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Priority Projects 2013-2014

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Contents

Executive Summary .......................................................................................................................... 3

What is Fraser Coast Opportunities Ltd. (FCO)? ................................................................................ 4

Avion - FIFO, Aviation Industry and Employment Precinct ................................................................ 5

Mary River Marine Industry and Employment Precinct ..................................................................... 8

Fraser Coast Sport and Recreation Event Precinct Project .............................................................. 10

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Executive Summary

Fraser Coast Opportunities Ltd. (FCO) is seeking Government funding for the region’s three highest priority economic development projects, forecast to deliver a combined economic impact of more than 4,000 new jobs and a $600M increase in annual economic output. They include the following:

Avion - Fly In Fly Out, Aviation Industry and Employment Precinct; (2,486 jobs, $5,029/job) Mary River Marine Industry and Employment Precinct; (1,085 jobs, $15,566/job) and Fraser Coast Sport and Recreation Event Precinct projects; (605 jobs, $66,942/job).

Fraser Coast Opportunities Ltd. (FCO) is the Fraser Coast Region’s peak body for regional marketing, investment attraction and event and tourism development. These projects have been chosen because of the number and type of jobs they will create and the contribution they can make towards diversifying and strengthening the Fraser Coast Region’s economy. As an urgent strategic imperative, the Fraser Coast Region must not only build on its strengths, but also diversify its economic structure and expand the range of employment options available to residents. Failure may put up to $6.2 billion in annual economic output and 27,000 jobs at risk.

Government has a key role to play securing the Fraser Coast Region’s economic future for the long term. The purpose of these briefing notes is to communicate what FCO is trying to achieve, why assistance from Government is needed and what is required.

Tourism and Manufacturing are core strengths, yet they leave our communities highly exposed to exchange rate fluctuation and global economic circumstances, evidenced by local unemployment rates approaching 10%.

The need to close the gap between the jobs and population growth will become even more critical as the Fraser Coast region’s population swells as forecast from 102,000 to 130,000 people by 2020.

While a strong construction investment pipeline and trends towards a lower value Australian dollar are providing some immediate relief, the strategic imperative to create a more diverse and durable economic structure remains the regions number one priority.

There are three high priority strategic reasons for government assistance:

The need to close the gap between population growth and the number of jobs available; The need to diversify the region’s economy to be more resilient to economic shock; and The need to address ‘market failures’ where ‘first movers’ are required to pay high upfront

capital infrastructure costs that benefit following competitors – presenting a significant barrier to investment.

Government assistance is required to overcome these barriers and realise development outcomes resulting in more than 4,ooo new jobs, an increase in annual economic output of $600M and a more durable and resilient economy for the future.

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What is Fraser Coast Opportunities Ltd. (FCO)?

Fraser Coast Opportunities Ltd. (FCO) is a not for profit company limited by guarantee. It is the Fraser Coast Region’s peak body for regional marketing, investment attraction and event and tourism development.

FCO’s core functions include:

Tourism Development and Destination Marketing; Economic Development and Business Attraction; Events; and Regional Marketing and Lifestyle.

The establishment of FCO as an entity brings together the operational, strategic and political resources of several separate entities under the one umbrella to improve coordination, efficiency and effectiveness in pursuit of positive outcomes in the functions listed above. As a result, the establishment of FCO sees the merger of Fraser Coast Regional Council (FCRC) staffing and resources from these function into FCO, and it is anticipated that Tourism Fraser Coast (TFC) will do the same from September 2013. FCO is governed by a Board of Directors, consisting of mostly private sector representatives in addition to the Mayor and CEO of Council. It is not controlled by Council, but it must be noted that FCRC is the dominant funding body and a three year funding agreement is in place. FCO creates value by:

Speaking with one voice on key priorities and interests; Providing a single entry point for investment enquiries; Dedicating and integrating human and capital resources towards a common cause; Being agile in its organisational structure and governance to engage effectively with both

Public and Private sector partners; and Being inclusive though open and far reaching industry engagement.

It is not the purpose of Fraser Coast Opportunities to:

Act as a private developer or as a consultant to private developers; Do things for others that they can do on their own; Lobby for individual commercial interests of private for profit entities, such as concessions on

statutory development fees and charges from Council or other authorities; or Hold a political bias.

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Avion - FIFO, Aviation Industry and Employment Precinct

Development Approval (DA) issued in June 2013. The project will create 2,486 jobs at a very low ‘public cost per job’ of $5,029 per job. The funding required for the project is $22.5M, consisting of:

Federal Government Grant – RDAF5b $3.47M (Application Pending) State Government Grant – RFR $ 5.41M (EOI Pending) Fraser Coast Region Council - Cash $3.62M (confirmed) Private Sector Investment - Cash $10M (confirmed)

The project is to:

Use the combined Marketing and Investment Attraction resource of FCO to gain commitment from large Mining Industry contractors to target their recruitment of ‘Fly In - Fly Out’ (FIFO) construction workers from the Fraser Coast Region, via Hervey Bay Airport; (funded by FCO)

Build customised FIFO airport facilities tailored to the specific needs of the Mining sector; ($5.41M sought from the State’s ‘Royalties for the Regions’ fund)

Create an ‘airside’ industrial/commercial aviation precinct adjacent to Hervey Bay Airport, meeting the supply chain and service requirements of Aviation industry and the Mining sector; ($3.47M sought from the Federal ‘RDAF’ program, $13.62M funded by Council and WCG).

Key outputs include:

1,993 direct and 493 indirect jobs at a very low ‘public cost per job’ of $5,029; $272.22M increase in annual economic output ongoing; Jobs types include (but are not limited to) the following: civil construction, aircraft

manufacture, maintenance, refurbishment, research and development, logistics, freight and locally based ‘FIFO’ construction workers;

Customised ‘Fly In - Fly Out’ (FIFO) facilities tailored to the specific needs of the Mining sector: ü Dedicated express check in and handling facilities for passengers and baggage; ü Separate rooms for pre-boarding tests and staff briefings; ü An onsite ‘FIFO Family’ Community Hub meeting space and service centre; ü Secure car parking including fencing, lighting and CCTV; ü Dedicated airside parking facilities for up to 737 sized jet aircraft; ü Scheduled airspace priority; and ü ILS navigation system.

12 hectares of fully serviced ‘airside’ land owned by Council for free hold sale - covering costs; $10M private sector construction investment.

There are three high priority strategic reasons for government assistance:

The need to close the gap between population growth and the number of jobs available; The need to diversify the region’s economy to be more resilient to economic shock; and The need to address a ‘market failure’ where the ‘first mover’ is required to pay the high

upfront capital cost of infrastructure that will benefit following competitors.

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Mary River Marine Industry and Employment Precinct

Development Approval (DA) issued in 2011. The project will create 1,085 jobs at a low ‘public cost per job’ of $15,668 per job. The funding required for the project is $50M, consisting of:

Federal Government Grant - RDAF $9.5M (EOI to be submitted) State Government Grant $7.5M (EOI to be submitted) Fraser Coast Region Council - Land $1.7M (65 hectares of land) Private Sector Investment - Cash $33M (Cardno hold development rights)

The project is to:

Construct a wet basin, marina and dock facilities for ships up to 500 tonnes; ($25M)

Develop a 65 hectare ‘World Class Marine Industry Precinct’ of State significance, for ship and boat building, maintenance and refit, marine equipment manufacturing, marine services, training and related industries; ($25M)

Key outputs include:

436 direct and 649 indirect jobs at a low ‘public cost per job’ of $15,668; $297.38M increase in annual economic output ongoing; Jobs types include (but are not limited to) the following: ship and boat building, maintenance

and refit, marine equipment manufacturing, marine services, training and related industries.

There are three high priority strategic reasons for government assistance:

The need to close the gap between population growth and the number of jobs available; The need to diversify the region’s economy to be more resilient to economic shock; and The need to address a ‘market failure’ where the ‘first mover’ is required to pay the high

upfront capital cost of infrastructure that will benefit following competitors.

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Fraser Coast Sport and Recreation Event Precinct Project

The ‘Master Plan’ is on public exhibition during August 2013. The project will create 605 jobs at a ‘public cost per job’ of $66,942 per job. The funding required for ‘Stage 1’ of the project is $18M:

Federal Government Grant $6.75M (EOI to be submitted) State Government Grant $6.75M (EOI to be submitted) Fraser Coast Region Council - Land $4M (40 hectares of land ) Private Sector Investment - Cash $4.5M (To be confirmed)

The project is to:

Create a ‘Sport and Recreation Events Precinct’ attracting State and National Championship standard events – substantially increasing direct and repeat visitor numbers to the Fraser Coast Region, boosting economic activity in the tourism, accommodation and hospitality sectors.

Key outputs include:

315 direct and 290 indirect jobs at a ‘public cost per job’ of $66,942; $33.43M increase in annual economic output;

It is proposed that the estimated $54M project be delivered in three stages ($18M each) over ten years, with stage one focusing on the forward provision of enabling infrastructure such as site works, and services and sporting fields, with subsequent stages to include pavilions, lighting and grandstands etc.

(Stage 1) Access roads and key service infrastructure, parking, walking and cycling paths; (Stages 1 and 2) Sporting fields for soccer, rugby league, union, netball, touch football and

AFL, feature fields for use by all field sports, spectator areas, recreation areas, open space;

(Stage 2) Lighting to all playing fields / courts; Portable and fixed grandstands; (Stages 2 and 3)

The Fraser Coast boasts an ideal backdrop to host State and National Championships. In 2013 over 4,000 attended the Queensland Junior Touch Football Cup, with an economic impact of 21 jobs and a $2.7M increase in annual economic output - based on an average spends per head of $400.

There are three high priority strategic reasons for government assistance:

The project is beyond the scope of Local Government to achieve within its own resources; The need to ensure the region’s economic strengths are more resilient to economic shock; and Without adequate infrastructure the Fraser Coast Region is likely to lose direct and repeat

visitors - reducing economic activity in the tourism, accommodation and hospitality sectors.

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For further information please contact: David Spear, General Manager – Fraser Coast Opportunities Ltd. e. dspear@frasercoastopportunities.com.au p. (07) 41912600 m. 0427 524 215 PO Box 488, Hervey Bay Queensland 4655