Council injected $338 million directly into the local economy last financial year, which supported an estimated 3,630 jobs in Cairns.
A report tabled today revealed Council spent 88% of its total $383 million expenditure in 2021/22 on locally purchased goods and services, including materials and local contractors for the extensive capital works program.
Of the remaining 12 per cent spent outside of Cairns, in 5% of cases there was no local option, non-local suppliers were used for 4% of that spend, and 3% was attributed to government expenditure.
Council's total local spend of $338 million was made up of, $116 million on employee wages, $133 million on materials and services, and $89 million on capital works.
"That's $338 million directly invested in the Cairns region last financial year, which importantly created jobs and improved infrastructure for residents," Mayor Bob Manning said.
"This direct spending creates a ripple effect through links with other businesses and from employees spending money in Cairns, which generated an additional $424 million into the economy.
"When you combine Council's expenditure and that additional spending, that equates to a $762 million impact on our economy."
It is estimated that for every $1 million that Council spends it supports 11 jobs, that equates to 3,630 people being employed as a result of Council spending.
"We know that Council's spend plays a pivotal role in the region through employment and economic stimulus," Cr Manning said.
"For example, Council is one of the largest employers in the region, with approximately 1,246 staff employed fulltime in the 2021/21 financial year and a local operational expenditure of $249 million.
"This operational expenditure, when direct and indirect impacts are taken into account, supports 1251 additional jobs in Cairns.
"Council's local investment of $89 million in infrastructure projects is estimated to have led to the direct creation of 316 jobs in the local construction sector, and indirectly a further 267 jobs in other related industries.
"In turn, these additional jobs meant more wages and salaries in the economy, some of which would be spent on local goods and services, thereby creating a further 550 jobs.
"This demonstrates the impact of this Council's commitment to creating an economic environment where business and industry can grow and prosper, which is a fundamental principle contained in Council's Procurement Policy."
