Cairns Regional Council has announced they injected $355 million directly into the local economy last financial year, an increase of $12 million from the previous year.
A new report revealed Council spent 86 per cent of its total $415 million expenditure in 2020-21 on locally purchased goods and services, including materials and local contractors for the extensive capital works program.
Overall, Council expenditure increased by $21 million, from $394 million in 2019-20 to $415 million in the 2020-21 financial year, including a total increase of $12 million on local expenditure.
“That’s $355 million directly invested in the Cairns region last financial year, which importantly created jobs and improved infrastructure for residents,” Mayor Bob Manning said.
“This direct spending creates a ripple effect through links with other businesses and from employees spending money in Cairns, which injected an additional $433 million into the economy.
“When you combine Council’s expenditure and that additional spending, that equates to a $788 million impact on our economy and represents about 4.2 per cent of the Cairns region’s Gross Regional Product.”
It is estimated that for every $1 million that Council spends it supports 10 jobs; that equates to 3,529 people being employed as a result of Council spending.
Of the remaining 14 per cent ($60 million) spent outside of Cairns, in 7 per cent of cases there was no local option, non-local suppliers were used for 4% of that spend, and 3% was attributed to government expenditure.
Overall, Council expenditure increased by $21 million, from $394 million in 2019-20 to $415 million in 2020-21.
“This increase in expenditure came at a time when many businesses in Cairns, particularly those involved with the tourism, have been adversely impacted by the economic impacts associated with COVID-19,” Cr Manning said.
“We know that Council plays a pivotal role in helping the region recover from this crisis through the provision of economic stimulus and employment.
“For example, Council’s local investment of $129 million in infrastructure projects is estimated to have led to the direct creation of 440 jobs in the local construction sector, as well as a further 246 jobs in other related industries.
“In turn, these additional jobs meant more wages and salaries in the economy, some of which would be spent on local goods and services, thereby creating a further 599 jobs.
“This demonstrates the impact of this Council’s commitment to creating an economic environment where business and industry can grow and prosper, which is a fundamental principle contained in Council’s Procurement Policy.”