Big projects sus­tain con­fi­dence in city

Townsville Bulletin - - NEWS - TONY RAGGATT

TOWNSVILLE is en­joy­ing its best run of busi­ness con­fi­dence in al­most a decade as large en­ter­prises gear up for in­fras­truc­ture, min­ing and res­i­den­tial projects, ac­cord­ing to a sur­vey.

The PVW Part­ners Septem­ber quar­ter Townsville Busi­ness Con­fi­dence In­dex re­turned an over­all score of 3.5 points, down on the pre­vi­ous pe­riod but the fifth con­sec­u­tive pos­i­tive re­sult.

A pos­i­tive re­sult in­di­cates more op­ti­mists than pes­simists among the more than 250 busi­ness own­ers and man­agers sur­veyed.

PVW man­ag­ing part­ner Carl Valen­tine said re­sults showed over­all con­fi­dence among busi­ness par­tic­i­pants de­creased 4.4 points on the June quar­ter re­sult and down 7.9 points on the peak March quar­ter.

“How­ever, it is sig­nif­i­cant to note that the Septem­ber quar­ter re­sult marks five con­sec­u­tive quar­ters of pos­i­tive busi­ness sen­ti­ment in Townsville – the long­est sus­tained pe­riod of rel­a­tive pos­i­tiv­ity since 2008,” Mr Valen­tine said.

He said own­ers and man­agers in larger busi­nesses were more op­ti­mistic than their small busi­ness coun­ter­parts.

“This may well in­di­cate our larger busi­nesses are gear­ing up for work on the many projects pro­posed for our re­gion be­fore those op­por­tu­ni­ties are re­alised for our smaller busi­nesses which will also work on those projects too,” Mr Valen­tine said.

Those projects in­cluded Lendlease’s $ 4.7 bil­lion res­i­den­tial devel­op­ment Elliot Springs, in­fras­truc­ture projects led by the Townsville City Coun­cil and min­ing projects such as Adani’s Carmichael coal mine.

Mr Valen­tine said busi­nesses ser­vic­ing the min­ing sec­tor were more pos­i­tive.

“This sug­gests the con­tin­u­ing re­vival of our min­ing sec­tor and the continued con­fi­dence that busi­nesses ser­vic­ing that sec­tor are draw­ing from that re­vival,” he said.

“The min­ing sec­tor is gen­er­at­ing more work than other sec­tors.”

While the Fed­eral Gov­ern­ment has ex­tended tax cuts to busi­nesses with turnover up to $ 25 mil­lion from July, up from $ 10 mil­lion last year, it seems many are yet to see the ben­e­fits.

Only 18 per cent of re­spon­dents ex­pected the changes to be very ben­e­fi­cial and 29 per cent ex­pected no ben­e­fit at all with the bal­ance ex­pect­ing a lim­ited ben­e­fit.

Mr Valen­tine said the re­sults could re­flect the dif­fi­cult trad­ing con­di­tions where many busi­nesses had sus­tained tax losses.

Tax cuts should be in­creas­ingly ben­e­fi­cial as con­di­tions im­proved and more busi­nesses were able to achieve growth, he said.

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