Report: Investing in Regional Queensland

The key theme from the 2024 Queensland Futures Institute’s Investing in Regional Queensland forum was the significant opportunity across the state in future industries, and the significant work being undertaken by universities and Local Councils to ensure we are well positioned to take advantage of key projects and developments in the regions.

The discussion highlighted the significant demand on skilled workforces, housing and supporting infrastructure that will be needed across the regions to deliver innovative projects in critical minerals and renewable energy as we transition our economy and grow our capability in these industries. This will require collaboration across universities, industry and government, and significant public and private investment across regional areas.

SPEAKERS

Professor Helen Bartlett
Vice-Chancellor and President, University of the Sunshine Coast

Cr Matt Burnett
Mayor,
Gladstone Regional Council

Brian Restall
Managing Director, 
Regional Leader Australia,
Quinbrook Infrastructure Partners

Prof. Helen Bartlett

• Universities play a critical role in regional development and investment across
  Queensland. We have nine universities in the state, four of which are based in
  regional areas. These universities not only create jobs and contribute to regional
  GDP, but also produce graduates who generally remain in the regions - with seven
  out of ten choosing to stay and work locally.
• As 90 per cent of the future workforce will require post-secondary qualifications, half
  of which will be university degrees, the demand for higher education, especially in
  regional settings, will increase significantly.
• There is a significant opportunity to build the capacity for universities to be more
  involved in regional economic development and investment planning. However, better
  alignment between universities and economic development initiatives is needed.
• An example of successful collaboration is the University of the Sunshine Coast
  Moreton Bay Campus, which was developed in partnership with the City of Moreton
  Bay, and will become an area where the university, industries and businesses work
  together on economic development opportunities to ensure consistent planning,
  advocacy and engagement across key priority areas.
• Since last year’s Australia universities Accord process, one of the main challenges
  facing the higher education sector is participation and retention of underrepresented
  students, particularly from lower socioeconomic backgrounds and regional areas.
  These students often face multiple barriers, including distance, transportation,
  housing and financial difficulties. Universities have a role to help overcome these
  difficulties and support these students.
• Another significant challenge is the decline in revenue from international students, as
  a result of the proposed caps which will have a considerable impact on the regional
  campuses that rely on these funds to support their operations.

Prof. Simon Biggs

• There is significant demand for skilled workers in North and Far North Queensland.
  This has resulted in James Cook University regularly placing in the top two
  universities across Australia in terms of employment rates and starting salaries
  for graduates.
• The real challenge for JCU is operating as a regional and remote university across
  a vast land area. This makes it challenging to provide education to everyone. For
  reference, the university is located closer to Port Moresby than Brisbane. While six
  out of ten students in Brisbane complete their ATAR (Australian Tertiary Admission
  Rank), only three out of ten do so in our catchment region.
• This educational attainment gap is a major concern because if students fall behind in
  early education - particularly by Year 3 - they rarely recover this gap. This affects their
  ability to pursue higher education.
• It is vital to close this gap in order to meet the needs of the future workforce. Children
  born today will be graduating close to 2050. As such, we must ensure that the
  education system is delivering quality education now in order to meet the education
  targets for 2050.
• Despite these challenges, North Queensland holds enormous opportunities,
  especially with the anticipated investments and demand in the energy transition,
  defence, agriculture and aquaculture. However, our educational system needs
  significant improvements to meet these demands.

Cr Matt Burnett

• Gladstone’s LNG boom attracted about 10,000 workers to our region and 14,000 to
  Curtis Island. However, the subsequent crash had a massive impact on the 70,000
  strong local economy.
• To avoid repeating this past mistake, Gladstone Regional Council has developed a 10-
  year roadmap focused on the next wave of industry – underpinned by renewable energy
  and manufacturing.
• Our community is particularly invested in ensuring the longevity of existing industries
  and businesses -like Rio Tinto, which has committed to net zero emissions, including for
  its major aluminium refineries and smelting facilities in Gladstone. We’re pleased that
  both state and federal governments are supporting these industries through grants to
  help them transition to green operations.
• While renewable energy projects like solar and wind farms are important, the community
  is focused on ensuring continued employment opportunities in traditional industries.
• Gladstone is well positioned as a future renewable energy superpower, with significant
  projects like the Fortescue Future Industries electrolyser manufacturing facility and
  hydrogen production facility under construction. Additionally, the Stanwell hydrogen
  production facility - which is currently undergoing front end engineering design –
  represents a massive investment comparable in scale to an LNG plant. This will solidify
  Gladstone’s role in the global energy transition.

Brian Restall

• Quinbrook is an infrastructure investor focused on renewable energy, battery projects
  and industrial decarbonisation across the UK, US and Australia.
• We are currently developing two major projects in Queensland: a $6 billion green iron
  project in Gladstone which will deliver 1,500 operational jobs, and an $8 billion green
  polysilicon project in Townsville which will deliver 2,500 operational jobs. Both projects
  are substantial and aim to add value onshore while being competitive with established
  overseas producers.
• The green iron project in Gladstone is located next to the Stanwell Hydrogen Project
  and will help to decarbonise the steel industry.
• In Townsville, the green polysilicon project will enable the production of this critical
  component of solar panels and computer chips. Currently, 97% of the world’s polysilicon
  wafers come from China - so a key outcome of this project will be reducing the
  dependency on imports by establishing a local supply chain.
• Both projects are situated in State Development Areas and will be supported by
  investment to create nearby clusters of renewable energy to power these operations.
• We expect there will continue to be opportunities for investment and development
  across Queensland over the next few years, particularly leading up to the 2032
  Olympics in the data centre industry.

Cr Greg Williamson

• The key challenge for the regions - particularly in Mackay - is filling jobs. This is due to a
  severe housing shortage – the current rental vacancy rate is incredibly low at 0.5%, and
  since Covid, the number of available rental properties has decreased as more people
  have moved to the region.
• This shortage is partly due to decreasing rental stock, as houses become owner occupied rather than rented. The slow pace of private enterprise in building new housing is also a key contributor. There is a clear need for more investment in housing infrastructure to accommodate the growing population and workforce.
• Another major issue is the lack of public infrastructure investment in regional areas
  like Mackay, Gladstone and other areas north of Bundaberg. Securing the necessary
  funding for this infrastructure development is a major challenge.
• This is due to representation; only ten out of 150 federal parliamentary seats across
  Australia are located further north of Bundaberg. In Queensland alone, 1.3 million
  people live north of Bundaberg. This underrepresentation hinders our ability to attract
  the public investment needed for growth and infrastructure development.
• This is despite a strong regional economy, with a regional GDP of around $95,000 per
  person for about 180,000 people.
• As such, the lack of infrastructure investment is a significant barrier to Mackay’s ability
  to attract new residents, fill jobs and support ongoing economic contributions to the
  Queensland and broader Australian economy

Cr Matt Burnett

• The Gladstone Regional Council’s 10-year roadmap will underpin our transition efforts.
• The biggest concern in our community is the future of the three nearby coal-fired
  power stations.
• Neighbouring areas like the Banana Shire, which heavily rely on thermal coal and a
  coal-fired power station, face even greater challenges given this cornerstone of their
  local economy.
• The push for net-zero emissions is an important target, though not reaching it
  immediately isn’t catastrophic from a jobs perspective, given the need to transition
  the workforce.
• We are now seeing the transition play out in Gladstone, with exciting projects like
  the green hydrogen and green steel initiatives. Another project in Gladstone - Alpha
  HPA - is using green energy to produce high-purity alumina, which is vital for various
  technologies, including batteries and glass.
• As such, the community is optimistic about these new projects, which will create
  operational jobs and support other industries.
• A major challenge is housing the construction workforce, especially given the high
  demand due to multiple projects simultaneously underway.
• For example, a worker’s accommodation facility near Calliope has been approved for an
  extended period to help address this. A key consideration around developments like this
  is their location – either within communities or near projects.
• Gladstone has a large State Development Area, strategically planned for future
  industries, which significantly helps to facilitate project development. While these
  projects are significant and numerous, Gladstone is well accustomed to these
  developments given the vast number of major projects over the years.
• However, the main concern will remain to be the eventual closure of coal-fired
  power stations and the impact on jobs. It is therefore critical to take advantage of
  new opportunities which are emerging and will help to mitigate any job losses while
  supporting continued population growth in Gladstone

Cr Greg Williamson

• There are several project opportunities which could come to fruition – including in
  tourism, like the mountain bike track, which needs around $30 million to complete the
  second stage.
• Mackay is Regional Council is also working on a $70 million community hub in the
  northern beaches area, where housing is expanding.
• Another very exciting project is the development of precision fermentation and
  biomanufacturing in Mackay. This project involves using the carbon content of sugar
  crystals to produce proteins like milk or egg white. The state has declared a State
  Development Area in Mackay for this purpose, which is a major step forward.
• This could see the region become the leaders in exporting powdered milk products to
  Southeast Asia, a major demand market.
• On the back of this, Cauldron, an Australian bio-manufacturing startup, has announced
  plans to establish a $100 million precision fermentation pilot project in Mackay.
• This project has the potential to transform Mackay into the “Silicon Valley of
  precision fermentation”.
• The development will require significant public infrastructure, including port facilities,
  road transport, water, and green power. However, the Council can’t fund these
  developments alone and needs investment from state and federal governments to make
  them happen.

The Australian Government is investigating the implementation of caps on foreign students enrolling
at our universities. What impact, if any, do you see this having on your organisation, how are you
responding to this, and what impact do you believe this will have on our regions?

Prof. Simon Biggs

• The push for caps is largely driven by concerns that immigration is affecting the housing
  market and cost of living, especially given the post-pandemic spike in student numbers.
• However, international education is Australia’s largest service export, contributing
  significant income to the country.
• JCU in Queensland is the only university with a significant international student
  population north of Bundaberg - with about 2,000 international students in Townsville
  and Cairns.
• In regional areas, the impact of international students is less visible compared to capital
  cities - where there are hundreds of thousands of international students.
• The funding model for universities - which works in capital cities with multiple providers -
  doesn’t make sense for remote and regional areas with smaller populations.
• As such, regional areas require more bespoke solutions, as there’s insufficient
  competition to sustain multiple universities.
• We’re concerned that the government’s focus may be on major providers in capital cities
  rather than regional ones, which could be problematic for us.
• JCU could easily support growth of our international student population by another
  thousand, as our market and jobs sector can accommodate this.

Prof. Helen Bartlett

• Regional universities are already highly relevant - providing essential workforce talent
  for hospitals, schools, and small businesses across these communities.
• The University of the Sunshine Coast operates across four different LGAs - with five
  campuses, serving a mix of outer metro and regional areas.
• Increasing access to higher education for regional students is challenging. But as
  highlighted in the recent Accord process, better educational attainment is critical for
  underrepresented groups like first-in-family to go to university students, those from
  lower socio-economic backgrounds and First Nations students.
• Place-based education is key to delivering this, including regional university study hubs
  can provide support for students in rural and regional areas.
• Additionally, we are seeing a major trend towards flexible education delivery which
  combines face-to-face, online and blended learning. However, this model is more
  expensive than traditional models.
• Another major opportunity is working with industry to ensure our curriculum is up-to-date and job-oriented. For example, we work with industry partners like Cisco and Google to embed industry certifications into our courses. These industry partnerships are also critical for providing work-integrated learning opportunities, which also provide the opportunity to support students who struggle financially if funded through these partnerships.
• There’s a need to address misperceptions about international students and educate
  communities on their value. For example, there is an opportunity to attract international
  students to regional areas through packages that include housing, financial support and
  part-time work to help fill skills gaps.
• Local infrastructure can also be leveraged to support industry co-location and innovation
  hubs. This is exemplified through our Moreton Bay Campus and Sunshine Coast
  industry precincts in the food and beverage sector.
• Another example of industry and government collaboration could include supporting
  small businesses through short courses and long-term funding for business capacity
  building in the regions.
• Additionally, collaboration between TAFE and universities, such as through the TAFE
  Centres of Excellence, is critical as it can improve pathways for students and address
  regional priorities.
• Overall, collaboration between universities, TAFE industry and government is essential
  to maximise investment and address regional needs. Government support plays a
  critical role in enabling the above opportunities. 

Brian Restall

• There are incredible opportunities across Queensland, particularly in renewable energy
  and critical minerals. The state boasts world-class wind and solar resources which
  position it as a leader in renewable energy. The state is also rich in resources and critical
  minerals which are essential for the global shift towards industrial decarbonisation.
• However, there is carbon in the supply chain of renewable projects, including in steel,
  concrete, polysilicon, and batteries - which drives need to use renewable energy for
  these products.
• Separately, trade war tactics are on the rise globally as economies decouple, leading
  countries to prioritise secure supply chains in strategically important industries like
  clean energy.
• These factors mean Queensland is well-positioned to capitalise on these opportunities -
  combining our abundant resources with renewable energy to create new industries and
  revenue streams.
• However, the biggest challenge is getting the policy settings right in Queensland and
  Australia more broadly. A key challenge for investment is the complex planning and
  environmental processes.
• Our projects in Gladstone and Townsville are designed to value-add with renewable
  energy, creating long-term jobs and benefiting local communities.
• The Townsville project will create 2,500 operational jobs, and the Gladstone project will
  generate 1,500 operational jobs, providing significant local benefits.
• It is critical for leaders to maximise Queensland’s international advantages for the
  benefit of the state and future generations

Cr Greg Williamson

• Mackay currently faces a significant housing crisis - with 700 to 1,000 people sleeping
  rough every night.
• While the visible homeless population is about 70, there are many other people,
  including domestic violence victims, who can’t find affordable housing and are couch
  surfing or sleeping in cars.
• There is a clear need to release more housing stock. However, current government
  efforts - including through the recent state government housing summits - haven’t
  provided effective solutions.
• As such, private enterprise needs to step up to build more housing. Another key solution
  is creating downsizing opportunities for those in under-occupied state houses.
• Solving the housing crisis will require collaboration between all levels of government
  and private enterprise – not just a public sector-led response.

Prof. Helen Bartlett

• Universities can play a role in addressing this issue by building student accommodation
  that would free up low-cost housing for others in the community.
• However, regional universities need support, such as through concessional loans, to
  build this accommodation.
• The University of the Sunshine Coast encourages home stay programs, particularly for
  international students, as a way to utilise under-occupied homes and provide cultural
  experiences for students.
• While these measures are small, they are positive steps from the university sector to
  address this broader issue.

Brian Restall

• Project-related construction camps have the potential to contribute to the housing
  solution. These should be developed with the intention of providing long-term housing
  that can be sold off after projects. There is potential for these to contribute housing
  to local towns – such as Townsville or Gladstone - though they are only a small
  contribution to solving the housing crisis. 

Cr Matt Burnett

• Local governments can be part of the housing solution but are limited by challenges such
  as infrastructure caps which impede their ability to develop supporting infrastructure.
• A major challenge is the slow release of housing stock by developers, which
  exacerbates housing shortages and drives up prices.
• Another challenge is the construction labour and high construction costs of building
  housing, particularly in regional Queensland.
• Innovative solutions can play a role to address this issue. For example, state and
  federal efforts to address homelessness have supported the conversion of a caravan
  park into affordable housing in Gladstone.
• Additionally, collaboration between local, state and federal governments,
  is critical to delivering the supporting infrastructure which is also
  needed for housing developments.