CASE STUDY: LOCAL INDUSTRY POLICY AT A GLANCE

Major projects in Queensland which come under the Local Industry Policy are encouraged to maximise local industry participation by providing "full, fair and reasonable" opportunities for local industry.

There are without doubt many benefits derived for the economy from Queensland and Australian industry participation in major projects. Such participation can take many forms. Value adding to raw materials, manufacturing or construction activities and use of local service providers are all examples of value adding activities.

For minor suppliers, the policy had made a difference in the way it has made it possible to break up tender packages into smaller contracts. This approach has increased the opportunities for subcontractors to tender for work.

Minor suppliers and subcontractors have also been encouraged to join forces with other suppliers from the local community in order to win major project work.

In North Queensland, Department of State Development, Trade & Innovation together with ICN have organised workshops to demonstrate tender techniques for Government Projects. This approach was used for the Ayr Hospital Redevelopment project. 27 subcontractors were awarded to local Burdekin businesses as a result of the workshop and other initiatives.

Successful implementation of Local industry Participation Plans (LIPP) relies heavily on ICN's expertise and advice to major projects in finding local companies to supply locally made goods rather than imports.

Since the introduction of the policy, more than $2 billion worth of opportunities have been awarded to Australian suppliers. Major projects such as Comalco and North Tarong Power Station have made significant contributions to this achievement.

However, minor projects such as Ayr Hospital, Caloundra Courthouse, Institute of Bioengineering & Nanotechnology and Sustainable Mineral Institute are also imperative projects worth mentioning.