Tourism Noosa Funding Agreement

Thank you. Item three. Tourism Noosa funding agreement.

Frank Wilkie74:29

Interest I think it's going to garner. Of that process could perhaps become a reshaping or recrafting of the role of Tourism Noosa. Does this agreement give us any capacity to change the funding agreement with Tourism Noosa before the end of the first two-year term as the CEO or is the agreement written in a way intervention of an early appointment?

By waiving the internal costs. Yeah and within government that that's a fairly standard cause that you would utilise for ongoing funding agreements too. To put in an efficiency dividend and that we either fund you less to that amount but we're not forcing Tourism Noosa on that at the moment but we're very much pushing them into that direction that if they want to have more funds be more efficient. Now the next question is about the funding agreement made provision or made mandatory that Tourism Noosa set aside $350,000 for downturns and tourism visitation. They had to dip into funds when COVID hit. So to reduce that amount by $100,000 to $250,000, are we and Tourism Noosa, is it suggested that we, as partners, banking on a reduction of that amount?

Yeah, do the Chair, Councillor Lance, and look events are, let's put it this way, it's a scramble egg right now, is the issue that we're dealing with. We provide funds to Tourism Noosa. Then administer those funds through a grant program to events. And then we have those event organisers that may or not be successful then come to the Council and ask for more money. Ultimately it's still Council money. So through the functional realignment of the organisation we've split events within the Council business. We've elevated that to be within the Environment Strategy team led by Kim as our Director in that department and it really is a sit-down with tewars and Noosa to be able to look at the funding that they are delivering for events, how events are being managed within Noosa and ultimately we stop the duplication of roles and how we stop the duplication of funding. We can't be in the position to be able to fund through one entity and then provide funding through us as the primary entity. There needs to be a better way of doing this and we're really open to working with Tourism Noosa around that. Is it with a role that's best GN? Is it a role that's best served just within Council? Something for us to work through jointly. What doesn't leave Council though is within our property team where the land use delivered. That still stays there as merely a regulatory compliance function. That continues within that team. But how we look at let's say our top 20 events, either on a profit or not-for-profit basis, how we help work with them with funding and what Tourism Noosa's role is in that is something that we'll work through as an outcome of this agreement.

Through the Chair, it's written with that intent, Councillor Stockwell, that we can't wait for the DMP. Wait for the DMP is the issue. So I spoke about scrambled eggs before, we've got chicken and eggs here. Figure out how we would dearly love to have the DMP inform this now. We're just not there yet. Tourism Noosa need funding certainly coming into the new financial year but the very clear market point within this agreement is the DMP and it is a sit-down of what the outcomes of what the DMP was, what is the role of Tourism Noosa in the future and how we work together to be able to deliver that but yes it's written with the intent that the Destination Management Plan is a very important component and it's a point for both parties to sit down and discuss what the future that holds it to me.

Chair, thank you. I understand the intent is to have this particular item referred to the General Committee. So Council's very happy to be able to talk through the report for you and take any questions that you might have to be able to help you go through that process for further consideration at the General Committee. Do you mind if I go through the general? Yes. The advice that I have is that yes. No, I'm just completely informed, sorry. Just secondary have resolution. A bleed in yep, I would have expected a two-footer. Yes. Council, is Tourism Noosa? No, I was going to say cheers a little bit. In terms Tourism Noosa, the single largest contribution of funding that this Council makes for any organisation. This is not a decision for this Council lightly. Council does need time to be able to work through and deliberate the provision of funds to an entity that, yes, is the largest economic contributor to our local government area, but also an entity with 600 members. Those members also need to have the ability to be able to start to shoulder the load when it comes to funding and marketing and the delivery of services for this particular industry and sector. For me, just over 12 months in the role and having. Background within tourism, I've taken a particular interest in this item for our Council to ensure that we're able to enhance how we have governance overarching and overriding everything that we do for. This particular funding that we provide. Tourism Noosa is an organisation that externally within the tourism sector has a fantastic reputation. Marketing is what they do and they do that very well. Know that because as a community we see the high level of tourism that comes through our particular community day in out and it's why us as not just elected members of the Council but officers, our community as a whole are undergoing a destination management we process. Do not want to see Noosa love to death but we do need to be able to have a strong tourism sector and a strong representative body at this point in time to have that representative body continue this Council has make a decision as to how it funds that tourism body into the future the recommendation that you have before you is about funding Tourism Noosa at the same level that we have through previous agreements and through this current year into future years it doesn't preclude us to have special projects or other elements of funding added to Tourism Noosa but I do believe within the time that I've been here that it is prudent that we work with Tourism Noosa on not only their efficiency and effectiveness as an organisation but also their governance as an organisation as well too. The efficiency and effectiveness of Tourism Noosa and future funding should be dependent on how they run their business because let's face it they are running a business. It's a representative business of a cooperative of tourism businesses overall but it's still a business that is 90% funded by this Council. We do need to see how they will manage future funds and through efficiency and effectiveness they can have further funding available for the different pieces of work that tourism and Noosa do but they need to be able to start to look internally first and look at what savings are available before to Council and asking for more money or going to their members and working through what a new membership scheme or a membership program may be some of the great work that Tourism Noosa does how do they monetise that for them and create better products have strong relationships with the numerous associations and representative bodies that our local government area has how can they be leaders for Council to be able to provide these funds really the basis of the funding and performance deed that you had before you is just that it's providing funding but it's contingent upon performance for Tourism Noosa means they need to have a fully strategic plan as approved by this Council they need to have an operating plan similar very to what our Council has to deal with our governments an operating plan that governs that 12 months aligned to the budget so we know exactly what they're doing and they also know exactly what they're doing and where they're going. Then a quarterly report to this Council delivered by Tourism Noosa either to this committee or to the P&E committee that demonstrates that Tourism Noosa has delivered against what that operating plan is. So three pieces of governance work that Tourism Noosa will need to do they'll also need to do an efficiency and effectiveness review as part of this agreement and they'll also need to take regular reviews of their board and the performance as well. So there is a lot that we have been there. We have briefed this through to you on three separate occasions and we've done our very best to work with Tourism Noosa as the funding receiver and take into account all of the views and requests from the Council. There are some elements though that we haven't been able to achieve. One is having specific funding go to specific areas. Tourism Noosa is just not that advanced. At this point in time, until they have a strategic plan, an operational plan, quarterly reporting, it's very difficult for us to fund one or two specific areas and put that into a particular project bucket or piece think of work. In I the future we can get there by working with them. The agreement and the way it's been negotiated is a two plus two deal. So it pushes this through funding of this financial year and also next financial year and will be the second year of the next term of Council before this needs to be decided upon by the Council again. My recommendation to the Council though is we start a lot earlier. We don't get to the stage where we are now in April and we're unsure as to how tourism booths will be able to operate if we don't provide that funding overall. The other element to this is that past 30 June 2025, if this is operating and working well, there's the ability to continue this for another two years. So it's a two plus two deal. Funding remains static throughout that time. Tourism Noosa will need to find their own efficiencies within their own business if they are to look at having more funds available for marketing or wanting to do more activations or different projects. Doesn't preclude them from coming to this Council with a great idea or coming to this Council and saying we'd like to take on some of the work that you're doing and do this on your behalf. If that's an opportunity it's for this Council table to decide on the strategic basis. I do know that there's two parts to our community that there's a part here that's very much saying look let's get in and let's support our tourism sector and there's a big part of our community that's saying well you know this has impacted our lifestyle this is causing issues for us I think this though is now a great opportunity to really set a line in the sand for Tourism Noosa to be able to say here are the very clear expectations of this Council for what we want you to do with the money that we provide here are the clear governance elements that we now have in place to ensure that we do that. Should you not do that, there are mechanisms for remedy by this Council within this agreement. Those can even be as much as cancellation of this particular agreement overall, terminating it. So it's a serious document. It puts parameters around Tourism Noosa that they haven't had before. It still provides the same level of funding for Tourism Noosa. And our hope as a Council is now that with very clear direction, they can get in and deliver for our community. One part that I haven't touched on though is the Destination Management Plan. Once the Destination Management Plan is completed our Council and Tourism Noosa have the ability to be able to sit around the table, review the outcomes of the Destination Management Plan, and upon review of that, we can make amendments and changes to the agreement that's enshrined within there. Document there for you as well too. So Councillors, not voted upon today, that I absolutely understand, a referral to general, but I'm happy to take any questions that you may have and we'll try to make a fair and balanced agreement it's a very nuanced agreement, which sure is a new stuff, but it is one that is very much within the gantz's fibres, the I'm happy to take any questions.

I'm through the shade, state Councillor Council, Lawrence. This is very much there for Tourism Noosa to be able to have funds in reserve for the future of Tourism Noosa. Should there be an event or something that occurs for that business that it may no longer operate, it is proven for tourism Noosa to have some sort of safeguard in there. Knowing this is a new agreement, totally redrafted into a funding and performance deed, there was the review of the previous agreement as part of this, but it was viewed to have a more robust document in a deed style that has a number of different elements to it. What do the two what does the $250,000 mean as a contingency fund? Ultimately it's there on an agreed basis to work with Council if there is some sort of event that can be utilised, but it also has additional funds that then safeguard the business into the future. And given that from a cash flow basis, we're providing funds immediately when they become due for Tourism Noosa. I think it's important for that business to have some funds available should there be an issue in the future.