Meeting papers

SERVICES & ORGANISATION COMMITTEE MEETING                                            11 APRIL 2023


5.3     TOURISM NOOSA FUNDING AGREEMENT


Author              Chief Executive Officer, Scott Waters
                    CEO Office Department
Index               ECM / SUBJECT / TOURISM NOOSA
Attachments         1.   Attachment 1 - Deed - Funding Agreement Final


EXECUTIVE SUMMARY
Tourism Noosa (“TN”) and Noosa Shire Council (“NSC”) have held a long term partnership in
advancing the Tourism Industry to positively benefit the Noosa Community and region's
economy. While it is acknowledged that at peak times significant visitor numbers can have a
detrimental effect to the community, NSC is proactively working to manage these impacts via the
development of a Destination Management Plan (“DMP”).
Through this report to Council it is recommended that Council consider entering into a new funding
agreement between NSC and TN. As the primary funder of TN, NSC has governance expectations
in relation to the expenditure of rate payer funds and as such with the renewed agreement, there is
a higher emphasis on NSC requirements, initiatives, value for money, reporting against the
agreement and overall governance. The attached agreement outlines a funding framework covering
current and future activities between TN and NSC.
It also addresses TN’s requirement for an agreed funding quantum essential for TN to have certainty
with respect to strategic planning and TN’s ongoing operations. While NSC is acknowledged as the
primary funder, NSC also recognises that TN is a member based company limited by guarantee and
discharges its responsibilities in accordance with its Constitution.
The framework for the funding agreement contained within the attached Funding and Performance
Deed, is to provide NSC elected representatives with the basis of NSC’s relationship with TN moving
forward. The agreement has been drafted as a funding and performance deed, highlighting NSC’s
expectations of TN to develop a strategy that aligns with key elements of NSC’s vision for the visitor
economy, allow for variations to the agreement in light of NSC’s ongoing DMP process as well as
more regular financial and reporting requirements by TN that demonstrate NSC’s return on
investment. There are also expectations of the highest levels of internal governance and to this end
NSC’s appointed Council Observer will be included in all TN Board meetings (with the exception of
confidential staff matters) and TN will perform annual performance reviews of key staff and directors.
Any corporate governance concerns are to be addressed firstly between TN and the Observer, and
if required, between TN and the CEO and/or Mayor.

It is recommended that the Council authorise the Chief Executive Officer to execute the attached
Funding and Performance Deed, providing agreed funding on a 2 year basis with a 2 year option.
RECOMMENDATION
That Council note the report by the Chief Executive Officer to the Services and Organisation
Committee Meeting dated 11 April 2023 regarding the Tourism Noosa Funding and Performance
Deed and
      A. Authorise the Chief Executive Officer to execute the Funding and Performance Deed
         provided at Attachment 1 to the Report;
      B. Authorise the Chief Executive Officer to make minor changes to the Funding and
         Performance Deed as required; and
      C. Confirm the release of funds as per the report for the 2024 and 2025 Financial Years.


REPORT




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