1. Tablelands, Cape & Gulf Economic Challenges & Opportunities. Economic Development Forum Cummings Economics Ref: J2239 | 31 July 2009

2. Cummings Economics / July 2009 A YEAR OF ● STRONG CHANGES ● A GREAT DEAL OF UNCERTAINTY ● SOME FEAR

3. Cummings Economics / July 2009 NORTHERN AUSTRALIA RES POPULATION GROWTH 2007/08 CITIES REGIONS Source: Cummings Economics from ABS Data

4. Cummings Economics / July 2009 TABLELANDS ESTIMATED RESIDENTIAL POPULATION GROWTH AV.ANNUAL INTERCENSAL GROWTH 1986-2006 + 2006/07 & 2007/08 Source: Cummings Economics from ABS Data

5. Cummings Economics / July 2009 TABLELAND MEDIAN HOUSE PRICES ATHERTON $ EACHAM $ HERBERTON $ MAREEBA $ 2002122,500109,00070,00098,000 2003135,000104,00078,000103,000 2004165,000138,00090,000130,000 2005205,000180,000120,000163,000 2006258,250250,000175,000197,000 2007319,000285,000210,000208,000 2008347,000305,000235,000261,000 Source: Cummings Economics from RP Data

6. Cummings Economics / July 2009 TABLELANDS BUILDING APPROVALS NUMBER OF DWELLINGS * Estimate based on 11 months to May 2009 Source: Cummings Economics from ABS Data

7. Cummings Economics / July 2009 % Drop in building approvals 3 months Mar / Apr / May 2009 on same period previous year. CairnsTablelands Dwellings No. -63%-30% Total Value -60%Nil Source: Cummings Economics from ABS Data

8. Cummings Economics / July 2009 INCREASE IN UNEMPLOYMENT NUMBERS RECEIVING NEWSTART & YOUTH ALLOWANCES June 2008 June 2009 % Change Mareeba & Atherton 9721413+45% Cairns 26814719+76% Townsville 20693535+71% Total Northern & Central Regions 1428122469+57% Source: Cummings Economics from DEEWR Labour Market & Related Payments Monthly Profile

9. Cummings Economics / July 2009 POPULATION ● NO MASS EXODUS ● PROBABLY STILL HOLDING GROWTH

10. Cummings Economics / July 2009 TABLELAND ECONOMY HOLDING UP WELL SOME NEGATIVES BUT ALSO POSITIVES

11. Cummings Economics / July 2009 MINERAL SALES – FAR NORTH 2005/062006/072007/08 ETHERIDGE / TABLELANDS $79m$301m$373m COOK / TABLELANDS $358m$452m$465m TOTAL $437m$753m$838m Source: Cummings Economics from Queensland Department of Mines and Energy

12. Cummings Economics / July 2009 MINERAL PRICES

13. Cummings Economics / July 2009 MINING AFFECTED ● WOLFRAM CAMP ● CHILLAGOE ● WATERSHED ● NORNICO ● COPPER STRIKE ● WEIPA ● OTHERS

14. Cummings Economics / July 2009 CONSUMER SPENDING NEGATIVE ● WEALTH DOWN ● SOME LOSS OF INCOME ● UNCERTAINTY ● SAVING MORE, BORROWING LESS POSITIVE ● POPULATION GROWTH ● LOWER INTEREST RATES, PETROL & INFLATION ● GOVERNMENT STIMULUS (About $25m)

15. Cummings Economics / July 2009 TOURISM RESOURCES - TOURISM GROWTH CAIRNS AIRPORT PASSENGER MOVEMENTS (Excluding international transits) No. % 1997/98 2,725,0000.4% Asian crisis 1998/99 2,770,0001.7% 1999/00 2,882,0004.0% +6% 2000/01 2,972,0003.1% 2001/02 2,878,000(-3.2%) Ansett collapse 2002/03 3,083,0007.1% + 32% 2003/04 3,402,00010.3% 2004/05 3,689,0008.4% 2005/06 3,832,0003.4% 2006/07 3,889,0001.4% High dollar 2007/08 3,846,000(-0.8%) 2008/09 3,703,052(-4.0%) Loss of Japanese flights Source: Cummings Economics from CPA & Cairns Airports

16. Cummings Economics / July 2009 ESTIMATED VALUE OF OUTPUT OF MAIN AGRICULTURAL INDUSTRIES TABLELANDS 2008 HORTICULTURE$154m MANGOES$53m BANANAS$33m AVOCADO’S$23m PAW $22m OTHER$32m FIELD CROPS$112m POTATOES$51m SUGAR CANE$19m SEED$13m MAIZE$9m FIELD CROPS$69m DAIRYING$38m CATTLE$23m OTHER$8m TOTAL$335m Source: Cummings Economics from Queensland DEEDI (Primary Industries)

17. Cummings Economics / July 2009 TABLELANDS BUILDING APPROVALS Source: Cummings Economics from ABS Data * Includes Lotus Glen full value. Without Lotus Glen about $120m.

18. Cummings Economics / July 2009 POPULATION – QUEENSLAND REMOTE REGIONS GULF, CAPE, TORRES30,160 MT ISA, NORTH WEST (excl. Gulf) 28,739 LONGREACH, CENTRAL WEST12,256 ROMA, SOUTH WEST26,150 Source: Cummings Economics from ABS Data

19. Cummings Economics / July 2009 POPULATION – TABLELANDS & REMOTE 2008 TABLELANDS45,297 GULF, CAPE, TORRES30,160 75,457 Source: Cummings Economics from ABS Data

20. TROPICAL TABLELANDS | GULF SAVANNAH | TORRES STRAITS WESTERN CAPE | EASTERN CAPE | COOKTOWN DISTRICT GREAT BARRIER REEF | WORLD HERITAGE RAINFORESTS | SAVANNAH WOODLANDS

21. Cummings Economics / July 2009 HISTORICAL DEVELOPMENT PHASES Late 1800’s to WW1 ● MINING __________________________________________________ WW1 TO 1960’s ● AGRICULTURE __________________________________________________ 1970’S to 1990’S ● TOURISM __________________________________ LEADING IMPETUS

22. Cummings Economics / July 2009 TOURISM DEVELOPMENT ● AN EFFECTIVE MARKETING ORGANISATION ● AIRPORT INFRASTRUCTURE ● APPLIED TECHNOLOGY ACTION THAT WAS NEEDED

23. Cummings Economics / July 2009 CURRENT NEW MAJOR UNDERLYING FACTORS ● EMERGENCE OF BRIC* ECONOMIES ● CLIMATE CHANGE * Brazil, Russia, India, China

24. Cummings Economics / July 2009 CHANGING BALANCE OF OPPORTUNITIES ● TOURISM ● MINING ● BIO INDUSTRIES

25. Cummings Economics / July 2009 TOURISM NEED TO MAINTAIN & GROW AS POSSIBLE ● GREY NOMADS ● OUTSIDE CNS / KURANDA / DOUGLAS TRIANGLE ● NEW AIRCRAFT TECHNOLOGY

26. Cummings Economics / July 2009 TOURISM SUPPRESSING FACTORS ● NO LONGER “SUNRISE” INDUSTRY DEVELOPED ENCONOMIES ● SUBDUED GROWTH DEVELOPED ECONOMIES ● HIGH CARBON FUEL PRICES ● AUST. DOLLAR HIGH / COMMODITY PRICES ● CHINA / INDIA INCOMES STILL NOT HIGH

27. Cummings Economics / July 2009 OTHER OPPORTUNITIES ● MINERALS ● AGRICULTURAL & FOREST PRODUCTS NEWLY INDUSTRIALISING COUNTRIES MASSIVE INCREASE IN DEMAND FOR

28. Cummings Economics / July 2009.

29. .

30. MINERAL PRICES

31. Cummings Economics / July 2009 INFRASTRUCTURE BOTTLENECKS ● CAIRNS & MOURILYAN SEAPORTS ● KURANDA & PALMERSTON HIGHWAYS ● THE RAIL LINE TO CAIRNS

32. Cummings Economics / July 2009 INFRASTRUCTURE BOTTLENECKS CAPE – WEIPA / AURUKUN ● BIGGER PORT ● PENINSULA DEVELOPMENTAL ROAD GULF NORTHWEST PROVINCE ● KURUMBA SEAPORT CONSTRAINTS

33. Cummings Economics / July 2009 BIO INDUSTRIES ● DECLINING RAINFALL – SOUTHERN AUSTRALIA ● UNUSED WATER RESOURCES IN THE NORTH ● RISING WORLD DEMAND FOR FOOD & FIBRE ● DEMAND FOR BIOFUELS & BIOINDUSTRIAL PRODUCTS

34. Cummings Economics / July 2009 BIO INDUSTRIAL IMMEDIATE ● CO GENERATION FROM BAGASSE ___________________________________________________________________________________________________________________________________________ NEXT STEP ● ETHANOL FROM SUGAR SYRUP / MOLASSES (KEY TABLELAND ROLE – INFRASTRUCTURE ISSUES) ___________________________________________________________________________________________________________ FURTHER STEP ● ETHANOL FROM BAGASSE (KEY TABLELAND ROLE)

35. Cummings Economics / July 2009 BIO INDUSTRIAL OTHER STRAND ● BIO DIESEL CROPS www.burmanbioenergy.com www.millettiaplantations.com www.jatrophacurcasplantations.com

36. Cummings Economics / July 2009 BIO INDUSTRIAL BIO REFINERIES ●BIO PLASTICS ● PHARMACEUTICALS ● NUTRACEUTICALS etc. PROPOSAL TO SELL QUEENSLAND TO GLOBAL PLAYERS AS A LOCATION TO SUPPLY ASIA / PACIFIC

37. Cummings Economics / July 2009 BIO INDUSTRIAL ● UNDERLYING PLANT GROWTH POTENTIAL ● RANGE OF FEED STOCKS – SUGAR PLUS OTHERS THIS REGIONS COMPETITIVE ADVANTAGE

38. Cummings Economics / July 2009 PLANT GROWTH POTENTIAL

39. Cummings Economics / July 2009 OTHER AGRICULTURAL INDUSTRIES ● CEREALS, PULSES, COTTON ● NEW INTEREST IN WATER STORAGES ● ECO BANANA EXPORTS ● CONTAINER TRADE (MINERAL PRODUCTS, AGRICULTURAL PRODUCTS, FORESTRY PRODUCTS)

40. Cummings Economics / July 2009 FORESTRY ● APPROX 13,000ha PUBLIC (to be sold) ● APPROX 11,000ha PRIVATE (SPECIES SUITABLE FOR WET / DRY AREAS) ● IMPLICATIONS FOR TRANSPORT INFRASTRUCTURE

41. Cummings Economics / July 2009 TRANSPORT INFRASTRUCTURE ● HANN HIGHWAY – ROUTE DIRECT TO SOUTH (150km ONLY WILL BE LEFT OUT OF 266km) ● PENINSULA DEVELOPMENTAL ROAD

42. Cummings Economics / July 2009 CONCLUSION ● A NEW RANGE OF OPPORTUNITIES DEVELOPING ● TABLELANDS CAPE & GULF IN THE FOREFRONT ● VITAL TO REMOTE TRANSPORT INFRASTRUCTURE BOTTLENECKS

43. Tablelands, Cape & Gulf Economic Challenges & Opportunities. Economic Development Forum Cummings Economics 38 Grafton St, Cairns, 4870 Ph: 40312888 | Email: cummings@cummings.net.au | Fax: 40311108cummings@cummings.net.au Ref: J2239 | 31 July 2009 www.cummings.net.au www.cummings.net.au