"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.

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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'

Townsville's clean energy war; $400 million solar energy investment set to divide interests

Image: Thanks to Townsville Bulletin

What feels like a drop of water on ancient stone carving out the future geometry of the earth's rivers and streams, the mass sum of Townsville's solar energy projects is making less than a drop in the national energy market even with the launch of the $155 million Sun Metals Solar Farm project, 15 km south of Townsville.

The Korean-owned Sun Metals project comes on the back of the $250 million solar farm announced for construction on a disused mango farm in the Upper Ross last year, about 20 km south-west of Townsville. A facility of this capacity is expected to add 450,000 photovoltaic modules, which will deliver clean energy to 50,000 households.

Over half a dozen clean energy power stations have been built across North Queensland in the past two years. Yet these power stations add less than 1% to the national energy market.

Combined with the existing small-scale 1350 residential and commercial installations (although not supplying wholesale spot prices) across the City, solar energy is boosting Townsville's electricity capacity steadily enough that the perceptions of victory by non-fossil fuel proponents could have inspired right-wing politics to parade a fist full of raw coal through federal parliament this week.

The additional solar capacity at Sun Metals will be connected to their existing 33/132 kV substation to supply power to their refinery, offering incidental net inflow capacity to the power network. However, their reliance on wholesale power will be reduced by up to 116 MWac as the extra one million solar panels being used will cover 130 hectares. This type of project is what is slowly reducing demand for consumption on the 540 trillion watts feed into the national energy market. 

Image: Thanks to Inhabitat

The real estate investors in Townsville have to be wondering what the impact of these larger scales energy projects will have on the economics of accommodation and the cost of power supply in the broader community. After all, households and small business that are impacted by energy prices are also critical players in the recovery of the property market more broadly.

The truth is these installations will have a negligible impact on retail power capacity and minuscule effect on prices. History might suggest that where a large investment in solar power equipment occurs, the retail price of electricity increases to make up for downward pressure on supplier cash flows. But while the demand for existing infrastructure maintenance overheads and replacement costs continues, prices have continued to rise in excessive of the annual Consumer Price Index (CPI).

The Queensland Energy Minister, the Hon. Mark Bailey has made his pitch for more renewable energy projects flying in the face of federal conservative politics and local Townsville business leaders calling for urgent action on building a coal-fired power station in the region.

Premier Hon. Annastacia Palaszczuk with Queensland Energy Minister, Hon. Mark Bailey
Image: Thanks CourierMail.com.au

Grandstanding on surpassing his election promise of supporting 40mW of renewable energy by announcing the fact that 300mW was delivered as part of his Solar150 policy, Mr Bailey is banking on competition and more solar production, the cost of which has reduced by as much as 80% since 2009 the State Minister claims.

Independent customer satisfaction researcher and rating business, Canstar Blue, said that location is a major factor in electricity pricing. "The amount (price) energy companies charge for power is dependant on a number of factors, the location being one of them."

The independent rating company also identified that the "Queensland Productivity Commission found that deregulation would boost competition and potentially lower electricity prices - and it's easy to see why when you compare average costs in Brisbane with those in Victoria, the most mature energy market in Australia. But so far overall prices show no sign of coming down, so it's important to find the best deal of the bunch currently on offer."

Queensland has the highest concentration of electricity suppliers in Australia, and over 50% of the capacity and demand is serviced by government-owned black coal-fired power stations. What's more, Queensland has a surplus of supply making the State a net exporter of electricity to other states.

Energy prices are set by the retailers and the free market. Energy is still regulated across the board in regional and rural Queensland. However, only if use is below 100mW. This stops in June this year and the $500 million Community Service Obligation (CSO) paid by the State government to subsidise distributors like Ergon and limit energy pricing will be passed on to consumers. South-east Queensland has had deregulated pricing since July 2016.

Although a federal labour's carbon price was to blame, the Newman government realised at the LNP election loss, increased electricity prices on households are political suicide, especially aggressive increases which putting a price on carbon caused.

The sensitivity of price increases in a recession-ridden economy like Townsville, quite possible under a utopian clean energy agenda, means catastrophe at the ballot box is inevitable for pro-futurist politicians like Mr Bailey. Unless the $500 million SCO subsidy is renewed, prices are indirectly regulated for the benefit of regional Queensland in addition to the regulations that end in this June.

However, Mr Bailey would find it difficult to justify politically why the $500 million CSO subsidy is renewed come July 2017. Because you would assume the government will be serving the people to keep retail prices down so Ergon need not increase their costs in regional Queensland.

Trusting deregulation and the influx of retailers in regional Queensland would reduce prices to offset the CSO cuts and increased competition to the majority government-owned power generators, is inconsistent and unlikely with location constraints reported by the independent rating company, Canstar Blue. Townsville is hotter than Brisbane and power leakage, being great distances from base-load generators, is costing the State $130 million dollars per year in lost energy.

But a $1 billion federal Northern Australia low-interest loan to a consortium of private and Chinese investors, who are now otherwise paying 6-10% interest on borrowings, would reduce the demand on taxpayers for government subsidies, practically eliminate wastage by power leakage, reduce the spot price of wholesale power by adding healthy spot price competition in the generator market, and serve the economic interests of North Queensland.

With a combined clean coal/carbon offset revegetation program to achieve carbon reduction targets, an additional 100-200 mW capacity could put downward pressure on electricity prices with a new base-load power station. But most importantly, it would deliver North Queensland the necessary industrial muscle needed to secure its economic prosperity and lessen the need for subsidies from taxpayers.

As the Upper Ross and Sun Metals investments and future clean energy investments like them continue, the clean energy sector will inevitably seek to protect not just their ideology but their growing investor cohort seeking to secure and protect their ROI in the energy markets. Demand for energy has been steadily reducing as residential and commercial solar projects like Sun Metals come online and the Australian manufacturing sector has dwindled.

The battleground between old money and new money (green certificates) is set to evolve into all-out warfare in the boardrooms and dare it to be said, in the unemployment centres of Townsville unless a sensible decision can be made by a rebellious climate industry to pragmatically serve the wellbeing of the entire community desperate for short-term mining and industrial jobs.

"The Sun Metal project is set to commence in April 2017 and create 250 jobs in the construction phase as one of the largest solar farms in Australia", winning contractor Dr Paul Dalgleish, Managing Director and CEO of RCR Tomlinson said. Sun Metals reports that an extra 100 jobs ongoing will be employed but this is due to the investment of another $150 million increasing zinc production capacity by 20 percent. Sun Metals currently employees a total of 300 locals. To put this into perspective, Townsville is seeking to create 20,000 new jobs in the next 5 years.

So Townsville is in a serious quandary on solar investment just as it is in big data, artificial intelligence and robotics, technologies that are likely to eliminate demand for processing labour despite the political headliners of job creation during construction.

It's like the people are constantly being sold a cute puppy; cuddly and soft at first but we never stop looking for the stolen shoes in the yard. And it has been recurring like a bad nightmare or the American "groundhog day" for the past 6 years. Some would argue longer as politicians have become experts at breaking promises and pulling the wool of over voter's eyes.

Further reading:
Turnbull trio caught with smoking gun

There is a growing sense with the rise of One Nation and Trump that the extreme left has deposited so much social progress in Melbourne, Sydney and Brisbane post the Howard-era, that the entire green movement in Queensland backed by Mr Bailey is selling Townsville a cuddly pup and the drip of small broadly dispersed solar farms as industrial power stations.

Employment for the construction of new technologies is temporary while skills and expertise in facilities maintenance, fossil fuel processing, business administration and technology programming are recurring and more sustainable. Not to mention however new skilled jobs that will be created in the digital economy offsetting industrial job losses. But these jobs are what is driving capital city growth and tearing the heart out of regional towns, where time and time again, talented trainees or graduate students move to the capital cities.

Townsville needs industry and business that creates sustained employment for existing residents and sufficient employment for population growth, but the clean energy campaigners and smart technology campaigners by their nature are ardent in their beliefs of saving the planet and rescuing ignorant climate change-denying people from themselves.

What the jealous and emotional teenager thinks and what the parents think are by nature two very different values, at least the circumstances are perceived differently, and the argument about right and wrong can become destructive and even threaten relationships.

Instead of finding common ground, the arguments are based on who has the higher moral ground. One being to feed and secure the entire family and the other resist and fight for the freedom of ideology, which less than a decade ago, had control of the balance of power in federal parliament with the independents.

And it all comes down to power and control of everything. With such utopian and extreme mindsets playing the game, the wellbeing of the people is being defined around electoral affluence and the movement of the lobbyist elite, as Mr Bailey felt the need to deny his association with "latte sippers" and "champagne drinkers" in a recent statement. This is not the identity of solar users as he defended. But the reality of green campaigners and protesters hanging out on Brunswick Street in Fortitude Valley, or trendy boutique villages around Yeerongpilly in their cycling paints to plot their next alliance is happening.

The opposition to these movements is bearing fruit in the United States where left-wing aggression is headline news. District and federal judicial officers are blocking the highest traditional authority in the system, the President of the United States. While in Australia the right-wing One Nation Party and Pauline Hansen may become a serious contender as the third major party in Australia the way things are going.

Moreover, Townsville has been blessed with both clean energy and cleaner fossil fuel resources on our doorstep yet the ideologies and political leveraging of fail-safe governance and political extremism are crippling the opportunities of the Townsville economy and the prosperity of this region's people.

Nearly 5.70-kilowatt hours per square metre of solar irradiation exists under the skies of Townsville producing practically zero CO2 into the environment. A massive asset to the local economy and the most abundant levels anywhere in the world. The sunshine state is alive and well. Of course a smart inclusion in any energy strategy for a nation and city over the next millennium.

The Galilee Basin is blessed with the best quality coal in the world and over fifteen mining companies actively seeking to bring it to the global market, including Adani's new Carmichael mine, whom by some accounts may be in receivership any day now due to excessive company debt through its Indian operations.

The CO2 emissions of the Galilee Basin coal are the best product compared to domestic and international standards, producing 1.1 tonnes of CO2 per megawatt hour of electricity generated, some 30% fewer emissions than Indonesian coal.

Image: Thanks to ABC

The fossil fuel industry, right-wing politics and Townsville's own News Ltd press, is lobbying for the $16.5 billion Adani coal mine project to proceed urgently along with a new coal-fired power station to be built in Northern Australia.

Meanwhile, the chief executive of the Clean Energy Finance Corporation (CEFC), Oliver Yates, says coal-fired power would be "an inappropriate investment in exposing taxpayers to". Even the rules governing the eligibility of clean coal as an investment for the CEFC makes coal an unacceptable risk to taxpayers. Yet the Australian Energy Regular confirms Queensland's fossil fuel power stations are keeping the lights and cooling systems going across the nation during peak hours and excessive heat waves.

While federal and local politicians are seeking to manage affordability and their appeal to the electorate, the increasing power of the anti-carbon emissions movement and clean energy capital raising bodies like the CEFC is overwhelmingly unfavourable to a politically dispensable economy like North Queensland.

Most credible scientists and commentators are saying the cost of building coal-fired power stations, even carbon capture plants, compared to solar and renewables far outweigh the economic benefit to the community.

But saying that to a jobs-hungry community like Townsville still getting used to being weaned off projects stimulation and a government funded economy, is nearly impossible. Just as the people of the rust belt of middle America gleefully elected the most unelectable President in Donald Trump, because they were sick and tired of becoming irrelevant to centralised control during an era of globalisation.

Lacking vision in energy policy, meaning supporting any form of coal production, is tantamount to threatening the entire nation's future. This is the rhetoric of southern splinter journalists, incensed with utopian climate protection ideology and a dogged determination to prove sympathetic scientists right.

And the reality of this point of view is that Townsville's economy, unfortunately, could reflect the experiences of the people of South Australia where "blackouts" and industrial scarcity is a way of life, while Townsville is promised jobs only to find out they are mostly casual, part-time or fixed-term contracts and perpetually being sold a cute puppy.

Further reading:
Industrial space critical to Townsville smart city future

Get used to the fact the attitude of the left and the environmental movement is here to stay. Just as the attitudes of the politically correct advocating on behalf of racism, feminism, socialism, capitalism, etc. are here to stay. Ideas and what we think is a god-given right. Anyone with a twitter account has political influence and there are plenty of authoritarian voices with scientific profiles in their resumes actively claiming an ology, ism, doctorate, ist to their name.

Perhaps a poor attempt at humour, but given a platform, conscientious people will continue to influence and disrupt politicians, courts, corporations and people seeking to derive their living from an industrial system built on fossils. For an ordinary family in Townsville seeking a good life, the fossil industry is their only prospect of income, which will continue to be the case for many decades to come despite technology advances.

A new global order is fighting for supremacy and Townsville is in the heartland of the battle for power and control over resources, even self-determination, futurist ideology and utopian safety and security, neither of which are disconnected from the immediate pain and suffering of the community.

Meanwhile, the paralysis of governments, institutions and agencies incapable of agility is likely to continue in the immediate future, impacting the certainty of jobs and economic opportunities for a bright City seeking to advance its claim as the largest economy in northern Australia.

With the prospect of further delays in all industrial fossil extraction projects - dam building ventures included, and any industry business dependent on fossil fuel energy, further protests, court action and political grandstanding will remain important tactics by highly organised and sufficiently funded clean energy campaigners.

Editorial attention by News Ltd supporting a coal-fired power station in the local Townsville Bulletin is a real measure of the frustration being experienced by a community with massive economic promise in what has become a perpetual "go and no-go" zone in the climate change and clean energy fight across the world.

With the question still open as to the future viability of all coal and fossil power energy solutions in North Queensland, Townsville's aspirations to develop industry and jobs will be plagued with further uncertainty unless the citizens rise up and get behind pragmatic political and business leadership seeking to secure the funding promise of the $5 billion Northern Australia development fund.

If recent history and events are anything to go by, it is difficult to see a strong, proud and caring regional community like Townsville lay down and let jobs and opportunities pass them over because of left-extremism has gained momentum with a green army under the stewardship of capital city elites dictating "it's the way things are around here."

Industrial Space Critical to Townsville Smart City Future

Image: Thanks to Industrial.edq.com.au

Townsville's industrial space will be critical to the future recovery of this struggling economy as one of the Turnbull government's trial sites for Smart Cities.

One of the largest regional cities in Australia, Townsville has aspirations to become an industrial powerhouse and cement it's identity as the Capital of North Queensland.

The federal government, however, has structured the funding with conditions hinging on the delivery of the Smart "City Deal", which seeks to drive funding by the government, private development corporations and crowd-funded small business initiatives.

Industrial land sales median prices have not improved year on year for six years despite a steady drop of available land stocks especially in 5000sqm to 1Ha category.

Keeping an eye on this sector as a lead indicator for a more sustained residential sector is advisable. It’s the cash and jobs creation sector of the market which has been impacted significantly.

As the economy transitions from an industrial age to the artificial intelligence age, this sector of land ownership will continue to be vulnerable with flat or negative capital growth anticipated.

And as the "multi-channel" retail, distribution and logistics strategies evolve as online shopping behaviours grow in the coming decade, the grading of industrial property will involve with it.

A consolidation of space by major retailers is expected in locations where a critical mass of foot traffic is projected, servicing a distribution of goods to other locations and even building new markets.

The feasibility of manufacturing will be dependent on the city's adoption of innovative, efficient robotic technologies and low-cost transport systems to cost-effectively supply consumers abroad in Oceania, Asian and broader international markets.

Herron Todd White Property Update Nov 2016

With the arrival of Amazon in the Australian marketplace anticipated in 2017 and the proliferation of global digital retailers, manufacturers and wholesalers are reaching out directly to consumers.

Cutting out the middleman and small to medium size "bricks and mortar" domestic retailers is an aggressive plan for the mega-retailers to gain market share as part of their business plans, despite credible evidence saying consumers prefer to shop online and then go and buy in a "bricks and mortar" store.

Although domestic retailers have won the lion’s share of revenues from domestic online consumer spending in the fashion, food, electronics and toys markets, the use of retail shops are expected to transform into integrated distribution centres serving as "multi-channel" retailers.

Henderson Global Investors research into the "Impact of technology on real estate; implications for retail and logistics", reported that "The challenge multi-channel retailing presents landlords is fairly clear cut. Quite simply, retailers need fewer stores. They will seek to consolidate their operations in locations that have critical mass and are able to generate footfall, while servicing other geographies, and maybe even new markets, using the internet."

"Town centres probably have the most to lose in the multi-channel future, with their fragmented ownership making it hard to defend against e-commerce. Major cities and historic locations globally, where there is significant tourist top up spend, are possibly the most defensive locations.", Henderson Global reported.

Based on this observation of "multi-channel" retailing, further pressure could be ahead for Townsville's city heart retailers already struggling. As limited tourist throughput is present in this marketplace, significant challenges could be expected moving forward for the Flinders Mall and surrounding City retailers.

NAB Online Retail Sales Index June 2016

New retailing strategies such as online drop-shipping adopted by millions of affiliates of the mega retailers like Amazon, Alibaba and eBay are offering free shipping strategies.

Consumers have affordable access to quality international products and brands at manufacturers prices. This is causing retailers like The Iconic to invest in large distribution facilities in industrial areas of suburban Western Sydney to accommodate the growth in online spending.

Similar industrial facilities are earmarked to the west of Townsville on the Woodstock-Guru and Flinders Highway for a proposed industrial and export estate which is more likely to service existing and value-added agricultural, beef and mining assets in the region.

The federal governments' adoption of the Internet of Things (IoT) as part of the Turnbull government's "Smart Cities Deal" (Townsville sold out by Turnbull Smart City Deal) signed in Dec 2016 will bring massive challenges for existing and start-up manufacturers and wholesalers in a regional market like Townsville.

Corporate and consumer concerns about privacy and data security is a developing public issue as the commercial competitiveness of large multi-national corporations takes aggressive steps to mine Australia's personal data.

Herron Todd White Property Update Nov 2016

The growth of online spending by Australian consumers has increased nationally from $11.7 billion in 2012 to an estimated $20.1 billion in 2016, nearly a 100 percent increase in just 4 years. $11.7 billion represented 5.3 percent of all retail spending in Australia. 72 percent of the $11.7 billion online sales occurred through domestic retailers. Just in the last 12 months to June 2016, online spending by Australians has increased by 13.5 percent.

NAB Online Retail Sales Index June 2016

The office vacancy rate has continued to increase on average over the past 6 years. A grade office space has been an exception as government and management related service operations have moved on this quality space in the city.

Herron Todd White Property Update Nov 2016

Well, the global supply chain classifies Townsville based on value-added services, experiences or products. Unless the population increases substantially to critical mass over 200,000 people or Townsville is able to innovate in the international distribution and logistics network of goods and services, the industrial property will be restricted on values throughout the information and artificial intelligence age.

However, due to the increasing demand for multi-channel warehouse space likely classified in Townsville as "satellite capacity", strategically located industrial property could yield better returns than even office and retail space.

Herron Todd White Property Update Nov 2016

Technology, data, digital environmental knowledge and the experiences economy are not exclusive or niche to Townsville unlike natural resources such as metals, minerals and gems, quality beef and agriculture, the sunshine, air quality, the Great Barrier Reef, innovative and inventive people.

As the sharing economy proliferates further, and global distribution and logistics become cheaper, Townsville's future is unlikely to see an increase in demand beyond domestic thresholds for industrial floor space.

Competition with Cairns is expected to heat up in the growing global distribution and logistics market because of its geographic location, existing international transportation links, greater top-up tourism capacity and its growth momentum. 

Cairns is threatening Townsville's claim as the Capital of North Queensland.

Townsville property investors are likely to continue treading with caution in the industrial, retail and office markets as the new commerce channels settle where the cash flows.

The evolving dependence of Townsville's economy on political and government funding presents a significant residual risk to Townsville's economic recovery and sustainability.

Therefore, its economy is susceptible to "strike out" within free market conditions in the absence of a globally relevant industrial and technology sector. As a consequence, the capital and yield opportunities for investors in all sectors of the market will continue with uncertainty.

References:

Herron Todd White Property Market Update November 2016

National Australia Bank Online Retail Sales Index June 2016

Australian Treasury Small Business Key Statistics and Analysis Report 2012

Henderson Global Research

Townsville City Council

Advance Queensland

Office of the Prime Minister of Australia

Rapid Realty Australia