Hon Simon O'Brien MLC

Hon Simon O'Brien MLC

Former Minister for Finance; Commerce; Small Business

    Local industry participation framework makes its mark

    23/08/2011 12:00 AM
    Commerce Minister Simon O’Brien today announced more than $4billion worth of contracts had recently been awarded to locally-based supply companies.

    Mr O’Brien said sourcing decisions by Chevron, FMG, Alcoa, Worsley and BHP Billiton resulted in local companies winning contracts. 
    “The State Government launched its Local Industry Participation Framework in July and, in the short period since, a number of high value-contracts have been awarded to locally-based companies,” he said.

    “These contracts will stimulate company take-up of apprentices and trainees. They also represented high value-add, sophisticated, supply aspects of these projects.

    “These positive developments clearly demonstrate that Western Australia’s economy is continuing to benefit from activities available in major resource projects currently under way.”

    Chevron has awarded an estimated $2.6billion in work packages for the Gorgon LNG project to AGC, Kentz/CBI, Civmec and Velocious. 

    FMG has also been particularly active in July with contracts valued at more than $1.2billion flowing to local companies in areas including production drilling; transport; and mine build and operate; while another major contract valued at $1billion had been let to MacMahon for the overall development of the Tropicana Gold Mine.

    During July, the Department of Commerce received a number of reports from major project proponents covering expenditure.  Alcoa recorded 78 per cent of spending as WA content; Worsley a 68 per cent level of local content; while BHP Billiton achieved 90 per cent in expenditure on the Rapid Growth 5 Project.

    The Minister said given that capital expenditure by resource projects, estimated to be running at a maximum of $4-5billion per month, these outcomes represented a very significant proportion of such investment.
    “These outcomes illustrate both the commitment of project proponents to source locally and the continued competitiveness of WA’s industry in what is now a very complex and challenging market,” he said.

    “The Liberal-National Government will maintain an active role in ensuring local suppliers are provided with full, fair and reasonable opportunities to participate in both resource project construction and operation. 

    “The investment of the resource sector over the next five years will be the key determinant of the future performance of the State's economy and that maximisation of this expenditure was therefore crucial.
    “The magnitude of positive impacts from this sector is also underlined by the reports received from the Department of Commerce.  I am committed to providing regular updates on this priority issue to State Parliament.”
    Minister's office  - 9213 6400