"Future Cities Office" structure threatens Townsville Enterprise standing

Townsville City Mayor Jenny Hill Image: Evan Morgan

Townsville City Council (TCC) Mayor Jenny Hill's, Chief Executive Officer, Adele Young's headline announcement axing 144 positions in the proposed restructure of Council has set the foundation for the establishment of a Future Cities Office, while exacerbating doubts about the strategic viability of Townsville Enterprise (TEL) as an economic value-add to the ratepayers of the City.

TCC contributes approximately $750,000 to TEL annually. The other major contributor is the State Government's Tourism and Events Queensland to the tune of approximately $650,000.

TREN's breaking story about Townsville's governance organisation structures damaging the investment pipeline of the City characterised the movement of Council and the Federal government's innovation policies, raising questions about the effectiveness of local government resources and strategic alignment capabilities in attracting federal funding in Townsville's new digital future.

The creation of the Digital Futures Office as part of this restructure confirms the impact of the federal government innovation policy implemented as part of the smart "City Deal" with the Prime Minister, Malcolm Turnbull, Premier Anastasia Palaszczuk and Mayor Jenny Hill in 2016.

The Digital Futures Office has been defined as the strategic way forward for council and the interests of ratepayers.

Included in the restructuring, Ms. Young announced the creation of two new roles. A Placemaker, basically to beautify and make the city more people-friendly, and an Economist, which has the capability to analyse enormous amounts of digital data and provide planning input to future economic scenarios.

Both positions will be challenging, to say the least, seeking to bridge the gap between planning and delivery departments, the insatiable appetite of Council executives and department heads demanding briefings, let alone the bone crushing demands of council committees, political and community representatives. The complexities of such roles are a sure sign one man bands would struggle to cope.

In addition to the strategic economic and common sense delivery roles in analytics and communication strategy, the Council has proposed three new sectors that will be established called Digital Cities, Defence, and Aboriginal and Torres Strait Islander Principles.

One of these sectors deals with the enormous defence funding and associated administrative alignments, another deals with the growing cultural interests, influence and sensitivities of indigenous affairs, and the third directly aligns with innovation and the federal government's smart cities initiative.

All of these new roles are directly influenced by the Turnbull federal government organisational priorities such as native title, defence and innovation policies, which directly aim to impact the Townsville districts. And dare it to be said, not the North Queensland regions including the different Council areas of the Burdekin, Herbert, Palm Island and Charters Towers.

Nowhere in the restructure does a mining, manufacturing, commerce, education, and retailing, or real estate services feature as a future strategic alignment sector, but nonetheless most agree the biggest driving force behind future free market jobs creation. Why has the industry elephant been left out of the restructure?

Although the Economist role would have an appreciation of these industry sectors from an analysis and reporting perspective, and of course Council does not meddle in private enterprise, but where is the strategic bridge connecting and aligning the interests of Townsville's development and growth industries and the economy's desperate need to reduce unemployment?

Seemingly the definition of economic development for Townsville is defined in digital alignment with federal funding, indigenous affairs and defence, being managed in the new functional area called Economic Development (function).

Image: TCC website. Management Structure Townsville City Council 2017

Is Townsville City Council's financial future being aligned exclusively to the federal government funding pipeline, and the technological advances and corporate capital that is well known in the corporatocracy model, to enact, enable and embed enterprise with federal governance funding programmes?

All of these questions are relevant and legitimate, but depending on who controls the press release and public relations, neither the leadership of North Queensland or Townsville, state or federal for that matter, are offering direct and honest answers.

However, the Nous Group report identifies logical and common sense projects to improve the leadership, accountability and alignment of its operations with Council policy and priorities. The current Corporate Support department including shared services, the CEOs office, and the advisory teams will transition unchanged except the establishment of the new "advisory/business partners" team, which includes information, communication and technology.

The cameras and sensors of the "big brother" Turnbull regime have been set in stone by contract in the smart "City Deal", unless a possible Coalition cabinet revolt occurs in Canberra and the deal is taken off the table. The federal government is a significant partner organisation to TCC along with Townsville Enterprise, especially based on the current Mayor’s culpability.

The Turnbull smoking gun was detected by TREN and now the Council's management structure is being loaded with the engineering and digital armoury to leverage the money and personal data of Townsville ratepayers, at the expense of $14 million and 144 Council jobs, to launch the City into the information age and an indirect partnership with corporatocracy hedge fund firms such as Bridgewater Associates, BlueCrest Capital Management, Renaissance Technologies, etc.

Is the economist and digital futures office the beginning of the end for Townsville Enterprise?

Clearly, the partnership advisory capacity is being ramped up at TCC and the demand for taxpayer ROI benefit is required from partner organisations like TEL.

In the context of the TCC restructure, TEL's place as a local government partner is under serious threat and its mischievous misalignment of resources outside of the Townsville districts, while conflicted by property developer profiteering, is duplicity to say the least.

Or is this the beginning for TEL forging a new pathway, justifying their North Queensland agenda with a separate North Queensland state of governance and administration despite the priorities of Townsville ratepayers and customers?

As a membership-based organisation with its own Board of Directors supposedly driving business interests, none of which represent Townsville ratepayers. The most influential members, a part of TCC, are dominated by media companies and Government Owner Corporations (GOC's) or regional councils such as Charter Towers, Palm Island and Hinchinbrook. The Mayor is the only ratepayer representative on the TEL Board.

The TEL model is likely to come under further political scrutiny as the Mayor Jenny Hill made it clear that the purpose of the TCC restructure was aiming to achieve financial sustainability and to keep the cost of rates down, hence providing some insight into the conscience and tactical agenda of local labour government desperate for a Turnbullism olive branch.

The restructuring of top heavy, administrative and management departments at TCC has forsaken the legitimate questions about TEL’s role so far, its priorities and digital future as a partner. The very functions of which was the target in the comprehensive set of recommendations from Nous Group and the TCC CEO's decision to cull so many management positions.

Why has the role of TEL and the Mayor Jenny Hill fallen through the proper scrutiny of the media? Why is Patrica O’Callghan not raising concerns about the recall and reinstatement of the economic, marketing and corporate services functions within TCC threatening the viability of TEL’s purpose?

TEL, as a top-down advocacy, marketing and administration partnership business model, has a principal function for the economic development of North Queensland. It is outlined clearly in its strategic plan.

TEL has established parallel functions with TCC and Council, subcontracting, tinkering at the edges of government and embracing the capital of North Queensland tag in its growing regional focus.

Townsville's political priorities towards projects and activities biased towards the common thread of TEL director's interest in property development, including the stadium, while pushing kinship with districts external to Townsville ratepayer interests, has more to say about Ms. Hill’s role. It is a functional agenda outsourced from TCC and Council until the Nous Group exposed the waste, poor decision-making and poor delivery of services.

The duplicated TCC partnership formula with TEL, the misalignment of political policy delivery and support, disastrous unemployment and broader negative economic results, a top heavy risk averse TCC management structure, the reckless appointment of property development moguls influencing an isolated, frustrated, desperate, and incompetent Mayor (also fellow TEL Board director), has created an environment of irresponsible governance, accountability and leadership.

The influence of the TEL’s Board, especially with a membership Mayor evidently with poor TCC support, and desperation for property development revenues, has created a culture of corporate dependency in conflict with the interests of ratepayers and the community.

The Mayor and TEL’s misguided strategic plan focusing on construction and mining, and its fixation on federal and state government welfare has pushed the Townsville community into recession, boasting the highest bankruptcies, and the worst unemployment results in the country.

These are watershed events. Are we seeing the beginning of a new North Queensland state, under quasi-administration by North Queensland Enterprise masquerading as Townsville Enterprise?

Considering the abysmal leadership of its North Queensland advocacy,  marketing and administration functions, and in the context of the damning recommendations by the Nous Group, one could hardly image a successful campaign.

But given the poor funding outcomes for North Queensland from the recent Turnbull-Morission budget, many locals are questioning the effectiveness of not only TEL and TCC, but the innovation and tactical leadership of Council and the State government neglecting jobs, water infrastructure and energy investment as the three most popular interests of Townsville ratepayers.

The political party for a North Queensland state would like to hope so considering the disproportionate distribution of Queensland state revenues to North Queensland compared to its economic outputs. North Queensland is subsidising the South-east. More cash receipts go out of the region than what comes back to the people in the vicinity of $6 trillon per annum.

The key announcements in the Council restructure apart from the unfortunate job losses, is the capabilities created in analysis and communication, and the establishment of sectors, not departments, but functional areas strategically aligned to the financial future of TCC's digital, cultural and defence industries.

The independent report by Nous Group released in September last year identified that the Council had excessive outsourcing and contracting positions, disguising the inflated full-time staff levels in the organisation.

Yet, Townsville Enterprise was not included in the review even though the key recommendations of the Nous report has painted a massive target on the backs of this outsourced, partner organisation advocating and marketing on behalf of the TCC and Council.

Ms. Young said, "Council's new structure better aligns planning, support and delivery roles to break down silos and duplication, cut unsustainable external labour costs and place the focus where it should be on frontline services and outcomes for the community."

But hang on, isn't TEL a silo structure and does it not duplicate the function of the proposed Digital Future Office (defined more broadly as "Economic Development (Function)" with respect to the interest of Townsville districts?

In a statement to the Townsville Bulletin, Ms. Young said; "We are trimming from the top, which is evident in how many management positions we have cut... from 63 to 39," she said. It's the decision to cut these management positions that have created the most significant reduction in costs to the budget moving forward.

Mayor Jenny Hill has a different view of the restructure's purpose. The Mayor identified the purpose of the restructure was to "deliver on a major election commitment and "getting the basics right for Council's financial sustainability and easing pressure on rates," she said. 

The Nous Group was damning of her government's performance and lack of policy delivery, meanwhile racking up enormous debt.

As far as Townsville's history is concerned, the Hill government has presided over a hiatus period of catastrophe for Townsville residents, laden with debt, poor policy delivery and the worst economic decline the City has experienced.

But the strategic alliance with Townsville Enterprise has come under scrutiny in the Nous Group recommendations. The CEO said she will adopt them all in full because they are extensive and comprehensive. They projects relevant to partners include in part;

• "Assess the current benefits being generated by local partnerships funded by local council and negotiate alignment partner activities with Council priorities." 
• " TCC should take a leadership role in Townsville's development through strategic alliances with appropriate institutions."
• "Confirm service level agreement with partners that receive TCC funding and track return on investment (ROI) to assess benefit realisation."

As part of the restructure 144 positions will be slashed saving $14 million. The number of divisions will be cut from five to three. 72 existing temporary roles will transition to permanent full-time positions. There will be 97 new permanent full-time positions created.  187 temporary positions will not be renewed under the new structure. With the focus on planning on frontline delivery, existing administration support capabilities will move into planning and service delivery.

The principal membership role that TCC plays at TEL and the Mayor’s Board influence has come under close scrutiny by TREN, but the local Townsville mainstream media has been uninterested. The conflicts of interests, political incompetence and management failures at TEL and TCC have been exposed by TREN and now the Nous report backs up the legitimate concerns raised by its investigations and many publications over the past few years.

It is the subject of growing debate because, during the days of this Mayor, TCC's reckless leadership, accountability and ineffective strategic partnership alliances have largely gone unnoticed by the people of Townsville.

The legacy of Mayor Jenny Hill’s poor leadership, the ineffective structure of private and public institutions, lack of strategic placement of “value-add” influential community leaders and a dependency for government support has been a disservice to the community of Townsville over the past 10 years.

Over the next 10 years, one is hesitant to forecast, but a real danger exists that the Townsville leadership culture will not heed the text of the TCC restructure and the broader lessons for TEL, Council representatives, the vested academic institutions and media influences in the City.

And it must be called out again, the duplicity surrounding property moguls on the TEL Board on the collective values, capabilities and operational vision contrary to beneficial interests of the people, ratepayers and of the Townsville districts.

Unfortunately, with the smart “city deal” aligning civil and demographic resources to a government even further away than South-east Queensland in Canberra, and the supply chain of information, funding and investment being more closely aligned with a corporatocracy model, the priority interests of ratepayers is likely to appear even more immaterial through the haze of the dust storm of cronyism, conservatism and “fake news” consuming the public discourse.

Property owners and investors contribute nearly 10 percent of the City's economic output and the majority of the wasted rates revenues collected by the City. Investors alone supply nearly 40 percent of the City's accommodation and therefore pays the comparable percentage in Council rates to TCC.

Do you have an opinion about the Council restructure? The TREN community wants to hear your story.

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Townsville governance organisation structures damaging to investment pipeline

Townsville Enterprise acting vicariously for the Townsville City Council, is boasting about the significant economic stimulation that the Adani project, rail and port upgrades, military deal with Singapore, solar energy projects, stadium project and the "Smart City Deal" are going to inject into the local economy.

Although a noticeable inflow of jobs could occur during the construction of these mostly industrial and infrastructure projects, the majority of the stimulus and ongoing gross domestic product (GDP) will occur in districts outside of the Townsville City boundaries.

Adani's coal operations are located in Central Queensland, west of Mackay, and the port is located in Bowen as part of the Whitsundays district. Even the proposed military base for the Singapore Army is located in the Charters Towers district, not Townsville.

Although Townsville can claim Adani's head office in the city, once again relatively low ongoing jobs and employment is derived from the mostly management and administration positions.

With the anti-coal movement alive and kicking, including Australia's banks, advocating against Adani's coal interests, these jobs could still be under serious threat.

Moreover, the "value add" criteria codified in the Smart City Deal, is the formula from which all future majority federal and state government funding is linked.

Private capital investments in projects outside Townsville's economic zone such as Adani's coal mine, would not be worthy of critical federal and state infrastructure stimulation in the Townsville rate payer districts.

The Smart Cities Plan and "City Deal" contract was signed by Council, State and Federal Governments in December 2016. Because of this Darwinian decision, Townsville's civic policies are being hijacked by individuals career agendas within the Townsville Enterprise leadership focusing and advocating on projects outside the "value-add" parameters of the City Deal.

The Townsville Enterprise focus is "Townsville North Queensland" and not the Townsville districts, meaning its real focus is on council districts across North Queensland rather than an exclusive agency of Townsville City Council and the ratepayers of the City. In addition, the Townsville City Council is seemingly incapable of formulating or delivering commercial enterprise initiatives.

The lack of real funding for Townsville districts in the recent Dumb federal budget could wipe out property owners, is evidence of the very convoluted organisational model of Townsville Enterprise, Townsville City Council and various advisory boards being established to direct Smart City initiatives.

If Townsville Enterprise is allowed to continue a convoluted agenda, in light of new smart technologies in government, energy, transport and manufacturing, it will be economic suicide for Townsville district property owners and residents.

Unless restructured urgently in line with Smart Cities funding eligibility, international entrepreneurship and global enterprise investment pathways, Townsville districts will be neglected in future federal budget initiatives.

Townsville Enterprise CEO, Patrica Ocallaghan provided a statement to the Townsville Bulletin confirming the federal budget did not address any of the priority initiatives identified in their pre-budget wish list, but pledged to continue working with the federal government on the Smart City Deal.

Property owners and rate payers are being fooled, as the current disjointed governance organisational framework is cementing Townsville as a social welfare dependent district, instead of fostering major industrial and infrastructure projects with the federal funding criteria set by the "City Deal" contract.

This federal budget in the context of the "City Deal" contract, is driven by "value-add" initiatives and it is biting property owners where it hurts the most, with reduced cash flows and valuations. This market and government dysfunction could force further value decline in property investments.

With this fresh analysis undertaken by TREN, the property owners and stakeholders of Townsville North Queensland can forge a conclusive understanding of the impacts from the federal budget from local real estate investors and owner-occupiers. 

Do you have an opinion about the federal budget? The TREN community wants to hear your story.

Turnbull federal budget could wipeout Townsville property owners

Image: Cartoonist, Dave Pope

The Turnbull-Morrison federal budget could wipe out many property owners who are hanging on to their investment properties in the Townsville district by the skin of their teeth, enduring sustained cash flow and equity declines over the past 5 years.

Not to mention the property owners (investors and owner-occupiers) whose fate has already been determined, falling victim to the steepest economic and property decline in financial terms in local recorded history.

Many are local residents that have lost their jobs or businesses, foreclosing with the banks or filing for bankruptcy. The highest occurrence of bankruptcy across the entire country has been experienced in Townsville.

Significant numbers of property owners are living from hand to mouth constrained by the debt imbalance. They are incurring losses from which negative gearing and a reliance on taxation refunds are their only salvation.

Despite the Property Council of Australia's (PCA) influence on this budget, the threat at the next election of a more extreme left-wing policy of reducing or eliminating negative gearing, has become a haunting possibility as the country strives for more revenues.

Green and left-wing extremism are likely to swing ordinary voters against the rise of Trumpism and Turnbullism. More anti-business and anti-corporate campaigns like Getup's malicious campaign against Adani coal is an ideology with heavy domestic and international support.

Although a seemingly senseless policy to any economist, a change of government, could be the armageddon for property owners if the Townsville economy continues to dance so far out-of-step with national economic trends and federal fiscal policy makers.

Also, Townsville governance organisations threaten the investment pipeline of the City in the short term, as the Turnbull government has a deep thirst for the "City Deal" mega data deposits from the Internet of Things (IoT) system. Under the contract by Mayor Jenny Hill, the "no data, no deal" is setting Townsville Enterprise up for restructuring or imminent redundancy.

The federal budget announcements targeting big-ticket infrastructure and taxation concessions using superannuation and negative gearing for managed funds to address housing affordability in Sydney and other capital cities is a dumb policy. This is really irresponsible on Townsville North Queensland given the recent and ongoing pain and suffering.

Despite Townsville Enterprise foolishly appealing for more new housing development to meet projected population growth, in other words increasing supply, North Queensland and Townsville districts do not need a housing affordability policy at the forefront of the public agenda when business investment and jobs are what is needed the most.

Instead, a more prudent priority for Townsville district is to seek microeconomic solutions such as the Tax Increment Financing (TIF) scheme, as proposed by the PCA. This is backed up by the Northern Australia Development Facility, with strong and robust relationships, with leading boards and executives of large enterprise both domestically and internationally.

Apart from births, migrations, and immigration, the focus on value-add industries securing property for development in Townsville's Council district, is Townsville's only leverage under the "City Deal" contract, to attract significant federal and state government investment.

The New Residential Land Sales and Supply chart clearly shows the surplus land stocks in Townsville districts.

In his address to the media, the Treasurer Scott Morrison said, "it's not a silver bullet – nor is it intended to be", referring to his federal budget and the media anticipating a fix all budget.

Ironically, this is exactly what this budget is. A silver bullet for property owners being put out of their misery if these measures strike to achieve more housing affordability in a market plagued by asset value declines.

Unemployment rates in Townsville are at 11 percent and the broader economy of regional Australia is hurting from the downturn in mining activity and substantial increases in energy prices.

The centre-point of the budget, being that it addresses housing affordability, could move the sentiments of distressed property owners and buyers to protest and disrupt the political will of what is perceived to be a puppet's play.

This federal budget reaffirms the concerns of local representatives that the Federal and State governments are capital city-centric. They are driven by votes instead of delivering "a fair go for all Australians", which Mr. Turnbull promised in his preamble to this budget.

The Turnbull-Morrison federal budget will go down as the most politically safe budget in coalition history. In fact, many commentators are saying it is a labor policy budget with terms like "centralist budget" and "not traditional liberal".

The Liberals are fully funding social programs such as the National Disability Insurance Scheme (NDIS) and increasing taxes on the banks.

The banks, of course, have already said they will pass on the cost increases to every mortgage holder in the country. As the big four banks have done in recent times, they are well within their rights to act independently to raise their interest rates and fees.

Once again for Townsville North Queensland, the people are being asked to pull up the smelly socks of bad government leadership. Meanwhile, a liberal government slips into their fresh uncharacteristically labor-like federal budget cotton socks to attract votes from the capital cities and the left-wing media establishment driven by ratings and polls.

Even financial and taxation professionals are labeling the budget as a "good strong budget" as there are no additional personal or small to medium size enterprise (SME) tax increases announced. Superannuation by and large has been untouched. 

Just as the people have grown to expect smoke and mirrors from a political funding announcement, the Turnbull-Morrison duo is being socially responsible and hitting the big end of town just like the Labor opposition policies were proposed to target.

By design or coincidentally, it is likely Bill Shorten has been taken out of play in this budget. Not only in policy terms. But it is effectively the "Bill Shorten execution budget".

Shorten's electability, not just as an opposition leader but Labor candidate in the seat of Maribynong, has taken a direct hit with 127 hectares of defense land in his own electorate in Victoria being made available for 6000 new affordable homes under this budget.

Is Mr. Shorten's political career finished? Mr. Turnbull would hope so, if the cold shoulder he gave him in front of the media the morning of the budget announcement is any indication.

Putting the political undertones aside, what if Sydney, Melbourne or Brisbane had an unemployment rate of 11 percent with a median house price of $337,000 for houses, and $272,000 for units? Would the federal budget be focused on housing affordability? Absolutely not!

The House and Unit Prices chart below demonstrates the decline of values and stable affordability environment in Townsville districts. 

Economic stimulation with tax breaks, grants, and infrastructure investment spending in the regions would be high on the agenda. But not this politically and socially sensitive government.

Its focus is on self-preservation. Obviously seeking to secure the next election with capital city and regional Victoria and New South Wales voters, who are set to benefit from the new $20 billion rail corridor from Melbourne to Brisbane.

With a consolation prize of relatively minor funding, allocated to repairs and maintenance to the Bruce Highway and disaster relief from cyclone Debbie, nothing positive from a Townsville perspective can be said about this budget.

When we look at the median property price for rentals in Townsville, it makes the federal budget's focus on affordable housing look like a joke.

For example, a three bedroom house in Townsville is currently being rented for $290 per week. This is a decrease in the housing price of 6.5% in the last 12 months, with the housing price already starting from a low base and dropping consistently from nearly $400 per week in 2012.

Considering the massive uncertainty in the superannuation sector over recent budgets, the mobile and rental accommodation being so affordable in regional Australia, the elderly are anticipated to snap up the $300,000 per person superannuation top-up option in this budget.

Once again in a Sydney context, this policy might make sense. But in Townsville, adding more supply to an already distressed housing market is like igniting high octane fuel in a fire of despair.

Unless local governments and marketing experts in Townsville and North Queensland target the elderly in the capital city markets by offering comparable or upsize value strategies such as a clean, affordable and healthy tree-change lifestyle, this budget measure is more likely to be detrimental to Townsville's property market.

The likely result is more housing supply as our elderly residents will seek to cash in. This breeds more unhappy owners because the further downward pressure will be put on median house prices.

In addition this budget also, the federal government will establish the housing finance corporation (HFC). From July 2018, the HFC will offer long-term, low-cost finance to community affordable housing providers. Investors are assured to get rental payments from the government with direct deductions from welfare payments transacted to investors.

It's the $1 billion National Housing Infrastructure Facility (NHIF) that is of particular concern in the hands of an inept local government being charged with developing business cases, to win funding and then administering the funds through community housing contractors.

Desperate for new home developments that attract increased revenues, council rates and economic stimulation, the NHIF program in Townsville will have Mayor Jenny Hill and Townsville Enterprise salivating at the mouth.

However, this social housing initiative will be disastrous for incumbent property owners in Townsville based on the accumulated evidence from the NRAS (National Rental Affordability Scheme). The now abolished Labor government NRAS program was a disaster back in 2013, its legacy is still being felt across the City.

Then, NRAS was the catalyst for the sustained fall in rental prices and subsequent fall in sale prices across the City. This combined with softer global commodity prices and carbon tax policies, Townsville's property economy has been impacted by catastrophic losses ever since.

Furthermore, affordable housing investors are being offered a possible 60% discount on capital gains if they build new housing projects with the condition of pricing the accommodation below market prices to low-income tenants managed by a community housing provider.

This is NRAS rebadged! All be it with a 40% less capital write-off, but with a more favourable incentive to control rental cash flow directly from welfare payments or employer direct contributions.

NRAS created a false economy and drove free market prices down just as the combined housing affordability initiatives are now likely to do.

The NHIF is based on the UK model aiming to assist local governments to develop new homes and apartment blocks. For Townsville North Queensland, the combined measures of NFIC and NFC are unfavorable with property prices already falling substantially over the past 4-5 years. NRAS Mark II is what this federal budget is delivering.

But that is not all, a separate Trust is being established by the federal government to encourage both foreign and domestic investors to invest in affordable housing in Australia. 

On one hand, foreign investors leaving properties vacant are being penalised $5,000 in capital gains in this budget, while on the other hand, the government opens up a larger pie for taxation write offs by directing their attention to public housing infrastructure.

In principle, this is a smart measure if it were applied to foreign investors directing their capital into regional manufacturing and new enterprise initiatives that create "value-add" to Townsville's enterprise infrastructure. 

Knowing the influence of Townsville's infamous property development moguls with land to burn (as shown in the New Residental Land Sales and Supply chart above), and a local council habitually grovelling for new subdivision applications, the depth and intensity of the housing affordability measures in the federal budget are bewildering.

To drive the nail in the coffin even further, property owners who claim travel expenses on their tax returns for inspecting, maintaining or collecting rent on their rental properties will no longer be allowed after July 2017.

Consider the fact that over 40% of Townsville's total housing supply are rental properties owned by investors, many travel to Townsville to check on their properties.

With current property yields declining and debt-to-equity ratios increasing, the federal budget is indirectly targeting the 3rd largest contributor to industry output in Townsville's $30 billion economy, this being the "Rental, Hiring and Real Estate" sector at 9.4% (Source: REMPLAN: Dec 2016). This is an industry contributing $2.8 billion per annum to the Townsville economy.

Under prudent management rationale, this budget would normally bring opposition kicking and screaming. But not a whisper from the incumbent Labor representatives in all local, state and federal seats across the Townsville districts.

Patricia O'Callaghan, Townsville Enterprise (TEL) CEO, confirmed in a statement to the Townsville Bulletin that the budget did not address any of the priority initiatives outlined by TEL in their pre-budget wish list. Yet she praised the Smart City Deal initiative and pledged to work with the federal government. 

The property owners and investors of Townsville North Queensland have been left with more questions than answers from this federal budget. With this fresh analysis undertaken by TREN, the property owners and stakeholders of Townsville North Queensland can forge a conclusive understanding of the impact from the federal budget on local real estate investors and owner-occupiers. 

Do you have an opinion about the federal budget? The TREN community wants to hear your story.

New smoke alarm laws; Is your family safe?

From the 1st January 2017, new smoke alarm laws for domestic dwellings came into effect in Queensland that requires smoke alarms older than 10 years, or that are faulty, must be replaced with a photoelectric smoke alarm that complies with Australian Standard (AS) 3786-2014.

Dwellings that are hardwired must be replaced also with photoelectric smoke alarms under the same conditions if they are 10 years old or faulty.

Image: Thanks to rta.qld.gov.au

Existing ionisation smoke alarms are recommended for replacement as soon as possible. Although this is not mandatory until 2022 or it becomes faulty or exceeds the 10 year age condition. It is recommended by Fire and Emergency Services to replace Ionisation smoke alarms anyway.

Image: Thanks to rta.qld.gov.au

From 1st January 2022, ionisation smoke alarms must be replaced if the dwelling is being sold, leased or an existing lease is renewed and replaced with a photoelectric smoke alarm less than 10 years old and interconnected with every other smoke alarm in the dwelling. The alarms must be hardwired or powered by a non-removable 10-year battery.

Each storey or level of the dwelling, bedroom and each connecting hallway, or between bedrooms if there is no hallway must have an interconnected smoke alarm installed. Even if there is no bedroom on an extra storey or level, at least one smoke alarm must be installed in the most likely path of travel to exit the dwelling.

In addition to the Fire and Emergency Services requirements, rental property owner/managers are obligated to comply with the following requirements

Image: Thanks to rta.qld.gov.au

From January 2027, all private dwellings (yes your private home), townhouses, units and houses and investment properties must install interconnected photoelectric smoke alarms. If a hardwired smoke alarm cannot be installed, a non-removable 10-year battery smoke alarm interconnected must be installed to comply with Australian Standard (AS) 3786-2014.

If you are buying smoke alarms, there are some alarms that do not comply with Australian standards and there are alarms that standards certified recommended by Queensland Emergency Services and Standards Australia. The alarms to buy have these symbols or labels attached to the smoke alarm product.

Image: Queensland Fire and Emergency Services

The alarms to avoid have these symbols or labels attached to the products or nothing at all indicating the Australian Standards labels. Do not buy these because they are not compliant with Queensland law.

Image: Queensland Fire and Emergency Services

The placement of smoke alarms is also recommended along with having a fire escape plan in place to not only be alerted by the alarms but to respond to the emergency and exiting the property safely with your life and your loved ones.

Image: Queensland Fire and Emergency Services

Details of the placement and all other fire safety specifications can be found on the Queensland Fire and Emergency Services website. Here you can also find important information regarding smoke alarm safety; selling and leasing, new buildings or renovations and more detail about photoelectric smoke alarms.

Property owners and managers can find further information at the Residental Tenancy Authority website.

National retailer embarrassed selling illegal smoke alarms in Townsville

Townsville residents are being warned about buying out of date smoke alarms from local retail and hardware outlets.

A local property owner reported purchasing non-complaint products from a local retailer this month, despite the fact new tougher smoke alarm laws were introduced in Queensland from the 1st January 2017.

Queensland's Minister for Fire and Emergency Services, the Hon. Bill Byrnes, said; "although residents would have up to 10 years to install the new alarms, everyone should take action to update their alarm system as soon as possible."

TREN can confirm that residents have been buying redundant smoke alarms from one of
Australia's largest hardware retailers as late as the first week in February 2017, over a month after the new laws were passed but at least 6 months since businesses had been warned of the impending changes.

One of the homeowners who contacted TREN about this public safety story presented one of the three alarms she purchased, and it clearly displays on the back side of the device, an expiry date of "12 July 2016". (see image below) The proof of purchase was also presented.

The smoke alarm was purchased from the retailer in February 2017 with "Quell Ionisation Smoke Alarm", "Manufactured in China for Chubb and Security Pty Ltd", who is based in New South Wales, clearly displayed on the back of the device.

Non-compliant ionisation smoke alarm
Image: TREN

When TREN alerted the retailer to the bungle a very pleasant and well-informed employee said: "this alarm is out of stock and non-compliant." When the employee was asked, "What about the other alarms that have already been installed?" The employee said: "they must be returned with your receipt and we'll give you a refund".

Many residents that have purchased the old ionisation alarms for their own homes reported that they feel confused, or completely not informed about what to look for when purchasing fire safety devices. This comes as the trend of online shopping is growing at a fast pace where cheap illegal products can be purchased very easily. No wonder consumers are confused and concerned about their safety and legal obligations.

Image: Queensland Fire and Emergency Services

Even when the labels on the ionisation smoke alarm in the above image are compared to the QFES website recommendations, it is understandable how residents could justify their confusion. The labelling of the smoke alarms is unclear and ambiguous based on the QFES recommendations on their website.

The yellow triangle hazard system on the homeowners' non-compliant alarm, which is not recommended, does not even appear on the QFES guidelines. Instead, a yellow square label is shown. And, even though the five tick Australia Standards symbol and Activefire Certified certification icon are shown on the QFES guidelines to be safe, the non-compliant ionisation alarm displays them.

Residents that are concerned and may not understand the new smoke alarm laws are advised to contact a smoke alarm installation professional, licensed electrical contractor or consult the Queensland Fire and Emergency Services website for further information. You can also contact the manufacturer with questions. For example, Quell has number to call 1800 654 435.

But with residents finding even the QFES website guidelines confusing, residents are encouraged to call a professional QFES "firefighter" to conduct a "Safehome" visit to receive advice about the best locations to place fire alarms and suggest other fire safety initiatives around the home.

To request a Safehome visit call 13QGOV or visit 
https://www.qfes.qld.gov.au/community-safety/freeprograms/Pages/safehome.aspx'