Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

13 September 2017

International Flights; Senator Calls For Townsville Airport Boss To Step Down


Corporatocracy Leadership Cohort Scrambling for Excuses
International flights out of Townsville to Bali will be discontinued by Jetstar from 22nd March 2018 due to a lack of patronage the budget carrier said, putting Townsville’s capital of North Queensland claims in serious jeopardy and a Senator calling for the Townsville Enterprise (TEL) Chairman to stand down.

The CEO of Townsville Airport and TEL Chairman Mr. Kevin Gill campaigned aggressively in 2014-15 with local Townsville leaders to achieve federal government support for customs and border protection resources to be stationed in Townsville in order to boost the City’s international tourism numbers.
The Jetstar decision this week comes just days after Mayor Jenny Hill criticised the budget airline’s parent company Qantas for refusing to raise the price of domestic airfares by $3 per passenger as a means of funding the proposed $80 million upgrade of the airport.
Speculation that the feud created by Queensland Airports Limited and Mayor Jenny Hill demanding that Qantas increase its airfares to pay for the airport upgrade contributed to the Jetstar decision to axe the Bali flights.
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But the CEO of Jetstar’s Australian and New Zealand business Mr. Dean Salter may have unintendedly implicated Ms. Hill and Mr. Gill because he said the $3 levy would have made the route even more unviable. However, the $3 levy does not apply to international routes out of Townsville.
When Jetstar had agreed to deliver a Townsville to Bali service in 2015, the airport CEO and Chairman of TEL said: “I encourage North Queenslander’s to embrace the new service when it starts in September, proving that there is a growing appetite for direct international services from Townsville”.
Jetstar’s argument for closing the service is that insufficient support existed for the service, which could be frustrating for the TEL Chairman who anticipated the people of Townsville would prove Jetstar’s support for the city was justified. This was not to be.
Many questions must be asked now about the management of Townsville Airport and the suggestion that Townsville’s tourism marketing under the stewardship of TEL has been poorly executed in attracting international passengers from Asia through to Townsville via the Bali route.

Senator Ian McDonald called for Mr. Gill to stand down as Chairman of TEL.
This comes on the back of advice from marketing guru Don Morris in the Pure Projects report that puts Townsvilleans and the “experiences” tourism product of the City at the centre of any future successful marketing initiative.
Now it seems the lack of accountability in the Townsville cohort of leaders and the poor execution of an Asian and global marketing plan brings a sense of déjà vu just like the highly political collapse of Queensland Nickel under the weight of unviable commodity prices.

Townsville Enterprise CEO Patricia O’Callaghan said “It’s not about simply marketing, it’s much deeper than that.” she said in a comment to Townsville Bulletin reporter, Domani Cameron.
“We need to keep going and keep analysing new routes. It does definitely impact our brand and we’re going to have to work harder”, Ms O’Callaghan reported.
City’s international reputation at risk by “reckless” Mayor
Yet there was no suggestion of accountability among the Townsville leadership cohort except the local Senator Ian McDonald who called for the Townsville Airport CEO to stand down from his role as TEL Chairman or in his role with Queensland Airports Limited.
The owner of Townsville Airport, Queensland Airports Limited, has come under further scrutiny from a rambunctious Mayor Jenny Hill who has not only accused board members of a conflict of interest in not supporting Townsville’s bid to become the fly-in fly-out hub for the Adani coal mine, but directing her exuberant comments towards Qantas for not increasing prices on flights to cover airport upgrades and undermining the national icon’s brand.
Ms. Hill has become consistent in attacking commercial brands, even visiting journalists reporting candidly on the lack of appeal of the City’s tourist attractions, using bullying tactics as a weapon for negotiation that has seen the economy plummet into recession under the leadership of the veteran Labor politician.
Reaching out to another airline to fill the void of Townsville’s international descent by Jetstar fleeing the international scene could be a tall order considering the way in which the leadership treats company’s taking commercial risks in the region.
The local government authority and the leadership cohort have become used to demanding handouts and hand ups from the federal and state government, commercial enterprise and rate payers while castigating and ridiculing businesses that have already ventured their capital in the City for a little dividend over the past 5-10 years.
Despite the good news of economic stimulation projects in construction of housing, mining and energy, and the federal and state governments’ investments in social services in the City, the Townsville leadership, communication and marketing formula for success has alluded the current crop of leaders. At the glimpse of any further withdrawl of big business, the capital of North Queensland status could be stripped too if the City loses its international airport altogether.

Strategic airlines also cancelled Bali to Townsville flight in 2011 due to the lack of passenger numbers.
Again, the ripple effect of Townsville’s downgraded tourism status and lack of vision and commercial acumen within the leadership cohort of the City presents concerns for business confidence and the supply chains that service and provide opportunities to the stakeholders in the property market.
Political and climate change related risks are serious elements to the economic sustainability of the City and Northern Australia moving forward and the direct and indirect consequence on property yields and capital values.
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06 September 2017

Trading On The Seas; North Queensland And China Steaming In The Fast Line

Trading North Queensland to China and South-East Asia
Trading and economic relations between Townsville North Queensland and China has been fast-tracked this week, increasing the City’s bulk export and import shipping capacity out of northern Australia with a direct transit route to and from Singapore, with connecting services to Chinese ports.

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The more direct and faster-transit times is expected to increase trading volumes through the Townsville Port and deliver a boost for local traders and businesses seeking faster, more efficient and competitive shipping services to South-East Asian markets.

The China Navigation Company’s ship liner business, Swire Shipping, announced the new service in a press release saying “Swire Shipping is changing its North Asia Express (NAX) service, bringing super-fast transit times between Townsville North Queensland and South East Asia.”

The 20-day frequency service will offer the fastest transit times to/ from major Asia and Southeast Asia international ports and will be supported through the deployment of ships with larger tonnage capacity.

Shippers will enjoy an eight-day transit to Singapore, 17-day transit from Shanghai and a 15-day transit from Ningbo.

Swire Shipping General Manager Jeremy Sutton said that Swire’s long term commitment to Australia had provided sustainable shipping services between Australia and the Asia Pacific region since 1883.

“Swire has provided services to and from Australia for more than 130 years and our North Asia Express service enhancement will provide the best options for shippers, as well as the import needs of the community in Townsville; and most likely boost trade for North Queensland.”

Swire Shipping Commercial Sales Manager North and Central Queensland, Natalie Adamsson, said that the Swire team was dedicated to providing Townsville with great services.


“Our team in Townsville is looking forward to helping local business to optimise Swire Shipping’s market-leading transit times to better meet their logistics needs,” said Ms Adamsson.

“Swire Shipping provides flexible, multipurpose liner services with capacity for conventional, refrigerated and project cargoes using a fleet of modern and eco-friendly vessels as a long-term commitment to deliver sustainable shipping solutions to its customers.”

Port of Townsville Limited General Manager Business Development Claudia Brumme-Smith said that the changes to the North Asia Express service from Swire Shipping would be hugely attractive to North Queensland farmers.

“Swire Shipping now offer the fastest transport times to Singapore, meaning our customers and producers have even more opportunity to access the market of one of the most vibrant trading cities in the world; which is also the logistics hub of Asia,” said Ms Brumme-Smith.  
“The new eight-day direct service from Townsville to Singapore gives growers even more options to export time sensitive cargo including locally grown fruit and vegetable products such as avocado, mango and melons to Singapore and other Asian markets.

“The service is another great opportunity for North Queensland businesses to connect with the world.”

Swire Shipping is supported by more than 100 employees across five offices in Australia in Townsville, Brisbane, Darwin, Melbourne and Sydney.  Eight of Swire Shipping’s liner trades serve Australian ports including Townsville, Darwin, Gladstone, Brisbane, Newcastle, Sydney, Port Kembla, Geelong, Melbourne and Bell Bay, bringing more than 500 port calls to Australia per year.

Swire Shipping is the liner shipping division of The China Navigation Company (CNCo) and operates multiple liner trades in Australia, New Zealand, Asia, North America and the nations of the South Pacific, in addition to providing services to India, the Middle-East and Europe.

Swire Shipping’s network of services operates a versatile fleet of multipurpose ships capable of carrying a wide range of cargoes including containerised, refrigerated, project, breakbulk and heavy lift cargoes.

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Who Knows Townsville Airport Sharing Infrastructure Is Strategically Important?

Townsville Airport and Defence Sign Joint User Deed (JUD)
One of Townsville’s most strategically important urban infrastructure properties in northern Australia was the subject of a revised Joint User Deed between the Department of Defence and Townsville Airport Pty Ltd (TEL) this week.

The sharing infrastructure economy in Townsville has been a long standing affair well before Uber and Air BnB rose to international notoriety.

TEL said Townsville Airport and the Department of Defence have this month revised a Joint User Deed, ensuring an ongoing productive relationship is shared between the two entities.
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The newly signed JUD acknowledges the importance of continual consultation and cooperation in relation to use of the Joint User Area of the airport.

Chief Operating Officer Kevin Gill said this was an important milestone in the longstanding relationship between the airport and Defence.

“Townsville Airport and the Department of Defence have a close working relationship, in that we share a runway.”

“Revising the JUD demonstrates our strong commitment to collaborative decision making between both parties.

“The original JUD between Townsville Airport and Defence has been in place for nearly 20 years, so it is important that we revised the deed to reflect current day requirements,” said Mr Gill.

Key revisions under the new JUD include Townsville Airport stakeholder representation at Major Maintenance Program planning sessions, and the implementation of monthly stakeholder meetings between both parties.

A spokesperson for Defence said, “The JUD infrastructure partnership with Townville Airport is an example of the broader benefits of collocating a Defence establishment in a supportive regional community. The partnership will continue to provide the Townsville community with local economic benefits and opportunities, while also supporting the Australian Defence Force’s ability to defend Australia”.

The new JUD will be reviewed on a regular basis to ensure changing requirements of both entities are considered.

Townsville Airport is operated by Townsville Airport Pty Ltd under a long-term agreement from the Commonwealth of Australia. The runway and taxiways are operated and maintained jointly with the Department of Defence under terms of the Joint User Deed dated 9 June 1998.

As a joint user airport, both civil and military aircraft movements are accommodated for within the Townsville Airport airspace. 

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30 August 2017

How Government Have Widened The Gap Between Generations In Home Ownership


Various government policies have fuelled the demand for housing over time, expanding the wealth of older home owners and pushing it further and further beyond the reach of young would-be home buyers. A new study highlights this divide between millennials and their boomer parents.

The study is part of a Committee of Economic Development of Australia (CEDA) report called Housing Australia. It compares trends in property ownership across age groups over a period of three decades.

Between 1982 and 2013, the share of home owners among 25-34 year olds shrunk the most, by more than 20%. On the other hand, the share of home owners among those aged 65+ years has risen slightly.
The rate of renting has spiralled among young people. By 2013, renting had outstripped home ownership among 25-34 year olds.
Same policies, different impacts on generations

There is undoubtedly a growing intergenerational divide in access to the housing market. The timing of policy reforms has been a major driver of this widening housing wealth gap.
Negative gearing has long advantaged property investors, potentially crowding out aspiring first home buyers. While negative gearing was briefly quarantined in 1985, this was repealed after just two years.

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The appeal of negative gearing grew as financial deregulation spread rapidly during the 70s and 80s. This deregulation widened access to mortgage finance, but also pushed real property prices to ever higher levels.

In 1999, the Ralph review paved the way for the reform of capital gains tax on investment properties. Instead of taxing real capital gains at investors’ marginal income tax rates, only 50% of capital gains were taxed from 1999 onwards, albeit at nominal values.

The move, designed to promote investment activity, actually aggravated housing market volatility. The confluence of negative gearing benefits and the capital gains tax discount encouraged investors to go into more debt to finance buying property, taxed at discounted rates. The First Home Owners Grant, introduced in 2000, was another lever that increased demand. In the face of land supply constraints, these sorts of subsidies were likely to result in rising house prices.

Other policy reforms, while not directly housing related, have also affected young people’s opportunities to accumulate wealth.
The Higher Education Contribution Scheme (HECS) was introduced in 1989, at a time when many Gen-X’s were entering tertiary education. This ended access to the free education that their boomer parents enjoyed.
HECS parameters were tightened over time. And in 1997, HECS contribution rates rose for new students and repayment thresholds were reduced.

Of course, the 1992 introduction of the superannuation guarantee would have boosted Gen X’s retirement savings relative to boomers. However, these savings are not accessible till the compulsory preservation age, so can’t be used now to buy a house.
All these policies have clearly had varying generational impacts, adversely affecting home purchase opportunities for younger generations while delivering significant wealth expansion to older home owners.
An intergenerational housing policy lens

A new housing landscape has emerged in recent years. It is marked by precarious home ownership and long-term renting for young people.
It’s also dominated by a growing wealth chasm – not just between the young and old – but also between young people who have access to wealth transfers from affluent parents and those who do not.
The majority of housing related policies do not consider issues of equity across generations. There are currently very few examples of potential housing reforms that can benefit multiple generations.
However, there is one policy that could – the abolition of stamp duties. It would remove a significant barrier to downsizing by seniors.
The equity released from downsizing would boost retirement incomes for seniors, while freeing up more housing space for young growing families. Negative impacts on revenue flowing to government could be mitigated by a simultaneous implementation of a broad based land tax. This would in turn push down house prices.

As life expectancies increase, the need for governments to take into account policy impact on different generations is critical. On the other hand, policies that take a short-term view will only worsen intergenerational tensions and entrench property ownership as a marker of distinction between the “haves” and “have nots” in Australia.
Author: Rachel Ong Deputy Director, Bankwest Curtin Economics Centre, Curtin University
  



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23 August 2017

Northern Australia Story – The Stadium Of Economic Hope And Hyper Corporatocracy



Northern Australia pioneered as leaders turn a sod of sacred soil in the nominal coliseum of the “Capital of North Queensland”
The federal, state and local intergovernmental leaders moved on Townsville bearing the greatest gift to the local people in decades, a “shovel turning” media event to mark the beginning of the construction phase of the North Queensland Stadium.

Coined during a Regionalisation Summit in Northern Australia, the media throng was on hand with three levels of Australia’s government to announce the start of construction of the new 25,000 seat North Queensland Stadium, and new North Queensland Cowboys home ground.

Although the event may seem insignificant to the contemporary observer looking back at the context of the colossal impacts of colonial settlement of Australia, in the context of Australia’s industrial, commercial and social pioneering ventures, the stadium is literally groundbreaking!

Leaders have been presiding over the past ten years of investments. So this event marks to the people the return of hope, of much-needed jobs and business stimulation. And to the representatives in attire turning the chrome-plated shovel, it is the beginning of beneficial trust created by design thanks to their political forebearers.
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Bring cash flowing again. Most publicly and poignant to the politicians, is the taking and staking of their immortality whilst claiming for their respective parties, the credit and spoils as the pioneers of Northern Australia’s future capital city district in Townsville.

Yet the idea of capital cities based on population and exclusive geography of a constitutionally recognised state or territory brings no credence for a political culture erring and wearing in light of the symbolic, cultural and socially equal and fair identify of minority rights.

In the name of a federal government inspired innovation in the Smart City Deal (SCD) and State government inspired capital of North Queensland proposal symbolising sustainable growth infrastructure in the CBD Revitalisation and Waterfront Priority Development Area (WPDA), the jobs-creating and confidence-boosting stadium project was announced with the fanfare it warranted.

Never mind about the 129 contributors out of 273 individuals and organisations in the Townsville community that had overwhelmingly supported an integrated cultural and entertainment solution in the form of an integrated stadium and entertainment centre, including convention centre for Townsville’s waterfront.

Instead, the mass media; television appeal and influence of the National Rugby League (NRL), who contributed $10 million to the project, coupled with the unyielding belief and sunken finances of the largest patriot investor in the CBD and leader of the NRL franchise in Townsville, it was seemingly inevitable that the lower economic impact stadium option for the City was chosen.

Moreover, representation of the local hard working community leaders, most of whom were absent from the sod turning ceremony, were in the majority of cases not acknowledged or unnoticed.

Thanks to the example of the actual immortal great leaders in history, this oversight of self-actualisation leadership cannot be understated. Because an observable measure of one’s effective leadership today is benchmarked. Getting things done without too much fuss or bravado, and where recognition is warranted, the team is usually credited with the honor and recognition first and foremost.

Yet in this instance, the team are intergovernmental politicians; the Mayor, Premier’s representative and Prime Minister’s representative with principal contractors on hand for comment. But hang on, where was Prime Minister Mr. Turnbull, or Premier M. Palszsuzus and the ceremonial head of state, Governor General Mr. Cosgrove?

After all, this symbolic region of Northern Australia is the capital of the “Townsvillean” territory and patriotic domain of the North Queenslander and NRL Premiership winning team of the North Queensland Cowboys.

So the only way to promote the achievements of political policy and decision making is to make sure every funding gift to the electorate counts, making all the hard work worthwhile and hopefully bringing about enough communication coverage to cause voters and consumers to bring repeat business or reelection.

Well, this will happen at the opening of course, but the pioneers are the ones remembered in the history books long after the grand opening, especially as the opening will be about sport not about the few pioneers who turned the original stone.  

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But what, when and by whom has the hard work being done to get the stadium job-stimulation project to the “sod turning” stage? Because none of the original pioneers of the capital of Northern Australia and the stadium investments were part of the sod turning dignitaries of the stadium project on the 20th August 2017.

As a long time NQ Cowboys fan and supporter, I stood loud and proud cheering in the grandstand at Olympic Park in Sydney when the boys won the 2015 grand final. It was one of the best days of my sporting experiences. I like the Cowboys. They are my team.

It would be fair for me to say, that Johnathan Thurston’s (JT) speech and his direct appeal for the stadium funding from the federal government was the greatest leadership moment that sealed the remaining $100 million funding deal. The hard work of the premiership team at the Cowboys that year was a major contributor. The power of winners, sport, the media and digital technology was an awesome combination.

Considering the broader community appeal of JT clearly documented in the recent Pure Projects Strategic Review, the stadium funding speech was just as influential as the Premiership itself. Not the least because of the mass attention it brought to North Queensland. But also for the fact the people have said JT is the “most inspirational leader” they know in Townsville.

Afterall, JT is a great leader with a humble, dignified, self-accountable and never quit persona in the community and he yielded the Prime Minister’s commitment for the remaining $100 million.

Also, the long standing Chairman of the Cowboys, Lawrence Lancini must take the greatest credit for the successful funding campaign being involved at nearly every strategic stage of community leadership.

It was sad that neither Mr. Thurston or Mr. Lancini were present at the “sod turning” event, even though the Cowboys administration was represented. The other major contributor, not present was Anna Bligh, former Premier of Queensland and current CEO of the Australian Banker’s Association.

But the day was all about the intergovernmental initiative. Individual politicians representing their claim to the higher moral ground. Whilst the federal and local government continued to sell an innovation policy in the form of the Smart City Deal. The state government forwarded their campaign for infrastructure and sustainable economic growth policy across local government and planning, headlined by “more jobs, more contracts”.

Is this really what our political leaders are doing and does this reflect the desires and the active will of Townsville and North Queensland population?

Interestingly, the Queensland Department of Infrastructure, Local Government and Planning reported on 28th September 2015 in its Public Notification Submission Review Report into the WPDA that infrastructure and sustainability ranked as the two lowest priorities, while innovation didn’t rank anywhere.

So in the most robust and rigorous consultation undertaken in recent years of Townsville’s key strategies for economic growth, Transport, Culture & Entertainment and Vision were the top three subjects for priority consideration by the collective community leadership of Townsville in 2015.

And furthermore, the highly regarded Pure Projects Strategy Review in 2017, recommended both the CBD Revitalisation and Waterfront PDA was too narrow in scope and that the Strand, Radical Bay, Rowes Bay and Castle Hill should be included in the capital of northern Australia master plans.

Yet the inter-governmental representatives identified the stadium as a jobs growth generator due to the Smart City Deal and critical infrastructure, sustainability, local government and planning initiatives of the State government.

How can all levels of government in spite of the active and overwhelming majority of individuals and organisational leaders in Townsville, including local government, find themselves so far apart on priority and orderly economic stimulation and infrastructure developments?

The North Queensland stadium has been regarded as the signature project of the City. It defines the biggest amount of government expenditure on an individual project in local history. Equivalent to the funding announced for the duplication of the water pipeline to Ross River Dam from the Haughton River, which was committed to by the current Premier even before the Taskforce interim report was produced.  

As the North Queensland stadium takes shape, property investors will contemplate various certainties and uncertainties in the overall property market and economy of Townsville.

Unlike the macro economic factors such as cash interest rates, commodity prices, employment and business confidence, for which there is plenty of commentary already, TREN’s local network of investors and experts will lay out a series of articles on the context and cases of management and leadership that are impacting and causing sustainable growth.

Effective investors would agree, the management of governance as with the governance of corporations is the first and last line of defense against risk and first and the last opportunity for returns.

TREN will articulate the triggers and situations that have shaped the priorities for Townsville’s growth and recession, misjudgement and brilliance in recent history and describe how the current and future crop of “disadvantage or victim leadership” presents unfavourable certainty in striving for the sustainable property market of the future.

Image: Local, State and Federal Government Ministers and Stakeholders stand ready to turn the
first sod of soil on the new $250 million North Queensland Stadium Photo: State government
Becoming a technology driven global economic player is what Townsville is poised for but the intelligence and sensitivities of cultural identity leadership are by and large being imported or being cycled out through a rotating academic and political pipeline.

The concept of spatial experience could be illustrated this way. The economy is represented by a modern roller coaster going up and down, at speed, providing thrills in the good times and fear in the bad times, driven by free market conditions and technologies.

Meanwhile, the political leadership of the city and state, still riding a turn of the century carousel, is experiencing a less volatile environment. Still in motion but has an unrealistic feel of the gravity effect and unexpected twists and turns of an economy capable of more. But it is constrained by a mechanical instrument of a “central pivot” or “south-east Queensland-centric” power source.

Queensland and Townsville’s leaders are likely to repeat the cycle of scarcity thinking and quick returns based on election schedules, and an express mentality by leaders of self actualisation inspired more by social status and empowered by social infrastructure investment. It’s better to be lead the believed then it is to humbly lead the aggrieved.

As the 13th largest City in Australia, Townsville is one city that has a “boom and bust” story in its current generation. It resides in a developed democratic nation that has not experienced a recession in 25 years.

North Queensland pioneering a new territory, it is being dominated by a formula of progressive management of state and local governance, an addictive federal and state social infrastructure investment economy, and an authoritative academia leading the latest generation of corporatocracy organisations.

The apparatus of which is Townsville’s own unique brand of the corporatocracy, which is seeking to justify derivatives revenue independent from taxpayers, thereby attracting increasingly disruptive and even hostile influences to the eco-system of political power, profiteering and strategic advantage.

But the public connection and relationship between local incubators and leadership academies are being stifled by “groupthink” structures and command and control systems. The governance climate is cultivated by a low hanging fruit appetite of “wait and see, take what we can get” attitude now driving the “capital of Northern Australia” brand.

The Townsville City Council has recently restructured its organisation and is acquiring its senior executive capabilities under the leadership of CEO Adel Young, who is presiding over the largest reform of the local government authority. Two hundred management and support staff have exited the local government authority. However, the planned restructure and public announcement estimated 144 positions will be made redundant, impacting heavily on the compliance associated processes across it community engagement and infrastructure departments.

With a line of sight of leadership influence over the past decade, and a recalibrated local government administration slowly taking place that must operate under the reforms of the progressive Labor-centric local government reforms, this Story of Northern Australia – The Stadium of Economic Hope and Hyper Corportacy series should bring an insightful perspective on the Townsville property market, and perhaps, bring to light some of the factors that are constrained by the scarcity economics model.

More broadly, the economy, organisational and social structures impacting the dynamics of the market will come into sight, aiming with fortuitous intention to stimulate and build discussion from a unique insight of the atmosphere of the challenges and opportunities being faced by the “capital of Northern Australia”.

Of course, the intention is not to mask the positive outcomes that have been achieved across Townsville and North Queensland, nor to purposefully draw attention to negative perceptions as might be a factor of vested investors or operators in the property supply chain. Instead, the series aims to deliver candid, transparent and honest observations to the critical tenants of the collective interests in the region.

Be sure to subscribe to TREN eMagazine to get your TREN exclusive copy of “The Story of Northern Australia – The Stadium of Economic Hope and Hyper Corporatocracy”.

TREN will seek to publish further chapters over the coming months.

Subscribe here for your exclusive free copy and to take this opportunity to add to our research and share your own observations.

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