APN Research Brief: Seize Pauls Dairy for 2032 Olympic Workforce Hub

Executive Summary

This Cabinet-Level Acquisition Brief is submitted to the Department of the Premier and Cabinet to advocate for the urgent and immediate state intervention in the sale of the property located at 108 Montague Road, South Brisbane. Formerly the operational headquarters and production facility for Lactalis Australia (Pauls Dairy), this 1.697-hectare site is currently “under contract” to private interests, poised for conversion into high-density residential towers under the permissive Kurilpa Temporary Local Planning Instrument (TLPI).¹

The central thesis of this brief is that the standard redevelopment model for South Brisbane, luxury residential densification, represents a strategic failure in the context of the forthcoming Brisbane 2032 Olympic and Paralympic Games. The State faces a catastrophic construction workforce shortfall, projected to peak at 50,000 workers by 2026-27.³ This labour deficit threatens to derail the delivery of critical Olympic infrastructure, inflate capital works budgets through hyper-escalation of wages, and leave a legacy of debt rather than capacity.

Accordingly, this proposal recommends the acquisition of 108 Montague Road to establish the Kurilpa Construction & Technology Campus (KCTC). This facility is envisioned as a world-class “Living Lab” for advanced construction training, modern methods of construction (MMC), and large-scale infrastructure simulation. By securing this site, the Government creates a sovereign capability asset that directly addresses the greatest risk to the 2032 Games: the inability to physically build the required venues on time and on budget due to a lack of skilled human capital.

The Convergence of Crisis and Opportunity

The argument for acquisition rests on the intersection of three critical timelines: the imminent closure of the Lactalis factory in July 2026⁴, the escalation of the Olympic infrastructure programme, and the acute housing supply crisis.

Independent analysis by Construction Skills Queensland (CSQ) and the Queensland Audit Office confirms that the state’s construction pipeline will surge from $53 billion to $77 billion by 2026-27.³ This 45% increase in activity coincides with a structural hollowing out of the skilled trades sector. The traditional mechanisms of workforce development, regional TAFEs and remote training centres, are insufficient to generate the volume and calibre of specialised labour required for complex Olympic venues like the new Brisbane Arena or the refurbished Gabba precinct.

The KCTC proposal rejects the binary choice between “derelict industry” and “luxury apartments.” Instead, it champions Strategic State Highest and Best Use (HBU). While the market valuation of the site is driven by its potential for 90-storey residential towers⁶, the strategic value to the State of a facility that can produce 2,000 job-ready tradespeople annually far exceeds the one-off stamp duty revenue from private development.

The Site as a Sovereign Asset

108 Montague Road is not merely a generic development parcel; it is a strategic keystone. It contains significant industrial heritage, specifically the 1944 Art Deco administration building designed by Conrad and Gargett, which offers a ready-made institutional identity.⁷ Crucially, the site is located directly adjacent to the State-owned 7.1-hectare former Visy Glass Factory site.⁸

The Government’s current plan for the Visy site, a mixed-use precinct of 4,000 homes following the cancellation of the International Broadcast Centre (IBC), risks fragmenting a contiguous 9-hectare riverfront holding.⁹ By acquiring the Lactalis site, the State consolidates this precinct, allowing for the integration of training facilities (Lactalis) with potential housing or parkland (Visy), thereby creating a holistic urban campus that serves both the economic and social needs of the city.

Recommendations

It is recommended that Cabinet:

1. Authorise the Coordinator-General to immediately issue a Notice of Intention to Resume (NIR) for 108 Montague Road, South Brisbane, arresting the current settlement process with the private purchaser.
2. Designate the Site for “Strategic State HBU” as an Educational and Industrial Technology precinct, overriding the residential focus of TLPI 02/2023.
3. Establish the KCTC Taskforce, partnering with Constructionarium Australia, TAFE Queensland, and the Unite32 consortium to fast-track the retrofit of the facility for a 2027 operational launch.

The Strategic Context: A Workforce in Crisis

The Quantitative Dimensions of the Labour Shortage

To understand the necessity of the Kurilpa Construction & Technology Campus, one must first confront the scale of the impending labour crisis. The “Business as Usual” approach to workforce planning has been rendered obsolete by the sheer velocity of Queensland’s infrastructure pipeline.

The Horizon 2032 Projections

The Horizon 2032 report, produced by Construction Skills Queensland (CSQ), serves as the primary evidentiary basis for this alarming outlook. The data indicate that the state’s construction industry is approaching a precipice. The pipeline of funded and committed work is forecast to grow from a baseline of $53 billion in the 2024-25 financial year to a peak of $77 billion in 2026-27.⁵ This represents a surge of unprecedented magnitude, driven not by a single sector, but by a “perfect storm” of competing demands:

• Population Growth: With Queensland’s population projected to exceed 6 million by 2032, the demand for residential housing, schools, and hospitals creates a high baseline of construction activity that cannot be paused.⁵
• Energy Transition: The aggressive push toward net-zero emissions requires a vast army of electrical and civil engineers to deliver renewable energy zones, transmission lines, and pumped hydro projects. These projects compete directly for the same trade base required for urban infrastructure.¹⁰
• Olympic Compression: The delivery window for Olympic venues is immutable. The opening ceremony on July 23, 2032, acts as a hard deadline, compressing the construction schedule and removing the flexibility to delay projects to smooth labour demand.¹¹

The result of this convergence is a projected labour deficit of terrifying proportions. CSQ estimates an average annual shortfall of 18,200 workers over the next eight years.³ However, averages conceal the severity of the peak. In the critical window of 2026-27, precisely when the KCTC is proposed to come online, the shortfall is expected to spike to 50,000 workers.³

The “Missing Middle” of Skills

The shortage is not uniform across all skill sets. While there is a general need for labourers, the acute crisis lies in the specialised trades required for complex vertical and civic infrastructure, the exact type of infrastructure required for the Games.

• Structural Trades: Formworkers, steel fixers, and concreters are in critical undersupply. The shift to high-density living and large-span stadiums increases the intensity of concrete and steel usage per project, amplifying the need for these specific skills.¹⁰
• Finishing Trades: As the housing target of one million homes by 2044 ramps up¹², the demand for electricians, plumbers, and glaziers will outstrip supply.
• Digital Engineering: The modernisation of the sector requires workers literate in Building Information Modelling (BIM) and digital twin technology. The current training infrastructure, largely based on 20th-century vocational models, is failing to produce these “hybrid” tradespeople at scale.¹³

The Economic Threat of Inaction

The economic consequences of failing to address this shortage extend far beyond project delays. The primary risk is hyper-inflation of capital costs.

When demand for labour exceeds supply by a margin of 50,000 workers, wage escalation becomes inevitable. The Queensland Major Contractors Association (QMCA) has already forecast construction costs to rise by over 7% in 2025, with sustained escalation through 2028.¹⁴

For the State Government, this inflation is a direct threat to fiscal stability. The $7.1 billion venue infrastructure envelope agreed upon by the State and Federal governments is fixed in nominal terms.³ If labour costs, which typically comprise 40-50% of civil construction project values, escalate by 20-30% due to scarcity, the real purchasing power of that $7.1 billion is eroded. This leads to two unacceptable outcomes:

1. Scope Reduction: Iconic projects like the Brisbane Arena or the Sunshine Coast Indoor Sports Centre are value-engineered into mediocrity, failing to deliver the promised legacy.
2. Budget Blowouts: The State is forced to inject supplementary funding, drawing resources away from health, education, and regional development, creating political vulnerability.

The Failure of the “Poaching” Strategy

Current government rhetoric, as articulated by Deputy Premier Jarrod Bleijie, suggests a strategy to “beg, borrow and steal workers” from interstate and overseas.³ This approach is fundamentally flawed for several reasons:

• National Competition: New South Wales and Victoria are engaged in their own massive infrastructure builds (“Big Build” in Victoria, Metro West in Sydney). They are equally desperate for labour and are offering aggressive wage premiums to retain their workforce.¹⁶
• Housing Constraints: Even if workers could be attracted to Queensland, the housing crisis in South East Queensland means there is nowhere for them to live. Vacancy rates are at historic lows, and rents are soaring.¹⁶ Importing 50,000 workers without a strategy to house them will only exacerbate the cost-of-living crisis for existing residents.
• Sovereign Risk: Relying on transient labour creates a fragile workforce that can evaporate if economic conditions shift elsewhere. A sovereign capability approach, training Queenslanders, builds a permanent asset.

The Case for “Living Labs”

To solve a problem of this magnitude, the training model must change. Traditional classroom-based learning or remote TAFE campuses are too slow and too disconnected from the reality of major projects. The industry requires “Living Labs”, immersive training environments that simulate the pressure, complexity, and scale of real construction sites.¹⁷

The Constructionarium model, which allows students to build scaled replicas of real infrastructure (like the Story Bridge), has proven highly effective in accelerating competency.¹⁸ However, the current facilities at Salisbury are constrained by size and visibility. A flagship, inner-city campus at 108 Montague Road would supercharge this model, making construction visible, desirable, and accessible to a new demographic of school leavers who currently view the industry as “low tech.”

Site Dossier: 108 Montague Road, South Brisbane

Property Particulars and Disposition

The subject site, known historically as the Pauls Ice Cream & Milk Factory, represents one of the most significant strategic landholdings on the Brisbane River peninsula.

The site is currently in a state of transition. Lactalis Australia announced the closure of the factory in early 2026, citing that the facility was “no longer fit for purpose” and that the suburb had transitioned away from industrial uses.⁴ The property was subsequently listed for sale by Savills and is now reportedly under contract.² Intelligence suggests the purchaser is a major residential developer, consistent with recent acquisitions in the area such as Mosaic Property Group’s purchase of the nearby 91 Montague Road for $30 million.²²

The Industrial Heritage of “Pauls”

The site is not a blank slate; it is a repository of Queensland’s industrial history. Pauls Ice Cream & Milk Ltd established its presence here in 1937, moving from smaller premises to compete with Peters Arctic Delicacy Co..⁷ The factory played a crucial role in the wartime economy, supplying dairy products to US and Australian forces in the Pacific theatre.

The most significant structure on the site is the Administration Building, located at the corner of Montague Road and Hope Street. Completed in 1944 and designed by the renowned Brisbane architectural firm Conrad and Gargett, this building is a Local Heritage Place (Citation 1518).⁷

• Architectural Style: The building is a fine example of Inter-War Functionalist/Art Deco architecture. It features face brickwork, distinctive horizontal banding (expressing the “streamline” aesthetic of the era), and continuous cantilevered sun hoods.²³
• Landmark Value: The prominent corner entry tower stands as a visual anchor for the precinct. It was designed to complement the Montague Hotel opposite, creating a framed gateway to the industrial peninsula.

Under a private residential development model, the integrity of this building is at severe risk. Standard practice would likely involve “facadism”, retaining only the external skin of the heritage building to serve as a foyer for a 50-storey tower. This approach destroys the spatial and historical context of the structure. The KCTC proposal, by contrast, advocates for adaptive reuse, retaining the building as the functional administrative heart of the campus, preserving its interior volumes and its relationship to the street.

The “Visy Nexus” and Precinct Integration

The strategic value of 108 Montague Road cannot be assessed in isolation. It must be viewed in the context of the Visy Glass Factory site located immediately adjacent (or in close proximity) at 99-187 Montague Road.

• The Visy Acquisition: In 2022, the State Government purchased the 7.1-hectare Visy site for $165 million.²⁴ The stated intent was to construct the International Broadcast Centre (IBC) for the 2032 Olympics.
• The Pivot: Following the 100-Day Review of Olympic Infrastructure in 2025, the IBC plan was scrapped due to cost concerns and flood risk.¹² The Government has now pivoted to a “mixed-use” vision for the Visy site, inviting private developers to propose a precinct including 4,000 homes and public parkland.⁸

This pivot presents a risk and an opportunity. The risk is that the Visy site becomes just another residential enclave, failing to deliver a unique economic driver for the city. The opportunity lies in amalgamation. By acquiring the Lactalis site, the Government would control a massive, consolidated landholding of nearly 9 hectares in the inner city.

This scale is critical. A “Construction Campus” requires space for large machinery, laydown areas for materials, and outdoor simulation zones, activities that are difficult to accommodate on a constrained 1.7-hectare block but feasible within a 9-hectare integrated precinct. The Lactalis site can serve as the “hard” industrial training edge, buffering the residential/parkland uses proposed for the riverfront Visy lands.

Urban Planning and the TLPI Distortion

The planning context for the site is defined by the Kurilpa Temporary Local Planning Instrument (TLPI 02/2023).⁶ This instrument was introduced to facilitate rapid housing supply by suspending the existing City Plan height limits.

• The Mechanism: The TLPI allows for “Higher density residential buildings” to reach heights limited only by aviation safety (approx. 274m or ~90 storeys).²⁵
• The Consequence: This zoning has artificially inflated the land value of 108 Montague Road. The “Under Contract” price likely reflects a yield of 2,000+ apartments.²¹

However, the TLPI creates a paradox. While intended to solve the housing crisis, it exacerbates the construction crisis. Every 90-storey tower approved under the TLPI draws hundreds of skilled workers away from the infrastructure projects needed to support that very population growth. The TLPI effectively prioritises private luxury development over public infrastructure capacity.

The acquisition strategy must therefore involve a planning override. By designating the site for “Community Infrastructure” or “Educational Establishments,” the State signals that the HBU is not a maximum residential yield, but a maximum strategic utility.

The Proposal: Kurilpa Construction & Technology Campus (KCTC)

Concept and Vision

The Kurilpa Construction & Technology Campus (KCTC) is proposed as a sovereign capability asset designed to industrialise the production of skilled labour. It moves beyond the passive education model of a classroom and adopts the active, immersive model of a “Living Lab.”

The vision is to create a facility where the next generation of construction professionals, from apprentices to structural engineers, train on a site that mimics the complexity, safety standards, and technological environment of a Tier 1 major project. It brings the “site” to the “school.”

Functional Components and Curriculum

The KCTC will be divided into four primary operational zones, each targeting a specific deficit in the current workforce.

The “Constructionarium” Super-Hub

Building on the success of Constructionarium Australia¹⁸, the KCTC will host a permanent, large-scale simulation facility. Constructionarium currently operates at the Construction Training Centre in Salisbury, but its potential is limited by space and visibility.

• The Model: Participants (undergraduates and apprentices) spend 8 days building a scaled replica of a major infrastructure asset (e.g., a 1:10 scale Story Bridge or a pumped hydro battery).²⁶ This “build” covers the entire project lifecycle: tender, procurement, safety management, construction, and handover.
• The Kurilpa Expansion: The Lactalis site allows for larger, more complex builds. We propose the installation of a “Variable Infrastructure Rig”, a flexible foundation system that can host rotating builds, such as a scaled section of the proposed Brisbane Arena roof or a segment of the Athlete Village modular housing.
• Impact: This hands-on experience accelerates “site readiness.” Graduates emerge with a practical understanding of how engineering drawings translate to physical reality, reducing the “learning curve” costs for employers.

The Centre for Modern Methods of Construction (MMC)

To bridge the 50,000-worker gap, Queensland cannot rely solely on traditional manual labour. We must improve productivity through MMC (off-site manufacturing, pre-fabrication, and automation).

• The Facility: A repurposed warehouse on the Lactalis site will house the MMC Centre. This will feature robotic bricklaying arms, 3D concrete printers, and CNC timber framing lines.
• The Curriculum: Tradespeople will be upskilled in the operation and maintenance of these machines. This creates a new category of worker: the “Digital Tradesperson,” attractive to younger, tech-savvy recruits who might otherwise choose other industries.
• Prototype Factory: The facility will serve as a prototyping ground for the modular units required for the Olympic Athlete Villages. This creates a direct feedback loop: trainees build the prototypes that will eventually be mass-produced for the Games.

The Heritage Design & Management Institute

The 1944 Pauls Administration Building⁷ will be adaptively reused to house the “brain” of the campus.

• Adaptive Reuse Strategy: The cellular offices and boardrooms of the heritage building are ideal for conversion into design studios, BIM (Building Information Modelling) labs, and project management seminar rooms.
• Digital Twin Command Centre: A central control room will be established where students can monitor the “live” builds in the Constructionarium zone using sensors, drones, and IoT (Internet of Things) technology.¹⁷ This teaches the digital skills required for managing modern smart infrastructure.
• Soft Skills Academy: Dedicated spaces for training in safety leadership, mental health first aid, and procurement ethics, critical areas often neglected in technical training.

The Public Interface: “The Theatre of Construction”

A key failure of the construction industry is its invisibility; sites are hoarding-wrapped fortresses. The KCTC will be designed to be porous and visible.

• Viewing Galleries: Safe, elevated walkways will allow the public and school groups to watch the training builds in progress. This “performative” aspect turns construction into a spectator sport, generating interest and recruitment leads.
• The Pauls Plaza: The corner of Montague and Hope Streets will be activated with a public cafe and a small museum celebrating the site’s dairy history.²⁷ This ensures the site remains a community asset, not a closed fortress, helping to mitigate local opposition to continued industrial use.

Operational Model: A Public-Private Partnership

The KCTC cannot be a purely bureaucratic entity. It requires the agility of the private sector and the stability of the state.

• Governance: The campus will be managed by a new statutory body (or a subsidiary of the existing Construction Training Centre), with a board comprising representatives from TAFE Queensland, Major Contractors (e.g., CPB, Laing O’Rourke), and the Unions (CFMEU/ETU).
• Funding: Operational costs will be shared. The State provides the facility (CapEx). Industry partners pay subscription fees or training levies (OpEx) in exchange for guaranteed access to graduates.
• University Integration: The site’s proximity to UQ (via the Green Bridge), QUT, and Griffith University¹ makes it an ideal satellite campus for their engineering and architecture faculties, fostering cross-pollination between trades and professions.

The Economic Case: Strategic State HBU

Redefining Highest and Best Use (HBU)

In real estate valuation, HBU is typically the use that generates the maximum land value, in this case, high-density residential towers. However, for a government, HBU must be defined by Strategic Value.

• Private HBU (Residential): Generates one-off stamp duty. Delivers ~2,000 apartments. Negative Externality: Consumes scarce labour, inflating construction costs for public works.
• Strategic State HBU (KCTC): Generates 2,000+ skilled workers annually. Positive Externality: Deflates construction costs by increasing labour supply. Secures the delivery of the Olympics.

Cost of Inaction Analysis

The cost of acquiring the site must be weighed against the cost of not acting.

• The Inflation Risk: The venue infrastructure budget is $7.1 billion. If the labour shortage causes a conservative 5% cost overrun due to wage inflation and delays, the cost to the State is $355 million.
• The Acquisition Cost: The estimated market value of the site (based on the Mosaic sale of $30m for ~4,000m² nearby²²) is high. At ~$7,000/m², the 1.7ha site could be valued at ~$118 million. With a premium to break the contract, the acquisition cost could reach $130-$140 million.
• The ROI: Investing $140 million to prevent a $355 million blowout represents a Return on Investment of over 150%. This does not include the long-term economic benefit of a permanently upskilled workforce.

Opportunity Cost of Residential Development

Developing the site for residential use is not neutral; it is actively harmful to the State’s immediate goals. A 3-tower, 50-storey development requires:

• ~300-500 workers on site for 3 years.
• Massive quantities of concrete and steel.
• Logistical capacity on Montague Road.

This project would directly compete for the same resources needed for the Brisbane Arena and the Gabba upgrade. By acquiring the site, the State effectively “de-risks” the resource pool, ensuring that labour and materials are directed toward priority public infrastructure rather than private luxury stock.

Implementation Strategy and Governance

Legal Mechanism: Compulsory Acquisition

Given the site is “Under Contract,” time is of the essence. The State must utilise its powers under the State Development and Public Works Organisation Act 1971 or the Acquisition of Land Act 1967.

• Notice of Intention to Resume (NIR): The Coordinator-General should immediately issue an NIR. This legal instrument freezes the private transaction. The contract cannot be settled once an NIR is in place.
• Justification: The acquisition is for “Educational and Training Facilities,” a recognised public purpose. The strategic necessity of the Olympics provides the “compelling public interest” required to defend against legal challenges.
• Compensation: The State will be required to pay “market value.” This will be a contentious negotiation given the TLPI zoning. However, the State can argue that the site’s value should be discounted by the significant infrastructure charges and flood mitigation costs associated with residential development, which the KCTC would not incur to the same degree.

Planning Override

To facilitate the KCTC, the State must override the residential focus of the Kurilpa TLPI.

• Ministerial Infrastructure Designation (MID): The Minister for State Development can designate the site for “Education Facilities.” This removes the need for Brisbane City Council development approval and exempts the project from the residential provisions of the TLPI.
• Master Plan Integration: The KCTC master plan should be developed in conjunction with the Visy site master plan. This ensures that the two precincts, one training/industrial, one mixed-use/parkland, interface correctly, perhaps sharing energy infrastructure or public realm elements.

Timeline and Phasing

Risk Management

Comparative Case Studies: Adaptive Reuse and Training

The “Constructionarium” Precedent (UK & Australia)

The Constructionarium model is not theoretical; it is a proven success.

• UK: Established over a decade ago, it allows students to build scaled versions of the Gherkin, Ravenspurn Oil Rig, and Millau Viaduct.²⁸
• Victoria: The “Big Build” programme at Hallam utilises a bespoke “Big Build Bridge” to train graduates for the Level Crossing Removal Project.²⁹
• Queensland (Salisbury): The current facility builds a replica Story Bridge and Eleanor Schonell Bridge.²⁶

Lesson for Kurilpa: The success of these programmes relies on partnership. The KCTC would scale this up, moving from a peripheral industrial estate (Salisbury) to a central urban showcase, drastically improving the industry’s brand.

University Academy (Adaptive Reuse of Aviation Terminal)

A relevant case study in adaptive reuse for education is the conversion of an abandoned airport terminal in Panama City, Florida, into the University Academy.

• The Project: An obsolete transport facility was transformed into a charter school. The large open spans of the terminal were converted into flexible learning spaces, and the “industrial” aesthetic was retained to create a unique identity.³⁰
• Relevance: This demonstrates that industrial/transport buildings (like the Lactalis factory) are ideally suited for conversion into educational facilities. The large volumes, high ceilings, and robust structures allow for “messy” learning that standard classrooms cannot accommodate.

Conclusion

The 2032 Brisbane Olympic and Paralympic Games present a choice for the Queensland Government. We can proceed with “Business as Usual,” allowing the market to cannibalise our limited workforce for luxury apartments, driving up the cost of the Games and risking a legacy of debt and unfinished projects. Or, we can intervene.

The acquisition of 108 Montague Road is a strategic imperative. It secures a critical land asset, preserves a piece of Brisbane’s history, and creates the engine room for the workforce of the future. The Kurilpa Construction & Technology Campus will be more than a training centre; it will be a statement of intent, a declaration that Queensland is serious about building its own capacity, securing its own future, and delivering a Games that leaves a legacy of human capital that will last for generations.

It is the recommendation of this Brief that the State move immediately to acquire the site.

Detailed Report: Analysis and Justification

The Strategic Crisis: Workforce Capability and the 2032 Deadline

The fundamental threat to the success of the Brisbane 2032 Olympic and Paralympic Games is not a lack of funding or political will, but a physical lack of human capacity to execute the work. The Horizon 2032 report by Construction Skills Queensland provides a sobering statistical baseline: the state faces an average annual shortfall of 18,200 construction workers over the next eight years.⁵ This deficit is not static; it is projected to intensify dramatically, peaking at a shortfall of 50,000 workers in the 2026-27 financial year, precisely the window when Olympic venue construction must ramp up to peak intensity.³

This shortage is structural, not cyclical. The construction pipeline is forecast to grow from $53 billion in 2024-25 to $77 billion by 2026-27, a 45% increase in activity demand within a 24-month period.¹⁰ This surge is driven by three compounding vectors:

1. Population Growth: Queensland’s population is projected to surpass 6 million by 2032, necessitating massive investment in housing, transport, and utilities.⁵
2. Energy Transition: The push for net-zero requires specialised engineering and construction labour for renewable energy projects, competing for the same electrical and civil engineering talent pool required for Olympic infrastructure.
3. Olympic Infrastructure: The delivery of venues, including the $2.5 billion Brisbane Arena and the extensive upgrades to the Queensland Sport and Athletics Centre (QSAC) and Suncorp Stadium¹¹, creates an inflexible demand spike.

The Queensland Audit Office has explicitly warned that this convergence threatens “delays and cost overruns” for Olympic projects.³ When demand exceeds supply in a labour market by a factor of 50,000, the economic result is inevitably hyper-inflation of wages and contract costs. The State Government’s current strategy, described by the Deputy Premier as a plan to “beg, borrow and steal workers” from interstate, is strategically fragile.³ Southern states are facing their own infrastructure pipelines and labour shortages; a poaching strategy will merely result in a zero-sum wage war that drains the public purse without increasing national capacity.

The Economic Implication of “Business as Usual”

If the State allows the market to proceed unchecked, the “Business as Usual” (BAU) model for South Brisbane dictates the construction of high-density residential towers. The Kurilpa Temporary Local Planning Instrument (TLPI 02/2023) currently permits building heights up to the aviation ceiling (approx. 90 storeys) to facilitate housing supply.⁶

However, in the context of a labour crisis, the indiscriminate approval of luxury high-rise developments in the inner city is counter-productive to the State’s strategic interests. A 50-storey residential tower consumes vast quantities of concrete, steel, and specialised labour (crane operators, formworkers, glazing specialists). By allowing 108 Montague Road to be developed into 2,000+ luxury apartments²¹, the State effectively authorises a private project that will cannibalise the workforce needed for the Olympic venues. It creates a “parasitic” demand on the limited labour pool, driving up the cost of public infrastructure while delivering housing stock that is often out of reach for the workers needed to build it.

The economic cost of this labour shortage is not theoretical. The Queensland Major Contractors Association (QMCA) has indicated that construction costs are forecast to rise by over 7% in 2025 alone, with continued escalation through 2028.¹⁴ On a $7.1 billion venue programme, a sustained inflation rate of 6-7% represents hundreds of millions of dollars in eroded value, money that will either have to be found through budget supplements or result in scope reductions that compromise the Games’ legacy.

The “Legacy” Redefinition

The concept of “Olympic Legacy” has historically been defined by physical assets: stadiums, velodromes, and pools. However, the 2032 Games require a redefinition of legacy centred on Human Capital. The true legacy of the Games for Queensland should be a permanently upskilled workforce, capable of delivering the housing and infrastructure the state needs for decades after the closing ceremony.

The current training infrastructure is insufficient for this task. The existing Construction Training Centre (CTC) at Salisbury, while valuable, is a legacy facility operating on a commercial leasing model.³² It lacks the visibility, scale, and integration with advanced technology required to attract a new generation of digital-native workers. To solve the workforce crisis, we cannot simply rely on traditional TAFE models; we need a paradigm shift toward “Living Labs” and immersive, site-based training that accelerates the path from apprentice to site-ready tradesperson.

2. Site Analysis: 108 Montague Road, South Brisbane

2.1 Property Attributes and Strategic Location

The property at 108 Montague Road, South Brisbane, constitutes a strategic landholding of 1.697 hectares (approx. 4.2 acres) spanning 17 consolidated lots.1 It is situated on the Kurilpa Peninsula, a location that has transitioned rapidly from heavy industry to high-density residential over the last two decades.

Key attributes include:

• Dimensions: A substantial 16,970 m² footprint with extensive frontage to Montague Road, Hope Street, and potentially backing onto the riverfront parcels.19
• Zoning Context: The site falls within the Kurilpa Sustainable Growth Precinct, subject to TLPI 02/2023 (and its 2025 extension), which allows for “unlimited” building heights (up to aviation limits of ~274m).12 This zoning has artificially inflated the land value based on potential residential yield (up to 189,000 sqm GFA).19
• Connectivity: The site is 1.3km from the Brisbane CBD, less than 1km from South Brisbane and West End transport hubs, and sits directly on the high-frequency Glider bus corridor.19

2.2 Proximity to Government Holdings (The Visy Nexus)

Crucially, 108 Montague Road is situated directly adjacent to (or in immediate proximity to) the 7.1-hectare former Visy Glass Factory site.8 This 7.1-hectare parcel was purchased by the State Government in 2022 for $165 million, ostensibly to host the International Broadcast Centre (IBC).24 However, following the 2025 independent infrastructure review, the IBC plan was scrapped in favour of a “mixed-use precinct”.8

The current government strategy for the Visy site involves a partnership with the private sector to deliver 4,000 homes.8 This represents a fragmentation of strategic potential. By acquiring the Lactalis site, the Government would control a contiguous or near-contiguous precinct of nearly 9 hectares in the inner city. This scale is a prerequisite for a “Campus” style development that can house large-scale training simulation (cranes, bridge spans, tunnel sections) alongside high-tech classroom facilities, without the constraints of residential amenity conflicts.

2.3 Industrial Heritage and Cultural Significance

The site is not a tabula rasa. It is the home of the historic Pauls Ice Cream & Milk Ltd factory. The administration building at the corner of Montague and Hope Streets, completed in 1944, is a Local Heritage Place (Citation 1518).7 Designed by prominent architects Conrad and Gargett, the building is a fine example of wartime Art Deco/Early Modern commercial architecture, characterised by face brick, horizontal banding, and a prominent corner entry tower.23

This heritage is not a liability; it is a potent asset for the proposed Construction Campus.

• Narrative Continuity: The site has a history of production and industry. Preserving it for construction (the industry of building the future) maintains a thread of productivity in South Brisbane, resisting the total conversion of the suburb into a dormitory zone.
• Adaptive Reuse Potential: The heritage office building is ideally suited for administration, design studios, and “front of house” functions for the training campus, providing an immediate sense of institutional gravity and identity.
• Industrial Structures: The remaining factory halls (where not heritage listed) offer the vast, clear-span volumes necessary for indoor construction training rigs, pre-fabrication lines, and heavy machinery simulators, spaces that are incredibly expensive to build from scratch.

2.4 Current Disposition: The “Under Contract” Risk

Intelligence indicates that Lactalis Australia has placed the site on the market following the closure of its manufacturing operations, announced for July 2026.4 Listings confirm the property is “Under Contract”.2 Market chatter suggests the purchaser is likely a major residential developer (e.g., Mosaic, Stockwell, or similar entities active in the area).22

Note: While snippets indicate Mosaic purchased 91 Montague Road for $30m 22, 108 Montague remains listed as a separate, albeit related, strategic disposal by Lactalis. The “Under Contract” status of 108 Montague implies a sale is imminent but likely not yet settled.

Urgency: Once settlement occurs, the cost of acquisition will skyrocket. The new owner will immediately capitalize the value of the TLPI-enhanced development approvals. Acquisition before settlement, or compulsory acquisition that interrupts the contract, is the only fiscally responsible pathway to secure the site for public use.

3. The Solution: Kurilpa Construction & Technology Campus (KCTC)

3.1 Concept Overview

The proposal is to establish the Kurilpa Construction & Technology Campus (KCTC): a world-leading, state-owned enterprise dedicated to the rapid acceleration of construction workforce capability. It rejects the binary choice between “industrial dereliction” and “luxury residential.” Instead, it proposes a third way: Strategic Institutional Industrial.

The Campus will function as a “Living Lab,” merging the practical grit of a trade school with the technological sophistication of a university engineering faculty. It will be the nerve centre for the “Games Workforce Strategy.”

3.2 Core Functional Components

The KCTC will comprise four integrated functional zones:

3.2.1 The “Constructionarium” Queensland Hub

Constructionarium Australia 18 currently operates out of the Construction Training Centre in Salisbury. Their model, building scaled replicas of iconic infrastructure (e.g., Story Bridge, Barcelona Tower) to teach project management and engineering, is proven but constrained by its current location and scale.

• The Kurilpa Upgrade: The Lactalis site allows for a “Super-Constructionarium.” Instead of 1:20 scale models, the site can host 1:5 or 1:1 scale component training.
• Visibility: Placing this facility on Montague Road, visible to the public and potential recruits, transforms the image of the construction industry from “hidden labour” to “high-tech career.”
• Partnership: The State would partner with Constructionarium (a not-for-profit) to manage the practical training ground, supported by major contractors (Laing O’Rourke, CPB, etc.) who are desperate for site-ready engineers and supervisors.11

3.2.2 The MMC (Modern Methods of Construction) Assembly Hall

To bridge the 50,000-worker gap, Queensland must build differently. We cannot rely solely on traditional manual labour. The KCTC will house a dedicated facility for training in off-site manufacturing and modular construction.

• Robotics & Automation: Training workers in the operation of robotic bricklaying, 3D concrete printing, and CNC timber framing.
• Prototype Factory: The facility will serve as a testing ground for the modular housing units required for the Athlete Villages (Hamilton, Gold Coast, Sunshine Coast).34 These units can be prototyped at Kurilpa before mass production elsewhere.

3.2.3 The Heritage Administration & Design Centre

The Pauls Ice Cream office building 7 will be adaptively reused to house:

• BIM (Building Information Modelling) Academy: High-tech computer labs for digital engineering, digital twin management, and project scheduling.
• Soft Skills Training: Lecture theatres for project management, safety leadership, and procurement training.
• Industry Incubator: Co-working space for construction-tech startups focusing on efficiency and safety.

3.2.4 The Public Interface (The “Theatre of Construction”)

Unlike a closed factory, KCTC will be designed to engage the community.

• Observation Decks: Safe viewing galleries where school students and the public can watch training builds in progress, fostering interest in trade careers.
• The “Pauls” Plaza: A public realm activation at the corner of Montague and Hope Streets, celebrating the site’s history with a museum/cafe element, maintaining the social license to operate in a gentrifying area.

3.3 Strategic State HBU (Highest and Best Use)

The term “Highest and Best Use” (HBU) is typically defined by market valuation, i.e., the use that generates the highest land price (usually luxury condos). However, for a Sovereign Government facing a crisis, HBU must be redefined as Strategic State HBU.

• Private HBU: 2,000 apartments. One-off stamp duty revenue. exacerbates labour shortage. Privatises the riverfront.
• Strategic State HBU: A facility that generates 5,000+ skilled workers annually. Reduces infrastructure cost blowouts by mitigating wage inflation (saving potentially billions on the $70bn pipeline). Secures Olympic delivery. Preserves heritage.

The economic multiplier of avoiding a 12-month delay to the Olympics or a 10% cost overrun on the venue program far strips the potential revenue from stamp duty on apartments.

4. Economic and Operational Justification

4.1 Cost-Benefit of Intervention vs. Inflation

The Horizon 2032 report indicates a disconnect between the pipeline value and the workforce capacity.5 If the labour supply curve remains flat while demand spikes, the result is cost escalation.

• Scenario A (No Intervention): Labour shortage persists. Wages for trades rise by 20-30% due to scarcity. On a $7.1 billion venue budget, a 20% labour cost escalation (where labour is ~40% of project cost) results in a $568 million blowout.
• Scenario B (KCTC Intervention): The Campus produces 2,000 accelerated trade graduates and upskills 3,000 existing workers annually starting in 2027. This supply injection stabilises wage inflation. The cost of acquiring the site ($40m – $60m est.) and fitting it out ($100m) is $160 million.
• ROI: The “insurance policy” of the KCTC costs significantly less than the probable cost overrun caused by the labour shortage.

4.2 Operational Model: The “Living Lab” Partnership

The KCTC should not be run solely by the Department of Education. It requires a Public-Private Partnership (PPP) model similar to the UK’s Constructionarium or the Advanced Manufacturing Research Centre (Sheffield).

• Government Role: Land owner, capital funding for fit-out, accreditation alignment (TAFE Queensland).
• Industry Role: Funding operational costs (via levies or subscription), providing trainers, donating materials, and hiring graduates. Major contractors (e.g., Unite32 consortium members AECOM, Laing O’Rourke) 11 would be anchor partners.
• University Role: UQ, QUT, and Griffith (all nearby) 1 utilize the site for engineering research and capstone projects.

4.3 Mitigating the “White Elephant” Risk

The 100-Day Review scrapped the International Broadcast Centre at the Visy site because it was not “financially viable” and would become a white elephant.12 The KCTC avoids this fate because:

1. Demand is Perpetual: Even after 2032, Queensland’s growth (to 6 million people) ensures a permanent need for construction training.
2. Adaptability: The facility can pivot to train for whatever the next infrastructure wave requires (e.g., heavy rail, renewables, disaster resilience).
3. Real Estate Value: If, in 2040, the facility is no longer needed, the State still owns a prime riverfront asset that has appreciated significantly.

5. Planning and Legal Mechanisms

5.1 The Failure of TLPI 02/2023

The Kurilpa Sustainable Growth Precinct Temporary Local Planning Instrument (TLPI) was intended to increase housing supply by allowing massive density.6 However, as applied to the Lactalis site, it creates a perverse outcome: it incentivises the destruction of industrial capability in the very location where it is most needed to support the city’s growth.

• Critique: The TLPI focuses on housing quantity but ignores the construction capacity required to build that housing. It is a planning instrument that wills the end (homes) while destroying the means (training infrastructure).
• Override: The State Government, through the Coordinator-General, has the power to designate the site a “State Development Area” or use Ministerial Infrastructure Designation (MID) to override the local planning scheme and the TLPI for the purpose of educational and vocational infrastructure.

5.2 Acquisition Strategy

1. Step 1: Notice of Intention to Resume (NIR): Immediately issue a NIR to the vendor (Lactalis) and the purchaser (under contract). This freezes the private transaction.
2. Step 2: Negotiation: Offer to purchase the site at market value as industrial land, potentially discounting the speculative value of the TLPI approvals if they have not been fully gazetted or if the State signals it will block residential DA approvals on strategic grounds.
3. Step 3: Compulsory Acquisition: If negotiation fails, exercise resumption powers under the Acquisition of Land Act 1967 for the purpose of “educational and training facilities.”

6. Comparative Analysis: Why Not Elsewhere?

Option A: Expand CTC Salisbury

• Pros: Existing facility, lower land cost.
• Cons: Out of sight, out of mind. Low prestige. Poor public transport connectivity for students without cars. Fails to rebrand the industry. Distance from the CBD and major university partners.

Option B: Greenfields Site (Outer Suburbs)

• Pros: Cheap land.
• Cons: Disconnected from the “Olympic Precinct” (South Brisbane/CBD). Unlikely to attract the high-calibre engineering talent and corporate partners who want a central hub.

Option C: 108 Montague Road (The Proposal)

• Pros:

• Proximity: Walking distance to South Bank, Cultural Centre, and the CBD.
• Synergy: Adjacent to the State-owned Visy site (future mixed-use/parkland), allowing for a seamless campus environment.
• Heritage: Authentic industrial atmosphere that “money can’t buy,” crucial for a compelling “Living Lab” environment.
• Visibility: A billboard for the Government’s commitment to skills and jobs.

7. Detailed Implementation Roadmap

Phase 1: Secure and Stabilise (Months 1-6)

• Cabinet Approval: Authorise funds for acquisition (approx. $50m) from the Olympic Infrastructure Fund or Future Fund.
• Acquisition: Complete resumption/purchase of 108 Montague Road.
• Master Planning: Engage architects to design the adaptive reuse of the Pauls factory and integration with the Visy site master plan.
• Consortium Formation: Sign MOUs with Constructionarium Australia, CSQ, QMCA, and TAFE Queensland.

Phase 2: Adaptive Reuse & Fit-out (Months 7-18)

• Heritage Restoration: Refurbish the 1944 Administration Building for classrooms and offices.
• Industrial Fit-out: Convert warehouses into MMC workshops and simulation floors.
• Site Remediation: Address any industrial contamination (standard for dairy/glass sites).

Phase 3: Operational Launch (Month 19 – Mid 2027)

• Soft Launch: First cohort of “Olympic Apprentices” enters.
• Full Capability: Campus fully operational by late 2027, ramping up to peak output by 2028/29 to meet the Olympic construction surge.

8. Risk Assessment and Mitigation

9. Conclusion

The purchase of the Lactalis site is not merely a real estate transaction; it is a strategic maneuver to secure the delivery of the 2032 Games. The current trajectory, selling off our industrial heritage for luxury apartments while facing a catastrophic labour shortage, is a failure of strategic foresight.

By establishing the Kurilpa Construction & Technology Campus, the Queensland Government achieves a triple dividend:

1. Solves the Problem: Creates the workforce supply line necessary to build the Olympics and the State’s future.
2. Saves the Heritage: Preserves a beloved Brisbane landmark (Pauls) and gives it a new, viable life.
3. Creates a Legacy: Leaves a permanent institution of learning and innovation, proving that the 2032 Games built people, not just stadiums.

It is recommended that the Cabinet approve the immediate acquisition of 108 Montague Road.

Detailed Analysis Follows:

10. Historical Context: The Pauls Factory and South Brisbane’s Identity

To understand the value of 108 Montague Road requires looking beyond its land value to its place in Queensland’s industrial DNA. The site has been the home of Pauls Ice Cream & Milk Ltd since the 1930s.

10.1 The Pauls Legacy

Founded in 1923, Paul’s became a household name in Queensland. In 1937, they opened the Montague Road factory, designed to compete with Peters. The site was not just a factory; it was a symbol of Brisbane’s modernisation. During WWII, the factory was pivotal in supplying dairy to US and Australian troops stationed in the Pacific, underscoring its strategic utility.7

10.2 Architectural Significance

The administration building, completed in 1944, is a rare example of wartime civilian construction. Its Art Deco styling, horizontal banding, cantilevered sun hoods, and the face-brick facade represent a specific era of Brisbane’s architectural history that is rapidly vanishing.23

• The Threat: Under a standard private development model, this building would likely be reduced to a “facadist” shell, the external walls propped up while a 60-storey glass tower is extruded through its centre. This destroys the integrity of the heritage item.
• The KCTC Alternative: The Campus proposal keeps the building intact as a functional administrative hub, preserving its dignity and its context.

10.3 The Transformation of Kurilpa

South Brisbane (Kurilpa) was once the industrial engine of the city, lined with wharves, gasworks, and factories. Today, it is Brisbane’s densest residential precinct. While urban renewal is positive, the total erasure of industrial capacity creates a “sterile” city, a place of consumption with no production.

Retaining the Lactalis site as a place of production (producing skills and knowledge) maintains a vital link to the area’s history while serving its modern needs. It prevents South Brisbane from becoming a dormitory monoculture.

11. The Workforce Crisis: A Deep Dive

11.1 The “Cliff” in Data

The Horizon 2032 report paints a stark picture. The construction workforce is aging, and the pipeline of new apprentices is insufficient to replace retirees, let alone meet the growth demand.

• Total Workforce Demand: Peaking at ~156,000 workers in 2026/27.
• Supply Shortfall: Averaging 18,200/year.
• Critical Trades: The shortage is most acute in the “finishing trades” (plumbers, electricians, plasterers) and “structural trades” (formworkers, steel fixers).10

11.2 The Multiplier Effect of the Olympics

Olympic projects differ from standard infrastructure. They have:

1. Immovable Deadlines: The Opening Ceremony date cannot move. This eliminates the option of “smoothing the pipeline” by delaying projects.
2. High Specification: Olympic venues require specialised engineering (long-span roofs, broadcast cabling, security infrastructure) that demands a higher skill tier than residential construction.
3. Simultaneity: All venues must be ready at the same time, creating a massive concurrent demand spike.

11.3 The Stagflation Risk

If the government pours $7.1 billion into a market with zero spare capacity, the result is not more infrastructure, but more expensive infrastructure. We risk a scenario where the budget is spent, but the projects are either de-scoped or delayed.

The KCTC is a deflationary mechanism. Increasing the supply of labour, it reduces the unit cost of construction.

12. The “Living Lab” Concept: Constructionarium Australia

12.1 What is Constructionarium?

Originating in the UK and successfully piloted in Australia (Victoria and Queensland), Constructionarium provides a “simulated site” experience. Students and apprentices build large-scale replicas of real projects (e.g., a 1:10 scale Story Bridge). They act as the project manager, the safety officer, the engineer, and the labourer.18

12.2 Why it Works

• Accelerated Competency: An 8-day intensive at Constructionarium is often valued by industry as equivalent to 6 months of ad-hoc site experience. It condenses the learning curve.
• Integrated Learning: It forces engineers to understand the physical reality of what they design, and tradespeople to understand the engineering constraints. This reduces errors and rework on real sites, a major productivity booster.

12.3 The Kurilpa Expansion

Currently, Constructionarium QLD operates at the CTC Salisbury.18 Moving to 108 Montague allows for:

• Scale: Building larger, more complex structures (e.g., a section of the Athlete’s Village modular housing).
• Technology Integration: Using the “Pauls” office as a digital twin control room, where students monitor the build using sensors and drones, mirroring the future of construction site management.

13. Financial Analysis of the Acquisition

13.1 Estimated Value

• Land Size: 16,970 m².
• Comparables: Mosaic purchased the adjacent 4,282 m² site for $30 million.22 This implies a rate of ~$7,000 per m².
• Estimated Market Price: At $7,000/m², the 108 Montague site could be valued at ~$118 million.
• Acquisition Premium: To break the current contract, the State may need to pay a premium, potentially pushing the cost to $130-$140 million.

13.2 Funding Source

This should not be viewed as a sunk cost.

• Olympic Budget: It is a legitimate “Olympic Legacy” expense.
• Asset Sheet: The land remains a state asset. In 2040, it could be sold for residential development if no longer needed, likely at a profit.
• Offset: If the KCTC saves just 2% of the $7.1 billion venue budget through productivity gains and reduced wage inflation, it saves $142 million, effectively paying for the land acquisition immediately.

14. Conclusion and Next Steps

The window of opportunity is closing. With 108 Montague Road “Under Contract,” the State has weeks, perhaps days, to intervene.

Action Plan:

1. Immediate: Coordinator-General to issue a “stop” on the sale process via Notice of Intention to Resume.
2. Short Term: Treasury to model the acquisition cost against the “Cost of Inaction” (labour inflation).
3. Medium Term: Establish the KCTC Taskforce to design the curriculum and facility fit-out.

This proposal represents a bold, interventionist, and strategic use of state power. It shifts the narrative from “Labor’s White Elephant” (the failed IBC) to a “Crisafulli Legacy” of skills, jobs, and heritage preservation. It is the only viable path to securing the workforce required for 2032.

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