General News
2 September, 2024
Council’s $1bn economic hit
CAIRNS Regional Council estimates its economic influence on the Cairns region is nearly $1 billion a year.
According to its latest ‘State of Procurement Report’ the council fuelled the region’s economy to the tune of $907 million in the 2023/24 financial year, based on a $384m direct spend, plus the ripple effect of $240m by businesses buying stock etc and $283m by the employees of those businesses spending money locally.
The report said the council contributed 4.3 per cent to the Cairns Gross Regional Product and supported nearly 3900 local jobs.
Nearly 90 per cent of the council’s total expenditure (88 per cent) of $384m was spent at Cairns businesses – a $46m increase on the previous year.
According to the latest data, the Cairns economy has grown to $11.46 billion, marking a 5.06 per cent increase on the previous year.
Cr Matthew Tickner told the council meeting on Wednesday that the 88 per cent spend was “phenomenal”.
He said councillors fully appreciated the council’s role in the local economy.
Cr Tickner said 10 jobs were supported for every $1 million spent and the 88 per cent figure was the average over the past nine years.
Mayor Amy Eden said the council played a vital role in growing the local economy.
“The report shows just how important it is for us to keep buying local,” she said.
“Through our local focus on spending, (the) council was the catalyst for almost $1bn investment across the region last year. The ripple effect of (the) council’s expenditure with local businesses supports 3889 jobs.”
The local $110m capital works expenditure is estimated to have supported 1112 jobs through construction projects.
Key insights about the local economy include:
Local employment has risen to 88,563 jobs, reflecting a 4.86 percent growth.
Cairns’ consumer expenditure remains steady at $5.4bn in the year to June 2024.
The labour market remains challenging with 2.8 per cent unemployment in the Cairns Local Government Area as of March 2024.
Of the council’s total expenditure for 2023/24, 88 per cent was local. There was no local option for 4 per cent, non-local suppliers were used for 5 per cent and 3 per cent is government expenditure.
