The Cook Government’s latest report reveals a significant boost for regional businesses in Western Australia, with $1.2 billion worth of local supply contracts awarded in the 2022-23 financial year. This substantial investment highlights a shift towards increased support for regional enterprises, marking a notable rise in the amount of contract value flowing into local economies.
The “Local Content in the Regions Report” released today provides a detailed overview of how the Local Content program has expanded opportunities for regional businesses to engage with State Government projects. The report indicates that 21 per cent of the total contract value for the year went to businesses based in regional areas, surpassing the six-year average of 18 per cent. This represents an additional $174 million in contract value awarded to regional WA, underlining the government’s commitment to strengthening and diversifying local economies.
The increased share of regional businesses in more complex, State-wide contracts is particularly noteworthy. Regional suppliers now account for 17 per cent of the value of these contracts, a significant jump from the six-year average of 9 per cent. This growth is evident in contracts valued between $5 million and $25 million, showcasing the enhanced capacity and capability of regional businesses and their readiness for further expansion.
The Local Content Adviser Network has played a crucial role in this success. The network has expanded to include a State-wide team dedicated to major projects and strategic contracts, working alongside a Local Content adviser in each of the nine Regional Development Commissions. This expansion is designed to connect local businesses with government supply contracts and enhance their competitiveness.
Several regional businesses have benefitted from the increased local content focus. For instance, the new state-of-the-art workshop facilities at South Regional TAFE’s Albany campus were constructed by Great Southern-based Wauters Enterprises Pty Ltd. Additionally, the Department of Communities’ Housing Construction and Refurbishment Builders Panel, established in 2022-2023, saw 33 regional builders appointed to support social housing projects over the next four years. South West Fire, based in Collie, secured a contract for the manufacture and installation of up to 50 fire units for the Department of Biodiversity, Conservation and Attractions.
Regional Development Minister Don Punch expressed pride in the achievements of the Local Content program. “The Cook Government has worked tirelessly to ensure Local Content is embedded in Government procurement,” Punch said. “Our Local Content program is dedicated to ensuring regional businesses have full, fair, and reasonable opportunities to supply to the State Government.”
Punch highlighted the role of the Local Content Adviser Network in driving these outcomes. “In 2022-2023, the network identified 216 new potential regional suppliers to Government and undertook more than 3,300 engagements with businesses, peak industry groups, and Government agencies, helping to drive improved local content outcomes.”
For those interested in the detailed findings of the report, it is available online at: Local Content in the Regions Report.
This latest development marks a positive shift for regional businesses, providing them with more opportunities to contribute to and benefit from State Government contracts. The increased focus on local content not only supports the growth of regional economies but also demonstrates the Cook Government’s commitment to fostering a more inclusive and balanced economic environment across Western Australia.
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