GW3 calls for better local content procurement policy

Greater Whitsunday Alliance (GW3) and Queensland Local Content Leaders Network (QLCLN) is this week releasing their local content recommendations, after the group commissioned a research project to develop a better answer to the question ‘what is local?’.

Keeping it in the Regions:  A better practice model for local content and defining local business was developed in response to the 2018 House of Representatives Standing Committee Inquiry into mining and resource industry support for businesses in regional economies.

Queensland Local Content Leaders Network (QLCLN) a network of business and industry groups and local government representatives across Queensland resources communities, have developed a response to a key recommendation.

Joining GW3 from the Mackay Isaac Whitsunday (MIW) region are Mackay Regional Council (MRC), Isaac Regional Council (IRC), Whitsunday Regional Council (WRC) and Resource Industry Network (RIN).

GW3 Chief Executive Officer Ms Kylie Porter said the House of Representatives Committee recommendation included a need to clearly define ‘local’.

“Based on extensive, independent research, the QLCLN model recognises that a local business comes in many forms and is not only a long-term physical presence in a region.

“We believe a better definition of a local business is ‘ . . . those businesses making a ‘significant contribution’ to local economic activity, including businesses which have a significant physical presence in the local area and businesses which are not owned locally but provide goods, services and labour that are primarily produced or supplied within the local area,” Ms Porter said.

QLCLN developed a new six-tiered model of procurement where the priority is on the immediate local or natural economic zone of a region, rather than a defined arbitrary kilometre radius. 

Ms Porter said the model identifies that the priority should always be local first.

“For large purchases in regional Queensland, providing local content opportunities can seem initially challenging.  The QLCLN report shows that there are no excuses if you have engaged with the local community and understand natural economic zones to ensure small and medium sizes businesses in regional areas get a fair go.

“This model moves the emphasis firmly onto local and natural economic zones to ensure small and medium sized businesses in regional areas have a genuine supply opportunity.”

GW3 and QLCLN members are now calling on the State and Federal Government to consider adoption of this model.

“We urge the State and Federal Government to understand the importance of this model and for it to be incorporated for government led procurement projects, embedding this model into licensing agreements of major mining projects,” said Ms Porter.

Resource Industry Network (RIN) Acting General Manager Mr Dean Kirkwood said the QLCLN aimed to maximise regional spend from major projects, including mining, which was paramount to driving investment and economic prosperity in the Mackay Isaac Whitsunday region.

“The network’s role is to collaborate and partner with industry to deliver full, fair and reasonable opportunities for capable local businesses to participate in all aspects of the local supply chain, which benefits our member companies heavily involved in the METS sector,” Mr Kirkwood said.

Mr Kirkwood said the key findings included building local business capability and capacity, which was key in driving positive regional development outcomes.

“By focusing effort on building business supply chain capacity as part of local procurement policies, governments and large project contractors are contributing to a sustainable cycle of regional economic development,” he said.

Queensland Local Content Leaders Network is made up of more than 15 industry and business groups, local government representatives and key industry partners, with the economy advocacy group working to maximise the local benefit of projects.

This research culminated in a QLCLN position paper, which is available here for download: www.qlcln.com.au

Greater Whitsunday Alliance is the region’s peak, independent economic development body committed to making the Mackay, Isaac, Whitsunday region strong for generations.

…ends.

Fallon Drewett