Hon Simon O'Brien MLC

Hon Simon O'Brien MLC

Former Minister for Finance; Commerce; Small Business

    $30b for WA economy from local resource contracts

    28/11/2012 12:00 AM
     

    • Resource contracts worth $30billion go to WA-based companies since July 2011
    • $2.5million allocated to local businesses to support growth 
    Local businesses are seizing their share of resource projects in Western Australia, having claimed contracts worth $30billion, according to a new report.
     
    Commerce Minister Simon O’Brien said the November 2012 Local Content Report revealed more than 75,000 jobs had been created as a result of $30billion in contracts awarded to WA-based suppliers since July 2011.
     
    “These contracts are across a wide range of businesses in the manufacturing and service sector, including construction, project management and equipment supply,” Mr O’Brien said.
     
    Despite increased volatility in some commodity prices, the outlook for the resources sector, and therefore the WA economy, remains strong.  Construction activity will remain buoyant and there are $167billion of projects under construction or in the pipeline.
     
    The Minister said in terms of project reporting, he was particularly pleased with the Gorgon result of 64 per cent local content, a significant increase on 44 per cent for the previous year.
     
    Mr O’Brien said another example of why the State’s economy was the envy of the nation was the outcomes reported by project proponents operating under the State Agreement Acts. 
     
    The November report shows these projects incurred $15billion in operational expenditure, of which WA’s share was 75 per cent; while construction-based outlays were $9.3billion, where WA claimed 69 per cent.
     
    ‘”Ongoing success can only be based on Government project proponents and suppliers working together, which is why the Industry Facilitation and Support Program the State Government introduced in 2011 has been such a success,” Mr O’Brien said.
     
    “This year, 120 local small and medium-sized businesses were allocated $2.5million to assist in areas including capital equipment upgrade; risk management and quality assurance; training; and business systems improvement.
     
    “We already know of 30 positive outcomes from the program that have led to contracts being awarded and increased employment.”
     
    These include:
    • Software company Scope Australia awarded $9.5million in contracts
    • Perth Surveying Services won $3.97million in contracts
    • Dwyer Engineering and Construction picked up $13.8million in contracts. 
    “The November 2012 Report has details of a further 10 Government initiatives designed to ensure competitive local companies have every opportunity to do business with our resource projects,” the Minister said.
     
    “This will add greater impetus to the momentous we have built up since the introduction of the Local Industry Participation Framework in July 2011.”
               
          Fact File
    • More information on what the State Govt is doing for local industry participation: http://www.commerce.wa.gov.au/localindustryparticipation
    • Local content in resource projects reaches $30billion since July 2011
    • State Government local content framework delivers more than 70,000 jobs
     Minister’s office - 6552 5800