural production.

The Growing Central Queensland Investment Prospectus was launched during Beef Australia 2015. Since then, a number of potential new investment opportunities have been progressed. Bringing each of these to fruition will require access to secure water from the lower Fitzroy River.

Several investors have visited the region to discuss potential large-scale feedlots while current regional landowners are looking to expand and or diversify current production when additional water becomes available.

The department is also undertaking a feasibility study into value adding to current agricultural supply in fruit and vegetables.

This study is looking at new technology—including high-pressure processing—to support increased export of fresh fruit and vegetables.

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

Annual Report - 2015–2016 - 50 -

The study will quantify the raw horticultural produce within regional Queensland that is suitable and available for processing through the identified technology and identify value-added products (for example juices and cut fruit) suitable to be manufactured.

Further to this, the study will investigate, quantify and describe the trends and size of growth market opportunities for the processed products, including potential customers.

Findings from the study will also help inform future agricultural opportunities along the lower Fitzroy River.

Lower Fitzroy River Infrastructure Project The Gladstone Area Water Board and SunWater propose to raise the existing Eden Bann Weir and construct a new weir at Rookwood.

Together, the weirs would capture and store 76 000 extra megalitres per annum of unallocated water that is available in the Fitzroy River for industrial and urban use in Gladstone and Rockhampton, with some water potentially available for agriculture.

The estimated total cost of the project is $495 million and will require a workforce of up to 150 during the two-year construction phase.

It is a declared coordinated project under the SDPWO Act and is going through an EIS with the Coordinator-General.

Public consultation on the project EIS concluded in June 2016.

The Coordinator-General is currently determining if sufficient information has been provided to allow the Coordinator-General to finalise the assessment.

The Australian Government has committed up to $130 million to build Rookwood Weir, contingent on the project obtaining the necessary environmental approvals, and acceptance of a viable business case.

Lower Burdekin Catchment Development Project The Lower Burdekin Catchment Development Project will support economic growth and jobs in North Queensland. New project opportunities requiring a water allocation are being proposed for development in the Burdekin region.

The project aims to provide the Queensland Government with a clear understanding of the lower Burdekin's future development potential and identify how existing water infrastructure and water resources can be better used.

The department worked with advisors from Psi Delta and PricewaterhouseCoopers, and other government agencies to deliver a seven-part program of work.

This included identifying the short-term demand for water, water availability, an assessment of surface and groundwater, and water quality and environmental considerations resulting from the use of additional water. It also assessed infrastructure and capacity enhancement options to meet the identified new demands through a financial and economic analysis.

The outcomes of the Lower Burdekin Catchment Development Project—together with the feasibility study into raising the Burdekin Falls Dam wall and the upgrades to the Haughton Main Channel—will enable greater understanding of the future potential of the lower Burdekin and other areas that could access water from the Burdekin Falls Dam.

Annual Report - 2015–2016 - 51 -

Agricultural and water development

Nathan Dam and Pipelines Project SunWater Limited proposes to build an 888 000 megalitre dam on the Dawson River, intended to provide a long-term, reliable water supply to mining, industrial and urban customers in the Surat Basin and the Dawson–Callide sub-regions of Central Queensland.

The project includes a 149 kilometre underground pipeline from the proposed dam, south through the Surat Basin to near Dalby. Capital cost of the project is estimated to be $1.4 billion, with 425 direct jobs at peak construction and five direct operational jobs.

As a declared coordinated project, the project is going through an EIS process, and is currently being assessed with input from key state and federal agencies.

Murray–Darling Basin water recovery plan and regional economic diversification program The Australian Government implemented the Murray–Darling Basin Plan with the purpose of protecting and restoring the environmental health of the Murray–Darling river system.

Both the Balonne and Border Rivers (Goondiwindi) regions are regarded as some of the most impacted irrigation communities across the whole Murray–Darling Basin.

These irrigation communities have a significant agricultural focus and the businesses in these areas have built their income around that. The water recovery plan is likely to have economic impacts for those

businesses, the regional workforce and for the whole of these communities.

In response, the Murray–Darling Basin Regional Economic Diversification Program aims to support regional communities with structural adjustment and regional economic diversification. The department leads three projects under this program:

investment attraction economic diversification of businesses in

major project supply chain opportunities within the resources sector

economic development and tourism diversification.

The first of these projects—being delivered by Balonne Shire Council—involves work on a number of initiatives that include the South West Rail Line, which has led to the formation of the South West Rail Alliance, the Thallon Uplands Warehousing Project, the Health Education Hub South-West that will be located in St George, and the Cubby Station Solar Project. Proposals for major abattoir and feedlot expansion in the Border Rivers are also being supported.

The second project focuses on business mentoring and accessing major project supply chains, with the department supporting Goondiwindi Regional Council and Balonne Shire Council in delivery.

Regional businesses have benefitted, with 44 receiving mentoring with a focus on resilience, business systems and looking for new opportunities. The majority of these businesses have continued in the program with ongoing one-on-one mentoring support from the private sector.

Additionally, 45 businesses across the Basin have engaged in programs aimed at assisting them to understand the major project

Rockhampton industry breakfast

Annual Report - 2015–2016 - 52 -

environment and build their capability to engage at that level.

The third project focuses on strategic tourism investment and infrastructure and is being delivered by Goondiwindi Regional Council. Stage one of this project saw completion of a feasibility study looking at a number of potential tourism sites and tourism development opportunities in the Goondiwindi region.

This report was approved by the Australian Government and $1.68 million was committed towards the development of new tourism infrastructure projects across the Goondiwindi region in 2016. This will also create an estimated 25 jobs in the construction of this infrastructure.

These initiatives, along with those being led by DNRM, DET and DAF, are assisting the communities to take stock of their situation. They are helping to consider how they can value add to existing agricultural products by introducing new product lines in horticulture, focus on exports, and use water more efficiently.

Southern Gulf development studies The department is currently investigating opportunities for increased economic development in the Southern Gulf region, particularly in relation to enabling infrastructure to expand phosphate mining and live cattle exports.

These investigations include scoping studies to establish a livestock finishing facility near Normanton for live cattle exports through the Port of Karumba.

Investigations also include the review of options for the export of phosphate rock from the NWMP through a port in the Gulf of Carpentaria.

The department is working closely with other agencies to draw together the available knowledge, in particular Ports North’s expertise on port infrastructure and maintenance.

Specialist maritime consultants, and environmental and agriculture experts have been engaged to undertake scoping studies and provide technical advice.

The department has worked to secure the Southern Gulf’s economic potential with a one-off dredging campaign undertaken in July 2016 where the Port of Brisbane’s dredger was diverted from the Port of Weipa to undertake the $1.7 million project. This will assist in ensuring continued business at the Port of Karumba—a vital trade link for Northern Australia.

This project has ensured that the port can continue to service existing clients and also help to attract new business.

Three Rivers Irrigation Project The Three Rivers Irrigation Project aligns with the government’s policy to support private sector initiatives to develop water and land resources in North Queensland to increase jobs.

The proposal by Stanbroke Pty Ltd is for cropping and irrigation of up to 15 000 hectares of cotton adjacent to the Flinders River, 90 kilometres south of Normanton. The project is located in the Gulf Region of Northern Queensland, downstream of the junction of three rivers, the Flinders, Cloncurry and Saxby.

The project would have a capital expenditure of more than $200 million and would create up to 100 on-site construction jobs, and up to 75 operational jobs at peak production.

The project’s aim is to grow cotton for the export market and to utilise cotton seed by-product as supplementary feed for the proponent’s existing beef cattle in the region.

A ginnery would be constructed once crop productivity was confirmed, approximately three to four years after the commencement of cropping activities. The ginnery could be expanded in the future to accommodate

Annual Report - 2015–2016 - 53 -

other potential cotton projects that may be developed in the region.

The Coordinator-General declared the project a coordinated project requiring an EIS on 29 June 2015.

Burdekin Falls Dam Feasibility Study A reliable and cost-effective water supply is critical for continued economic growth and social development across Queensland. The Burdekin Falls Dam is Queensland’s largest water supply dam and is a critical part of north and central Queensland’s water infrastructure network.

There has been a long-standing proposal to raise the dam wall height by two metres, which would make available up to 150 000 megalitres of additional water per year.

Additional water from the Burdekin Falls Dam could meet the needs of mining activities in the Bowen and Galilee Basins, urban water security for Townsville, water for the Abbot Point SDA, new irrigated agriculture and hydroelectric generation.

Funding has been granted under the Australian Government’s NWIDF to complete high-level demand and feasibility studies for the Burdekin Falls Dam raising.

The department will manage the feasibility studies for the Burdekin Falls Dam raising in partnership with the Department of Energy and Water Supply (DEWS) and SunWater—as the existing owner of the dam and downstream irrigation infrastructure in the Burdekin Haughton Scheme.

The studies will inform future decisions on likely timing of the proposed dam raising.

Other key issues to be considered include potential impacts on water quality in the

Great Barrier Reef lagoon, land clearing and downstream salinity associated with the dam raising.

Regional infrastructure

North Queensland Stadium The department is working to deliver a new stadium in Townsville by the commencement of the 2020 National Rugby League (NRL) season.

On 16 November 2015, the Queensland Government approved the business case for the North Queensland Stadium, which recommends a centrally located best-practice regional stadium in Townsville as the preferred option.

With a total project budget of $250 million, this option provides a 25 000 seated capacity stadium, which is 7000 seats more than currently available at the existing stadium.

Importantly, this option includes provision for the integration of a potential entertainment centre at a future date, if further funding becomes available.

Market sounding and financial modelling were completed to assess alternative procurement options and recommend the approach that offered the greatest value-for-money.

A state-led two stage managing contractor model was confirmed as the optimal procurement solution for government to pursue, with Stadiums Queensland as the recommended owner and operator.

The Queensland Government has committed $140 million to this important regional project. The National Rugby League and North Queensland Cowboys have also pledged a $10 million upfront capital contribution.

Artist’s impression of the North Queensland Stadium

Annual Report - 2015–2016 - 54 -

The Federal Coalition indicated its $100 million commitment for the stadium project is through its Smart Cities Plan. The Federal Coalition made an election commitment to formalise funding and associated conditions within six months of the 2 July 2016 federal election.

The North Queensland Stadium project is expected to provide a much needed catalyst to revitalise Townsville’s central business district.

The proposed stadium is anticipated to result in jobs growth and skills development during the construction and operational phases of the project. This projected growth will be experienced in the construction, services, tourism, retail, commercial and hospitality industries within the North Queensland region.

The project is expected to generate up to 750 full-time equivalent jobs throughout the design and construction stages.

The procurement process for the delivery of the stadium will adhere to the relevant local industry policies, ensuring that opportunity to tender is provided throughout the local supply chain. The department will also implement a local content promotion strategy during the development of the stadium.

Toowoomba Second Range Crossing The department has been working closely with DTMR to maximise local content opportunities from the Toowoomba Second Range Crossing Project.

Construction of the $1.6 billion Toowoomba Second Range Crossing Project started in April 2016. An estimated 1800 direct and indirect jobs will be required during the life of the project.

The department—working closely with NEXUS—has created an environment for local businesses to have full, fair and reasonable access to procurement opportunities for the project.

The department has worked to maximise opportunities for local businesses to participate, with an ICN procurement specialist embedded into the project. The department, NEXUS and ICN delivered five information workshops in Gatton and Toowoomba with more than 1300 businesses and jobseekers in attendance.

To complement this work, the department ran five information sessions in Gatton and Toowoomba to support businesses to understand how to prepare for opportunities in major projects—115 businesses participated.

Four sessions were also delivered by the department on how to effectively supply to major projects—121 representatives attended.

NEXUS has also convened a Business Advisory Group, comprised of Toowoomba and Lockyer Valley regional business leaders and representatives from the department. This group meets monthly and provides advice on, and has oversight of, NEXUS’ local procurement activities.

Western Corridor Expansion Project Isis Central Sugar Mill Co Ltd has proposed the development of 7800 hectares in the North Burnett as a new sugar-growing area. This new production will offset the trend of declining sugar cane area lost to horticultural production including macadamia and avocado crops.

The new production area is important for the long-term viability of the existing sugar mill,

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

Annual Report - 2015–2016 - 55 -

and will also provide additional opportunity for clean energy production and export volumes through the Port of Bundaberg.

Critical to the project’s development is the supply of sufficient irrigation water and the development of a cane rail network from the Isis sugar mill to Gayndah.

Investment required is estimated to total $168 million and will create an additional 92 full time direct jobs. Isis Central Sugar Mill Co Ltd has sought assistance from the Queensland Government to gain access to transport corridors and water allocations.

The department has initiated a whole-of-government technical working group to facilitate the expansion of the cane rail network and provide the required irrigation water.

Rapid Response Queensland Nickel Pty Ltd ceased operating on 11 March 2016—792 people lost their jobs as a result.

From January 2016, when Queensland Nickel first announced redundancies, the Queensland Government has undertaken concerted efforts to provide information to those workers and assist them in their transition to other employment.

Upon the January redundancy announcement, the department initiated its Rapid Response Team, and has since provided support to over 650 workers impacted by the closure through information sessions, emotional counselling, financial counselling, re-employment opportunities and support service referrals.

On 15 April 2016 the Australian Government announced that the claim process under the Fair Entitlement

Guarantee could commence. The Premier wrote to the Prime Minister in February seeking this outcome.

In addition, the Queensland Government has announced that workers retrenched from Queensland Nickel that did not receive an exit medical will be able to access one from the Townsville Hospital and Health Service.

The Queensland Government’s Accelerated Works Program has brought forward the expenditure of more than $210 million in capital works projects in the Townsville region to support further job creation.

Several government agencies continue to have oversight of the refinery and are working to ensure the refinery is maintained according to environmental and workplace health and safety conditions.

The department also remains in contact with the liquidators of Queensland Nickel on activities occurring on behalf of creditors owed.

Supply chain opportunities In 2015–16, Regional Economic Development staff delivered a number of workshops around Queensland designed to increase the ability of supply chain enterprises to access opportunities arising from major project and purchasing activity.

These included:

40 Tendering for Government Business workshops (841 participants, from 694 enterprises)

21 Building an Effective Capability Statement workshops (224 participants, from 184 enterprises)

three Accessing Supply Chain Opportunities workshops (49 participants, from 44 enterprises).

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

Annual Report - 2015–2016 - 56 -

A number of events were also held in conjunction with DATSIP to improve Indigenous business capability. This included 19 workshops that covered procurement, tendering and business planning.

The reach of workshops was increased through holding two webinars covering the tendering and business capability statement content.

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

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