CASH OUT

GOLD Coast City Council pumped an extra $136 million in contracts to local businesses last financial year.

Of the total $600 million in council contracts issued, $480 million went to Gold Coast firms. In the 2015-16 financial year, local companies received $334 million.

In five years, the number of Gold Coast businesses awarded council contracts has gone from 52 per cent to 80 per cent.

Nearly 450 of the 560 contracts issued in 2016-17 went to local firms.

“The city is one of the largest employers and one of the biggest budgets so it only makes sense to put our focus locally,” the council’s Governance and Administration Committee chairman William Owen-Jones said.

“If you spend money locally you are looking at getting more people employed.”

The 80 per cent threshold target was raised late last year when the council reached 75 per cent of contracts.

Part of the push is the council’s policy which gives local businesses a 15 per cent price advantage on projects less than $1 million. The price advantage is capped at $300,000 but only $31,888 was used in the last financial year.

The full council will vote on Tuesday whether to drop the cap to $250,000.

Cr Owen-Jones said there were reasons the city would ● $136 million more awarded to local businesses.

● 80 per cent of contracts to local businesses as at June 2017.

● 52 per cent of contracts to local businesses as at December 2012.

● $340 million additional spend with local businesses in five years.

● $23.3 million in savings in 2016-17.

● $12.4 million in savings in 2012-13.

not be able to reach 100 per cent of all contracts to Gold Coast businesses.

“It can be many reasons (a contract) does not go to a local business,” he said.

“It might be there just isn’t a suitable company, the expertise might not be here or it might simply be price.”

Cr Owen-Jones said as well as a focus on local business, the council had saved $23.3 million by centralising the city’s procurement processes.

The savings are up from about $12.4 million in the 2012-13 financial year.

Gold Coast North Chamber of Commerce president Gary Mays said the chambers had heard businesses were benefiting from the policy.

“For the most part been working,” he said.

He said the policy had not been popular outside of the city. “I’ve had interstate companies call me furious because they have missed out on a contract,” he said. it has