More than $12.2 billion worth of economic benefit was delivered through State Government contracts to South Australian companies and workers in 2022-23, a 59 per cent increase on the previous year.
The increase was driven by a large number of Civil Construction/Building Projects, reference design and early works for the North South Corridor, as well as contracts in Professional Services, Residential Care and Healthcare.
The latest Annual Report from the Industry Advocate has revealed the economic benefit to SA is now $4.6 billion higher than reported in 2021-22.
Local companies to benefit include South Australian civil engineering firm Bardavcol, which today achieved completion of the first project undertaken under the State Government’s $15.4 billion River Torrens to Darlington Project – the $2.8 million main construction of the Selgar Avenue link road in Tonsley.
The link road will connect motorists to southern Adelaide’s Tonsley Innovation District and southbound lanes of South Road, allowing vehicles to make a right turn onto South Road from Selgar Avenue via MAB Circuit and Tonsley Boulevard.
Economic benefit is defined as the value of goods or supplies from a South Australian business, South Australian jobs or labour hours (including Trainees, Apprentices, Long Term Unemployed and Aboriginal workers), and investment or capital expenditure in South Australia.
The Malinauskas Government delivered on its election commitments by introducing sweeping changes in early 2023 to increase support to local businesses.
These include ensuring SA workers deliver a minimum 90 per cent of labour hours on major infrastructure projects worth more than $50 million, with 20 per cent to be delivered by apprentices, trainees, Aboriginal workers, and long-term unemployed.
All State Government contracts above $550,000 – including building construction, goods and services, manufacturing and distribution – are subject to an Industry Participation Plan. These Plans are monitored by the Office of the Industry Advocate (OIA) to track how much SA project work is awarded to SA companies, workers and suppliers.
In the past financial year, the number of contracts being monitored surged from 700 to more than 900 with a total reported value of $16.8 billion. A total of 4,021 Industry Participation Plans were submitted in 2022-23 showing that three quarters of the economic benefit stayed in SA.
Committed Industry Participation Plans include:
- $594 million in labour in the metropolitan area;
- $180 million in labour in regional South Australia; and
- 1,041 roles within South Australian contracts allocated to trainees or apprentices, with 589 of those being new traineeships or apprenticeships.
The Government’s procurement reforms will see an initial five per cent target increase to the amount spent on SA businesses instead of interstate and overseas suppliers – which would inject an extra $425 million into the state’s economy.
As put by Peter Malinauksas
Between new hospitals, housing, roads, tunnels, schools and clean energy infrastructure, the State Government is embarking on a massive build.
It’s incumbent on us to make sure every dollar spent delivers the best return for taxpayers – and one of the best ways we can do that is we ensure we maximise opportunities for South Australian businesses and jobs.
We have the policies in place to do just that – and it is delivering huge benefits for our local economy – more than $12 billion last financial year alone, a 59 per cent increase on the previous year.
This is helping underpin the record low levels of unemployment we have experienced through 2023.
As stated by Tom Koutsantonis
The scale and complexity of Government projects such as T2D means that both the size of the contracts and the potential for local industry involvement are enormous.
It’s very encouraging that, even in its relatively early days, this Project is fostering economic activity in South Australia and supporting local jobs.
The value and breadth of contracts awarded will only increase in the coming months and years as we move closer to the start of major construction.
As put by Stephen Mullighan
These results highlight the positive impacts the SA Industry Advocate is continuing to have for South Australian businesses and the wider economy.
Recent changes brought in under the Malinauskas Government earlier this year will further support local businesses and workers.
The Government will ‘look local first’ to back local businesses, local workers and local suppliers at every opportunity.
