Cairns Regional Council spending generates $750m in one year for local economy, report claims

Cairns Regional Council has revealed the impact its spending has on the local economy, generating $750m in one year, a new report claims.

Cairns Regional Council’s focus on supporting local businesses has generated more than $750m for the region’s economy in the 2022/23 financial year, a new report has claimed.

The council’s state of procurement report put to a council meeting on Wednesday stated 87 per cent of the council’s total expenditure, or $339m, had been local, directly supporting more than 3500 local jobs.

It comes as businesses operating in Cairns reached 15,000 for the first time in the region’s history, according to the council.

Cairns mayor Bob Manning said the region’s economic diversity had ensured it remained resilient after the shockwaves of Covid.

“Council continues to play a vital role in growing the economy and is focused on supporting the local business community,” Mr Manning said.

Cairns Mayor Bob Manning said his council was small business friendly. Picture: Brendan Radke

“Our organisation is a major contributor to the Cairns economy, pumping hundreds of millions of dollars into the region through jobs and spending.

“As a small business friendly council, we are committed to delivering initiatives that support small business and cutting red tape to help businesses grow.”

The council’s direct local expenditure amounted to $339m; it figured that spending had a ripple effect through the local economy worth an additional $415m.

The council also estimated it generates 11 jobs for every $1m spent locally.

Council’s analysis showed its local expenditure as a percentage of total expenditure had remained relatively steady over four years – local expenditure in FY 2018/19 was 86 per cent of total expenditure, compared to 87 per cent in the past 12 months.

But total local expenditure has increased over the four years – it was $312m in FY 2018/19 compared to $339m in the past 12 months, a jump of almost nine per cent.

The council is banking on major local projects such as the $535m Bruce Highway upgrade – Cairns Southern Access Corridor (Stage 3), Edmonton to Gordonvale Project – to keep the region’s economy growing over the coming years. Picture: Supplied

The council report noted a pipeline of projects planned for the region, such as upgrades to the Bruce Hwy and Captain Cook Hwy, would provide an ongoing positive impact on the local economy as tight labour markets, which have kept unemployment low, were forecasted to ease.

“The report revealed almost 3000 new jobs were created in the Cairns LGA in the two-year period to June 2022, with significant milestones achieved across advocacy, major events, priority industries, geographic areas of focus and other economic initiatives,” a council spokesman said.

“During the reporting period, council sponsored 21 major events, which had an estimated economic impact of $53.65m, and it continued to work with stakeholders to progress the Smart Green Economy project.”

Originally published as Cairns Regional Council spending generates $750m in one year for local economy, report claims