Business hits out at council over decision

THE operators of a business incubator have called for more transparency from Townsville City Council after learning it plans to end a 23- year association with them.

But a council spokesman denied that any decision had been made about the future of the centre’s premises, which the council owns.

Townsville Business Development Centre was established by the former Thuringowa council and came under the wing of the Townsville council after an amalgamation in 2008.

The centre found the council was looking to “exit supporting the venture” by reading an impairment note in its 2017- 18 annual report released last month.

“The Enterprise Centre no longer has full tenancy due to loss of external funding and council’s desire to exit supporting the venture, resulting in a change in market value,” the note says.

The value of the Enterprise Centre, which the council confirmed referred to the Townsville Business Development Centre in Condon, was written down by $ 2.25 million to a “midpoint valuation” of $ 1.25 million.

Centre chairman Michael Brennan, a prominent insolvency professional and LNP member, said they were “blindsided” by the report.

“We were shocked that the council appears to be washing its hands of 23 years of history of supporting economic activation at a time when the city is crying out for assistance,” Mr Brennan said.

“We are very disappointed at the lack of transparency and consultation by the council.”

But a council spokesman said the council had made no decision about the future of the building that houses the centre.

“Start- up businesses in Townsville will continue to be supported by council because they play an important role in the local economy,” the spokesman said. “Council is looking at ways to encourage more start- ups in Townsville and how some of them can be located in the CBD.”

Mayor Jenny Hill announced a Smart City strategy last month.

Key objectives include creating an open, engaged and citizen- centric council, supporting entrepreneurship and providing the infrastructure needed to support innovation.

The council has submitted a proposal for a Smart City grant to establish a centre to support businesses and entrepreneurs.