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Thursday, April 25, 2019

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suratbasin.com.au Thursday, April 25, 2019

SNAP OF THE MONTH

◗ LOOKING BACK: An interior shot of St John's Church in Surat, taken shortly after the church was rebuilt in the last 1930s. The church will close its doors for good on May 4 due to declining numbers .

Contents

From the editor

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We should also be wary of the realities around the timespan of these operations and the potential downturns.

Across the board we’re also seeing cases of resource servicing companies hitting downturns and major financial trouble which too can have negative flow on effects. We saw this with resource servicing company iPipe when it announced last month their move into voluntary administration while owing tens of thousands to small businesses across the Western Downs. While we should always celebrate the successes of businesses in the Surat Basin who are able to withstand dips in the resource sector, we should use the stories of iPipe and Ostwald Brothers as opportunities to learn from those who didn’t future-proof their businesses.

Ostwald Bros liquidators contact clients .............................12-13 Another business placed into administration ..........................16 Surat highways set for upgrades ..............................................18 OPINION ...................................................................................20-21 PLACES AND FACES ...............................................................22-24

The newspaper

The team

The Surat Basin News publishes every month and is delivered via the four dominant newspapers of the region: the Chinchilla News, Western Star, Dalby Herald and The Chronicle. It will reach the homes and offices of almost 50,000 people living, working and playing in the Surat Basin, connecting the business and mining communities throughout the booming region. Surat Basin News is a necessity. It was born out of a passion for Australia’s fastest growing communities – a passion for a region of unbridled potential and a future of vast economic growth and opportunities. The newspaper, professionally designed and regionally topical, is a must read for anyone associated with the exciting Surat Basin. ONLINE: Surat Basin News has gone online to ensure our readers in every corner of the country have the latest news sent directly to them. Go to: www.suratbasin.com.au. PURCHASE FROM: Newsagents in Chinchilla, Roma, Dalby, Gladstone, Moura, Toowoomba, Calliope. VISION: Surat Basin News will allow local businesses to network and communicate with everyone in the 1200 sq km basin, providing unprecedented access to new clients and markets. It will give a revealing insight into major industry while lifting the veil on current and proposed developments. It will be there for each and every announcement shaping the region’s future while profiling the colourful characters.

GENERAL MANAGER Erika Brayshaw, Chinchilla Phone 4672 9921, email Erika.Brayshaw@chinchillanews.com.au ADVERTISING TEAM Jodie Williams, Chinchilla Phone 4672 9900, email Jodie.Williams@chinchillanews.com.au Greg Latta, Roma Phone 4672 9927, email Greg.Latta@romawesternstarnews.com Nicole McDougall, Dalby Phone 4672 5500, email Nicole.McDougall@dalbyherald.com.au EDITORIAL

Jordan Philp, Toowoomba Phone 0417 915 123, email jordan.philp@suratbasin.com.au SURAT BASIN NEWS 12 Mayne Street, Chinchilla Q 4413 PO Box 138, Chinchilla Q 4413 The Surat Basin News is published by Chinchilla Newspapers Pty Ltd, 12 Mayne Street, Chinchilla Q 4413 The Surat Basin News is printed by News Corp Australia.

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WE’RE approaching mid-2019 and the Surat Basin is booming with new projects, milestones and job creation. Senex’s Project Atlas near Wandoan has passed final approvals and is set to deliver the first domestic gas to the Australian market - an extremely exciting prospect to see our resources go back to Australians. With these new projects comes job growth, regional prosperity and financial security - but we should also be wary of the realities around the timespan of these operations and the potential downturns.

IN THE NEWS Project Atlas a first for Queensland........................................4-5 Easternwell operates in Toowoomba......................................6-7 Hardcore Hire has you covered..................................................8 Industrial action begins at station ............................................10

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Celebrate successes and try to learn from the failures

IN THE NEWS

Thursday, April 25, 2019 suratbasin.com.au

◗ JOBS BOOM: The resource sector still has more than 5000 vacancies in one region alone.

PHOTO: FILE

New projects mean job opportunities

Big jobs mean bigger money A GLUT of new mining projects and expansions are fuelling a jobs boom in the sector with more than 1300 resources vacancies across the state, according to new figures. The Queensland Resources Council analysis shows more than 75 per cent of the vacant positions pay salaries of at least $100,000. More than 500 job vacancies were in Mackay and the Bowen Basin, where surging metallurgical coal exports are driving hundreds of job opportunities. There were nearly 400 job vacancies in Brisbane, according to the QRC. With new ABS jobs data out last month, QRC chief executive Ian Macfarlane said the resources sector was doing the heavy

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Our sector continues to drive economic opportunities in all corners of the state... lifting for Queensland on employment. “Our sector continues to drive economic opportunities in all corners of the state with more than $14 billion in new or commissioned projects this year alone,” he said. “The mining industry has by far the highest average weekly full-time adult earnings of any industry at $2659 – or over $138,000 per annum. “Over 75 per cent of these current vacancies pay $100,000 or

more which is income that flows through to the butcher, bakery and hairdresser.” Earlier this year the State Government approved the biggest resources project in nearly a decade: the $10 billion Arrow Energy Surat Basin gas project, which is expected to create about 1000 jobs. Senex’s Western Surat Gas Project, north of Roma, is expected to create up to 150 jobs. Other regions with dozens of jobs include Rockhampton (84), Mount Isa (80), Capricorn Coast (65) and the Darling Downs (38), according to the QRC analysis of vacancies on employment website Seek. — Michael Wray

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IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

◗ BRINGING JOBS: The new Project Atlas will bring hundreds of jobs to the Surat Basin and help provide gas for domestic use in a Queensland first.

PHOTO: CONTRIBUTED

National first for Senex

Queensland’s ‘heavy lifting’ guarantees Project Atlas

SOUTHWEST Queensland natural gas from Senex Energy’s Project Atlas will fuel more than 200 Queensland manufacturing jobs in a national first. Mines and Energy Minister Anthony Lynham has congratulated gas producer Senex on sealing the first supply contract from Project Atlas with southeast Queensland manufacturer CSR Limited. In an Australian first, Project Atlas in the Surat Basin is delivering Queensland gas quarantined for sale to the Australian market only.

Senex expects production later this year. “This is the outcome the government was seeking when it made this land available for development of domestic-only gas in 2017,” Dr Lynham said. “Manufacturers need gas as a feedstock and an energy source and Australia has a shortage of gas in the east coast market. “This contract is the culmination of the heavy lifting Queensland has been doing on gas policy and production for some time.

“Soon we will have Queensland petroleum resources directly fuelling Queensland business. Managing director and CEO Ian Davies said Senex was proud to support local jobs and investment. “We’re delighted to secure CSR as a customer and support this key Queensland manufacturer of essential building products,” Mr Davies said. “Senex’s initial gas marketing focus is to partner directly with domestic commercial and industrial customers for long-term, enduring and mutually beneficial relationships.”

CS Energy bridges the gap for uni students

◗ OPPORTUNITIES: Four roles at CS Energy are available and are open to university students graduating in 2019. PHOTO: MARK DUFFUS

QUEENSLAND energy company CS Energy is recruiting for its 2020 intake of graduate engineers to work across its business. Four roles are available and are open to university students graduating in 2019, as well as recent graduates, with Bachelor degree qualifications in electrical, mechanical or mechatronics engineering. CS Energy CEO Andrew Bills said CS Energy’s two-year Graduate Program aims to “bridge the gap” between university and working life for graduates. “Our program is designed to give graduates as much exposure to real-world work as possible, under the guidance of highly respected industry professionals,” Mr Bills said. “Graduates will be supported through structured rotations across our power stations, giving them an insight into what’s involved in operating one of Queensland’s largest generation portfolios. “Importantly, we focus on building both the technical and personal management skills that graduates will need in the workplaces of the future.” Mahali Heffner is one of three graduate mechanical engineers

who joined CS Energy in the previous intake in 2018 after she graduated from QUT with a Bachelor of Engineering (Mechanical). “I’ve always had a strong interest in science, technology and maths, and their practical application in the real world,” Ms Heffner said. “Since joining the CS Energy Graduate Program I’ve put my studies into practice at work rotations at Callide and Wivenhoe power stations, as well as the Brisbane corporate office. “Currently I’m helping to co-ordinate performance tests for a planned turbine upgrade at Callide and I’ll also have the opportunity to attend the upcoming major overhaul at Kogan Creek Power Station. “My biggest learning experience since starting at CS Energy has been the importance of establishing positive relationships across the business. It’s imperative in being able to deliver outcomes. “I would recommend the CS Energy Graduate Program to anyone interested in working in a hands-on environment with supportive mentors.”

IN THE NEWS

Thursday, April 25, 2019 suratbasin.com.au

Queensland leads the way

Project is another boost for our state THE Queensland Resources Council has weighed in on the significance of Brisbane-based Senex Energy signing its first domestic gas contract from the company’s Project Atlas in the Surat Basin. QRC chief executive Ian Macfarlane said the mid-April agreement was an Australian first and showcased Queensland’s leading regulatory framework designed to increase supply in the domestic market. “Senex Energy developed gas at Project Atlas after the Palaszczuk Government released the land specifically for the domestic market,” Mr Macfarlane said. “QRC has always been a strong supporter of this domestic gas policy and it’s another example of how Queensland continues to do all the heavy lifting to provide extra gas for the eastern Australian market.” Senex has agreed to supply building products group CSR 3.25 petajoules (PJ) of natural gas which has the potential to fuel more than 200 Queensland manufacturing jobs. Mr Macfarlane said people wanted industry and government to work together with communities and wider society to promote effective, constructive and mutually beneficial relationships.

◗ FLOW ON: Senex will supply building products group CSR 3.25 petajoules of natural gas which has the potential to fuel more than 200 Queensland manufacturing jobs PHOTO: MARK MCGINTY

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Queensland’s resources industry has a proven track record of attracting new investment and creating new jobs...

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“Queensland’s resources industry has a proven track record of attracting new investment and creating new jobs because of the clear and stable regulatory environment in which it operates,” he said. “It is essential that we have stable and reliable regulation for our resources sector to continue to attract the investment that

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builds our State and delivers for every Queenslander.” The Queensland resources sector now provides one in every five dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 14,200 businesses across the state all from 0.1 per cent of Queensland’s land mass.

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HACC services through Breakaway are designed to assist you; if you or someone you care for are under 65 years old living with a disability or mental health need with no NDIS plan, and need help to continue living at home and being an active member of your community. For eligible participants Breakaway can provide a support worker to assist with cleaning, home and yard maintenance , assistance to attend appointments (including transport), support to attend social engagements, medication and personal care assistance.

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Breakaway also offer Support Coordination via your NDIS plan. Our Support Coordinator can help you to utilise your plan to its full potential and build your capacity to maintain, strengthen and support your relationships with providers so you can resolve any issues and participate as independently as possible with the NDIA. We can connect you with Service Providers for Social and Community Access, Personal Care needs or assist you to find housing solutions.

Our Support Coordinator can assist you to establish and maintain relationships and gain assessments via Allied Health professionals such as Speech Therapists, Occupational Therapists, Exercise Physiologists, Psychologist, Behavioural Specialist and Dieticians. Whilst focusing on building capacity to manage your ongoing support, answer any questions you many have about your plan and strengthen your ability to design a strong, flexible, sustainable network to cater for you care needs.

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IN THE NEWS

◗ RIGGED UP: The Easternwell workshop hard at work.

suratbasin.com.au Thursday, April 25, 2019

PHOTO: PAUL HARRIS

Australia’s newest well servicing rig is being built in Toowoomba LOCAL company Easternwell is building Australia’s newest well servicing rig with the first of three rigs commencing work in the Surat Basin gas fields in mid-2019 as part of the company’s five-year contract to provide 11 well servicing rigs and associated services to Shell’s QGC business. Easternwell’s unique position as a rig contractor that builds and operates its own equipment means the company knows what is needed in the field for safe and efficient operations. The Advantage Light Rig Extra or ALRx is a new and improved version of the ALR rig which Easternwell designed and built about three years ago. After thousands of hours of operational experience in

Australian conditions, Easternwell has developed new technology to further improve the delivery of essential services. The ALRx integrates push pull capability and a 50-tonne top-drive for increased rotary torque. Through smart modular design the ALRx will expedite natural gas well service work scopes. “The rig has enhanced hands-free operations and a simplified rig up and rig down process making it safer for our rig crews in the field,” Easternwell general manager Kyle Koziol said. “The rig’s versatile set-up allows for rig moves 365 days a year with no transport permits required and a 30 per cent

reduction in rig move times, reducing the time it takes to move between wells.” “We are proud to be designing and building world-leading, innovative technical solutions in our Toowoomba Hub and delivering them to the resources sector nationally. “It is a credit to our local employees and all the local businesses who are supporting the development of Australia’s newest well-servicing rig.” Easternwell, a subsidiary of global service provider Broadspectrum, is planning to increase its local workforce by 20 per cent and local procurement by nine percent to achieve outcomes set out in the contract with Shell’s QGC business.

Thursday, April 25, 2019 suratbasin.com.au

IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

Hardcore Hire

Unique equipment hire, fleet maintenance and more THE team at Hardcore Hire are staunch about their commitment to helping clients source the real machinery and equipment needed to get the real work done. The vision within the Hardcore Hire team is to continually invest in their hire fleet, ensures customers of all operational sizes are able to get the high quality and reliable equipment and machinery to exceed project demands and deliver proven efficiencies. Based in Chinchilla with a new Wandoan yard, Hardcore Hire offers everything needed to get your project off the ground from generators and lighting towers through to heavy machinery and transport equipment. Customers can always rely on Hardcore Hire to access a wide variety of transport equipment options including tilt tray trucks, tippers, water carts, light vehicles, tag trailers and more. If you’re in need of site gear, then Hardcore Hire is the place to visit, with containers, waste bins, portable toilets/showers and mobile workshops all available. All machinery and equipment is available for pick-up from the

◗ RELIABLE: Hardcore Hire provides specialist equipment and machinery for the coal seam gas industry and wider resources and industrial sectors. Based in Chinchilla and Wandoan and delivering Australia-wide, they have the real equipment needed to get the real work done. PHOTO: CONTRIBUTED

Chinchilla or Wandoan facilities or can be delivered to your project. The team also offers a full range of services to assist with scheduled fleet maintenance and breakdown repairs with 24/7 availability. Hardcore Hire’s ongoing maintenance services will ensure your fleet of vehicles and heavy machinery are performing at their peak, meaning less downtime and higher productivity for any project. Their highly experienced tradesmen are equipped with service

trucks to perform on-site repairs across the Surat Basin region or we can maintain your fleet in our state of the art workshop in Chinchilla. Don’t see what you need? Contact Hardcore Hire for a machine, equipment or attachment hire solution to suit your specific project needs. Phone Hardcore Hire on 4665 5895, email on sales@hardcorehire.com.au, see them at 8 Malduf Street, Chinchilla, 15 Zupp Road, Wandoan or visit www. hardcorehire.com.au.

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IN THE NEWS

Darling Downs Power Station

Industrial action begins at Origin WORKERS at Origin Energy’s Darling Downs Power Station have begun protected industrial action as part of their bid to secure a new Enterprise Bargaining Agreement. The Electrical Trades Union, CFMEU Mining and Energy Division and The Services Union have been meeting with Origin Energy since June 2018 in an effort to negotiate a replacement EBA. ETU state secretary Dan McGaw said workers were not seeking “exorbitant” pay increases, but just a “modest 3.5 per cent per year”. He also said unions had offered a one year wage freeze as part of negotiations. “Importantly what they are seeking is improvements to some archaic and inconsistent conditions that leave them worse off than other comparable jobs in the sector,” he said. To date Origin Energy has offered a two per cent pay increase, in line with other wage increases across the business, which was later bumped up to 2.1 per cent. Industrial action began on Tuesday, and has so far included bans on performing administrative tasks such as reading or sending emails and attending meetings, overtime bans, and one hour work stoppages. With another EBA meeting to take place this morning, Mr McGaw said increased work stoppages would be possible “if

◗ NEGOTIATIONS: To date, Origin Energy has offered a two per cent pay increase – in line with other wage increases across the business – which was later bumped up to 2.1 per cent. PHOTO: CONTRIBUTED

there’s not a decent offer put on the table”. The power plant is currently in a planned maintenance shutdown. Mr McGaw said the ETU’s negotiation team had offered to shelve claims and changed positions on others as part of the

EBA process, and called on Origin Energy to commit to “genuine bargaining”. An Origin Energy spokesperson said the company would “continue to work with all parties in good faith to achieve a resolution and will reinvest in the plant to ensure its viability”.

Former Linc Energy boss to face fresh set of charges in court “The proceedings against Mr Bond for two counts of wilfully contravening the EPO contrary to section 361(1) of the Environmental Protection Act 1994 are the first proceedings commenced by DES for contravening an EPO issued under CoRA (Chain of Responsibility laws),” the spokesman said. “The investigation and prosecution of Linc Energy Limited and associated executive officers, including Mr Bond is the largest and most complex ever conducted by DES and has been ongoing for approximately six years.” Lock the Gate Alliance has welcomed the news, with spokeswoman Carmel Flint saying the revelations were more evidence evidence that the Linc Energy venture had been a disaster for local landholders. “This sorry saga is continuing nearly a year after Linc Energy was fined a record $4.5 million for serious environmental damage at the Western Downs site,” Ms Flint said.

“It seems unlikely that the Queensland Government will recover any funds from Linc Energy either to pay that hefty fine or rehabilitate the site, after they went into liquidation and disclaimed ownership. “That’s why this proceeding against Mr Bond is so significant – because the Queensland taxpayer is facing ever-diminishing opportunities to ensure they do not end up footing the bill for this environment catastrophe.” The matter is listed for mention on May 17 before the Brisbane Magistrates Court. In 2016, five executive officers of Linc Energy Limited, including Mr Bond, were charged with offences of failing to ensure that Linc Energy Limited complied with the EP Act. These proceedings are still in progress and are next listed to resume in the Brisbane Magistrates Court later this year on June 10.

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LINC Energy former head Peter Bond is set to return to court a year after the company was found guilty of five offences of wilfully and unlawfully causing serious environmental harm at its underground coal gasification plant outside Chinchilla. The Department of Environment and Science charged Mr Bond in December 2018 with two counts of wilfully contravening the Environmental Protection Order that he was issued in May 2016. A DES spokesman told the Chinchilla News the EPO required certain works, including decommissioning of dams and the removal of contaminated soils from the former site of Linc Energy Limited. The EPO also required Mr Bond to provide a bank guarantee of $5.5 million, as security for the works. The DES charged Mr Bond in relation to his failure to provide the bank guarantee and a scope of works.

IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

Hydrosmart

Makes low quality water usable and profitable ◗ SATISFIED CUSTOMER: Craig Osborne uses Hydrosmart on his farm for lawns, garden, horses and house use.

helping to drought proof outback stations to making crop success a reality. “We research, develop and manufacture our original 100 per cent Australian products to deal with water quality problems, all over the country as well as overseas,” Hydrosmart owner Paul Pearce said. “Hydrosmart is the leading industry water conditioner, and is trusted by agricultural, industrial and domestic customers alike for solving scale, salinity and iron problems.” Hydrosmart have products to deal with bore water, river water, town mains water. Hydrosmart water treatment products are designed to treat scale, corrosion, salinity and iron and - in a nutshell – it works by dissolving minerals in water.

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Any... new investments into the Maranoa is a plus for the region.

Cr O’Neil said opportunities to showcase the Maranoa to potential businesses was a real benefit of attending gatherings like TSBE’s evenings. “As councillors, any chance we have to attract new investments into the Maranoa is a plus for the region,” Cr O’Neil told the Western Star. “Any new business to our region can create job opportunities, stimulate our local commerce and welcome employees to become part of a local community.”

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THE Maranoa Regional Council mayor and councillors showcased what their region could offer to the gas industry if it were to expand to the Surat Basin. Toowoomba Surat Basin Enterprise hosted the event at Queensland’s Parliament House in the hopes of bringing more industry to the Western Downs and Maranoa regions. Minister Anthony Lynham spoke at the event, highlighting the importance the state government put on the oil and gas sector out of the Surat Basin and highlighting the contribution the region makes to the nation’s Gross Domestic Product. Mayor Tyson Golder and councillors David Schefe and Cameron O’Neil attended to build and foster relationships in the hopes of seizing opportunities to attract new investment in the Maranoa.

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Dissolved minerals pass into downstream applications without building up in pipes, soil, fine sprays or drippers. Hydrosmart products have been installed in homesteads, farms, agribusinesses and factories across the country, including Kidmans, Rio Tinto, BHP, Tatura Milk, d’Arenberg Wines, Wild Duck Creek wines to name a few. “Hydrosmart units are simple to install and maintenance free,” Mr Pearce said. “The water conditioner improves all water sustainably for decades – whether it is being used in a domestic setting for lawns and gardens, or on a large-scale crop farm all for a one off purchase price without need of any filters or consumables, just a normal 10 amp power point or solar panel and battery.” For more information, phone the team on 1300 138 223.

TSBE invite industry into basin

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A LACK of usable water is one of the biggest problems facing Australian producers. With around 80 per cent of the country taken up by farms, there is no profit if there is no water. Over the last two decades, Adelaide business Hydrosmart has been helping to turn the tide around Australia for those facing diverse water problems. They manufacture, consult over the phone and supply a smart simple to apply and run, hard water technology. Hydrosmart units disrupts and weakens bonds of minerals by putting an ionising charge onto water molecules. To do so they use a computer chip and several metres of pipe often shaped into a product with a unique U-bend to simply and electronically improve on problems caused by the minerals in water. The issues range from saline irrigation improvements (by moving salt downwards and away from plant roots through soils) and calcium scale removal and prevention from pipe walls and equipment to magnesium and iron scale removal and prevention. These minerals and salts can often be found in high amounts when using Australian ground water supplies and can cause significant crop or stock loss and garden growth problems. Providers of water conditioning units, Hydrosmart treatment plants can offer a water solution for most properties – from

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IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

‘Double blow for small businesses’

Businesses ‘papered’ after Ostwald collapse DALBY businesses caught up in the 2017 collapse of Ostwald Brothers have been dealt a fresh blow, as liquidators move to recover several million dollars worth of potential “preferential payments” made in the six months before the construction business went bust. Dalby Chamber of Commerce and Industry president Rohan May said the town “had been papered” with notices from liquidators FTI Consulting alleging preferential payments, despite many of those same businesses still being owed money by the in-liquidation Ostwald Bros Pty Ltd. Mr May described the impact of the notices as “debilitating”. “In addition to still being owed millions of dollars, the little amount of money they did get paid is sought to be recovered by the liquidators,” he said. “It really is a double blow for the small businesses, for an event that happened almost two years ago, to have to revisit that now when everyone’s moved past it is really, really disturbing. “It’s just reignited a lot of very painful memories for people.” Liquidator Kelly-Anne Trenfield acknowledged the pursuit of potential preferential payment claims was a sensitive issue, but said it was “part of our duties that we have to explore possible recovery actions”. Up until the Friday before Ostwald Brothers went into voluntary administration in August 2017, Mark Quinlan said he was looking after the company’s employees in his business, The Gallery Motor Inn. “I had blokes staying here right up until the Friday prior. In good faith I gave them three meals a day, gave them a bed... they still owe me $25,000,” he said. Now, Mr Quinlan said he had received correspondence from FTI Consulting alleging he was the recipient of an $82,500

preferential payment from the defunct company. Various provisions under the Corporations Act allow a liquidator to call back “preferential” payments made in the six months prior to a company being wound up where a creditor has received a payment for an unsecured debt that is greater than the amount the creditor would have received in the winding up of the company.

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I had blokes staying here right up until the Friday prior. In good faith I gave them three meals a day, gave them a bed... they still owe me $25,000. Mr Quinlan described the claim as “comical”, adding that he did not have $82,500. “And I doubt any small business in a rural town would have a lazy 82-and-a-bit thousand to hand over to a second liquidator for a company that has now been in liquidation for two years – let alone hand over to anybody,” he said. FTI Consulting took over the liquidation of Ostwald Bros Pty Ltd from PricewaterhouseCoopers in mid-2018, amid growing creditor dissatisfaction with the former liquidators and a looming conflict of interest over PPB Advisory’s merger with PwC. “What effect would (paying the money back) have? It would have a huge effect. How they get it, how I get it, how that transaction is going to transpire – that’s the comical part,” Mr Quinlan said. In her September 2018, statutory report to creditors after

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taking carriage of the Ostwald Bros liquidation, Ms Trenfield wrote that she had identified $5.2 million in preferential payments to 33 creditors that “may be” recoverable. At the time she wrote that investigations into uncommercial transactions and insolvent trading claims had been put on hold until she was able to obtain funding, either from recoveries or external sources.

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Thursday, April 25, 2019 suratbasin.com.au

IN THE NEWS

The collapse of Ostwald Bros hit businesses hard

◗ MONEY GRAB: Mark Quinlan from Gallery Motor Inn received a letter from Ostwald Brothers liquidators.

She also noted she had received correspondence from company directors Daniel, Brendan and Matthew Ostwald’s solicitors “disputing the preliminary conclusions of the former liquidators” with regard to allegations of insolvent trading. Mr Quinlan described the preferential payment claims

PHOTO: MEG GANNON

as “nothing more than a money grab from a liquidator”. “They’re going to use the little people, me being one of them. Any bit they can screw out of us, they will then use that to go after the bigger people,” he said.

- Matthew Newton

WHEN Ostwald Brothers collapsed in late 2017, owing $55.5 million, it was the smaller, family-owned businesses that bore the brunt of the fallout. As Ray Hicks, managing director of Brandon and Associates and its associated company South Qld Soils recalled, “it almost put us over the edge”. The $66,000 owed to Brandon and Associates and the $208,000 owed to South Qld Soils might seem like a drop in the ocean compared to Ostwald Brothers’ total debt. But to the Darling Downs companies that have offices right across the region, the loss of more than $270,000 was devastating. Newscorp launched an investigative series into the collapse of some dozens of building companies who owe subcontractors hundreds of millions. Responding to the Back Our Subbies campaign, State Housing Minister Mick de Brenni promised tough new laws for the construction sector to ensure subcontractors are paid for the work they do. The Ostwald Brothers group liquidation was the companies’ single-biggest loss, Mr Hicks said, another blow after trying to recover from the slump in the gas and mining sector that began in 2015. It was also but one in a long line of liquidations. Prior to the Ostwald Brothers collapse, another company went bust owing $100,000, and since Ostwalds went under Mr Hicks said it had been a fairly regular occurrence to be burned for $4-5000 amounts as companies went broke. “We were lucky with RCR Tomlinson to only be out of pocket $1500. But at one stage in full flight we were doing $40,000 (of jobs) a month for them,” he said. — Matthew Newton

IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

Warrego Water Services

Experience and quality are high priorities THE Warrego Water Services team has been providing high-quality service to their customers throughout the Darling Downs and beyond for the past five years. If it involves water, there’s a good chance Warrego Water can help you with it. The team’s experienced technicians can provide you with design, service, repairs and maintenance to everything from domestic pumps and irrigator projects right up to large-scale agriculture operations.

‘‘

Starting a project from scratch, designing a product that suits the needs of our customers and bringing it to life is a great feeling. Warrego Water Managing Director Grant Colquhoun told the Surat Basin News no job is too small, too large or too far away. Based in Toowoomba, Dalby and Warwick with fully equipped

◗ HELPING HANDS: The Warrego Water team can help you with any irrigation or pump project, no matter the location or size of the operation. PHOTOS: CONTRIBUTED

workshops, Warrego Water serves customers as far away as the Northern Territory and New South Wales. Their online stores for agriculture irrigation and domestic irrigation means customers can have their parts delivered to their door or picked up from one of the stores. Mr Colquhoun said his team is proud of creating solutions for everyone from homeowners, to grass companies to major cattle stations.

“Starting a project from scratch, designing a product that suits the needs of our customers and bringing it to life is a great feeling,” he said. “The smile on the customers faces when they see the water first coming out is tremendous.” Phone Warrego Water Services in Toowoomba on 4633 5513, Dalby on 4669 7317 and Warwick on 4661 4126 or visit www.warregowater.com.au.

Thursday, April 25, 2019 suratbasin.com.au

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suratbasin.com.au Thursday, April 25, 2019

Gone into administration

Financial strain puts iPipe out of business A WESTERN Downs-based resource company has gone into voluntary administration in the face of mounting financial issues, with its major gas company and small business clients unprepared for the announcement. Based in Chinchilla, Dalby, Brisbane and Moranbah, iPipe Services and the six companies under its umbrella, could be sold off to the highest bidder or recapitalised. It is understood iPipe still owe sums “in the five figures” to at least one other Western Downs business. A letter obtained by the Surat Basin News sent out to iPipe’s clients on March 26, revealed the company’s board of directors moved a resolution on March 22 to appoint Ernst and Young as administrators due to ongoing financial issues. Founded in 2013, iPipe has been providing construction, maintenance and compression services to the oil, gas and mining industry, including Santos, QGC and Origin as well as smaller businesses operating in the Western Downs. South Queensland Soils managing director Ray Hicks expressed his frustration to the Chinchilla News about the “substantial” amount of money owed to his company. “One business, like iPipe, goes down and takes a lot of smaller businesses down with them,” Mr Hicks said.

◗ BUSINESS IS NO MORE: Clients received this letter issued on March 26 informing them iPipe has gone into voluntary administration. PHOTO: BROOKE DUNCAN

The March 26 letter to creditors outlined the administrators’ intentions to continue to operate iPipe’s business while it undertakes an “urgent assessment” of the business’ financial situation. The first meeting between Ernst and Young and iPipe’s creditors was in late March, with EY partner and administrator, Marcus Ayres, saying the Expression of Interest campaign for the company will close tomorrow and could be a case of

“liquidity”. “We could strike a sale or recapitalisation of the business through the processes we’re going through,” Mr Ayres said. He said the first priority of EY was to stabilise the business and get it on the “right footing”. “It was just not possible for the directors to continue trading,” he said.

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IN THE NEWS

suratbasin.com.au Thursday, April 25, 2019

Big promises from federal government

$100m in the budget for freight assistance THE 2019-20 Federal Budget is set to tackle freight expenses with a $100 million investment – secured through the Roads of Strategic Importance (ROSI) initiative – to improve highways between Townsville and Roma, Maranoa MP David Littleproud said. Roma’s the largest cattle-selling centre in Australia and providing better access with northern markets will only strengthen Maranoa’s economy,” Mr Littleproud said.

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This initiative will live up to its namesake and provide strategic infrastructure improvements “Initial work will start on strengthening, widening, sealing and realigning the Gregory, Dawson and Carnarvon Highways with $2 million in the 2019-20 financial year. “By making this infrastructure investment to shorten the travel times for truckies, keep more money in vendors’ wallets and give them extra choices when it comes time to sell we are

◗ IN THE BUDGET: Initial work will start on strengthening, widening, sealing and realigning the Gregory, Dawson and Carnarvon Highways with $2 million in the 2019-20 financial year. PHOTO: FILE

building regions and growing local economies. “This initiative will live up to its namesake and provide strategic infrastructure improvements, and one of those primary goals is to enhance our ability move cattle to market. “Improving our supply chains means Maranoa and North Queensland are better connected to do business as we move down this road to achieve decentralisation. “In addition to the $100 million in ROSI upgrades, this Coalition Federal Government has secured $100 million for the Beef Roads program and $600 million for the Northern Australia

Roads program. “These projects support local jobs through construction and that has a positive flow-on effect for businesses in Roma, as well as Maranoa and Queensland.” The $100 million investment for highways between Townsville and Roma is part of $730 million allocated to improving inland corridors. The 2019/20 budget includes an allocation of $1 billion for Queensland ROSI projects, improving freight corridors and linking regions as part of the process of decentralisation.

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OPINION

suratbasin.com.au Thursday, April 25, 2019

Export Hub is on the horizon ALI DAVENPORT TSBE CEO

LAST month TSBE were very pleased to announce that we were successful in receiving a funding grant provided by the Morrison Government, which will see TSBE create the Southern Queensland Innovation in Export Hub. The funding will provide dedicated staff to grow economic opportunities for businesses in the Food and Agriculture and Oil and Gas sectors and help promote their products overseas. It will allow TSBE to reinforce the region’s global reputation as a capable and diverse export precinct. Minister for Industry, Science and Technology Karen Andrews and Member for Groom Dr John McVeigh joined TSBE for the announcement of the funding which will fuel the regional economy through promoting exports, and help create local jobs. On the topic of exporting, TSBE Food Leaders Australia (FLA) have sought Agribusinesses in the Western Downs and Surat Basin to take the next step towards exploring their potential to export. The Emerging Exports program, delivered by TSBE’s FLA, an initiative of Shell’s QGC, supports the development of agricultural businesses to grow domestically and explore global export markets. There has been a great response to this program with many businesses keen to embark on the exporting journey by responding to our Expression of Interest. In early April, TSBE FLA hosted a new event called ‘Taste of

Buying local gives sector a bigger boost IAN MACFARLANE QRC Chief Executive

QUEENSLAND’S resources sector spending with small and medium businesses in Queensland has increased by 19 per cent over 12 months and recorded its first gain in six years. Resources companies are now re-directing spending away from overseas and interstate suppliers to Queensland businesses. In 2017-18, the resources sector purchased $19.3 billion worth of goods and services with Queensland businesses, or 69 per cent of the total spend which compares to $400 million or one percent with international suppliers. That’s down more than 33 per cent on the previous year. As a result of a concerted effort by the resources industry to buy locally, interstate spending was $8.5 billion down from $8.6 billion a year earlier. In total the sector spent $28.14 billion locally, interstate (including New Zealand) and internationally. This is the first year the sector has recorded an increase in Queensland spending since 2011-12 which is good news for Queensland creating more investment, more exports and more jobs. More than $8 billion was invested outside the southeast, with 8000 regional suppliers benefiting from the resources sector. In November last year, the Palaszczuk Government welcomed the decision by BHP, Peabody and New Hope Group to shorten payment terms with small to medium contractors within 30 days. Anglo American also moved to a 30-day payment system to support local businesses. Every year the QRC releases its Code Effectiveness Report which provides a snapshot of the sectors spending over the financial year. Now in its fifth year it encourages companies to adopt the ‘full, fair and reasonable’ principle to adopt a shared responsibility framework with industry, local suppliers, regional economic groups and governments. The code is voluntary but compulsory for companies starting new projects. The resources sector was already doing its bit to keep Queensland strong – making a contribution of more than $62 billion to the state’s economy or one in five dollars, supporting more than 316,000 full-time equivalent jobs or one in eight jobs in the Queensland workforce, generating more than 80 per cent of the state’s record $80 billion annual export sales and working with 1260 community organisations.

the West’ in Roma which showcased local produce. This long table dinner profiled regional producers and promoted the wide variety of wonderful products grown across the Maranoa and Balonne regions. The produce was provided by regional producers including Maranoa Beef, Elliott Premium Lamb, Condabilla Fish, Muckadilla Pasture-Fed Eggs, Rocky Lamattina, Riversands Wines, Moonrocks, Anne and Ian Brimblecombe and other local suppliers. The event was designed for food procurement companies, local restaurateurs and food outlets, hospitality and tourism providers to meet local producers and sample the wonderful array of product. TSBE partnered with TAFE Queensland’s Roma campus and their chefs – Jason Ford and Fenton Keogh – prepared the amazing feast on the night. We were so pleased to work with TAFE Queensland to present a delicious three course meal to over 80 diners who thoroughly enjoyed the evening. We are also thrilled to be working with Western Downs Regional Council to present The Chef’s Table on Friday, May 3. The Chef’s Table will feature a lunch of five courses of delicious local produce cooked by celebrity chef Ben O’Donoghue and served with matching wines on a gorgeous rural property in Dalby. For tickets to this event, go to the website www. bigskiesevents.com.au. ◗ RIGHT: A Taste of the West provided plenty of opportunities to sample the finest in local produce.

Team of pros know market’s doing well SHARON GOODHEW

Office and Property Manager, Raine & Horne Roma

LET me introduce myself.... My name is Sharon Goodhew and I am part owner of PJH Livestock Pty Ltd/Raine and Horne Roma. I am part of a strong team focused on residential and rural sales and property management. My aim is to be able to offer to you a column that concentrates on our local market while also incorporating tips of the trade when listing your property for sale or renting. Many people say that information is power – and in a highly competitive market that is certainly the case. Our team of Steven Goodhew (principal) specialises in livestock sales, Athol Cleland (real estate Sales) and Samantha Blanks (property management), along with Tanya Dawes (administration) are highly motivated group who show case experience and excellent local knowledge. Contrary to popular belief, Roma’s property market has not gone bust! In fact, residential properties continue to sell with the average medium price $265,000 (according to realestate.com as of March 28). Our rental market is seeing an increased demand for housing while availability is tight. Over recent months we have seen rents on the increase, with the average four bedroom home having a medium rent of $320 per week – this is a 3.4 per cent increase. I look forward to discussing our local market with you in the coming months.

Major benefits in proactive approach DAVID LITTLEPROUD

Member for Maranoa

THE Surat Basin is an economic engine and it’s my job to make sure that decentralisation and infrastructure projects support continued growth in the area. I’m proud to see the $635 million Warrego Highway Upgrade Program in its final stages and delivering a safe and efficient freight corridor for agricultural and mining businesses to move their products. The additional $75 million I secured for roadwork between Oakey and Miles will benefit truckies and also tourists who are heading out west in this Year of the Outback. Highways between Townsville and Roma will also be updated, creating a new freight corridor and that means more choices and more business for towns in the Surat Basin. Jandowae residents will have more choices too when it comes to healthcare. The Jandowae medical centre will open later this year thanks in part to the $300,000 I secured to help build the facility. Socially, I’ve funded Local Drug Action Teams across the region, including Dalby, Chinchilla, and Roma, to help locals fight the scourge of drugs. Proactively targeting drug abuse means we are saving our communities and looking to a brighter and economically prosperous future where we are all able to contribute our worth.

Times are still tough despite recent rainfall TYSON GOLDER

Maranoa Regional Council Mayor

WELCOME to another update from the Maranoa. With autumn nearly half over, the days are starting to get shorter – but weather-wise, the days are magic with daytime temperatures in the Maranoa mild high 20s. On the rain front, some of the Maranoa was lucky enough to get some very welcome rain with other areas missing out. The Maranoa region will be going into winter with the least grass cover for many years, so this year could be a case of taking it one day at a time.

My thoughts are with everyone struggling through this. On a positive note, some local businesses have benefited with Senex – a junior gas producer – starting to grow operations in the Maranoa. Managing Director and Chief Executive Officer Ian Davies has a strong commitment to using local business and having people living locally where possible. Senex has also hired locals with local knowledge and experience. I look forward to Senex working with all our local businesses as Senex grows to find out how Senex can partner with locals to deliver long-term support for businesses in the Maranoa and in turn strengthen Senex as a low cost gas producer – with local ethics.

Thursday, April 25, 2019 suratbasin.com.au

Harsher punishment is an essential ANN LEAHY

Member for Warrego

WELCOME to the April Edition of the Surat Basin News. It is disappointing that April has commenced with farmers and families being stressed by militant activists who are threatening our Agricultural Industries and international biosecurity reputation. It is my view that we should throw the book at these militant activists who show the ugly side of public protest. These fanatical zealots want to close down rural and regional Australia. They want to shut feedlots, close farms, ban any and all animal products, close mining, turn off reliable electricity, shut down our ports, freight and train lines. They want to put our regions out of existence. We should not tolerate masked individuals who enter private property and verbally assault the owners or staff. I do not believe that any farming family or processor should have to tolerate this action at their home or workplace. I will stand shoulder to shoulder with the agricultural industry against these activists. The brazen invasion of feedlots, abattoirs, and piggeries, shows these activists do not fear authorities or have any respect for private property ownership, nor do they understand the biosecurity risks to animal or human health of their behaviour. Queensland has just had two week Parliamentary Sitting of the State Government. Six days of Parliament when the Palaszcuck Labor Government could have passed legislation to beef up the trespass laws to ensure that these zealots who invade properties face jail time. While on the spot fines are welcome, this will not stop some activists who use social media for fundraising. They are fanatical and simply don’t care about being fined and we see this with the repeat offenders whom of whom have returned to properties three times. Both the agricultural and mining sectors need tough new laws now to deal with the activists and it is the responsibility of the State Labor Government to enact these. It is disappointing that the Palaszczuk Labor Government missed the opportunity in the last two weeks of parliamentary sittings. Governments have to be judged by what they do, not what they say. I welcome the Federal Coalition Governments decision to bring Aussie Farms under the Privacy Act, exposing them to potential penalties of more than $400 000 for breaches of the Act. Prescribing Aussie Farms allows the Information and Privacy Commissioner to investigate, either in response to a complaint or on her own initiative. If Aussie Farms breaches the Privacy Act. The prescription comes into force as of Saturday, April 6. This is a much needed crackdown on animal extremists who illegally use personal information to attack our hard working farmers. I call on the Palaszczuk Labor Government to enact stronger powers for police to protect our farmers and processors. Beef up the trespass laws and ensure the threat of jail time is a reality for these extremists.

OPINION

New guide provides up-to-date details CAROLYN COLLINS

Chinchilla parkland is coming soon PAUL MCVEIGH

CEO, GasFields Commission Queensland

Western Downs Regional Council Mayor

THE new GasFields Commission Gas Guide is another Queensland first. The Gas Guide pulls together all the information landholders need to know about gas development into one document covering everything from the awarding of exploration permits through to rehabilitation of the field. It’s the first time all the information has been compiled into one easy to read, updateable ring binder by an independent authority. It’s a customisable ready reckoner for everything gas in Queensland. The guide is broken into 11 chapters including a roadmap that landholders can put up on the office wall to follow the various stages of gas development and find the information they need. As new information becomes available or other information becomes obsolete, the Commission will update individual chapters and landholders can simply replace the old one in their ring binder. As part of the distribution process, landholders will be asked if they want to receive updates and the Commission can mail them out as they’re printed. The Gas Guide will also be available online on the GasFields Commission website. The information in the Gas Guide can be used for educational purposes, as a reference guide, to help develop business plans, prepare for meetings or whatever else a landholder might need. Commission staff will have the guides available at future information sessions or you can register online to have a guide mailed out – visit the website www.gasfields commissionqld.org.au/subscribe. The Gas Guide is another initiative designed to give people the information they need to make informed decisions about their business. Queensland is the first state to develop a commercially viable onshore gas industry so it makes sense for the GasFields Commission to be developing Australian first initiatives to support all stakeholders. The Gas Guide joins the GasApp (below) and our biosecurity training package as another Queensland first.

A HOT topic across our region at the moment is the much-anticipated completion of the Chinchilla Botanic Parkland. With the cenotaph now in place, the playground complete and the landscaping progressing at a pleasing rate, we are on track to officially open in late May. There are areas for all ages to enjoy, with historical and cultural displays and a Megafauna Discovery Space, making it a great entertainment venue or for locals to meet up with family and friends, as well as a refreshing stop for travellers who are passing through the town. Our Big Skies Festival will be in full swing from April 27, but there’s still time to get involved. Why not join one of the regional tours that will be held on May 2-3? The tours will explore a variety of industries across the Western Downs, with a focus on agriculture, history, manufacturing and energy. Explore behind the scenes of some of our cornerstone industries, discover hidden facets of our historical origins, or see first-hand some of our agricultural success stories. The tours span Miles, Dalby, Tara, Condamine, Bell, Meandarra, Chinchilla and Wandoan, covering cotton farms, feedlots, the story of the prickly pear crisis, innovative manufacturing technologies and of course, some of our renewable energy sites. Or enjoy the best classic Aussie rock west of the great divide, at our Day on the Plain on Saturday, May 4 on the grounds of the iconic Jimbour Station, featuring a great line-up of artists. Over the past couple of months, it’s been good to see a new generation of our young people preparing to make a positive impact in the business world, firstly with our student leadership workshops across the region in March. The interactive workshops had the theme of ‘leadership – more than a badge’ and explored opportunities for young people to be involved in their communities and be proud of their contributions. I also met with 11 new trainees at the Shell QGC Pathways Apprentice and Trainee Program, and it was clear that we are all invested in developing the next generation of skilled workers within our resource sector. In early April, two of Council’s very own graduating AFL Sportsready trainees received awards at the State function in Brisbane. These traineeships are supported by Arrow Energy and the awards recognised the hard work of two young achievers who completed their Cert III in Business and are now employed within Council’s Infrastructure and Records teams. Recently Western Downs Regional Council has become one of only a handful of council’s in the state to be debt-free, having paid the final instalment of its $60 million debt. This is really big achievement for any council, and I’m very proud that we have been able to pay off our debt in four years. We’ve done this while still providing great facilities and amenities across the region, we’ve been able to put ourselves in a very strong position both now and in the future.

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PLACES AND FACES

suratbasin.com.au Thursday, April 25, 2019

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◗ Bridget Noble, Pip Wolstenholme and Tom Brasch walk the show jumping course with dog Zara.

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◗ QUICK BREAK: Nicole Collins featured in the Young Farmers Challenge at the Dalby Show.

Thursday, April 25, 2019 suratbasin.com.au

◗ Shirley Buckley and Lorna Apelt.

PLACES AND FACES

◗ Emily Akers and Nicole Collins.

◗ Darren Grey with his 1938 Cooper.

◗ Abby Marshall and Shania Deem.

◗ DALBY SHOW: Amber Armstrong, Jodie Danieli and Andrew Hancock.

PHOTOS: EMILY BRADFIELD

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◗ Crackup Sisters ST Ruth and Twiggs with Elsie Ashford (middle).

PLACES AND FACES

View the last edition The latest news online online Read our last issue at www.suratbasin.com.au

Keep in touch with the latest news with just a mouse click. www.suratbasin.com.au

suratbasin.com.au Thursday, April 25, 2019

Surat Basin News Published by Chinchilla Newspapers Pty Ltd 12 Mayne Street, Chinchilla, Q 4413 Printed by APN Print Warwick General manager: Erika Brayshaw

April Enterprise Evening

MPs impressed with our region Special event shows off our best attributes at Parliament House TOOWOOMBA and Surat Basin Enterprise (TSBE) hosted their April Enterprise Evening at Brisbane’s Parliament House which provided a rare opportunity to enjoy an evening of networking on the Speaker’s Green. TSBE has a clear mandate to ensure that politicians are aware of the activity in the wider Surat Basin region and are committed to presenting the Toowoomba region to a wider audience. This was an opportunity for over 300 industry leaders from across southern Queensland to advocate for the region, with over 25 Members of Parliament in attendance. Delegates were addressed by the Hon Dr Anthony Lynham, Minister for Natural Resources, Mines and Energy. He discussed energy and the opportunities it provides in the Downs and southwest. “Toowoomba is a gateway to our $70 billion gas industry and our emerging renewables energy hub, every time I go out there I am amazed at how it has developed – it is an economic powerhouse,” Dr Lynham said. The Darling Downs region is an invaluable economic contributor and TSBE is committed to helping drive jobs and improve liveability in Toowoomba and surrounds. The event was supported by platinum TSBE member AGL, with their managing director and CEO Brett Redman addressing attendees on the night. Mr Redman provided a brief update on recent milestones achieved by the company which includes the Coopers Gap Wind Farm, located between Dalby and Kingaroy, which has about 100 blades to go. “This annual event enables our members to network at an impressive location allowing us to promote our region,” TSBE CEO Ali Davenport said. “Our region is showing phenomenal growth especially in the renewable energy sector – we have achieved so much but the best is yet to come.”

◗ APRIL ENTERPRISE: Minister for Natural Resources, Mines and Energy, Anthony Lynham, speaks at the April TSBE event. PHOTO: CONTRIBUTED