Proposal to close SmartHub as Rockhampton Regional Council looks for ways to reduce costs after funding cuts

The Rockhampton Regional Council has lost more than $6.5m in government funding and has proposed to close the city’s SmartHub in an effort to reduce costs.

The old Customs House building on Quay Street Rockhampton. Photo: Chris Ison / The Morning Bulletin

The popular co-working space SmartHub at The Customs House is on the chopping block as Rockhampton Regional Council looks for ways to cut costs after it received a hefty reduction in government funding.

Council has copped a $6.774 million funding cut per year following a reclassification by the Local Government Grants Commission, funded by the Federal Government but managed by the State Government.

Earlier this month, Mayor Tony Williams and Deputy Mayor Neil Fisher publicly criticised the decision and said it would have a serious impact on the budget, council and the region.

Special council meetings, including one this week, have been held with councillors and officers to discuss the council’s finances.

On Friday afternoon, February 18, SmartHub members received a letter stating council was reviewing where expenditure could be reduced across the council and a potential reduction in services and as a result, one of the proposals council was considering was to cease the operation of the Smart Regional Centre Initiative, which includes SmartHub.

If the decision goes ahead, the coworking facility and all associated activities delivered by the SmartHub would cease by June 30, 2022.

SmartHub members, which at last count was around 100, have been strongly encouraged to find an alternative premises to operate from.

Minister Cameron Dick, Member for Keppel, Brittany Lauga, Member for Rockhampton Barry O'Rourke and former Mayor Margaret Strelow at Rockhampton Smart Hub.

Mayor Tony Williams emphasised the proposal was only under consideration at this stage and no decision had been made.

“I have been outlining to the community these past weeks of the difficult budget situation facing council due to reduced grant funding, lower airport revenue and the cost of carting water to Mount Morgan,” Mr Williams said.

He stated it was a “budget-saving measure”.

“It is not an easy thing to announce, but given the impact on our budget the only real options we have at the moment are either to reduce services or increase rates,” Mr Williams said.

“Neither is something we want to do, but we have to be responsible financial managers and the reality is that tough decisions will need to be made in the lead up to this year’s budget.

“I’ll say again that this measure is only proposed at this stage and we still need to undergo internal consultation with staff before a decision is made.”

Consultation will now occur before any final decision is made.

The opening of Rockhampton Smart Hub.

SmartHub was founded in 2016 and moved to Customs House in early 2018 with business manager Elize Hattin at the helm.

Over the years, there have been many businesses that have started out at one of the SmartHub coworking desks and have moved on to their own commercial premises due to growth.

The SmartHub has also facilitated many successful programs including Start Up Weekend and Turbo Traction Lab, and there are regular business coaching, mentoring and government led events at the space.

Before it was the SmartHub, Customs House operated as a restaurant, Thai Basement, from 2011 to 2016.

Restaurant owner Tai Lam closed the restaurant as it was not financially viable when the Quay Street riverside precinct was closed for redevelopment.

Originally published as Proposal to close SmartHub as Rockhampton Regional Council looks for ways to reduce costs after funding cuts