PROGRESS REPORT. 18 April, Dear Funding Partners

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1 PROGRESS REPORT 1 APRIL April, 2016 Mr Peter Maguire Chair, IQ-RAP Working Group Dear Funding Partners It is my pleasure to provide this IQ-RAP Progress Report to all 47 funding partners. Firstly may I congratulate all re-elected Mayors, new Mayors and Councillors on being elected. As a retiring Mayor I fully appreciate the commitment you have made to your community. I appreciate the support and vision of all funding partners to develop this strategic, collaborative project and your trust in the Working Group and in particular the Project Team to undertake this significant project on your behalf. This Progress Report provides an overview of the project background, media, engagement to date, letters of support and the Quick 10 Facts. Since the launch of the IQ-RAP on 1 February 2016, the Project Team has presented the IQ-RAP and its regional benefits to more than 70 Australian and Queensland parliamentarians, departmental executives and key industry stakeholders. Some examples of the meetings held are covered later in this report. This advocacy has been a huge effort by a very small team who have volunteered their time, and often their own budgets, to drive this project forward on behalf of all funding partners. I wish to acknowledge and thank them on your behalf. Based on feedback at meetings, letters of support as well as letters being written to Ministers to encourage support of IQ-RAP, we are heartened that our initial concept to undertake this project o create jobs, productivity gains and support the attraction of future private investment in regional Queensland is hitting the mark. The IQ-RAP makes very good sense. We have listed the letters of support that have been received to date and more are coming in each day. They are also being added to the website Media coverage in the launch week was very strong, with media on-going but going forward we will be asking all partners to support media efforts to drive regional state and national interest. Secretariat Glenys Schuntner has briefed Newscorp on the IQ-RAP through the Townsville Bulletin to feed into other regional media. This has started rolling out today across the state. A sample media shell is attached for your potential use with your regional media. Today Project Team representatives are heading to the FNQ RRTG meeting in Cairns, and later this month go out to Richmond to the NW RRTG meeting and go to Charleville in early May to meet with South West Queensland partners. If you would like the Project Team to provide a briefing to your RRTG, please contact Glenys Schuntner. Next steps are critical as we approach a federal election. The Project Team will be meeting by telephone tomorrow and will then follow up with the full Working Group and then all IQ-RAP partners on suggestions going forward. It will be most important to drive IQ-RAP as a major initiative that can support jobs, productivity and investment into regional Queensland over the next 18 years. We need to get the IQ-RAP model adopted, then work on the economic analysis and business case details for funding. Best Regards Peter Maguire Chair IQ-RAP Working Group Glenys Schuntner Secretariat CEO RDA Townsville & North West Queensland Mr Dave Burges CEO Quilpie Shire Council Mr Russell Whale RACQ Transport Planning and ITS Adviser Mr David Donohue Committee Member RDA Townsville & North West Queensland

2 2 Project Background Concept August 2013 Regional Development Australia Townsville and North West Queensland (RDA TNWQ) discussed the Department of Transport and Main Roads (TMR s) Bruce Highway Action Plan as a planning and funding advocacy success in securing a 15 year, $8.5 billion funding commitment from the Australian and Queensland governments. Given on-going feedback from local governments about the high priority for securing additional road funding with certainty for planning, the question was asked about how to attract additional, consistent road funding to the inland region to support businesses and communities. In follow up engagement with other RDA Committees covering inland Queensland, it was decided to hold a roads forum to assess and understand key concerns held by local governments and other regional road stakeholders and test the need, opportunity and appetite to collaborate on an initiative to address help secure more funding for inland Queensland roads. Engagement with stakeholders December 2013 the first forum was held in Longreach with more than 50 council and road related stakeholders such as TMR, LGAQ and various industry representatives attending and voting to continue developing the initiative and to look to the Bruce Highway Action Plan as a model for potential planning as there was no current long-term, prioritised plan for the inland road network. It was agreed that the criteria for prioritising road projects in any future plan should include economic, safety, strategic intent, access and capacity and social considerations. An Interim Working Group, chaired by Cr Eric (Rick) Britton, Mayor of Boulia Shire and RDA TNWQ Committee member was established and the RDA TNWQ Committee offered to continue in the role as Secretariat to further develop the project. August 2014 at the Western Local Government Conference in Richmond, regional Mayors and Regional Roads and Transport Group (RRTG) representatives met with TMR Director General Neil Scales who encouraged all attending to be strategic, long term and collaborative across borders in their road planning. August 2014 the next roads forum was held in Mount Isa with approximately 50 representative of councils and other road stakeholders attending to decide on the way forward. It was decided to follow DG Neil Scales advice and be more strategic, long term and collaborative in planning the inland Queensland road network. A motion was made by the Chair of the NWQ RRTG for all RRTGs to support and contribute financially to the further development of the initiative. This motion was carried unanimously. The RDA TNWQ Committee offered to continue in the role as Secretariat to further develop the project and convene a meeting of a new on-going Working Group. Taking the project forward October 2014 a meeting was held in Mackay to agree to the Terms of Reference for the Working Group, elect a Chair Cr Butch Lenton, Chair of the Outback Regional Roads Group and Mayor of Winton Shire and agree on the way forward. The Working Group was made up of the Chair of each of the eight RRTG partners, a representative of the RDAs and RACQ and a representative of the two local governments not represented by their RRTG. LGAQ was invited to join the Working Group but did not take up the offer. November 2014 to July the Working Group engaged with and secured the funding support of 8 RRTGs, 33 Councils, 4 RDA Committees, the North Queensland RDA Alliance and RACQ for a total of $200,000. A Project Team of volunteers was formed to undertake the work on behalf of the Working Group. This team consisted of: Cr Butch Lenton; Dave Burges, Quilpie Shire; David Donohue, RDA representative; initially Michael Roth and later Russell Whale, RACQ and Rohana Samarasekera, Etheridge Shire was also invited to join at the request of Etheridge Shire. The Project Team undertook a tender process for consultancy services and engaged Harrison Infrastructure Group (HIG) to develop the IQ-RAP. The goal was to commence the consultancy after the release of the Heavy Vehicle Action Plan, but as that was not released as expected in June/ July, the consultancy had to proceed from August to meet timelines for input to Australian and Queensland Government planning cycles. August 2015 January 2016 HIG undertook the stages of work involved, following the model provided by TMR, with data provided by TMR and RRTGs. This was an intense period as the project was fast-tracked into a shorter period of time than originally planned. updates were sent to the Working Group members to seek feedback on various stages. All funding partners were invited to provide feedback on the draft IQ-RAP. Launch of IQ-RAP February The IQ-RAP was launched in Charters Towers on 1 February. A Pre-Budget Submission was made to the Australian Government to seek funding for the next steps of IQ-RAP to build the required economic and business case analysis. Since the launch, more than 70 engagement meetings have taken place with parliamentarians, departmental staff and industry peak bodies in Canberra and Brisbane, with some meetings also held in Sydney and regional Queensland. The Project Team has also engaged with the media and generated many letters of support for the IQ-RAP.

3 3 Engagement (since 1 February launch) Australian Parliament Presentation to the Joint Select Committee on Northern Australia Minister for Resources, Energy and Northern Australia the Hon Josh Frydenberg MP Minister for Major Projects, Territories and Local Government the Hon Paul Fletcher MP Minister for Northern Australia, Senator the Hon Matt Canavan Assistant Minister for Defence The Hon Michael McCormack MP (former Assistant Minister to the Deputy Prime Minister) Assistant Minister to the Prime Minister Senator the Hon James McGrath Shadow Minister for Regional Development and Local Government the Hon Julie Collins MP Shadow Minister for Infrastructure and Transport, Cities, Tourism the Hon Anthony Albanese MP Senator the Hon Ian Macdonald Senator the Hon Jan McLucas Senator the Hon Glenn Lazarus Member for Brand the Hon Gary Gray AO MP Member for Dawson the Hon George Christensen MP Member for Herbert the Hon Ewen Jones MP Member for Kennedy the Hon Bob Katter MP Office of the Hon Warren Truss MP, Member for Wide Bay Senior Advisor Simon Kelly Office of the Minister for Infrastructure and Transport the Hon Darren Chester Assistant Advisor Infrastructure Chris Daffey Office of the Minister for Regional Development, Minister for Regional Communications, Minister for Rural Health, Senator the Hon Fiona Nash Senior Advisor Sam Harma Office of the Minister for Indigenous Affairs Senator the Hon Nigel Scullion - Senior Advisor Jacob Pilot Australian Government Departments/Agencies Northern Australia Co-operative Research Centre (CRC) Interim Chair John Warton Infrastructure Australia Chief Executive Officer Philip Davies and team Department of Infrastructure and Regional Development, North West Roads Infrastructure Investment Division General Manager Roland Pittar, Christina Garbin and team Department of Industry, Regional Development, Executive Director Local Government and Territories Robyn Fleming Department of Industry, Innovation and Science, Head of Division Portfolio Strategic Policy Mike Lawson and Assistant Manager Paul James Department of Industry, Innovation and Science, Regional Development, Office of Northern Australia Head Mark Coffey and Lee Chaney Department of Prime Minister and Cabinet Regional Director, Townsville Danielle Regeling and Dale Gertz Also several other representatives in regional briefings

4 4 Engagement (cont) Queensland Parliament Minister for Disability Services, Seniors and Assisting the Premier on North Queensland The Hon Coralee O Rourke Minister for State Development and Minister for Natural Resources and Mines the Hon Dr Anthony Lynham MP Assistant Minister Local Government the Hon Jennifer Howard Deputy Opposition Leader the Hon John-Paul Langbroek Shadow Minister for Local Government and Main Roads, Community Recovery and Resilience the Hon Fiona Simpson Shadow Minister for Infrastructure, Planning, Small Business, Employment and Trade the Hon Tim Nicholls MP Shadow Minister for Natural Resources and Mines, State Development and Northern Development the Hon Andrew Cripps MP Member for Burdekin Dale Last MLA Member for Gregory Lachlan Millar MLA Member for Mount Isa Robbie Katter MLA Member for Thuringowa Aaron Harper MLA Member for Townsville Scott Stewart MLA Member for Whitsundays Jason Costigan MLA Office of the Minister for Main Roads, Road Safety and Ports and Minister for Energy, Biofuels and Water Supply the Hon Mark Bailey - A/Chief of Staff Tam van Alphen Office of the Minister for Transport and the Commonwealth Games the Hon Stirling Hinchliffe - Senior Transport Advisor Isuru Neelagama Queensland Departments Department of the Premier and Cabinet, Senior Executive Director, North Queensland, Policy Division Craig Wilson and Senior Director Economic Policy Nick Dowie Queensland Treasury, Deputy Under Treasurer, Commercial Advisory Warwick Agnew and Director Budget Portfolios Division David Jackson Department Infrastructure, Local Government and Planning, Deputy Director General, Infrastructure Policy and Planning Darren Crombie and Director Infrastructure Policy and Planning Dr Lisa Pollard and Director Infrastructure Planning Services Stephen Webster; Regional Executive Director Jo Stephenson Department of Tourism, Events and Small Business, Senior Project Officer Industry Development Lisa Travers Department of Transport and Main Roads: Deputy Director-General Policy, Planning and Investment Matt Longland; Acting General Manager Portfolio Investment and Programming Ann-Maree Knox; Director (Government Partnerships) Freight and Partnerships, Transport Strategy and Planning Michelle Connolly; Transport Strategy and Planning, Director (Freight) Russell Hoelz Also several representatives from the Department of State Development, Department of Agriculture and Fisheries and other departments through regional briefings

5 5 Engagement (cont) Key Industry Stakeholders AgForce Queensland, Grains Policy Director Tamara Badenoch/Livestock Policy Officer and Wool Policy Director Michael Allpass ARRB Group, Regional Manager (QLD/NT) Carlos Rial Australian Asphalt Pavement Association, State Executive Officer (Qld) Robert Vos Australian Local Government Association, Chief Executive Officer Adrian Beresford-Wylie Australian Trade Commission, Senior Investment Specialist Hugh Funder Australian Trucking Association, National Manager Government Relations and Policy Bill McKinley Building Queensland, Chief Executive Officer David Quinn Campervan and Motorhome Club of Australia, Manager Government and Stakeholder Communications Colin Balfour Civil Train QLD, Chief Executive Officer Robert Row CSIRO, Principal Research Scientist Dr Andrew Higgins Growcom, Chief Executive Officer Pat Hannan Infrastructure Association of Queensland, Chief Executive Officer Steve Abson and IQ-RAP Secretariat Glenys Schuntner made a presentation at the launch of Economic Enabling Taskforce Infrastructure Australia, Chief Executive Officer Philip Davies, Executive Director Policy and Research Adrian Dwyer and Senior Advisor Policy and Research Jon Frazer Infrastructure Partnerships Australia, Senior Manager Economics, Project Finance and Utilities Robert Montgomery and Senior Policy Officer David Jiang Local Government Association Queensland, General Manager Advocacy Greg Hoffman and Manager - Advocacy Infrastructure, Economics and Regional Development Simone Talbot National Heavy Vehicle Regulator, Executive Director Engagement and Partnerships Karen Vohland and Director Access Peter Caprioli National Road Transport Association, Policy Officer Bryan Mundy North West Commerce, Board Members Peta MacRae and Russell Harper Queensland Farmers Federation, Chief Executive Officer Ruth Wade Queensland Resource Council, Chief Executive Michael Roche and Director Economic and Infrastructure Policy Andrew Barger Queensland Tourism Industry Council, Chief Executive Officer Daniel Gschwind and Deputy CEO Brett Kapernick Queensland Transport and Logistics Council, Chief Executive Officer Dr Rebecca Michael

6 6 Media The IQ-RAP has received significant media coverage since its launch on 1st February, as well as social media reach through Facebook and Twitter. IQ-RAP Launch media coverage: Newspapers Townsville Bulletin/The Northern Miner (Charters Towers)/Queensland Country Life/North Queensland Register / Gympie Times/Caboolture News/News Mail (Bundaberg)/Western Star (Roma)/Dalby Herald/Central & North Burnett Times Longreach Leader/Toowoomba Chronicle/Sunshine Coast Daily/Daily Mercury News/Whitsunday Times/ Queensland Times/Ipswich Advertiser/Fraser Coast Chronicle/Gatton Star/Coolum & Nth Shore News/Central Telegraph/The Range News/ South Burnett Times Television Regional WIN news and Regional 7 news (viewed by RDA region) Radio ABC - covered the story in news bulletins and in breakfast programs across the regions, including: ABC Far North (Cairns), ABC North Queensland (Townsville), ABC Western Queensland (Longreach), ABC Tropical North (Mackay), ABC Capricornia (Rockhampton), ABC Wide Bay (Bundaberg) and ABC Southern Cross (Toowoomba) Commercial stations news bulletins on stations such as 4TO, Hot FM, Mix FM, Sea FM and Zinc FM, in regional areas, including: Townsville, Mackay, Rockhampton, Toowoomba and Innisfail Publications Australian Logistics Council Update - state news Queensland Industry Advocate Queensland Transport and Logistics Council quarterly newsletter Queensland Farmers Federation weekly bulletin Online Surat Basin Online Queensland Farmers Federation Department of Infrastructure and Regional Development Media coverage has been on-going since the launch, but the Working Group wishes to encourage all partners to support media efforts in their local sphere of influence.

7 7 Letters of Support The Working Group is pleased with the very positive feedback the IQ-RAP has been receiving from key stakeholders and how they have thrown their support behind the project. So far, we have received letters of support from the following key stakeholders, several of whom have also written to Ministers and parliamentarians seeking their support Assistant Minister to the Prime Minister Senator the Hon James McGrath Shadow Minister for Infrastructure, Planning, Small Business, Employment and Trade Mr Tim Nicholls Campervan and Motorhome Club of Australia Civil Contractors Federation Queensland Branch Gulf Savannah Development MITEZ Economic Development Outback Queensland Tourism Association Townsville Enterprise Limited Queensland Farmers Federation Queensland Resources Council Queensland Tourism Industry Council The Hon Michael McCormack MP Infrastructure Australia CEO Phil Davies Assistant Minister for Local Government, Ms Jennifer Howard Member for Mundingburra, Mr Scott Stewart and Member for Burdekin, Mr Dale Last

8 8 Advocacy The Working Group representatives will continue to meet with Australian and Queensland Parliamentarians to brief and engage them on the significance of this project. However, we still need to work on getting the word out there on the importance of this project to regional and rural Queensland. This is where we can use your help and support in promoting the IQ-RAP, through the following channels: Articles in council newsletters Promotion through council s social media Media coverage - story angle on how the IQ-RAP can benefit your region In your community Talking Points The following talking points will assist the council in promoting the IQ-RAP: IQ-RAP is a bipartisan project funded by 33 local governments, 8 Regional Roads and Transport Groups, 4 RDA Committees, the NQ RDA Alliance and RACQ to drive economic development across regional Queensland. The 33 local governments make up 82% of the area of Queensland. The IQ-RAP is aimed at creating jobs, driving productivity for all industries, and attracting investment. There will also be benefits for safety and community connectivity. It will also open up opportunities for tourism. IQ-RAP identifies the 16,000km strategic inland Queensland road network and prioritises upgrades over the next 18 years in the area west of the Bruce Highway and outside SEQ. The plan has identified that more than 3,000 kilometres of roads and 300 bridges in regional and rural Queensland are in need of upgrades to bring them up to scratch. Over 18 years, $5 billion is required from existing and future road funding to reach a suitable fit-for-purpose standard. That is equivalent to 0.19% of the regional Queensland economy s contribution to Gross State Product over the same period. ($150 billion p.a. GSP outside Greater Brisbane x 18 = $2,700 billion)

9 9 Fast Facts 1. IQ-RAP is a bipartisan project funded by 33 local governments, 8 Regional Roads and Transport Groups, 4 RDA Committees, the NQ RDA Alliance and RACQ to drive regional economic development across regional Queensland. A Working Group to steer the project is made up of the 8 RRTG Chairs, 1 RACQ representative, 1 representative of the two local governments that are not represented by their RRTG and 1 RDA representative. A Working Group Project Team has undertaken the core work with the support of the Secretariat provided by the RDA Townsville and North West Queensland Committee (RDA TNWQ). 2. RDA TNWQ initiated the concept of an inland roads action plan in late 2013, based on the success of the Department of Transport and Main Roads (TMR s) Bruce Highway Action Plan and advocacy support in securing $8.5 billion in funding commitments. RDA engaged a broad range of stakeholders: four other RDA Committees; local governments; TMR; Department of State Development, Infrastructure and Planning; the Department of Local Government, Community Recovery and Resilience; LGAQ and a broad range of industry stakeholders to hold forums in Longreach and Mount Isa to test the need, opportunity and appetite to progress the initiative which has become known as the Inland Queensland Roads Action Plan (IQ-RAP). Regional Roads and Transport Groups, local governments and RDA Committees embraced the idea and encouraged RDA TNWQ to take the initiative forward. RRTGs, RDAs and local governments all provided cash. TMR offered onongoing support through the provision of data. 3. The IQ-RAP area covers 1.4 million km 2 which equates to 82% of Queensland and 19% of Australia. It is an economic powerhouse with the resources and energy, agriculture and tourism industries contributing significantly to export income and national Gross Domestic Product. 52% of Queensland s economy, that is, $150 billion p.a. is generated outside Greater Brisbane. 4. The vision for the IQ-RAP is to increase the quality and accessibility of the road network to maximise the economic prosperity of inland Queensland, thereby contributing to Australia s productivity, quality of life, safety and equity outcomes. 5. With the assistance of the Harrison Infrastructure Group, the IQ-RAP was developed using established roads planning and prioritisation methodology including the use of multi criteria analysis that reviewed Economic Value, Safety, Strategic Intent, Access and Social value. 6. The plan reviewed a total of 16,000 km of strategic road network in the region west of the Bruce Highway and outside SEQ and identifies 3,000 km of roads and 300 bridges that require upgrading to fit for purpose standards over the next 18 years. There is no gold plating or blue sky build it so they will come. The priorities are based on current demand and suitable standards to meet that demand. The multi criteria analysis can be updated with new data as new projects come on line that influence demand. 7. This plan is innovative as the first of its kind in Australia based on taking a strategic network-wide approach, over 18 years, over such a large area with so many contributing stakeholders. Our approach ticks all the boxes in Infrastructure Australia s recently released Australian Infrastructure Plan Recommendation 4.1: State and territory governments should deliver long-term regional infrastructure plans. These plans should: Identify gaps in infrastructure networks and identify priorities to support productive regional industries; Be developed with involvement from all levels of government to help coordinate investments and remove duplication; Provide transparency for the private sector to allow for government funding to be leveraged and private investment to be maximised; and Assess the potential for regions to ease pressure on our largest cities. IQ-RAP also aligns with recommendations in the State Infrastructure Plan Strategy to address productivity issues and capture better value and benefits from infrastructure spending. 8. The IQ-RAP was publicly launched in Charters Towers in February This final draft has been used in consultation with key government and industry stakeholders. Minor amendments will be made as required based on feedback with a final revised version expected in May, The IQ-RAP will deliver sustainable jobs, improve productivity for existing industries - such as resources, energy and agribusiness and businesses along supply chains, enhance competitiveness of exporters, support new private sector investment and improve resilience and connectivity for the delivery of goods and services to communities. 10. Over 18 years, the investment required to deliver the IQ-RAP is $5 billion. That is 0.19% of the Gross State Product (GSP) of $2,700 billion generated outside Greater Brisbane over that same period based on current GSP. This breaks down to an average of $277 million p.a. expenditure over the 18 years to achieve these prioritised upgrades to the road network as well as achieving the regional economic benefits such as job creation, productivity improvements for all businesses and more resilient and reliable connectivity for communities.

10 10 IQ-RAP Partners Plus Northern Queensland Strategy Alliance: RDA Far North Queensland and Torres Strait, RDA Townsville and North West Queensland, RDA Mackay-Isaac-Whitsunday, RDA Fitzroy and Central West Regional Road and Transport Groups: Bowen Basin, Far North Queensland, Gladstone, North West, Outback, Rockhampton, South West Queensland and Western Downs In-kind Support Department of Transport and Main Roads

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