Local businesses across Queensland are receiving a significant financial boost from resources companies, with a 16 per cent increase in local spending over a 12-month period.
Queensland Resources Council chief executive Ian Macfarlane said the industry’s latest Local Content report found buying locally was a win-win for the industry and local communities.
The Mackay local government area was the greatest beneficiary after Brisbane in 2018-19, followed by Gladstone and the Central Highlands (see table below).
“Expenditure from the resources sector with Queensland suppliers jumped from $19.3 billion in 2017-18 to $22.4 billion in 2018-19, which is the highest investment recorded in four years,” Mr Macfarlane said.
“Almost $70 million was invested with indigenous businesses, which is a 72 per cent increase on the $40.5 million in 2017-18.
“The total proportion of expenditure with Queensland suppliers has increased to 71 per cent of all spending ($31.5 billion).
“This means jobs now and ongoing jobs for regional Queenslanders and companies are benefiting from the significant increase in capabilities from the well-established supply hubs in Mackay, Rockhampton, Gladstone and Toowoomba, along with southeast Queensland.
“Queensland’s resources sector understands small businesses are the lifeblood of regional economies and they will be a key part in powering our state’s jobs growth post COVID-19.”
Mr Macfarlane said the results were calculated before the impacts of COVID-19 and, if industry was to continue to spend with local businesses, it needed greater certainty around investment.
“The resources sector needs the government to endorse our recovery plan to reduce red tape, streamline project assessment and approval processes and provide royalty stability over 10 years,” he said.